A Decade of Corporate
Social Responsibility

Letter from the CEO

Headshot Joe Sullivan | CEO

“Investors today expect us to be a force for good. And, indeed, a well-run business can and should be a catalyst for social good.”

At Legg Mason, our mission and guiding aspiration is Investing to Improve Lives.

Our commitment to stewardship is broad and encompasses not only our investment management strategies but our overall approach to business, as well. In short, when we generate market-beating returns for our clients, profits for our financial stakeholders and good compensation for our employees, we can do more in our communities and benefit the world around us.

We have a deep conviction for active, long-term investing.

Our nine independent investment managers, each with its own unique thinking, employ both ESG analysis and direct engagement to identify opportunities. All nine of our affiliates are PRI signatories and $183 billion of our long-term AUM is in strategies that utilize ESG factors.

ClearBridge Investments and Martin Currie fully integrate ESG into their fundamental investment processes, while Brandywine Global and Western Asset view ESG as an important component of security analysis and offer customized solutions based on client criteria. Clarion Partners, EnTrustPermal, QS Investors, RARE Infrastructure and Royce & Associates all have distinct approaches incorporating ESG into their areas of investment focus.

We have made it a priority to build both a more diverse and inclusive work environment.

This commitment means mindfully, consciously and consistently bringing different voices into the conversation, empowering a broader group of stakeholders to influence and make decisions.

I’m proud of the work being done by my colleagues at Legg Mason and our investment affiliates worldwide, as reviewed in our 10th Annual CSR Report. And yet, we know we can do more. Together, we are dedicated to being that force for good that investors expect and to fulfilling our mission of investing to improve lives.

We are grateful for your support.

My best to you,

Joe Sullivan Signature

Joseph A. Sullivan
Chairman & CEO

Independent thinking ... Active engagement ... Connecting communities ...

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Nine Affiliates

Thinking independently, together.

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Through active engagement and management.

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Is the connection between our employees, the communities and the stakeholders we serve.

CSR and ESG Highlights

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$183 billion of long-term AUM

Approximately $183 billion of long-term assets under management (AUM) is in investment strategies that utilize environmental, social and governance (ESG) factors, up 15 percent over the previous year.

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“Most JUST” in Capital Markets

For the second consecutive year, JUST Capital and Forbes included Legg Mason in their JUST 100 rankings.

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Best Places to Work in Asset Management

Legg Mason and three affiliates — Brandywine Global, ClearBridge Investments and Western Asset — named to Pensions & Investments’ list of “Best Places to Work in Asset Management” in 2017.

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The first company

The first company to earn the ISO 37001 Anti-Bribery Management Systems Certificate from PECB North America, a certification body for international standards.

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CalPERS allocated $1 billion to QS Investors’ ESG strategy

CalPERS, the largest U.S. public pension fund, allocated $1 billion to an ESG investment strategy developed by affiliate QS Investors.

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“Multi-family Builder of the Year”

A Clarion Partners subsidiary was named “Multi-family Builder of the Year” by the Florida Green Building Coalition.

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PRI awarded Martin Currie an A+

For the second year running, the United Nations-supported Principles for Responsible Investment (PRI) awarded Martin Currie an A+ in all three of its top-level categories.

Martin Currie released its first CSR report in October 2018.
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95% score for Human Rights Campaign’s Corporate Equality Index

Legg Mason received a 95% score for Human Rights Campaign’s Corporate Equality Index. This index ranks employers on their engagement with and support of the LGBTQ community.

10 Years of CSR at Legg Mason

Ursula Schliessler

“Legg Mason’s Global CSR Network connects and improves collaboration around the firm’s collective global CSR work in alignment with our Investing to Improve Lives mission.”

“Since its launch, the network has expanded and deepened networks across the firm, leveraged existing programs and experiences, and created new initiatives. As we celebrate 10 years of CSR at Legg Mason, this group is the catalyst to further advance our work in this important space.”

Ursula Schliessler
Chief Administrative Officer
Executive Sponsor, Global CSR Network

Stakeholder Engagement Efforts

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Our membership in the Ceres Company and Investor Networks on Climate Change and Sustainability is an important component of Legg Mason’s stakeholder engagement. In 2018, we asked Ceres to host a presentation on the United Nations’ sustainable development goals (SDGs) for our Environmental Social Governance (ESG) Working Group along with our Environmental Sustainability Council (ESC) and our Global Responsibility & Environmental Education Network (GREEN) employee resource group.

As a firm, we have recently reviewed the 17 SDGs and are in the process of determining which goals best align with our business as well as our CSR focus. Once we determine our proposed goals, we will hold a stakeholder engagement meeting with Ceres regarding SDGs and corresponding targets.

