LOIM supports the Task Force on Climate-related Financial Disclosures

investment viewpoints

LOIM supports the Task Force on Climate-related Financial Disclosures

Sustainability is an absolutely critical issue for investors today. At Lombard Odier, we believe it will drive returns in the future and determine which companies will win or lose over the long-term. Climate change in particular presents a systemic risk that cannot be completely diversified away, but the transition to a low-carbon economy also creates a very significant investment opportunity for investors. In this context, it is vital that we, as asset managers with fiduciary responsibility, have as full an understanding of companies’ ability and willingness to transition to more sustainable business practices and business models. This relies on our ability to collect, verify and integrate large amounts of sustainability-related data into our investment analysis.

We welcome the final recommendations of the Financial Stability Board (FSB) and the Task Force on Climate-related Financial Disclosures (TCFD). We believe it will enhance our ability to understand Climate-related risk and opportunities across sectors, by paving the way for enhanced, consistent and comparable disclosures of the material, decision-useful types of information that we believe to be highly investment relevant. The final recommendations create an important framework for creating the transparency necessary for investors to better analyse material risks and to understand how well companies are positioned for the transition to a low-carbon and climate-resilient economy. This is an important engine for achieving the goals of the Paris Agreement, as well as the Sustainable Development Goals, and in fostering the underpinnings for an orderly transition to occur in the real economy as well as financial markets. Early transitions in thinking and action will be key ingredients in value protection and creation for investment portfolios.

We are working to ensure that we are integrating this new information in our investment process and that our reporting frameworks are fully aligned with the recommendations of the TCFD. We also expect this to be a key feature of our stewardship efforts going forward to improve investment outcomes for our clients.

Learn more on the TCFD website.

Informazioni importanti.

This document 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.
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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 presentation 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. ©2019 Lombard Odier IM. All rights reserved.
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 presentation 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. ©2019 Lombard Odier IM. All rights reserved.