• Rethink sustainability. Rethink Everything

    rethink sustainability. rethink everything.

    rethink sustainability
    rethink sustainability·sustainability strategies·CLIC® & key systems change·forward looking decarbonisation·Planetary Boundaries

     

    The transition to net zero is the most significant economic challenge of our time. Our planet has been pushed beyond its manageable boundaries and the way businesses and people consume need to radically change to build a new sustainable future. Our global economy must evolve from the patterns of value destruction of the past to become Circular, Lean, Inclusive and Clean – a CLIC® economy.


    At Lombard Odier, we take a forward-looking approach to sustainability. Our research shows we must transform our usage of land, energy systems and materials so that we can operate safely within planetary boundaries. What’s more, by effectively using carbon pricing as an enabler to encourage capital allocation to transition aligned activities it could be possible to accelerate the transition to net zero. 


    Using this science-based and forward-looking approach, we are adapting portfolios to this new economic landscape and creating novel strategies centred on nature-positive and climate-aligned goals.

    sustainability strategies.

    Natural Capital

    Natural Capital

    New Food Systems

    New Food Systems

    Climate Transition

    Climate Transition

    TargetNetZero Equity

    TargetNetZero Equity

    Target Net Zero Global and Europe IG Corporate.
    TargetNetZero IG

    TargetNetZero IG

    Accelerate decarbonisation with our fixed income portfolios.

     

    CLIC® economy and key systems change

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    The wasteful and destructive economy of today is transitioning towards a model that is geared towards leveraging the vast value creation opportunities that sustainability has to offer - an economy that is circular, lean, inclusive and clean: the CLIC® economy. 

      

     

    transforming key systems


    Our conviction is that the transition to a CLIC® economy requires profound change in major systems that affect 95% of our investment universe. There are three key areas where investment is needed at scale to effect urgent transformation and ensure we respect planetary boundaries. 

    energy systems. We must electrify of 70% of our economy through the greening of energy supply and demand, the emergence of new storage and distribution networks and increased energy efficiency 

    materials systems. We must reduce the extraction and usage of primary materials required for our economic output. It will be aided by the rise of new sustainable materials, and resource efficiency to decouple production from primary material resource dependencies while avoiding waste and pollution 

    nature systems. We must return of 1 billion ha of agricultural land back to nature by fostering new food systems and enabling nature to retrieve its regenerative properties. The nature transition will unfold in themes such as climate-smart forestry, renewable materials ecosystem services, sustainable food production and sustainable consumption 

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    carbon. This refers to external pricing pressures and forces from carbon taxes, the compliance markets and the voluntary markets that will impact the three systems. We expect carbon to play a key role by providing market-based incentives to accelerate the transition to nature-based solutions and drive removals of greenhouse gases 

    1bn

    of land returned to nature

    70%

    of our economy to be electrified

    30%

    reduction in primary materials extraction

    Planetary Boundaries.

    The concept of Planetary Boundaries was first developed by a group of researchers led by Johan Rockström of the Stockholm Resilience Centre. Together, the nine boundaries define the safe operating space for humanity. Within these boundaries, the research suggests, “humanity can continue to develop and thrive for generations to come," whereas their transgression “increases the risk of generating large-scale, abrupt or irreversible environmental changes.”

    Planet Earth has never been in a more treacherous position when it comes to the impact of our take-make-waste economic model on the environment. Five of the nine Planetary Boundaries, the environmental limits within which humanity can operate sustainably, have already been crossed.  Click here to find out why investing in solutions designed to respect planetary boundaries will be crucial to a successful transition be instrumental in defining our new world.

    The transition to a new reality will transform the parameters for investing as we anticipate 95% of companies will be affected.