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Mapping to Our Matrix

Since 2015, our materiality matrix has guided Legg Mason’s CSR strategy and reporting. We approached the matrix by categorizing topics as being critical to both Legg Mason and our stakeholders, topics of significance to us and topics that our stakeholders highly value. This report highlights our recent accomplishments around three of those top-tier topics:

  • Diversity and Inclusion
  • ESG Products & Strategy
  • Governance

In the coming months, we will revisit our matrix with Ceres as well as with internal stakeholders.

Principles for Responsible Investment

David Sheasby

“The ESG landscape is rapidly evolving, and the PRI has been instrumental in raising awareness about responsible investing. PRI’s ESG Engagements Advisory Committee, which I joined in 2017, is responsible for coordinating collaborative engagements with listed companies on ESG topics and considering the priorities for present and future engagement initiatives.”

David Sheasby
Head of Stewardship & ESG, Martin Currie

Principles for Responsible Investment

The United Nations-supported PRI is recognized as the leading global network for investors committed to incorporating ESG considerations into their investment philosophies. Signatories agree to contribute to the development of a more sustainable global financial system.

Brandywine Global
Clarion Partners
Martin Currie
QS Investors
Royce & Associates
Western Asset

Straight A+s

ClearBridge Investments, Clarion Partners and Martin Currie all received A+ overall PRI scores as well as above-average scores for each of the respective required modules.

Diversity and Inclusion

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Diversity of U.S. Employees*
Diversity Chart

* Figures include Legg Mason corporate and distribution employees and all affiliates with U.S. employees.

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Start at the Top

Legg Mason’s Board of Directors represents a diversity of thought, experience and perspective. Our diverse board includes three women and two African-Americans.

With the addition this year of Michelle Goldberg, a partner at venture capital firm Ignition Partners, and Alison Quirk, a retired State Street Corporation executive, 30% of our board members are women as of fiscal year 2018. This puts us in line with the 30% Club’s goal that all public company boards have a minimum of 30% female representation by 2020.

Employee Voices

Employee Voices

Legg Mason’s ERGs are open to all employees. We encourage strong participation as well as support of our collective diversity and inclusion initiatives from the top down and from allies.

A Day of Conversation

In October 2017, Legg Mason offices around the world hosted our first-ever “Day of Conversation.” The goal of the day was enhancing mutual understanding.

Trained employee volunteers facilitated 90-minute to 2-hour sessions where participants were welcome to talk about any aspect of diversity and inclusion. Whatever the concerns — gender, race, sexual orientation, generational differences or any other factor that inhibits people in their work life — people were encouraged to either share feelings and viewpoints or simply listen to what co-workers had to say.

Ultimately, this day was another step forward in building a truly inclusive workplace at Legg Mason where all employees feel they can be their full, authentic and best selves.

Dionne Spencer

“As a Day of Conversation facilitator, I had no idea what to expect and was comforted to know I was not alone. The purpose of the day was daunting yet incredibly simple: To engage in conversation with your colleagues. All of the conversations were different and powerful. I believe they collectively advanced engagement and inclusion across the firm. It is clear that diversity and inclusion is a strategic priority at Legg Mason and I’m extremely proud to participate in the journey.”

Dionne Spencer
Head of AUM & Revenue Analysis

Regina Curry

A Conversation with Regina Curry, Chief Diversity Officer

Q: What attracted you to the role at Legg Mason?

A: Legg Mason’s mission of Investing to Improve Lives resonated with me personally as I am intrinsically motivated to make a difference in the workplace for employees and externally in the community. I am a firm believer that an effective leadership style has a positive impact on an organization's culture, and the opportunity to work for and with a leader like Joe Sullivan, Legg Mason’s Chairman and CEO, was very appealing.

Q: Can you talk about the role of the Executive Diversity and Inclusion Council (EDIC) and ERGs in advancing diversity and inclusion initiatives?

A: The leadership, engagement and alignment of the EDIC and our ERGs is a critical factor in the success of these initiatives and setting global priorities. I am now the chair of the EDIC and Joe is our executive sponsor. Our goal is to have a systematic approach to diversity and inclusion that addresses our culture, processes and leadership.

Q: What are some key challenges in the overall diversity and inclusion space?

A: Diversity and inclusion means different things to different people based on their personal experiences, geography and general views of the world. At the core, we have diversity when there is more than one person in the room. We can open up great opportunities if we can help people understand that growth is obtained through diversity and inclusion. Organizational and individual benefits are realized when people embrace the fundamental belief that diversity doesn’t work without inclusion and vice versa.

Q: You’ve launched a program focused on unconscious bias. Why did you decide to tackle that issue?

A: Implementing and expanding unconscious bias training is one of the three goals of the CEO Action for Diversity & Inclusion initiative that Joe signed last year. It’s important that we introduce tools to identify and eliminate bias in talent and business systems. This program provides education and resources for all employees on inclusive leadership and unconscious bias.

