investment viewpoints

    Investing in the transition to net zero

    Investing in the transition to net zero

    At Lombard Odier, we believe the climate transition will continue to accelerate in a post-COVID-19 world, powered by a positive feedback loop of economic and market forces. In our view, this transition is already one of the most important drivers of risk and return.

     

    Watch the following video for more about investing in the climate transition

    To achieve the goals of the Paris agreement, we need to reduce carbon emissions by 50% by 2030 and to net-zero by 2050. The transition is already underway and is creating a USD5.5 trn investment opportunity annually.

    In February 2020, we launched our pioneering climate transition strategy, which captures opportunities across all sectors. We believe the transition to net zero will affect every single sector, creating significant growth opportunities and competitive advantages for some companies over others. Companies that provide solutions for carbon reduction will benefit, but so will the transition leaders in some carbon-intensive industries.

    Carbon emissions are hardest to abate in sectors like transport, power generation, steel and cement. But these industries are still vital to economic growth in a net-zero economy. Companies that are leaders in the race to decarbonise will increase their market share and grow revenues.

    Adapting to a warmer planet also creates opportunities for companies that build resilience. Physical manifestations of a warming planet such as wildfires, drought and flooding, will continue to accelerate even in a best-case scenario. Companies that increase our resilience to climate change by strengthening infrastructure, monitoring risks, or spreading the burden of these risks, should benefit from significant growth opportunities. This will ultimately benefit investors.

    important information.

    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.
    Lombard Odier Investment Managers (“LOIM”) is a trade name.
    This document is provided for information 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 material does not contain personalized recommendations or advice and is not intended to substitute any professional advice on investment in financial products. 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. This document is the property of LOIM and is addressed to its recipient 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. This material contains the opinions of LOIM, as at the date of issue.
    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 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. ©2020 Lombard Odier IM. All rights reserved.

    download.

    related insights.

    fund information.