LOIM tube

Ice cubes, burning logs and the road to net zero: Episode 2

Ice cubes, burning logs and the road to net zero: Episode 2

We believe that some of the best net-zero opportunities exist among companies whose current emissions would exclude them from low-carbon strategies but, due to their action on achieving carbon-reduction targets, indicate that they are on viable decarbonisation pathways.

We define these transition opportunities as ‘ice cubes’ because their progress on reducing emissions is helping to cool the economy. In direct contrast, what we define as transition risks or ‘burning logs’ are the heavy emitters with no apparent plans to decarbonise. They are doing nothing to advance the transition and will likely become casualties at or on the way to net zero.

In the second episode of our new podcast series on ice cubes, burning logs and the road to net zero, Head of Sustainability Research Thomas Höhne talks to one such ice cube. Alstom's Vice President of Sustainability & CSR, Cecile Texier explains how Alstom1 is approaching the transition to net zero and the company’s plans for the future in the context of the climate transition.            

Head of Sustainability Research Thomas Höhne: “At Lombard Odier we've developed a metric called implied temperature rise, where we look not only at the level of emissions of a company today, but how indeed they're expected to evolve and if they're expected to evolve in line with the objectives of the Paris Agreement.

“Now Alstom, by our assessments, is one of these ice cubes. One of these companies that does seem to be managing its emissions in line with what we would like to see in the sector. Not only that, but we would also consider Alstom an example of what we might call a solution provider, providing some of the products that might be in demand and might accelerate the climate transition across the economy.”

Alstom Vice President of Sustainability & CSR Cecile Texier: “More than 10 years ago, we started on this journey to integrate environmental, social, ethical issues in our company strategy, in the company targets, the ways we work and our daily actions.

“We started was because we were convinced that this is what was going to bring long term performance for the company. You're minimizing waste, engaging employees, external partners, building relationship with communities, managing risk, and protecting your reputation. This ultimately brings long term benefits for the company, for employees, for our customers, their passengers, and for society at large.”

To find out more about ice cubes, burning logs and the road to net zero, listen to the full episode below.

 

Top three takeaways for investors

• The mobility sector has a very large role to play in the fight against climate change. Emissions from transport sector accounts for about 25% of worldwide CO2 emissions. 
• In Europe, Alstom estimates there is potential to replace or retrofit up to 6,000 diesel trains by 2035. 
• Alstom aims to source 100% of electricity from renewable sources by 2025

 

Sources

[1] Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or securities. It should not be assumed that the recommendations made in the future will be profitable or will equal the performance of the securities discussed in this document

important information.

This podcast is a marketing communication and has been issued by Lombard Odier Funds (Europe) S.A. a Luxembourg based public limited company (SA), having its registered office at 291, route d’Arlon, 1150 Luxembourg, authorised and regulated by the CSSF as a Management Company within the meaning of EU Directive 2009/65/EC, as amended; and within the meaning of the EU Directive 2011/61/EU on Alternative Investment Fund Managers (AIFMD). The purpose of the Management Company is the creation, promotion, administration, management and the marketing of Luxembourg and foreign UCITS, alternative investment funds ("AIFs") and other regulated funds, collective investment vehicles or other investment vehicles, as well as the offering of portfolio management and investment advisory services.
Lombard Odier Investment Managers (“LOIM”) is a trade name.
This podcast is provided for informational purposes only and does not constitute an offer or a recommendation to purchase or sell any security or service. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful. This podcast does not contain personalized recommendations or advice and is not intended to substitute any professional advice on investment in financial products. Investments are subject to a variety of risks. Before entering into any transaction, an investor should consider carefully the suitability of a transaction to his/her particular circumstances and, where necessary, obtain independent professional advice in respect of risks, as well as any legal, regulatory, credit, tax, and accounting consequences. Past performances is no guarantee of current or future returns, and the investor may receive back less than he/she invested. This podcast is the property of LOIM and is addressed to its recipients exclusively for their personal use. It may not be reproduced (in whole or in part), transmitted, modified, or used for any other purpose without the prior written permission of LOIM. The contents of this podcast are intended for persons who are sophisticated investment professionals and who are either authorised or regulated to operate in the financial markets or persons who have been vetted by LOIM as having the expertise, experience and knowledge of the investment matters set out in this document and in respect of whom LOIM has received an assurance that they are capable of making their own investment decisions and understanding the risks involved in making investments of the type included in this podcast or other persons that LOIM has expressly confirmed as being appropriate recipients of this podcast. If you are not a person falling within the above categories you are kindly asked to either return this document to LOIM or to destroy it and are expressly warned that you must not rely upon its contents or have regard to any of the matters set out in this podcast in relation to investment matters and must not transmit this podcast to any other person. This podcast contains the opinions of LOIM, as at the date of issue. The information and analysis contained herein are based on sources believed to be reliable.
However, LOIM does not guarantee the timeliness, accuracy, or completeness of the information contained in this podcast, nor does it accept any liability for any loss or damage resulting from its use. All information and opinions as well as the prices indicated may change without notice. Neither this document nor any copy thereof may be sent, taken into, or distributed in the United States of America, any of its territories or possessions or areas subject to its jurisdiction, or to or for the benefit of a United States Person. For this purpose, the term "United States Person" shall mean any citizen, national or resident of the United States of America, partnership organized or existing in any state, territory or possession of the United States of America, a corporation organized under the laws of the United States or of any state, territory or possession thereof, or any estate or trust that is subject to United States Federal income tax regardless of the source of its income.
Source of the figures: Unless otherwise stated, figures are prepared by LOIM.
Although certain information has been obtained from public sources believed to be reliable, without independent verification, we cannot guarantee its accuracy or the completeness of all information available from public sources.
Views and opinions expressed are for informational purposes only and do not constitute a recommendation by LOIM to buy, sell or hold any security. Views and opinions are current as of the date of this podcast and may be subject to change. They should not be construed as investment advice.
No part of this material may be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorised agent of the recipient, without Lombard Odier Funds (Europe) S.A. prior consent. In Luxembourg, this material is a marketing material and has been approved by Lombard Odier Funds (Europe) S.A. which is authorized and regulated by the CSSF.
©2022 Lombard Odier IM. All rights reserved