Q: Any additional thoughts?

A: As a company, we’re in a good place. However, like many companies, we have a long way to go to get to where we want to be in terms of diversity and inclusion. We’re proactive and ready to elevate our efforts. A favorite quote of mine by Verna Myers, a Baltimore native who’s a well-known diversity strategist, sums it up: “Diversity is being invited to the party, inclusion is being asked to dance.”

Elisa Mazen

A Conversation About Female Representation in the Asset Management Industry with Elisa Mazen, Managing Director, Head of Global Growth, and Senior Portfolio Manager at ClearBridge Investments

Q: How has the asset management industry changed over the course of your career?

A: When I started out in this industry more than 30 years ago, there were very few female research analysts, portfolio managers or traders. Over time, and through the efforts of both male and female leaders, the industry has started to reflect the diverse intellectual talent in the marketplace.

Q: Why is it important for the industry to embrace diversity and inclusion?

A: I believe that women investors are an untapped resource and a powerful force in capital markets. Moreover, quantitative studies continue to demonstrate that including women in management can help drive returns, lower volatility and increase innovation.

Q: As a senior leader in your field, how are you helping the industry move forward?

A: I’ve been deeply involved in ClearBridge’s internship program for more than five years. It’s been very rewarding to see the progress of the young women who come through that program. Many of them have continued with careers on Wall Street. If we introduce more women to finance as a potential career option, we can encourage more diversity in our field in the future.

ESG Approach

Fact or fiction? Is ESG investing …

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Just a negative screen for “sin” stocks?

Fact: ESG is about engagement, not necessarily exclusion.

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Limited to equities?

Fact: ESG factors can be applied across any asset class.

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Only available to institutional or high net worth investors?

Fact: Legg Mason offers two dedicated ESG products for retail investors.

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A “feel good” approach that underperforms traditional strategies?

Fact: ESG equity indexes have comparable performance to broad market benchmarks.

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ESG Assets under Management by Asset Class for Fiscal Year 2018

ESG/AUM (US$ in billions) % of AUM
Fixed Income 109.1 59.6
Alternatives 48.8 27.2
Equities 24.1 13.2
Total 183.0 100


A Diversified Portfolio

ESG factors can be part of an active investment strategy across multiple asset classes.

Sovereign Bonds

Brandywine Global believes ESG factors have the potential to be a greater differentiator of sovereign bonds in the future. Beyond the obvious social and governance concerns, political situations, such as the guerrilla conflict in Colombia, could impact deforestation or promote illicit logging. These potential risks are certainly factored into investment analyses. When selecting government bonds, investors could consider what countries are doing to move away from areas of environmental concern, such as the use of nuclear power, and then weigh the potential impact of those changes on not only the health and welfare of its citizens but also any potential economic impact on the country’s production and growth prospects.

Commercial Real Estate

When looking at commercial real estate, investors could consider the property’s carbon footprint and how green energy is leveraged in the projects. For example, a solar photovoltaic system can be a differentiator when working with tenants. Clarion Partners worked alongside Amazon on the installation of solar systems on three fulfillment facilities in Nevada and California. Clarion’s solar installations are spread across retail, industrial and residential properties on both U.S. coasts and in Texas.

U.S. Equities

Companies that are making a true difference when it comes to sustainable factors, such as carbon emissions and water consumption, can also experience a direct bottom line benefit.

Consider a discussion that ClearBridge had with a hardware company, in which it had been a shareholder for several years. This dialog led to the company measuring and reporting carbon emissions data and setting five-year targets to reduce emissions by 30%. The company also addressed water consumption and eventually achieved 100% water recycling in its Shanghai manufacturing plant — the first facility of its kind to reach such a milestone. In addition to the environmental impact, this decision resulted in more than $2 million in water utility cost savings.

International Equities

Shareholders put a proposal to the board of a U.S. oil and gas company that it distribute a report outlining its climate-change policies. As a shareholder, Martin Currie was in full support of this proposal and met directly with company leadership to explain why these were critical issues for shareholders. Since the voting, the company has outlined specific initiatives to prevent climate change and distribute a climate risk report.

Green Bonds

ESG factors affect the creditworthiness of fixed-income issuers’ securities as well as the performance of fixed-income investment portfolios. For Western Asset, climate-related initiatives were a focal point of discussions with policymakers during a recent trip to Africa, which included stops in Côte d’Ivoire, Ghana, Nigeria and Egypt. In Côte d’Ivoire, specifically, portfolio managers had a long discussion about the challenges in developing the country’s energy sector, and the potential for off-grid solar systems to facilitate rural electrification without overwhelming public finances.

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Investor Attitudes Toward ESG

Each year, Legg Mason surveys retail investors around the world to gauge their motivations, concerns and biases. The latest survey explored the outlook of nearly 17,000 investors in the Americas, Asia Pacific and Europe. Among the themes the Global Investment Survey 2018 explored were ESG and sustainability.

