Lincoln National Corporation (LNC): Analyse du Pestle [Jan-2025 MISE À JOUR]

Dans le paysage dynamique des services financiers, Lincoln National Corporation (LNC) se dresse à une intersection critique de forces externes complexes qui façonnent sa trajectoire stratégique. Cette analyse complète du pilon dévoile les défis et opportunités à multiples facettes auxquels l'entreprise est confrontée, explorant comment les réglementations politiques, les fluctuations économiques, les changements sociétaux, les innovations technologiques, les cadres juridiques et les considérations environnementales influencent collectivement l'écosystème commercial de LNC. En disséquant ces dimensions critiques, nous découvrirons le réseau complexe de facteurs qui définissent la résilience opérationnelle et le potentiel futur de l'entreprise sur un marché mondial de plus en plus interconnecté.

Lincoln National Corporation (LNC) - Analyse du pilon: facteurs politiques

Changements réglementaires dans le secteur des assurances et des services financiers

En 2024, Lincoln National Corporation fait face à un paysage réglementaire complexe avec:

Corps réglementaire	Impact réglementaire clé	Coût de conformité
SECONDE	Exigences de divulgation améliorées	12,4 millions de dollars par an
Naïf	Normes d'adéquation des capitaux	Investissement de conformité de 8,7 millions de dollars
Errisa	Surveillance du plan de retraite	Coûts d'adaptation réglementaire de 5,3 millions de dollars

Les réformes de la politique de la santé ont un impact

Les changements potentiels de la politique de santé affectant les produits d'assurance-vie et de groupe comprennent:

• Expansion potentielle des zones de couverture obligatoires
• Examen réglementaire accru sur les clauses de condition préexistante
• Modifications potentielles du crédit d'impôt pour les primes d'assurance maladie

Implications de la politique fiscale fédérale

Politique fiscale fédérale actuelle affectant les services de retraite et d'investissement:

Zone de politique fiscale	Impact financier potentiel	Effet de revenus prévu
Limites de contribution du compte de retraite	401 (k) Limite: 23 000 $ (2024)	Ajustement potentiel de 340 millions de dollars
Taux d'imposition des sociétés	Taux d'imposition des sociétés de 21%	215 millions de dollars de responsabilité fiscale potentielle

Tensions géopolitiques influençant les stratégies d'investissement

Considérations mondiales de stratégie d'investissement:

• Tensions de la relation commerciale américaine-chinoise
• Préoccupations de la stabilité économique européenne
• Évaluation des risques d'investissement sur le marché émergent

Métriques d'investissement géopolitique clés:

Région	Indice des risques d'investissement	Allocation d'investissement projetée
Asie-Pacifique	0,65 Évaluation des risques	1,2 milliard de dollars
Marchés européens	0,52 Évaluation des risques	890 millions de dollars
Marchés nord-américains	0,35 Évaluation des risques	2,5 milliards de dollars

Lincoln National Corporation (LNC) - Analyse du pilon: facteurs économiques

Fluctuant les taux d'intérêt impactant les revenus de placement et les prix des produits d'assurance

Au quatrième trimestre 2023, Lincoln National Corporation a déclaré un revenu de placement net de 683 millions de dollars, avec sensibilité aux changements de taux d'intérêt. Le taux des fonds fédéraux de la Réserve fédérale était de 5,33% en janvier 2024.

Paramètre de taux d'intérêt	Valeur 2023	2024 projection
Revenu de placement net	683 millions de dollars	692 à 715 millions de dollars
Rendement du portefeuille d'investissement	4.2%	4.3-4.5%
Titres à revenu fixe	64,3 milliards de dollars	65,1 à 66,5 milliards de dollars

Incertitude économique continue affectant les décisions de planification financière des consommateurs

L'indice de confiance des consommateurs était de 69,7 en janvier 2024, indiquant un comportement financier prudent. Le taux de chômage est resté à 3,7% en janvier 2024.

Indicateur économique	Valeur de janvier 2024	Changement d'une année à l'autre
Indice de confiance des consommateurs	69.7	-2.3%
Taux de chômage	3.7%	Écurie
Revenu médian des ménages	$74,580	+2.1%

Risques de récession potentielles remettant en question les marchés de la retraite et de l'assurance-vie

L'assurance-vie totale de Lincoln National en vigueur était de 1,42 billion de dollars en 2023. Probabilité de récession estimée à 35% par les principaux prévisionnistes économiques.

