Lombard Odier Investment Managers (LOIM) has expanded its high-conviction sustainable equities offering with the launch of a Climate Transition strategy, which captures opportunities across all sectors, created by the urgent need to transition to a net-zero economy, and adapt to a warmer climate.
LOIM's Climate Transition strategy invests in companies that are already generating superior returns and that we believe are well positioned to generate growth and gain market share, as the transition to a carbon-constrained and climate-damaged economy continues to accelerate.
Solution providers, transition candidates from hard-to-abate sectors, and adaptation leaders are incorporated into a high-conviction global equity portfolio of 40-50 stocks that fully captures the cross-sector opportunity.
The strategy follows a forward-looking, science-based approach to identify companies that provide solutions to reduce, avoid and capture carbon. At the same time, the strategy purposefully targets companies within carbon-intensive industries fundamental to economic growth, but that are transitioning to practices consistent with a net-zero pathway, where they will benefit from competitive advantage and enhanced profitability.
Adaptation is another source of investment opportunity in an increasingly carbon-damaged world. The strategy includes companies that are focused on building more resilient infrastructure or those that monitor physical and financial risks related to climate damage.
This approach is inspired by the latest recommendations across science, industry and policy, and is informed by developments under the EU Sustainable Finance Action Plan through the emergent EU Taxonomy and Climate Benchmarks.
The Climate Transition strategy is managed by Paul Udall and François Meunier, portfolio managers within LOIM's Global Equities team. Udall has been managing sustainable investment strategies, with a particular emphasis on climate change for 18 years. Meunier is a leading expert in digitalisation and technological innovation with more than 19 years of industry experience.
The Oxford Martin Principles for Climate-Conscious Investment, and recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) are incorporated at the heart of the strategy's stewardship approach, as well as in the overall stewardship activities of LOIM.