According to the survey, the environmental factor (31%) is the most important criteria for investors who consider ESG when choosing a fund. Social (21%) and governance (20%) factors ranked second and third.

What’s Stopping Them?

When asked about barriers to ESG investing, investors cited lack of information (29%) and lack of advice (24%) as the two biggest hurdles. Two other concerns (both 23%) were uncertainty over which investments take a sustainable approach and the feeling that investment returns on ESG-aligned investments won’t be as strong as the returns on other investments.

It’s the Environment

In weighing the investment factors that portfolio managers should consider, environmental concerns again topped the list. Survey participants expressed strong concerns about both the impact on their local environment as well as global climate change.

ESG & Sustainability Importance for Fund Managers

ESG Importance Chart

Active and Engaged

ESG investing is a natural fit with Legg Mason’s belief in and commitment to active investing. Active management provides us with the flexibility needed to apply ESG strategies and make investment decisions that we believe are best for our clients. As active investors, we can engage with companies that face ESG challenges and use proxy votes to drive improvements in companies’ operations, making them more sustainable in the long run.

ESG Approach by Affiliate

Legg Mason offers investors ESG solutions across many asset classes and investment vehicles through our nine affiliate investment managers.

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Setting the Bar

Corporate governance is the backbone of CSR. Legg Mason’s Board of Directors and management are committed to sound corporate governance, and we value engagement with stockholders on our policies and practices.

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Stockholder Engagement

We engage with our largest shareholders midway through each fiscal year to discuss corporate governance topics as well as practices and outcomes. In 2017, we talked with stockholders about Legg Mason’s strategic developments, board composition and gender diversity.

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Proxy Access

We also solicited investors’ views on proxy access and stockholders’ rights to amend bylaws. Based on their feedback, in February 2018, we adopted a “proxy access” provision permitting a shareholder or group of up to 20 shareholders owning 3% or more of our outstanding common stock continuously for at least three years to nominate a number of candidates for election to the board not to exceed the greater of two directors or 20% of the number of directors then in office.

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Our “No Chalk” Culture

As described in our Code of Conduct, “No Chalk” refers to “no chalk on your shoes.” It is a term we have used for many years as a metaphor for ethical behavior. Like an athlete competing on a playing field, Legg Mason wants all employees to stay well within the boundary lines for ethical behavior so there’s no chalk on their shoes.

For additional information on Legg Mason’s Code of Conduct, please read our governance documents.

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ClearBridge Encourages Biotechnology Firm to Initiate Sustainability Disclosure

ClearBridge is a long-term shareholder in BioMarin Pharmaceutical, a biotechnology company developing treatments for rare and orphan diseases. The company’s mission is to save or improve patient lives, and it makes its treatments widely available, especially in emerging markets underserved by large drug makers. BioMarin also adheres to environmentally friendly manufacturing processes.

ClearBridge has been engaging with the company for several years, encouraging it to better document its ESG practices by publishing a sustainability report. The company is still considering such a report but, in the interim, it has begun to post sustainability information on its website. ClearBridge views this as progress and will continue to engage BioMarin on improving its sustainability disclosures.

Data Privacy and Cybersecurity

Proxy Access

Cybersecurity threats escalate and evolve on a daily basis. Our employees and clients entrust us with significant amounts of personal data. As stated in our Code of Conduct, all employees are responsible for protecting confidential data contained in electronic data and emails.

A Conversation with Janet Oren, Chief Information Security Officer

Q: At a high level, how does Legg Mason approach cybersecurity?

A: Just like the technology we use, our cybersecurity policies and strategies are constantly being reviewed and enhanced. This effort requires a high level of cooperation between the firm and our affiliates. More specifically, our cybersecurity program is based on the NIST cybersecurity framework, a robust and flexible framework that’s widely seen as a best practice for addressing cybersecurity risk. And of course we proactively monitor for attacks or threats to our environment.

Q: The EU just enacted new standards specifying how companies should handle personal data. How are you complying with this regulation?

A: As a global company, we are used to dealing with different data privacy standards in different markets. With regard to the General Data Protection Regulation, we worked closely with Legg Mason’s legal and compliance departments, as well as our affiliates, to be ready by the May 2018 deadline. This work included analyzing the types of data we collect and maintain from both clients and employees, working with vendors to identify key risks and concerns, and updating policies and procedures to bring them in-line with the new regulation.

Q: One of the biggest causes of data breaches is employee error. How do you involve employees in cybersecurity?

A: Cybersecurity is part of everyone’s job at Legg Mason. It is important that we all take it seriously and understand what we are responsible for. Our cybersecurity team just launched an internal “cybersite,” which offers educational articles and tips for enhancing cybersecurity. In addition to our annual awareness training, we recently hosted a panel discussion for employees to highlight the importance of cybersecurity vigilance from a personal and corporate viewpoint.