Métrique du marché de l'assurance	Valeur 2023	2024 projection
Assurance-vie en force	1,42 billion de dollars	1,45 à 1,50 billion de dollars
Probabilité de récession	35%	30-40%
Ventes de produits de retraite	8,3 milliards de dollars	8,5 à 8,7 milliards de dollars

Tendances de l'inflation influençant la rente et la compétitivité des produits d'investissement

L'indice des prix à la consommation (CPI) était de 3,4% en janvier 2024. Les ventes de rentes de Lincoln National ont totalisé 5,6 milliards de dollars en 2023.

Inflation & Métrique d'investissement	Valeur de janvier 2024	Changement d'une année à l'autre
Indice des prix à la consommation	3.4%	-1.9%
Ventes de rente	5,6 milliards de dollars	+3.2%
Rendement du produit d'investissement	4.1%	+0.3%

Lincoln National Corporation (LNC) - Analyse du pilon: facteurs sociaux

La population vieillissante augmente la demande de produits de retraite et de soins de longue durée

Selon le US Census Bureau, la population de 65+ devrait atteindre 95,0 millions d'ici 2060, ce qui représente 23% de la population américaine totale. Le segment des produits de retraite de Lincoln National Corporation a déclaré 3,8 milliards de dollars de ventes de rentes individuelles pour 2022.

Groupe d'âge	Projection de la population (2060)	Pourcentage de la population totale
65 ans et plus	95,0 millions	23%

Changement de travail de la main-d'œuvre changeant les attentes des avantages sociaux des employés

Les milléniaux et la génération Z représentent désormais 46% de la main-d'œuvre à temps plein aux États-Unis. Le segment des avantages du groupe de Lincoln National a généré 2,1 milliards de dollars de revenus en 2022, reflétant des stratégies de prestations adaptatives.

Démographique	Pourcentage de main-d'œuvre
Milléniaux	35%
Gen Z	11%

Préférence croissante des consommateurs pour les services financiers numériques et les solutions personnalisées

Métriques d'engagement numérique Afficher 68% des consommateurs de services financiers préfèrent les plateformes numériques. Lincoln National a investi 127 millions de dollars dans les initiatives de transformation numérique en 2022.

Préférence de service numérique	Pourcentage
Utilisateurs de plate-forme numérique	68%
Investissement de transformation numérique	127 millions de dollars

Accent accru sur le bien-être financier et la planification financière holistique

Les programmes de bien-être financier ont montré une augmentation de 42% de la participation des employés. Les services de conseil financier de Lincoln National ont été étendus, atteignant 1,2 million de clients en 2022.

Métrique de bien-être financier	Valeur
Augmentation de la participation du programme des employés	42%
Clients consultatifs financiers	1,2 million

Lincoln National Corporation (LNC) - Analyse du pilon: facteurs technologiques

Transformation numérique des plateformes d'assurance et de prestation de services financiers

Lincoln National Corporation a investi 87,3 millions de dollars dans les mises à niveau des infrastructures numériques en 2023. La société a déployé 12 nouvelles plateformes de services numériques, augmentant l'engagement des clients en ligne de 37% par rapport à l'année précédente.

Métrique de la plate-forme numérique	Performance de 2023
Interactions numériques du client	4,2 millions
Téléchargements d'applications mobiles	653,000
Taux de gestion des politiques en ligne	68%

Analyse avancée des données améliorant l'évaluation des risques et la personnalisation des produits

Lincoln National a mis en œuvre des modèles d'analyse prédictive avancés, réduisant le temps de traitement de l'évaluation des risques de 42%. L'entreprise a utilisé des algorithmes d'apprentissage automatique analysant 3,7 pétaoctets de données clients en 2023.

Performance d'analyse des données	Métriques quantitatives
Précision prédictive du modèle	94.3%
Amélioration de la vitesse d'évaluation des risques	42%
Points de données analysés	3,7 pétaoctets

Investissements en cybersécurité pour protéger les informations financières des clients

Lincoln National a alloué 62,5 millions de dollars à l'infrastructure de cybersécurité en 2023. La société a mis en œuvre 27 protocoles de sécurité avancés, atteignant l'efficacité de 99,8% de protection des données.

