United StatesWe have always been clear that our investment philosophy is grounded in economics, not ideology. We invest with the conviction that understanding how sustainability-related risks and opportunities reshape markets is essential to delivering long-term, risk- adjusted returns for our clients. That conviction remains as relevant today as ever.
Our inaugural group-wide Sustainability Report brings that philosophy to life: it supersedes and broadens our previous Climate Report by providing a more integrated view of decision-making across our four priority sustainability themes – Climate, Nature, People and Governance.
It sets out how sustainability guides every stage of our investment process, introduces our first set of nature-related disclosures in line with the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations, and highlights the growing investment opportunity set in climate adaptation solutions.
What it means to be ‘guided by sustainability’
The framework through which we identify and manage sustainability-related risks and opportunities across our investments has three critical components:
- Through Insights, we generate ideas and shape our investment universe. We perform ongoing, top-down analysis at the sector and activity level using proprietary tools, notably our Sustainability Lens and thematic taxonomies, to identify where the transition to a more sustainable economy is creating financially material risks and opportunities.
- Through Integration, we rigorously assess each investee across governance, risk management, climate risks, human capital and controversies through our proprietary Corporate and Issuer Resilience Analysis.
- Through Influence, we drive change through stewardship and advocacy. We engage directly with companies and issuers, and advocate for the systems-level change needed to unlock opportunities from the transition to a more sustainable economy and help address systemic risks.
Our first TNFD-aligned nature disclosures
A key milestone in this report is the inclusion of our first nature-related disclosures in line with the TNFD recommendations, fulfilling our commitment as an early adopter to report in 2026.
Insights: We have assessed nature-related dependencies and impacts, across our listed equities and fixed income investments, using a LEAP-informed process1 and data from NatureAlpha. Insights from this analysis are used as inputs in the Impax Sustainability Lens, enabling us to identify how these dependencies and impacts drive nature-related risks and opportunities.
Through analysis using our proprietary Environmental Markets Taxonomy, we continue to see a strong and growing opportunity set across water infrastructure, circular economy models, sustainable agriculture, ecosystem restoration. For the first time, we have published a ‘nature opportunities’ metric that uses our Environmental Markets Taxonomy to measure the share of a company’s sales deriving from products and services that address one or more of the five drivers of biodiversity loss.2
Integration: In our report, we also outline how we have integrated nature into Corporate and Issuer Resilience Analysis by using Dependencies, Impacts, Risks, and Opportunities based insights and proprietary dashboards to assess nature-related exposure at the strategy and company level.
Influence: Meanwhile, we continue to engage with companies, issuers, other investors and policymakers on nature-related dependencies and impacts, particularly deforestation. In 2025, we facilitated investor input into the design of the Tropical Forest Forever Facility ahead of the COP30 climate summit, connected deforestation-focused coalitions with governments through the Investor Policy Dialogue on Deforestation, and continued to champion the TNFD recommendations with investee companies and peers.
Climate adaptation: an expanding opportunity set
The rising frequency and financial materiality of extreme weather events mean companies and investors can no longer afford to treat physical climate risk as tomorrow’s problem. In 2025, global natural catastrophes caused around US$220bn in economic losses.3
As part of our Insights work, we are building on more than 25 years’ experience of using revenue-based taxonomies to identify companies whose products and services help businesses and communities enhance their resilience to climate risks. Our proprietary Climate Opportunities Taxonomy captures adaptation solutions across three lifecycle stages, namely: Preparation, Response and Recovery. The water value chain is a standout example of this adaptation opportunity: proven technologies in flood-resilient infrastructure, water purification and efficiency are supported by structural demand from decades of under-investment, water-intensive industries and heightened focus on water security.
In recognition of the risks which extreme weather poses to investments, we have also sought to influence systems-level change to improve climate resilience. In Autumn 2025, the Sustainable Markets Initiative’s Asset Manager Asset Owner Hub, led by Impax, convened roundtables to explore how investors can better manage the financial impacts of extreme weather, culminating in a report with a clear call to action on adaptation. The report emphasised the need for investors to engage insurers to better price resilience and to advocate for stronger disclosures, standards and policy incentives – without which capital will continue to flow towards risk rather than resilience, undermining long-term value.
Looking ahead
The themes explored in our Sustainability Report, from nature dependencies to physical climate risk and adaptation solutions, are deeply interconnected. This interconnection reflects how we invest: not in silos, but through an integrated framework that connects sector-level insights, company-level resilience analysis, and stewardship and advocacy.
As the sustainability landscape continues to evolve, so too will our reporting. We will continue to enhance how we share our sustainability approach and activities, providing clients and stakeholders with deeper insight and transparency.
Our conviction is clear: being guided by sustainability at every stage of the investment process – through Insights, Integration, and Influence – deepens our understanding of and ability to manage sustainability-related risks and opportunities. We believe that this strengthens our ability to deliver long-term, risk-adjusted financial returns for our clients.
1 The LEAP framework is a structured, four‑phase assessment approach – Locate, Evaluate, Assess, Prepare – used to identify, assess and respond to nature‑related dependencies, impacts, risks and opportunities, and to inform TNFD‑aligned disclosures. See the TNFD’s Guidance on the identification and assessment of nature-related issues: the LEAP approach for further details
2 The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) identifies the five primary direct drivers of biodiversity loss and ecosystem degradation globally as land and sea use change, climate change, pollution, direct exploitation of natural resources, and invasive alien species
3 Swiss Re Institute, December 2025
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