At Legg Mason, What’s the Difference Between …

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Environmental Sustainability Council

Focuses on creating a sustainable future through reducing energy use — lowering costs, reducing our carbon footprint and reinforcing our reputation.

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Creates sustainability awareness and helps people live environmentally friendly lifestyles. Participates in activities such as oyster gardening.

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ESG Working Group

Comprised of both Legg Mason and affiliate participants, it promotes knowledge-sharing and best practices among investment professionals.

Clarion Partners Responds to Climate Change

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Clarion Partners

Clarion Partners believes that sustainability and property competitiveness go hand-in-hand. The firm strengthens sustainability across its portfolio in many ways, including installing electric vehicle charging stations; factoring walk and mass transit scores into property evaluations; implementing more sustainable lighting, landscaping and HVAC systems; and improving energy management. In recent years, solar implementation has played a particularly important and growing role in the firm’s energy management programs.

Clarion supports these alternative energy efforts by working with tenants that are interested in procuring solar, breaking ground in 2012 with its first 1.5-megawatt (MW) development. Additional projects have since followed, and there are now over 20 MW of solar capacity installed, or in the installation process, throughout its portfolio. Clarion’s solar systems are spread across retail, industrial and residential properties in seven states, and it continues to actively explore additional opportunities for further deployment.

Clarion has been particularly pleased to support Amazon in its ambitious effort to deploy solar on 50 fulfillment centers by 2020. Currently, Amazon has solar panels on five properties owned by Clarion, representing 23% of the 17 million square feet of property leased through Clarion.

Addressing the Plastic Problem

Plastic trash is a global environmental threat and a significant source of water pollution. Today the largest use of plastics is in disposable packaging, which typically isn’t recycled.

Our employees have taken the initiative to address the plastic waste issue on a number of fronts. For example, our London office has been working to reduce single-use plastic by:

  • Replacing plastic milk bottles with glass, which are being picked up, cleaned and reused; over the course of a year, the glass bottles will replace approximately 8,000 plastic bottles
  • Substituting plastic spiral binding loops with closed binding loops made from recycled plastic office waste
  • Utilizing cardboard report covers instead of plastic ones
  • Switching disposable pens for pens made from recycled plastic

Bin the Bin

The winning entry in the GREEN ERG’s “Think Green” employee competition was designed to reduce employees’ plastic usage by using fewer plastic bin liners. The “Bin the Bin” initiative now encourages employees to remove their individual waste bins from under their desks and instead use communal ones. It’s estimated that Legg Mason offices in three locations alone — Baltimore, New York and Stamford — use 125,000 bin liners a year. Our London and Sydney offices have also been strong supporters, with 100% of staff having kicked the individual bin habit.

Carbon Disclosure Project

Since 2008, Legg Mason has been a member of the CDP (formerly known as the Carbon Disclosure Project) and signatory of its Investor Initiative. We have generally received favorable scores in CDP’s annual climate disclosure survey. Last year, we were disappointed with a “C” score, having had an “A-” score the prior year despite minimal change in our overall carbon footprint or related initiatives.

In 2018, we re-evaluated our approach to the survey, which resulted in increasing engagement on certain commitments related to our ESG and CSR initiatives. We’re hopeful that our efforts will allow us to achieve an improved score and look forward to seeing the results when they’re made public.

Energy Efficiency

Legg Mason Energy Usage1

20162 2017
MT CO2e (Scope 1 & 2) 3,542.13 3,459.96
MT CO2e (Scope 3) 3,895.32 3,571.91
kWh per ft2 per year (Scope 1 & 2) 21.45 22.73
kg CO2e per ft2 per year (Scope 1 & 2) 6.76 7.24

1 Energy measured in megawatt hours used by Legg Mason and ClearBridge corporate offices based on calendar year data.
2 This differs from what was previously reported for 2016 as corrections were made to the data during the 2017 reporting process as well as the release of updated emissions factors that were applicable to 2016 energy data.

Legg Mason Carbon Footprint3

2010 2011 2012 2013 2014 2015 2016 2017
Energy Use in MWh 35,129 30,949 20,849 15,620 13,240 12,174 11,627 10,862
MT CO2e (Scope 1 & 2) 12,820 11,751 6,535 4,921 4,406 3,998 3,748 3,460
MT CO2e (Scope 3) 2,506 2,130 2,064 6,565 3,961 4,412 4,002 3,572
kWh per ft2 per year (Scope 1 & 2) 33.2 31.2 23.5 25.2 21.4 23.7 22.9 22.7

3 Carbon footprint measured in metric tons based on the energy usage outlined above.

Employee Voices


“Over the last year, Legg Mason considerably advanced the engagement of employees on matters pertaining to sustainability and the environment. Our GREEN ERG, which now has more than 120 members, initiated an innovation challenge that resulted in the global Bin the Bin initiative to reduce plastic bag usage. I am very proud to be part of the GREEN ERG leadership team and sincerely appreciate the support we’ve received — not just from employees, but from our CSR team and our senior leaders.”