Métrique de la cybersécurité	Performance de 2023
Investissement en cybersécurité	62,5 millions de dollars
Protocoles de sécurité mis en œuvre	27
Efficacité de la protection des données	99.8%

Intelligence artificielle et apprentissage automatique Amélioration de l'efficacité opérationnelle

Lincoln National a déployé 18 systèmes opérationnels axés sur l'IA, réduisant les coûts administratifs de 29% et améliorant l'efficacité du traitement de 46% en 2023.

Métrique de mise en œuvre de l'IA	Performance de 2023
Systèmes d'IA déployés	18
Réduction des coûts administratifs	29%
Amélioration de l'efficacité du traitement	46%

Lincoln National Corporation (LNC) - Analyse du pilon: facteurs juridiques

Conformité à l'évolution des services financiers et des réglementations d'assurance

Lincoln National Corporation est confrontée à des exigences complexes de conformité réglementaire dans plusieurs juridictions. Depuis 2024, la société doit respecter:

Cadre réglementaire	Exigence de conformité	Coût annuel de conformité estimé
Règlements SEC	Compliance de la loi Sarbanes-Oxley	14,3 millions de dollars
Opération réglementaire d'assurance	Commissaire d'assurance d'État Reporting	8,7 millions de dollars
Conformité ERISA	Règlement sur le plan de retraite	6,2 millions de dollars

Risques potentiels en matière de litige dans les offres de produits de retraite et d'investissement

Affaires juridiques actives à partir de 2024:

• Actes de recours collectifs en attente: 7
• Exposition totale au litige potentiel: 132,5 millions de dollars
• Coût moyen de défense juridique par affaire: 3,6 millions de dollars

Examen accru des exigences de divulgation financière et de transparence

Métrique de divulgation	Statut de conformité	Risque de pénalité réglementaire
Transparence des états financiers	95,7% conformes	Faible (250 000 $ amende potentielle)
Représentation de la rémunération des cadres	98,3% conforme	Minimal (amende potentielle de 125 000 $)

Défis réglementaires dans les opérations d'assurance et de services financiers multi-États

Écaille de la conformité réglementaire de l'État:

• Total des états de fonctionnement: 49
• États avec des exigences de conformité supplémentaires: 17
• Coût annuel de conformité réglementaire multi-États: 22,1 millions de dollars

Les dépenses de conformité juridique représentent environ 3,4% du budget opérationnel total de Lincoln National Corporation en 2024.

Lincoln National Corporation (LNC) - Analyse du pilon: facteurs environnementaux

Accent croissant sur les stratégies d'investissement durable et les considérations ESG

Lincoln National Corporation a déclaré 1,87 milliard de dollars en investissements alignés par ESG au 423 du quatrième trimestre. Le portefeuille d'investissement durable de la société a augmenté de 22,3% par rapport à l'année précédente.

Catégorie d'investissement ESG	Valeur d'investissement totale	Pourcentage du portefeuille total
Énergie renouvelable	623 millions de dollars	8.4%
Obligations vertes	412 millions de dollars	5.6%
Infrastructure durable	835 millions de dollars	11.2%

Les risques de changement climatique ont un impact sur les prix des produits d'assurance et l'évaluation des risques

Lincoln National a ajusté son modèle de tarification à risque climatique, incorporant une augmentation de 3,7% pour les zones géographiques à haut risque. L'ajustement des risques climatiques de la Société a conduit à 214 millions de dollars de revenus d'atténuation des risques supplémentaires en 2023.

Zone de risque	Augmentation de prime	Impact annuel estimé
Zones côtières à haut risque	4.2%	87 millions de dollars
Régions sujettes aux incendies de forêt	3.9%	62 millions de dollars
Territoires vulnérables	3.5%	65 millions de dollars

Augmentation de la demande des investisseurs pour les produits financiers responsables de l'environnement

Lincoln National a lancé 7 nouveaux produits d'investissement axés sur l'ESG en 2023, attirant 456 millions de dollars de nouveaux capitaux d'investisseurs. Les produits d'investissement durable représentaient 14,6% du total de nouvelles entrées d'investissement.

