Lombard Odier has launched an investment strategy, where the focus lies entirely on companies that leverage the regenerative power of nature. It has received royal backing for what the bank deems to be a unique strategy.
Lombard Odier’s natural capital strategy comprises a global equity portfolio and was inspired by the Prince of Wales, the first in line to succeed the Queen. The strategy was developed in partnership with the circular bioeconomy alliance established under his sustainable markets initiative, said the bank in a statement on Monday.
The high-conviction portfolio of as much as fifty companies explicitly focuses on the hotbed of innovation in publicly listed, small to mid-sized companies in North America, Europe, and Asia. The strategy is focused on identifying companies that are already profitable and well-positioned to take advantage of these four unstoppable growth opportunities: the circular bio-economy, resource efficiency, outcome orientated consumption, and zero waste.
The Growth Story of Our Time
«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 center of the entire process. Building a sustainable future is, in fact, the growth story of our time,» said Prince Charles.
«If we are to drive global economic growth, it is imperative that we value and invest in our natural capital,» the British royal added.
Profit Taking Center Stage
Lombard Odier Investment Managers manages the natural capital strategy and will also provide investors with a sustainability report to show the positive impact on nature that investment in these companies brings to society and the planet, and to report on stewardship progress across the portfolio.
«The investment industry, which represents $120 trillion of capital, will always seek returns as a primary objective. Today some of the most convincing returns opportunities lie in the transition to a more sustainable economic model, putting climate transition and nature center stage,» said Hubert Keller (above), managing partner of Lombard Odier Group and CEO of Lombard Odier IM.
«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,» Keller also said.
