November 30, 2020

By Lynda Kiernan, Global AgInvesting Media

Swiss wealth and asset manager Lombard Odier refers to sustainability as the “next economic revolution” and “perhaps the single biggest investment opportunity in history”.

Joining the revolution, Lombard Odier announced the launch of a Natural Capital strategy. Inspired by His Royal Highness The Prince of Wales, this global equity strategy was developed in partnership with the Circular Bioeconomy Alliance – an initiative established by The Prince of Wales under his Sustainable Markets Initiative and of which Lombard is a founding member.

“A circular bioeconomy offers a conceptual framework for using renewable natural capital to holistically transform and manage our land, food, health and industrial systems as well as our cities,” states the Alliance. “Putting forward a new economic model will require transformative policies, purposeful innovation, access to finance, risk-taking capacity as well as new and sustainable business models and markets.”

Lombard Odier acknowledges that as our global population booms, the existing linear, “take-make-waste” economic model is unsustainable and has become a risk for the global economy.

However, this outdated model is evolving into a new circular economic model through which nature – “the most productive asset of our economy” – is both harnessed and protected.

“The investment industry, which represents $120 trillion of capital, will always seek returns as a primary objective,” said Hubert Keller, managing partner, Lombard Odier Group and CEO, Lombard Odier Investment Managers. “We believe that today some of the most convincing returns opportunities lie in the transition to a more sustainable economic model, putting climate transition and nature centre stage.”

A circular model entails greater regenerative agriculture, forestry, and fishing practices; greater reliance on bio-and nature-based materials, up-cycling waste into useful resources, and the adoption of bioenergy.

But it also entails reimagining our accepted production and consumption, and eliminating waste thorough these activities. And together with its Climate Transition strategy launched earlier this year, Lombard Odier is targeting a CLIC™ economic model – circular, lean, inclusive, and clean – that also creates value and generates improved economics.

“By investing in companies that align their business models to the concept of Harnessing or Preserving Nature, our Natural Capital strategy has identified an untapped investment opportunity – one that we believe will deliver strong returns for investors and help accelerate the transition to a more sustainable economy,” said Keller.

Lombard Odier views this strategy as a means to shift into circularity in production and consumption toward zero-waste strategies that create a leaner economy that uses resources efficiently.

This vehicle will be managed by Lombard Odier Investment Managers (IM) who will be generating a sustainability report quantifying the positive impact the investments are having on nature, society, and the world.

His Royal Highness, The Prince of Wales commented, “We need to accelerate our efforts and set the course for a sustainable future rooted in a new economic model – in other words, a circular bioeconomy that puts Nature and the restoration of Natural Capital at the centre of the entire process.

“Building a sustainable future is, in fact, the growth story of our time.  If we are to drive global economic growth, it is imperative that we value and invest in our natural capital.  This is why I am enormously encouraged to see that, under my Sustainable Markets Initiative, the Circular Bioeconomy Alliance is working hand-in-hand to support the Natural Capital Strategy developed by Lombard Odier.”

Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.