Pressions réglementaires potentielles liées aux émissions de carbone et aux rapports de durabilité

Les émissions de carbone de Lincoln National ont diminué de 18,2% en 2023, avec des émissions totales à 92 500 tonnes métriques. La société a investi 41 millions de dollars dans les technologies de réduction du carbone et les infrastructures de durabilité.

Métrique de réduction du carbone	Performance de 2023	Allocation des investissements
Émissions totales de carbone	92 500 tonnes métriques	N / A
Réduction des émissions	18.2%	N / A
Investissement d'infrastructure de durabilité	N / A	41 millions de dollars

Lincoln National Corporation (LNC) - PESTLE Analysis: Social factors

Aging US Population Drives Retirement Demand

You are seeing a massive, predictable demographic shift in the U.S. that is creating a core opportunity for Lincoln National Corporation. The so-called 'Peak 65' surge means a record-breaking 4.1 million Americans are turning 65 each year from 2024 through 2027.

The U.S. Census Bureau estimates the population aged 65 and older will reach 61.2 million by 2025, which puts immense pressure on retirement savings and drives demand for guaranteed income solutions. This is a huge tailwind for the Annuities segment. U.S. annuity sales, for example, skyrocketed to $223 billion in the first half of 2025 alone, as consumers look for ways to mitigate longevity risk and outliving their savings. This is a simple supply-and-demand dynamic you can capitalize on.

• 61.2 million Americans aged 65+ in 2025.
• 4.1 million Americans turn 65 annually through 2027.
• Annuity sales hit $223 billion in H1 2025.

Consumer Shift to Digital and Personalized Planning

The days of selling a one-size-fits-all policy are over. Consumers, especially younger generations, want digital-first experiences and personalized financial planning (not just policy sales). More than half of U.S. financial consumers expect personalized banking experiences, and 86% of financial institutions are prioritizing personalization in their digital strategies. You need to invest heavily in technology to meet this expectation.

This means using data and artificial intelligence (AI) to move beyond static retirement roadmaps to dynamic, goals-based partnerships. For your advisors, AI tools can automate routine tasks, potentially reducing workloads by 20-30%, freeing them up to focus on complex client relationships. This is where you gain efficiency and customer loyalty.

Consumer Preference Trend (2025)	Impact on Lincoln National Corporation
Desire for Personalized Experience	Over 50% of U.S. consumers demand tailored advice.
Digital Strategy Priority	86% of financial firms prioritize digital personalization.
AI-Driven Efficiency	AI can cut advisor workloads by 20-30%.

Insurers as Trusted Financial Advisors

The public focus on holistic financial well-being is intensifying. This is pushing insurers like Lincoln National Corporation to transition from being mere risk underwriters to being 'trusted financial advisors' who address the entire financial life cycle. The U.S. financial wellness benefits market is projected to reach $1.21 billion by 2029, growing at a Compound Annual Growth Rate (CAGR) of 12.91% from 2023.

This market growth is a clear signal. Retirement plan consultants are already moving beyond traditional 401(k) plans to position financial wellness at the core of their services. Your strategy must reflect this societal need by providing comprehensive tools and education, not just products. Honestly, if you don't offer holistic advice, a competitor defintely will.

Reputational Risk Management Post-Q1 2025 Loss

You must actively manage the reputational fallout from the Q1 2025 financial results. While the operational performance was strong, the headline number was a net loss available to common stockholders of $756 million, or $(4.41) per diluted share.

This net loss was primarily driven by a $0.9 billion after-tax loss due to changes in market risk benefits (a non-cash accounting adjustment) amid lower interest rates and equity markets. However, the adjusted operating income-which reflects core business health-was a strong $280 million, or $1.60 per diluted share, surpassing analyst estimates. The market sees the adjusted earnings, but the public sees the net loss. You need to clearly communicate this distinction to maintain customer trust and advisor confidence.

• Q1 2025 Net Loss: $756 million (GAAP).
• Q1 2025 Adjusted Operating Income: $280 million (Core business health).
• Loss Driver: $0.9 billion after-tax loss from market risk benefits.

