Our stewardship framework I Lombard Odier

Stewardship is how we protect and enhance the long-term value of the assets entrusted to us by our clients - it is integrated into LOIM’s investment process and an indispensable tool to achieve measurable impact beyond financial returns. By adding an extra layer of analysis, research and information, stewardship makes a positive contribution to the transition to the CLIC® economy through systems change.

Our two stewardship objectives are:

Promote alignment with the sustainability transition.

Is a company accelerating or slowing down the transition?

Promote sustainable returns.

Is a company financially exposed to the transition?

Our stewardship is discharged through two connected tools: engagement and proxy voting. We enter into dialogue with companies, engage with them and use our proxy votes to guide them towards more sustainable operating models. Such dialogue enhances our understanding of a company’s sustainability, allowing us to feed it back into the investment analysis.

We think of our stewardship work as being both a sword and a shield. A sword because our activities push companies to improve and become more aligned with our core investment conviction that sustainability will drive returns. But it is also a shield, using stewardship in the team to protect the investments that we have.

our stewardship statement

engagement.

As an active asset manager, engagement is how we open and maintain continuous and constructive dialogue with a company throughout the investment lifecycle, and across different asset classes. The outcomes of our engagements influence our investment views thereby ensuring a circular and integrated approach.

Our driving principle is to use engagement to move companies at scale and depth towards sustainable business models. We approach engagement using science-based analysis and on a company-by-company basis. Our activities are based on the transition pathways and trajectories for each industry mapped by LOIM research – these aim to promote the transition to an economy that is climate-aligned, nature-positive and circular. As such, our engagement approach is harmonised to target the key systems changes necessary for the transition to a CLIC® economy.

Simultaneously, engagement enables us to help business models transition one company at a time. Each company needs a different and tailored engagement programme in order to foster its individual pathway.

Please read our Engagement Policy.

proxy voting.

Exercising proxy voting rights on behalf of our clients allows us to express our view on critical matters affecting our investee companies, and also companies’ impact on societies and the environment.

In doing so, we consider matters including (but not limited to): strategy, corporate governance, share capital management, shareholders’ rights, audit issues, transparency, disclosure, remuneration, social and environmental matters and companies’ alignment with the transition to a low-carbon, nature-positive and climate-resilient economy.

These principles reflect our belief that sound and solid corporate governance structures and the effective management of social and environmental risks create a framework within which a company can be run in the long-term interests of its shareholders and stakeholders.

Our Corporate Governance Principles and Proxy Voting Guidelines.

Our Proxy Voting Policy.