Lombard Odier Launches Natural Capital-focused Investment Strategy
Global wealth and asset manager Lombard Odier announced today the launch of a new Natural Capital Strategy, targeting investment opportunities that accelerate the transformation towards a circular bioeconomy and a leaner form of industry.
According to Lombard Odier, the new global equity strategy will seek to invest in public companies that leverage the regenerative power of nature, which the asset manager believes will deliver strong growth and become the winners of the future.
The firm stated that the Natural Capital strategy was directly inspired by His Royal Highness the Prince of Wales and developed in partnership with the Circular Bioeconomy Alliance, established under his Sustainable Markets Initiative. Lombard Odier is a founding member of the Circular Bioeconomy Alliance, which aims to drive transformational change to a climate and nature positive economy by connecting investors to sustainable investable solutions.
His Royal Highness, The Prince of Wales said:
“We need to accelerate our efforts and set the course for a sustainable future rooted in a new economic model – in other words, a circular bioeconomy that puts Nature and the restoration of Natural Capital at the centre of the entire process. Building a sustainable future is, in fact, the growth story of our time. If we are to drive global economic growth, it is imperative that we value and invest in our natural capital. This is why I am enormously encouraged to see that, under my Sustainable Markets Initiative, the Circular Bioeconomy Alliance is working hand-in-hand to support the Natural Capital Strategy developed by Lombard Odier.”
Natural capital investing recognizes the intrinsic value of ecosystems, placing a value on the quality of water, biodiversity, the health of soils and oceans, and the need to prevent climate change. The strategy looks for opportunities in creating a much leaner form of industry, more efficient use of resources, shifting consumption model and zero waste. Investing in this theme provides exposure to projects focused on nature including sustainable forestry, regenerative and sustainable agriculture, circular bioeconomy, water supply, and nature based bio-fuels, among others.
Lombard Odier stated that its new Natural Capital strategy, together with its Climate Transition strategy, launched earlier this year, aims to support a move to a CLIC (Circular, Lean, Inclusive and Clean) economic model.
Hubert Keller, Managing Partner of Lombard Odier Group and CEO of Lombard Odier IM, said:
“The investment industry, which represents $120 trillion of capital, will always seek returns as a primary objective. We believe that today some of the most convincing returns opportunities lie in the transition to a more sustainable economic model, putting climate transition and nature centre stage.
“That is why we are launching the first Natural Capital Strategy, inspired by His Royal Highness, The Prince of Wales and in collaboration with the Circular Bioeconomy Alliance. By investing in companies that align their business models to the concept of Harnessing or Preserving Nature, our Natural Capital strategy has identified an untapped investment opportunity – one that we believe will deliver strong returns for investors and help accelerate the transition to a more sustainable economy.”