Alison Stryker Breward
Marketing Manager, Legg Mason


A Conversation About SoundWaters with George Schott, Senior Marketing Manager, Legg Mason

Q: Why have you chosen to work with SoundWaters?

A: Long Island Sound is our region’s greatest natural resource. Unfortunately, even though we can easily see it, it’s harder to experience it directly because public access is somewhat limited. SoundWaters fundamentally believes that when people, especially students, directly enjoy the benefits of the sound and know something about it, they’ll do more to protect it. And they’re doing a very effective job of giving children in our communities access to and education about to the sound.

Q: What types of programs does SoundWaters offer?

A: Every year, SoundWaters educates and inspires more than 32,000 students from all backgrounds in Connecticut and New York. It wants them to understand, value and protect the sound through hands-on science that directly connects them to the water. They conduct year-round programs in local schools, at two coastal education centers, on sailboats and aboard their 80’ schooner. More than 30% of the students come from underserved communities thanks to a donor-funded scholarship program.

Q: How do you and your colleagues get involved?

A: We’ve participated in beach clean-ups at Cove Island Park, cleaned boating equipment used by SoundWaters in educational programs and invited SoundWaters staff to conduct educational programs associated with Bring Your Child to Work Day. This year, we expanded our involvement by participating in Flotilla 18, sponsored by Legg Mason. Twenty employees, families and friends paddled kayaks and paddle boards four miles from Cove Island Park to Stamford Harbor to raise money for SoundWaters and to raise community awareness about the sound’s recreational benefits.

Q: Why is the health of Long Island Sound important to you?

A: Every day, I look out our office windows and I’m uplifted by the sound’s beauty. I’m also reminded of its vital importance as a natural resource critical to the environment that also provides recreational as well as commercial benefits to communities all along its shoreline in Connecticut and New York. When we volunteer to protect and preserve the sound, we’re truly investing to improve lives, both now and for generations to come.

Community Engagement

A Culture of Compassion

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We have a long history of supporting community well-being through the Legg Mason Charitable Foundation. We believe that Legg Mason’s investments can have the greatest impact through a core focus on education and on nonprofit partners with strong grassroots initiatives and commitments to their communities.

Since it was established in 2000, the foundation has made nearly $25 million in grants to community partners. In 2018, 60% of foundation giving was directed toward crib-to-career education programs. The foundation has established decade-long relationships with several nonprofit organizations and is committed to helping students succeed — from preschool through college.

Children’s Learning Centers of Fairfield County

With 90% of brain development occurring by age five, having a long-standing foundation partner dedicated to high-quality and affordable early childhood education is of great importance. In addition to philanthropic support and board representation, twice a month, Stamford employees read to the children and lead hands-on, learning-related activities.

Boys Hope Girls Hope

Operating in Baltimore and New York, this organization helps academically motivated middle and high school students rise above disadvantaged backgrounds and become successful in college and beyond. In addition to philanthropic support and board representation, our African Heritage Employees Advocating Diversity (AHEAD) ERG regularly partners with the organization to provide life-skill development activities to the students and meaningful volunteer opportunities to our employees.

Baltimore Community Foundation

Our partnership with the Baltimore Community Foundation aims to alleviate the financial stress of paying for college and allow students to focus on their studies. To date, Legg Mason has awarded scholarships totaling more than $300,000 to students in financial need. The current program structure provides a Baltimore public school student with a four-year, full college scholarship to a public university in Maryland.

The CSR Connection


“The Legg Mason Charitable Foundation has evolved so that, today, we’re focused on deeper global engagement in the communities where we’re located. We take great pride in connecting our employees, other businesses and a variety of resources to help communities come together to strengthen themselves.”

Auburn R. Bell
Head of Market Research & Corporate Philanthropy
Legg Mason

Legg Mason embarked on our CSR journey in 2008. We were an early adopter in building a formal CSR department, tracking our efforts and reporting to stakeholders. All employees “own” CSR and each of us is accountable for continued firm-wide commitment, growth, innovation and progress in this area.

Our CSR function serves as a critical connector, bringing together multiple social, community and environmental dimensions across the firm into a comprehensive platform. Our Global CSR Network facilitates collaboration around the firm’s collective work on CSR.

We see our commitment to CSR as a differentiator and a key component of the Legg Mason brand. But it’s more than that. CSR is an integral part of the Legg Mason employee experience. It is the primary way that we live our values and impart our organization’s culture to both existing and future stakeholders.