Lincoln National Corporation (LNC) - PESTLE Analysis: Technological factors

Rapid integration of Artificial Intelligence (AI) and big data to personalize products and streamline underwriting.

You've seen the headlines, and honestly, the insurance world is finally catching up to the data revolution. Lincoln National Corporation is making a defintely necessary pivot, leveraging massive data sets to improve efficiency and customer experience. This isn't just about faster claims; it's about superior risk pricing.

For example, LNC has deployed an AI-Driven Claims Management system in its Group Protection business. This tool analyzes disability claims in real-time, prioritizing high-priority cases and cutting down on administrative bottlenecks. The proof is in the results: this initiative has driven a 91% customer satisfaction rate in Group Protection claims. That's a huge operational win. Plus, with a customer base of approximately 17 million people and $312 billion in end-of-period account balances as of March 31, 2025, the potential for data-driven product personalization-think 'Netflix for annuities'-is enormous. This shift directly supports the 33% surge in Annuities sales to $3.8 billion reported in Q1 2025, demonstrating that tech-enabled efficiency translates directly to the top line.

Investment in a digital-first ecosystem, including blockchain-backed tokenization, to enhance capital mobility.

The digital transformation mandate is clear: you must build a modern, integrated ecosystem. LNC is focused on advancing its digital offerings to deliver a more integrated customer experience and provide real-time insights. The strategic minority investment from Bain Capital, announced in April 2025, is a key piece of growth capital specifically earmarked to accelerate these tech initiatives. This is a vote of confidence in their digital roadmap.

While LNC focuses on scaling private asset origination-a $24 trillion market-the broader industry trend of blockchain-backed tokenization cannot be ignored. Tokenization, which converts real-world assets into digital tokens on a blockchain, promises faster settlement and increased capital efficiency. The value of tokenized real-world assets is predicted to exceed $50 billion in 2025 across the financial sector. LNC must continue to explore this area to enhance the mobility and liquidity of its substantial asset base, especially for its long-duration liabilities.

Elevated and complex cybersecurity risks requiring significant investment in zero-trust architectures and data protection.

The downside of a digital-first strategy is the elevated risk profile; every new digital touchpoint is a potential vulnerability. Cybersecurity is no longer just an IT cost; it's a core operational risk, and LNC's 2025 10-K filing confirms that managing these threats is a core component of their operational risk management. This is a non-negotiable area for capital expenditure.

The industry is rapidly moving toward Zero Trust architectures, meaning no user or device is trusted by default, regardless of location. Global information security spending is forecast to reach $212 billion in 2025, representing a 15% year-over-year increase, so LNC is operating in an environment where competitors are also dramatically increasing their defenses. The company mitigates this risk through a dedicated IT and Cyber operation risk assessment team and an annual security audit, with results reported directly to the Audit Committee of the Board of Directors. This high-level governance shows they take the threat seriously.

Digital transformation is an imperative, not a choice.

The market has already decided this is the cost of doing business. The overall momentum across LNC reflects this imperative, with strategic realignment efforts contributing to a 32% year-over-year increase in adjusted operating income to $427 million in Q2 2025. This proves that tech-driven efficiency is paying off.

Here's the quick math on the external pressure: global IT spending is projected to reach $5.61 trillion in 2025, a 9.8% increase from 2024. Your competitors are spending big, so you must, too. LNC's focus on modernizing its IT infrastructure, aligning it with core businesses (insurance, annuities, and retirement solutions), is a strategic necessity to maintain a competitive edge and serve its vast customer base effectively. Delaying investment here means risking operational inefficiencies and a loss of market share to tech-native insurtechs.

2025 Technological Imperative	Lincoln National Corporation (LNC) Action/Metric	Impact/Scale (2025 Data)
AI & Big Data Integration	AI-Driven Claims Management deployment.	Achieved 91% customer satisfaction rate in Group Protection claims.
Digital Ecosystem Investment	Strategic minority investment from Bain Capital (Apr 2025).	Fuels acceleration of tech initiatives supporting $312 billion in account balances (Q1 2025).
Cybersecurity & Risk Mitigation	Annual security audit reported to Board Audit Committee.	Operates in a market where global information security spending will reach $212 billion.
Digital Transformation Payoff	Strategic realignment and modernization efforts.	Contributed to 32% YOY increase in adjusted operating income to $427 million (Q2 2025).

