The next economic revolution has begun. The Sustainability Revolution. It is our conviction that sustainable investing is the way to generate long-term returns and grow our clients' prosperity in perpetuity.

Long before worldwide focus turned to sustainability, Lombard Odier has acted along the lines of sustainable investing. In 1841, Alexandre Lombard warned against investing in southern US companies reliant on slave labour, setting out early our core values and investment principles. With our independent ownership and roots as a family business, we pride ourselves on being the first global wealth and asset manager to be B Corp certified and we have recently partnered with Oxford University to sponsor the first professorship in sustainable finance. 

We’re proud to participate in “Building Bridges”, a Swiss summit that unites authorities, international organisations, academics, companies and financial actors in moving sustainable finance forward by accelerating the flow of private sector investment in building a net zero world.

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the eight dynamics in moving towards a CLIC™ economy.

how we select companies for portfolios.

Companies are central in the shift towards sustainability. Our specialty, at Lombard Odier, is in identifying those that will prosper and those that have the vision to adapt in this new, CLIC™ economy. When analysing companies, we reach beyond traditional ESG metrics and look at the company’s business practices. Furthermore, it’s vital to examine what companies make, do and where they operate. We use these insights in order to have a forward-looking assessment of companies to see how well they align to the eight sustainability dynamics.

When analysing companies, we reach beyond traditional ESG metrics and look at the company’s business practices…

Using proprietary industry and geospatial data, academic and public sector research, we look at a company’s full sustainability trajectory. We further analyse 115 data points and their alignment with the 17 UN sustainability goals in order to have a comprehensive picture of a company and assess their exposures to controversies.

Investors today are asking the same questions: what is the carbon risk inherent in my portfolio and how can I manage it? We have now developed a deep in-house carbon expertise and dedicated methodologies to calculate the extent a portfolio is exposed in order to benefit from a decarbonising but increasingly carbon-damaged world. In particular, our temperature alignment methodology allows us to assess the future temperature trajectories of 23,000 companies, as well as 120 countries, and how they align with the goals of the Paris Agreement.

Using proprietary industry and geospatial data, academic and public sector research, we look at a company’s full sustainability trajectory

integrating sustainability as a core conviction.

Our “core conviction” portfolios use sustainability as the main driver of outperformance, focussing on solution providers to sustainability-related challenges and transition leaders within their sector or industry. We also offer portfolios that incorporate sustainability to mitigate risk and drive outperformance, and personalised sustainable portfolios, built around clients’ individual specifications.

Our Sustainable Investment Research, Strategy & Stewardship team is comprised of economists, environmental engineers, scientists, financial and geospatial analysts. They are responsible for the rigorous methodology and scientific framework that underpins our investment decisions. Our partnerships with Oxford University and consultancy SystemIQ validate our scientific assumptions and stress test our models. This enables us to be at the cutting edge of innovation as the CLIC™ transition unfolds.

Our “core conviction” portfolios use sustainability as the main driver of outperformance, focussing on solution providers to sustainability-related challenges and transition leaders within their sector or industry

our investment strategies.

We have developed a series of strategies with three core pathways:

 

climate transition.

In March 2020, we launched our Climate Transition Strategy. This strategy is actively managed and invests in a high conviction portfolio of 40-60 firms positioned to grow in a carbon-constrained and carbon-damaged world, including hard-to-abate industries. It focusses on activities aimed at adapting to a climate-damaged world, such as flood defences and insurers, as well as activities aimed at adapting to a carbon-constrained world including efficiency solutions and renewables.

When selecting companies we look at three different types: solution providers, transitioning companies, and those who are adapting to a changing climate.

natural capital.

The Natural Capital Strategy was directly inspired by His Royal Highness the Prince of Wales, and developed with the Circular Bioeconomy Alliance, under the aegis of his Sustainable Markets Initiative. It looks to rethink the role of nature - the world’s most valuable industry - in our economy. It targets small and mid-cap companies that both harness nature’s untapped potential and preserve its value through a leaner form of industry. We believe it is the first of its kind in public markets to embrace opportunities focussed on both the circularity of industry and the circular bio-economy. The need is clear - our economy is a subset of the biosphere and vitally depends on nature. Harnessing and preserving nature is a part of the sustainable and circular economy.

Launched last November, the strategy gives the opportunity to invest in public companies that leverage the regenerative power of Natural Capital. We believe these companies will deliver strong growth and become the winners of the future.

It focusses on the hotbed of innovation in publicly listed, small to mid-sized companies in North America, Europe and Asia. The strategy is focussed on identifying companies that are already profitable and well positioned to take advantage of four unstoppable growth opportunities: the circular bio-economy, resource efficiency, outcome-oriented consumption and zero waste.

The strategy is focussed on identifying companies that are already profitable and well positioned to take advantage of four unstoppable growth opportunities: the circular bio-economy, resource efficiency, outcome-oriented consumption and zero waste

our Net Zero Investing Strategies.

As investors we embrace a more forward-looking perspective where we identify the companies that are fit for the transition and those that are not. We believe that actual climate-related financial exposure should be our guiding principle for allocating capital, and that we should stop simply focusing on low-carbon companies. Our investment approach is focused on understanding companies’ specific transition trajectories and assessing how aligned they are with the goals of the Paris Agreement. A granular understanding of how companies are approaching their decarbonisation pathway helps us evaluate the structure of their future cash flows and the likely impact on their valuations.

We call this approach Climate Value Impact and it allows us to deploy capital across all sectors and regions of the global economy without creating real biases and with a clear focus on the actual financial exposure of companies to climate change.

Our range of Net Zero Investing Strategies deal with the challenges of reaching net zero across asset classes, benchmarked to global and regional indices. They embrace every sector, not just the low emitters, and reflect our belief that there are no ‘good’ or ‘bad’ companies, only those in transition: moving fast, slowly, or not at all. These strategies take a science-based approach to achieving a 50% carbon emission reduction by 2030, and 100% by 2050. They seek investments that are resilient to, and positioned to benefit from, the seismic shocks of a net zero world. They focus on companies already aligned with the goal of net zero and those with the potential for acceleration.

These strategies take a science-based approach to achieving a 50% carbon emission reduction by 2030, and 100% by 2050

Through our net zero fixed income and equity strategies, investors can pursue a net zero objective while maintaining the integrity of their portfolios and supporting companies that are driving the transition forward. Built to cover both global and European markets, our strategies are Paris-Aligned and contribute to a reduction in global CO2 emissions.

where we are.

Our heritage is Swiss, yet our outlook and mind set are resolutely international. With over 25 offices globally, we are able to serve our clients all over the world.

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