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18% of Eligible Employees

Participated in our matching contribution program

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Employee contributions to nonprofit organizations through our matching gift program

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Hours volunteered by our full-time employees

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East Baltimore Initiative update

Our East Baltimore Initiative is a community-based, philanthropic program that exemplifies our mission of Investing to Improve Lives. Our goal is straightforward and measurable: To improve the lives of our East Baltimore neighbors around education, job/career training, health and wellness and affordable housing. We collaborate with three core partners: Living Classrooms, Rebuild Metro and the East Baltimore Revitalization Project.

Over a four-year period, Legg Mason will make a direct investment of several million dollars into community projects led by these partners. In addition, we have committed 2,000 employee volunteer hours focused in East Baltimore through 2020. We’ve already contributed 700 volunteer hours with employees:

  • Serving as mentors at The Crossroads School and Patterson High School
  • Tutoring at POWER House, an East Baltimore community center
  • Serving on several nonprofit boards with specific East Baltimore programming
  • Creating a computer training workshop for a job-search event at POWER House
  • Volunteering through back-to-school events, Thanksgiving meal preparation and other seasonal activities at POWER House
  • Providing garden maintenance and library organization at an East Baltimore elementary/middle school
  • Continuing beautification of schools through the 9/11 Day of Service in the Johnston Square neighborhood in East Baltimore
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BLocal Initiative

BLocal connects 27 large businesses with a presence in Baltimore with the aim of magnifying their shared commitment to our headquarters city by building, hiring and buying locally, whenever possible.

Doing business with Legg Mason

As part of our support, this past fiscal year Legg Mason hosted a BLocal procurement fair. Our senior manager for procurement participated in a panel that discussed what they look for in vendors and discussed supply chain logistics. Additionally, we created an inbox (supplierdiversity@leggmason.com) to collect inquiries from local and diverse suppliers.


Back to School

Legg Mason helped students start the school year off on the right foot. Through our focus on education, Legg Mason supports:

  • Scholarship funding for underserved children
  • Resources for strong and innovative principals and well-trained teachers
  • Funding high-quality early education and after-school programs
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Worked with Bottom Line to raise funds for a “dorm registry” for six New York City students who are the first in their family to attend college.

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Painting Hallways

Helped prepare Crossroads School in East Baltimore for the new school year by painting hallways and organizing classrooms.

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School Supplies

Donated supplies and backpacks for students and classrooms in underserved communities, including the POWER House in East Baltimore.

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Stevenson Partners

Since 2014, Legg Mason has supported Maryland’s third-largest independent university through the school’s corporate scholarship program, Stevenson Partners. Each year, our contribution provides scholarships to Stevenson University to six deserving students. We also provide the sponsored students with career mentoring opportunities.

In 2018, we deepened our relationship with Stevenson by launching a minority fellowship that awarded one student with a year-long position in our finance department.

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Kickstarting financial education in the U.K.

KickStart Money is one of Legg Mason’s signature programs promoting financial education in partnership with other asset management firms. The aim of the project is to help build a national savings culture for the future. Currently financial education is part of the curriculum in secondary schools, but research has found many fiscal habits are developed at a younger age and that teachers and parents lack the confidence to equip young people with money skills. In addition to financial support, our U.K. employees have been lending their time to further financial literacy in underserved primary schools.

Employer of Choice

Recognized as one of Pensions & Investments’ Best Places to Work in Money Management 2017, Legg Mason fosters a supportive culture where employees can continue to grow, and where work/life balance is respected.

Talent Management

Innovative Employee Benefits

Just as we seek innovative solutions for our clients, we want to foster an innovative workplace that invests in improving the lives of our dedicated employees. As an example of how our benefits evolve to meet our employees’ needs, our medical plans for U.S. benefit-eligible employees now include coverage for transgender reassignment surgery.

In each of its international locations, Legg Mason provides customized market-competitive benefit packages.

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Company-provided membership for child, elder, pet and household care needs.

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Student Loan Genius

Free access to this online tool to optimize student loan repayments.

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Inside RxSM

Discount pet prescription program.

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Company-provided identity theft protection.

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Paid Parental Leave

In 2018, Legg Mason began offering an industry-leading policy to enhance work/life balance for parents welcoming a new child. All U.S. employees who become new parents can now take up to 12 weeks of paid time at 100% of their base salary, whether or not they have a stay-at-home partner. Expanding this benefit is consistent with our efforts to improve diversity and inclusion across the company by treating all new parents — both male and female — equally.

ERG Networks


“I’m amazed by how Legg Mason brings CSR concepts to life on a daily basis. So often, organizations pitch their mission and values to market themselves. Legg Mason is different — it takes the work seriously and empowers employees to do the same.”