Lincoln National Corporation (LNC) - PESTLE Analysis: Legal factors

Heightened regulatory scrutiny on data security, data risk management, and incident reporting in 2025

You're seeing a significant and immediate legal risk in data security right now. The regulatory environment has defintely intensified, moving past simple compliance to focus on enterprise-wide risk management and rapid incident reporting.

The National Association of Insurance Commissioners (NAIC) Insurance Data Security Model Law is driving this, with more states adopting it and increasing the stakes for non-compliance. For a large firm like Lincoln National Corporation, a single slip-up can quickly become a costly legal challenge. We saw this play out in May 2025 when The Lincoln National Life Insurance Company reported a data breach. The unauthorized access compromised sensitive confidential information for 8,848 victims, including Full Name, Social Security Number, Driver's License Number, and Financial Account Information.

This incident immediately triggered a class action investigation, highlighting the direct financial and reputational exposure. The federal government also refocused on data security as a national security matter in April 2025, so managing this risk isn't just about state-level compliance anymore; it's a national priority.

Maintaining a strong capital position; the company's Q1 2025 Risk-Based Capital (RBC) ratio is above 420%

A strong capital base is your best defense against unexpected legal and financial shocks. The Risk-Based Capital (RBC) ratio is a crucial measure of an insurer's financial strength, showing its ability to absorb losses. Lincoln National Corporation has successfully maintained a robust capital position, which is a major legal and regulatory advantage.

The company's target RBC ratio is 400%, and they aim to maintain a buffer above 420%. As of the end of Q1 2025, the estimated RBC ratio remained in excess of this targeted buffer. This financial cushion is critical because it reassures state regulators-who oversee solvency-that the company can meet policyholder obligations even under stress.

Here's the quick math: maintaining an RBC ratio well over the regulatory action level minimizes the chance of mandated interventions, which would severely restrict business operations and strategic flexibility.

• Target RBC Ratio: 400%
• Targeted Buffer Level: 420%
• Q1 2025 Estimated RBC Ratio: Above 420%

Ongoing legal and regulatory challenges related to legacy variable annuity products and reserve requirements

The legacy variable annuity (VA) business, particularly those products with guaranteed living benefits (GLBs), remains a complex legal and financial headwind. These older products require substantial statutory reserves, and changes in interest rates and equity markets can cause huge swings in required capital.

In Q1 2025, Lincoln National Corporation reported a net loss available to common stockholders of $(756) million, which was primarily driven by a $0.9 billion after-tax loss. This loss was largely due to changes in market risk benefits, which directly relate to the valuation of these VA guarantees.

To mitigate this systemic risk, the company has taken a strategic action: establishing a Bermuda-based affiliated reinsurance subsidiary, Alpine. This entity is designed to support financial objectives and increase free cash flow over time by reinsuring a portion of the risk associated with these legacy products, effectively managing the reserve strain under US statutory accounting rules.

Metric (Q1 2025)	Amount	Relevance to Legal/Regulatory Risk
Net Loss Available to Common Stockholders	$(756) million	Indicates financial impact of market-driven reserve changes.
After-tax loss from Market Risk Benefits	$0.9 billion	Directly tied to the valuation of legacy variable annuity guarantees.
Annuity Sales (Q1 2025)	$3.8 billion (Up 33% YoY)	Shows successful shift to newer, less reserve-intensive spread-based products.

New federal and state rules on consumer fairness and protection may limit product design and pricing flexibility

Consumer protection is becoming a more aggressive area of regulatory focus, especially at the state level. The NAIC's Suitability in Annuity Transactions Model Regulation (#275) is already widely adopted, but the trend in 2025 is toward even stricter standards of care and disclosure, which impacts how Lincoln National Corporation can design and sell products.

Regulators are intensifying scrutiny on life insurance and annuity sales practices to ensure products offer 'fair value' to consumers. This focus is also extending to the use of Artificial Intelligence (AI) in underwriting and pricing. State and federal agencies are working to ensure that AI models are not biased or discriminatory, so compliance with fair lending and consumer protection laws now includes algorithmic transparency.

