In 2025, First Sentier Group published our inaugural integrated Climate and Nature Report — an important milestone in our responsible investment journey. The Report was borne out of a strategic decision to reflect the interconnectedness of climate and nature in our investment approach. The process was both challenging and rewarding, offering valuable lessons for our organisation and, we hope, for others across the industry.
Lesson 1: Integration is demanding—but worth it
Developing an integrated report that addresses both climate and nature can be time-intensive and detailed, especially for the first time. As an organisation, we are at different stages of maturity on these topics. We have worked on climate change for many years and have reported in line with Task Force on Climate-related Financial Disclosures (TCFD) recommendations since 2017, as well as mandatory requirements across a number of jurisdictions. In contrast to this, our nature journey is more recent, having identified it as a focus area for our organisation in 2020. We became a Taskforce on Nature-related Financial Disclosures (TNFD) adopter in 2024 with this year marking our first TNFD-aligned report.
Bringing these topics and reporting frameworks together has required significant coordination and effort, however, the benefits are clear:
- Thinking holistically: It has required us to think holistically about how climate, nature and human rights intersect at a governance level, both in terms of risks and opportunities.
- Provides structure: By documenting the substantial work we’ve done with investment teams and across our organisation on nature over the past four years, it has given structure to our approach and helped us chart a path forward.
- Setting us up for success: Embedding nature into our governance and broader organisational processes in line with TNFD recommendations helps position us for long-term success.
While the process has been demanding, we believe the integrated approach will lead to time savings and greater coherence in future reporting cycles. Importantly, we recognise that reporting is an outcome and should not be the start and end point.
Lesson 2: Interdependencies matter and frameworks must evolve
The process of preparing an integrated report has required us to re-think how we consider interdependencies between climate change, nature and human rights, not just in the investment process where this work is well advanced for many of our investment teams, but also across our governance structures.
Key reflections include:
- Thinking holistically is essential - about climate, nature, and human rights, and we must continue to improve in this area in terms of our internal and external reporting.
- Why do separate frameworks exist? (e.g. TCFD, TNFD) In reality, these issues are deeply interconnected. To support our integrated disclosures, we have conducted a unified mapping exercise aligned to both frameworks.
This experience has highlighted the need for ongoing evolution in both our internal processes and the external frameworks that guide us. We acknowledge steps in this direction such as the commitment made by the IFRS Foundation, through a Memorandum of Understanding with the TNFD, to build upon the TNFD recommendations in the ongoing work of the International Sustainability Standards Board (ISSB), as part of its efforts to harmonise global sustainability reporting.
Lesson 3: Data—quality over quantity
Data remains one of the biggest challenges in reporting. Our first draft report included a large volume of data, but we ultimately decided to scale it back. We were concerned about the risks of disclosing incomplete or unreliable data. This was not driven by concerns of greenwashing, but rather a commitment to provide meaningful information to readers of the report.
As a guiding principle we have to ask ourselves, “Are we disclosing data because guidance tells us to, or because it is genuinely useful to our stakeholders?”
The answer to this question has helped shape our final Report and reinforces the importance of prioritising data quality and relevance over volume, and being transparent about the limitations of data. Ultimately, we have chosen to disclose two core sector metrics recommended by the TNFD for financial institutions, along with a select number of complimentary business operation metrics and investment-related impact metrics.
Lesson 4: Simplicity is powerful but hard to achieve
Nature is a highly technical topic, and our report is necessarily long and includes complex concepts (such as Potentially Disappeared Fraction (PDF)). We have made a concerted effort to simplify and streamline the content, but there is more to do including advancing our disclosures over time without overwhelming readers.
We are committed to continuing to strive for clarity and accessibility, so that our disclosures are meaningful for stakeholders.
Our commitment to advancing our approach and sharing our learnings
Preparing our first integrated Climate and Nature Report has been a significant undertaking, but one that is already delivering value by deepening our understanding, strengthening our governance, and clarifying our priorities. The lessons learned are shaping our approach going forward, as we continue to embed climate and nature considerations across our organisation and investment activities.
We hope that by sharing our experience, we can support others on their own journeys towards integrated, holistic sustainability reporting.
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