Lincoln National Corporation (LNC): Análise de Pestle [Jan-2025 Atualizada]

No cenário dinâmico dos serviços financeiros, a Lincoln National Corporation (LNC) está em uma interseção crítica de forças externas complexas que moldam sua trajetória estratégica. Essa análise abrangente de pestles revela os desafios e oportunidades multifacetados que enfrentam a empresa, explorando como regulamentos políticos, flutuações econômicas, mudanças sociais, inovações tecnológicas, estruturas legais e considerações ambientais influenciam coletivamente o ecossistema de negócios da LNC. Ao dissecar essas dimensões críticas, descobriremos a intrincada rede de fatores que definem a resiliência operacional da empresa e o potencial futuro em um mercado global cada vez mais interconectado.

Lincoln National Corporation (LNC) - Análise de Pestle: Fatores Políticos

Mudanças regulatórias no setor de seguros e serviços financeiros

A partir de 2024, a Lincoln National Corporation enfrenta um cenário regulatório complexo com:

Órgão regulatório	Impacto regulatório -chave	Custo de conformidade
Sec	Requisitos de divulgação aprimorados	US $ 12,4 milhões anualmente
Naic	Padrões de adequação de capital	US $ 8,7 milhões de investimento de conformidade
ERISA	Supervisão do plano de aposentadoria	Custos de adaptação regulatórios de US $ 5,3 milhões

Impacto de reformas da política de saúde

As mudanças potenciais da política de saúde que afetam a vida e os produtos de seguro de grupo incluem:

• Expansão potencial de áreas de cobertura obrigatória
• Aumento do escrutínio regulatório em cláusulas de condição pré-existente
• Potenciais modificações de crédito tributário para prêmios de seguro de saúde

Implicações da política tributária federal

Política tributária federal atual que afeta os serviços de aposentadoria e investimento:

Área de política tributária	Impacto financeiro potencial	Efeito de receita projetada
Limites de contribuição da conta de aposentadoria	401 (k) Limite: US $ 23.000 (2024)	US $ 340 milhões em potencial ajuste de receita
Taxa de imposto corporativo	21% de taxa de imposto corporativo	US $ 215 milhões potencial responsabilidade tributária

Tensões geopolíticas que influenciam estratégias de investimento

Considerações de estratégia de investimento global:

• Tensões de relacionamento comercial EUA-China
• Preocupações de estabilidade econômica européia
• Avaliação emergente de risco de investimento de mercado

Métricas de investimento geopolítico -chave:

Região	Índice de Risco de Investimento	Alocação de investimento projetada
Ásia-Pacífico	0,65 Classificação de risco	US $ 1,2 bilhão
Mercados europeus	0,52 Classificação de risco	US $ 890 milhões
Mercados norte -americanos	0,35 Classificação de risco	US $ 2,5 bilhões

Lincoln National Corporation (LNC) - Análise de Pestle: Fatores Econômicos

Taxas de juros flutuantes que afetam a receita de investimento e o preço do produto de seguro

A partir do quarto trimestre de 2023, a Lincoln National Corporation reportou receita líquida de investimento de US $ 683 milhões, com sensibilidade às mudanças nas taxas de juros. A taxa de fundos federais da Federal Reserve ficou em 5,33% em janeiro de 2024.

Parâmetro da taxa de juros	2023 valor	2024 Projeção
Receita de investimento líquido	US $ 683 milhões	US $ 692-715 milhões
Rendimento da carteira de investimentos	4.2%	4.3-4.5%
Títulos de renda fixa	US $ 64,3 bilhões	US $ 65,1-66,5 bilhões

Incerteza econômica em andamento que afeta as decisões de planejamento financeiro do consumidor

O índice de confiança do consumidor foi de 69,7 em janeiro de 2024, indicando comportamento financeiro cauteloso. A taxa de desemprego permaneceu em 3,7% em janeiro de 2024.

Indicador econômico	Janeiro de 2024 Valor	Mudança de ano a ano
Índice de confiança do consumidor	69.7	-2.3%
Taxa de desemprego	3.7%	Estável
Renda familiar média	$74,580	+2.1%

Risco potencial de recessão desafiando os mercados de aposentadoria e seguro de vida

O seguro de vida total da Lincoln National em vigor foi de US $ 1,42 trilhão em 2023. Probabilidade de recessão estimada em 35% pelos principais meteorologistas econômicos.

