Patrick Odier Senior Managing Partner

Time to rethink responsible investing

A new approach to responsible investing is needed to avoid disappointing investors and wasting the chance to make a difference in the world, Patrick Odier told our London client conference on 30 October.

Titled ‘Rethink Responsible Investing’, the event took place in the UN Ballroom at the new Four Seasons Hotel in London — the setting for the inaugural reception of the United Nations General Assembly in 1946 — and attracted more than 80 professional clients from leading institutions from the UK and Europe.

Here’s Patrick Odier’s statement in full:
 

Those wishing to invest in a truly responsible manner should beware of investments that are not what they seem. We believe a rethink is needed to ensure investors get the portfolios and the outcomes they desire. Our approach - underpinned by 20 years of innovation — is research-intensive, digging beneath the raw data to separate the talkers, the doers and the achievers. Capital brings power, which brings even greater responsibility — we should all be careful not to waste the real opportunity we have to create positive change


One of the key characteristics of Lombard Odier IM’s approach to responsible investing is a laser-focus on measurable results - an important differentiating feature in a part of the industry where ‘greenwashing’ (exaggerating the sustainability credentials of an investment) is all too common.

In 2012, we introduced a proprietary scoring system called CAR (consciousness, actions, results), designed to identify which businesses are truly ‘walking the walk’ on sustainability issues. This year, we launched the next evolution of our process, which builds the UN Sustainable Development Goals into our methodology.

As Jonathan Clenshaw, Head of Institutional Clients, told the conference, responsible investing demands a major commitment of resources and intellectual energy:
 

Responsible investing permeates the whole portfolio. It requires hard work and expertise. Yes, it’s going mainstream. But it’s still a highly specialist discipline

 

For more from the conference, please watch a short video of the event

Important information

This document is issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This document was not prepared by the Financial Research Department of Lombard Odier.

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