Physical climate risks, transition dynamics and nature degradation are increasingly influencing cash flows, asset valuations and long-term returns. At the same time, the transition to a lower-carbon and more nature-positive economy is creating new investment opportunities across asset classes.

To reflect these developments, the report brings together our climate- and nature-related disclosures, covering governance, strategy, risk management and metrics. It is aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the Taskforce on Nature-related Financial Disclosures (TNFD), recognizing the interlinkages between climate and nature from an investment perspective.

A key development this year is the introduction of TNFD-aligned content, including a sector-level analysis of nature-related pressures and dependencies across private and liquid markets, as well as our position on human rights. This complements the existing climate framework and broadens our coverage of environmental risks and opportunities.

The report also provides enhanced transparency on climate aspects in private markets through expanded analysis of portfolio company emissions and targets and it extends the assessment of climate solutions across asset classes within Global Investment Management.

Together, these developments further increase transparency on sustainability-related risks and opportunities and embed climate and nature considerations even deeper in LGT Capital Partners’ investment approach.