Métrica do mercado de seguros	2023 valor	2024 Projeção
Seguro de vida em vigor	US $ 1,42 trilhão	US $ 1,45-1,50 trilhão
Probabilidade de recessão	35%	30-40%
Vendas de produtos de aposentadoria	US $ 8,3 bilhões	US $ 8,5-8,7 bilhões

Tendências de inflação que influenciam a anuidade e a competitividade do produto de investimento

O Índice de Preços ao Consumidor (CPI) foi de 3,4% em janeiro de 2024. As vendas de anuidades da Lincoln National totalizaram US $ 5,6 bilhões em 2023.

Inflação & Métrica de investimento	Janeiro de 2024 Valor	Mudança de ano a ano
Índice de preços ao consumidor	3.4%	-1.9%
Vendas de anuidades	US $ 5,6 bilhões	+3.2%
Rendimento do produto de investimento	4.1%	+0.3%

Lincoln National Corporation (LNC) - Análise de Pestle: Fatores sociais

População envelhecida Aumentando a demanda por produtos de aposentadoria e cuidados de longo prazo

De acordo com o Bureau do Censo dos EUA, a população de mais de 65 anos deverá atingir 95,0 milhões até 2060, representando 23% da população total dos EUA. O segmento de produtos de aposentadoria da Lincoln National Corporation reportou US $ 3,8 bilhões em vendas individuais de anuidades para 2022.

Faixa etária	Projeção populacional (2060)	Porcentagem da população total
65 anos ou mais	95,0 milhões	23%

Mudança da força de trabalho Demografics Mudando os benefícios dos funcionários Expectativas

A geração do milênio e a geração Z agora constituem 46% da força de trabalho em tempo integral nos Estados Unidos. O segmento de benefícios do Grupo do Lincoln National gerou US $ 2,1 bilhões em receita em 2022, refletindo estratégias de benefícios adaptativos.

Demográfico	Porcentagem da força de trabalho
Millennials	35%
Gen Z	11%

Crescente preferência do consumidor por serviços financeiros digitais e soluções personalizadas

Métricas de engajamento digital Mostrar 68% dos consumidores de serviço financeiro preferem plataformas digitais. A Lincoln National investiu US $ 127 milhões em iniciativas de transformação digital em 2022.

Preferência de serviço digital	Percentagem
Usuários da plataforma digital	68%
Investimento de transformação digital	US $ 127 milhões

Maior foco no bem -estar financeiro e planejamento financeiro holístico

Os programas de bem -estar financeiro mostraram um aumento de 42% na participação dos funcionários. Os serviços de consultoria financeira da Lincoln National se expandiram, atingindo 1,2 milhão de clientes em 2022.

Métrica de bem -estar financeiro	Valor
Aumento da participação do programa de funcionários	42%
Clientes de consultoria financeira	1,2 milhão

Lincoln National Corporation (LNC) - Análise de Pestle: Fatores tecnológicos

Transformação digital de plataformas de entrega de seguros e serviços financeiros

A Lincoln National Corporation investiu US $ 87,3 milhões em atualizações de infraestrutura digital em 2023. A empresa implantou 12 novas plataformas de serviço digital, aumentando o envolvimento do cliente on -line em 37% em comparação com o ano anterior.

Métrica da plataforma digital	2023 desempenho
Interações digitais do cliente	4,2 milhões
Downloads de aplicativos móveis	653,000
Taxa de gerenciamento de políticas on -line	68%

Analítica de dados avançada Aprimorando a avaliação de riscos e a personalização do produto

A Lincoln National implementou modelos avançados de análise preditiva, reduzindo o tempo de processamento de avaliação de riscos em 42%. A empresa utilizou algoritmos de aprendizado de máquina analisando 3.7 Petabytes de dados de clientes em 2023.

Desempenho da análise de dados	Métricas quantitativas
Precisão do modelo preditivo	94.3%
Melhoria da velocidade de avaliação de risco	42%
Pontos de dados analisados	3.7 Petabytes

Investimentos de segurança cibernética para proteger as informações financeiras do cliente

A Lincoln National alocou US $ 62,5 milhões para infraestrutura de segurança cibernética em 2023. A Companhia implementou 27 protocolos de segurança avançados, alcançando 99,8% de eficácia da proteção de dados.