Dana Bryant
Social Media Manager
Legg Mason

Employee Resource Groups provide employees with opportunities for professional development, networking and community outreach. More than 1,400 employees, more than 40% of our global employee base, participate in the following groups.


A Conversation About ERGs with Michael Mayer, Vice President, Client Service Manager, ClearBridge Investments and Chair, LEAD

Q: How has Legg Mason’s support of ERGs evolved?

A: I’ve been with Legg Mason for 20 years, and I’ve seen a significant cultural shift take place over that time. As a gay man, it has meant a lot to me — personally and professionally — to see the involvement of Joe Sullivan and the executive committee. They care about making improvements in diversity and inclusion across the board, and they’ve supported Out & Equal, a nonprofit dedicated to achieving workplace equality for LGBTQ individuals, for the past five years.

Q: What was it like for you to attend Out & Equal’s Workplace Summit this year?

A: The most significant proof of the company’s support of diversity and inclusion was our first-ever sponsorship of Out & Equal. It was a powerful experience to attend the conference and to absorb the teachings from the event. I had a lot of “wow” moments.

Q: How does LEAD interact with Legg Mason’s other ERGs?

A: LEAD has always welcomed LGBTQ allies so it’s important to us to convey that we’re allies of other groups. Ultimately, we believe that every aspect of diversity and inclusion is important. That’s why we support our other ERGs; we go to events and join groups that aren’t just about us. It’s something we can all grow from.

Global Reporting Initiative

Our report is aligned with the GRI. The index below is for reference.

Organization name Legg Mason Global Asset Management
Primary brands, products and services 2018 Form 10K pages 5-9
Headquarters location Baltimore, Maryland, USA
Where the organization operates 2018 Form 10K pages 5-9
Nature of ownership and legal form 2018 Form 10K page 2
Markets served 2018 Form 10K pages 3-4
Scale of the organization 2018 Form 10K page 9
Total number of employees by type Talent Management
Organizational changes during the reporting period 2018 Form 10K pages 2-16
Governance structure of the organization 2018 Proxy page 19
High-level accountability for sustainability topics Chief Financial Officer and Chief Human Resources Officer
Composition of the board and its committees 2018 Proxy page 23-25
Whether the chair of the board is also an executive officer Legg Mason Governance
Nomination and selection processes for the board and its committees 2018 Proxy pages 26-27
Board conflicts of interest 2018 Proxy page 71
Process for communicating critical concerns to the board 2018 Proxy page 22

Overview of Materiality

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Each year, Legg Mason measures ESG topics that are important to our key stakeholders. These topics, which can change meaningfully from year to year, are determined following a detailed review process and thorough engagement discussions. Some topics continue to resonate for our firm and ESG investors across the globe, such as workplace diversity and corporate governance, which advance our interests and those of our clients.

More material for Legg Mason and stakeholders

  • Climate Change
  • Community Investment
  • Philanthropy
  • Diversity and Inclusion
  • Energy Efficiency
  • ESG Products & Strategy
  • Governance
  • Regulatory Compliance
  • Anti-Corruption and Privacy
  • Talent Management

More material for Legg Mason

  • Financial Results
  • Anti-Competitive Behavior
  • Waste and Recycling

More material for stakeholders

  • Executive Compensation
  • Indirect Economic Impacts
  • Local Senior Management
  • Local Suppliers
  • Political Contributions
  • Public Policy Positions
  • Supply Chain Impacts

Less material for stakeholders and Legg Mason

  • Occupational Health and Safety
  • Biodiversity
  • Child Labor
  • Collective Bargaining
  • Environmental Compliance
  • Environmental Mitigation
  • External Grievance Mechanisms
  • Forced or Compulsory Labor
  • Human Rights
  • Indigenous Rights
  • Infrastructure Investments
  • Product and Service Labeling
  • Safety Impacts of Products and Services
  • Security Practices
  • Water Use and Discharge

About Legg Mason

About Legg Mason

Legg Mason is a global investment company committed to active, long-term investing by providing individual and institutional investors the valuable flexibility necessary to pursue their financial goals. Guided by its mission of Investing to Improve Lives, Legg Mason helps individual and institutional investors achieve better financial outcomes by delivering independent specialized investment expertise.

Founded in 1889 in Baltimore, Legg Mason has evolved from a regional broker-dealer into a global asset manager with $755 billion in assets under management (AUM) as of Sept. 30, 2018. Today, Legg Mason serves clients from 39 locations around the world, including offices in New York, Miami, London, Tokyo, Singapore, Hong Kong, Melbourne and São Paulo.

Legg Mason’s network of nine independent investment managers – each with distinct capabilities and expertise – connects clients to a diverse array of active equity, fixed income and alternative strategies. Our integrated client-first approach emphasizes service and transparency. Managers seek to deliver “sustainable alpha” that’s responsibly managed and risk-aware.

For more information, please visit our web site: www.LeggMason.com.