What this means for Lincoln National Corporation is that product innovation must be tightly coupled with legal review. Any new product, like the new variable annuity funds launched in mid-2025, must be vetted not just for profitability but for its adherence to these evolving 'best interest' and fairness standards. It's a compliance-first approach to product development.

Lincoln National Corporation (LNC) - PESTLE Analysis: Environmental factors

LNC is actively working to reduce ongoing energy usage to meet its 2025 greenhouse gas emissions reduction targets.

You need to see where the company is putting its capital to manage operational risk, and Lincoln National Corporation (LNC) has been clear on its Scope 1 and 2 emissions. The company set a target in 2020 to reduce these emissions by 25% from a 2019 baseline by 2025, and they have already achieved this goal. That's a strong signal of follow-through.

This reduction is driven by continuing efforts to reduce energy usage across their facilities, which directly lowers their carbon footprint. Now, the focus shifts, as LNC plans to set new, presumably more ambitious, targets in 2025 consistent with industry best practices, likely aligning with a 1.5 degrees Celsius scenario.

Here's the quick math on their recent emissions footprint, showing the progress made up to 2024, the latest available data:

GHG Emissions Category	2024 (tonnes CO2e)
Scope 1 (Direct Emissions)	2,137
Scope 2 Location-Based (Indirect Emissions from purchased electricity)	4,870
Scope 2 Market-Based	4,673

Enhanced transparency through Task Force for Climate-Related Financial Disclosure (TCFD) reporting.

Transparency is the new currency in finance, and LNC has enhanced its reporting through the Task Force for Climate-Related Financial Disclosure (TCFD) framework. This is crucial because it helps you understand how climate risks and opportunities are integrated into their governance, strategy, risk management, and metrics.

They use sophisticated tools like the Network for Greening the Financial System (NGFS) scenarios to conduct refined analysis of both physical and transition climate risks within their General Account investment portfolio. They also report to the CDP (formerly the Carbon Disclosure Project) for the tenth consecutive year, which shows a defintely long-term commitment to disclosure.

• Review 'high carbon assets' quarterly via a designated investment staff heat map.
• Identify climate change risks through a formal Risk Control Self-Assessment (RCSA) process at least twice a year.

Growing investor and stakeholder demand for robust Environmental, Social, and Governance (ESG) performance.

The demand for robust Environmental, Social, and Governance (ESG) performance isn't just a trend; it's a capital allocation mandate. LNC's performance is solid, which helps attract and retain large institutional investors like BlackRock.

As of September 03, 2025, LNC holds a Sustainalytics ESG Risk Rating of 18.50, placing it in the Low Risk category. This low score reflects strong management of material ESG issues, which is a key factor for long-term portfolio stability. Plus, their overall Net Impact Ratio is 47.7%, indicating a substantial positive societal impact.

LNC has translated this commitment into tangible investments, actively seeking low-carbon and climate-resilient opportunities in their General Account. This is where the rubber meets the road-allocating capital to align with an ESG strategy.

Responsible Investment Category	2023 Investment Amount
Renewable Energy (Debt and Equity)	$1,126,915,022
Green, Social, and Sustainability Linked (GSSS) Bonds	$1,337,381,231
Affordable Housing	$424,749,000

Physical climate risks (e.g., severe weather) could impact insurance claims and the valuation of real estate investments.

The financial impact of physical climate risk is accelerating, and it directly hits the insurance and investment sides of LNC's business. In the first half of 2025 alone, global insured losses from natural catastrophe events reached $100 billion, which is the second-highest first-half total on record. Total global economic losses hit $162 billion in 1H 2025, with the U.S. accounting for a staggering $126 billion of that total.

For LNC, this translates into two clear risks: higher claims payout volatility in their insurance business and a negative impact on the valuation of their real estate investments. Commercial real estate premiums across the U.S. have soared 88% over the last five years, a cost increase that erodes net operating income and, consequently, asset values in their investment portfolio.

LNC manages this by integrating climate risk into their real estate risk process, evaluating the impact of weather-related outages and incorporating business continuity plans to mitigate disruption from severe weather events.