Métrica de segurança cibernética	2023 desempenho
Investimento de segurança cibernética	US $ 62,5 milhões
Protocolos de segurança implementados	27
Eficácia de proteção de dados	99.8%

Inteligência artificial e aprendizado de máquina Melhorando a eficiência operacional

A Lincoln National implantou 18 sistemas operacionais orientados pela IA, reduzindo os custos administrativos em 29% e melhorando a eficiência do processamento em 46% em 2023.

Métrica de implementação da IA	2023 desempenho
Sistemas de IA implantados	18
Redução de custos administrativos	29%
Melhoria da eficiência do processamento	46%

Lincoln National Corporation (LNC) - Análise de Pestle: Fatores Legais

Conformidade com serviços financeiros e regulamentos de seguros em evolução

A Lincoln National Corporation enfrenta requisitos complexos de conformidade regulatória em várias jurisdições. A partir de 2024, a empresa deve aderir a:

Estrutura regulatória	Requisito de conformidade	Custo estimado de conformidade anual
Regulamentos da SEC	Sarbanes-Oxley Lei Conformidade	US $ 14,3 milhões
Supervisão regulatória de seguros	Relatório do Comissário de Seguros Estaduais	US $ 8,7 milhões
Conformidade com ERISA	Regulamentos do plano de aposentadoria	US $ 6,2 milhões

Riscos potenciais de litígios nas ofertas de aposentadoria e investimento de produtos

Casos legais ativos a partir de 2024:

• Ações de ação coletiva pendentes: 7
• Exposição potencial total em litígios: US $ 132,5 milhões
• Custo médio de defesa legal por caso: US $ 3,6 milhões

Aumento do escrutínio dos requisitos de divulgação financeira e transparência

Métrica de divulgação	Status de conformidade	Risco de penalidade regulatória
Transparência de demonstração financeira	95,7% compatível	Baixa (multa em potencial de US $ 250.000)
Relatórios de compensação de executivos	98,3% compatível	Mínima (multa em potencial de US $ 125.000)

Desafios regulatórios em operações de seguros e serviços financeiros de vários estados

Aparência do conformidade regulatória do estado:

• Total de Estados de Operação: 49
• Estados com requisitos adicionais de conformidade: 17
• Custo anual de conformidade regulatória multi-estado: US $ 22,1 milhões

A despesa de conformidade legal representa aproximadamente 3,4% do orçamento operacional total da Lincoln National Corporation em 2024.

Lincoln National Corporation (LNC) - Análise de Pestle: Fatores Ambientais

Foco crescente em estratégias de investimento sustentável e considerações de ESG

A Lincoln National Corporation registrou US $ 1,87 bilhão em investimentos alinhados à ESG a partir do quarto trimestre 2023. O portfólio de investimentos sustentável da empresa aumentou 22,3% em comparação com o ano anterior.

Categoria de investimento ESG	Valor total de investimento	Porcentagem de portfólio total
Energia renovável	US $ 623 milhões	8.4%
Ligações verdes	US $ 412 milhões	5.6%
Infraestrutura sustentável	US $ 835 milhões	11.2%

Riscos de mudanças climáticas que afetam o preço do produto e a avaliação de riscos de produtos de seguro

A Lincoln National ajustou seu modelo de preços de risco climático, incorporando um aumento de 3,7% para zonas geográficas de alto risco. O ajuste de risco climático da empresa levou a US $ 214 milhões em receita adicional de mitigação de risco em 2023.

Zona de risco	Aumento premium	Impacto anual estimado
Áreas costeiras de alto risco	4.2%	US $ 87 milhões
Regiões propensas a incêndios	3.9%	US $ 62 milhões
Territórios vulneráveis ​​a inundação	3.5%	US $ 65 milhões

Aumento da demanda dos investidores por produtos financeiros ambientalmente responsáveis

A Lincoln National lançou 7 novos produtos de investimento focados na ESG em 2023, atraindo US $ 456 milhões em nova capital de investidores. Os produtos de investimento sustentável representaram 14,6% do total de novas entradas de investimento.

Pressões regulatórias potenciais relacionadas a emissões de carbono e relatórios de sustentabilidade

As emissões de carbono da Lincoln National reduziram 18,2% em 2023, com emissões totais em 92.500 toneladas. A empresa investiu US $ 41 milhões em tecnologias de redução de carbono e infraestrutura de sustentabilidade.

Métrica de redução de carbono	2023 desempenho	Alocação de investimento
Emissões totais de carbono	92.500 toneladas métricas	N / D
Redução de emissões	18.2%	N / D
Investimento de infraestrutura de sustentabilidade	N / D	US $ 41 milhões

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.