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Asia in Focus Episode 4: Sustainability
A six-part video series on Lombard Odier's presence and plans in Asia
The evidence of human induced climate change is unequivocal. Failure to act would undermine not only the resilience of the natural world but also the foundations of economic prosperity. Inaction is not an option. Thankfully, more and more companies are recognising the need to radically change their business models to set us on a path to a sustainable future.
Our conviction at Lombard Odier is that we are now at the start of a transition from a Wasteful, Idle, Lopsided, and Dirty (WILD) economy, to one that is Circular, Lean, Inclusive and Clean, which we term the CLIC® economy. This transition will touch almost every industry, being on the scale of the industrial revolution but unfolding at the pace of the digital revolution. Understanding how this transition will unfold across three major systems, Energy, Nature, and Materials, and contributing to accelerating this transition, is core to our investment approach. For investors, we believe that the shift to a sustainable economy represents the greatest business opportunity of our age.
Find out more from our Limited Partner and Asia CEO Vincent Magnenat on Lombard Odier's commitment to sustainability and what this means for clients in Asia:
Sustainability is in our DNA
At Lombard Odier, sustainability is deeply embedded in our DNA. As a 7th generation family business, that is privately-owned, we are free from the market pressures of quarterly results and external public shareholders, allowing us to focus on serving clients and securing a sustainable future for generations to come.
In recognition of our sustainability efforts, Lombard Odier is proud to be the first global wealth and asset manager to receive the B Corp certification1. This is a strong testament to how sustainability is at the heart of our investment philosophy and corporate values.
Read more about sustainable investing in Asia
Scientific and forward-looking approach in sustainable investment
Our sustainable investment framework is underpinned by a forward-looking approach that assesses how well companies are positioned for the transition to a sustainable economy. Traditional ESG (Environmental, Social, Governance) approaches tend to be backward-looking in nature, as they focus on companies' business practices rather than their business models, activities and how they operate.
Here at Lombard Odier, we focus on two areas in sustainable investing, namely: dedicated sustainability strategies, such as our natural capital, climate transition and net zero strategies; and sustainability integration, for strategies where sustainability is not the primary alpha driver. We believe in using a science-based approach as we embrace a forward-looking perspective towards sustainable investments, tailored to generate investment performance.
Lombard Odier clinches Green Finance accolade at Eurocham Sustainability Awards 2021
Opportunities for Asia clients
As a wealth and asset manager, Lombard Odier has a fiduciary responsibility to our clients to expertly and prudently manage their investments. This is why sustainability is deeply integrated in both our investment strategies and our business, as evidenced by our clear leadership in sustainable investment.
Lombard Odier is a founding member of the Natural Capital Investment Alliance2, working with over 22 leading initiatives globally to advance the sustainability agenda, and is also a partner with the University of Oxford to sponsor the first endowed professorship in sustainable finance.
In Asia, we collaborate with our Ecosystem of six Strategic Alliances in the region to help our clients engage in sustainable investments and sustainability-related opportunities. This includes joint sustainability events for our clients across the different markets (where permissible), as well as studies and surveys with High Net Worth Individuals across Asia-Pacific, which allow clients to gain insights on trends and best practices in sustainability.
Read about our Race to Net Zero event with former UN leader Ban Ki-moon
1 B Corp Certification is a designation that a business is meeting high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials.
2 The Natural Capital Investment Alliance (the NCIA) has been formed in recognition of the need to mobilise investment in Nature-based economic opportunities. The NCIA was created by HRH The Prince of Wales through his Sustainable Markets Initiative, with Climate Asset Management, Lombard Odier and Mirova as founding members.
