Over the past year, shifts in geopolitics, macroeconomic conditions and technological innovation have reshaped the landscape for investors. Against this backdrop, our priority at ICG has been clear: to deliver strong results for our clients while growing a business that is well-positioned for the long term.
For well over a decade, ICG has operated with the belief that sustainability considerations are integral to sound investment decision-making, and are increasingly critical to long-term value preservation and creation. Recent headlines have brought this idea into stark relief. Economic losses of assets due to weather and climate related extremes in Europe were conservatively estimated to be over €200 billion in the last five years. Commercial real estate premiums are expected to climb, as insurers more deliberately price in growing physical climate risk. Businesses and economies are experiencing real financial impact as their operations and supply chains are threatened – whether by extreme weather or by technological disruption. It is against these sorts of losses that ICG is seeking to protect our investments and the capital we have been entrusted to invest.
And, we view these matters not only as risks to be managed, but as opportunities to strengthen businesses, enhance resilience, and deliver superior outcomes over time. For example, companies that focused on energy efficiency and onsite generation have seen marked cost savings and predictability amid volatile energy markets. Similarly, fleet electrification can lower operating costs over time while positioning businesses for regulatory change. These actions support emissions reduction, but equally strengthen operational resilience and margin stability.
Meanwhile, the global regulatory landscape continues to evolve, increasing demands for data and transparency for us as well as our clients. Our focus is not only on meeting these expectations, but on maintaining a clear strategic perspective, ensuring that our sustainability efforts are aligned with investment performance and long-term value creation. As we continue to adapt to new requirements, we are committed to remaining agile and focused on decision-useful information.
Our ability to deliver for clients depends on the quality and commitment of our people. We continue to invest in building a culture that combines high standards with openness, collaboration and accountability. We believe that a diversity of perspectives and experiences strengthens our thinking and supports better investment decisions. Creating an environment where individuals can contribute fully, develop over time, and feel ownership of outcomes remains a priority for the firm.
We remain confident in our strategy and in the opportunities ahead. By maintaining our focus on disciplined investing, nurturing the best talent, and on responsible value creation, we believe we are well-placed to continue delivering for our clients.