As The Sustainability Revolution and the road to net zero transforms the global economy, investors must adapt if they are to mitigate the risks and capture the opportunities of this profound transition. At Lombard Odier, we believe that this can only be done through robust, science-based methodologies.
Two years ago, we at Lombard Odier began developing our own Implied Temperature Rise (ITR) methodology, which enables investors to understand whether a company is a good investment in the context of this transition by capturing projected emissions, to meet that need. In 2020, a group of climate scientists, economists and sustainable finance experts at the University of Oxford provided independent peer review of our ITR methodology with their feedback helping and us radically improve our models.
As The Sustainability Revolution and the road to net zero transforms the global economy, investors must adapt if they are to mitigate the risks and capture the opportunities of this profound transition
We have also collaborated with researchers in the Oxford Sustainable Finance Group on a white paper, published in July 2021, on how to design temperature alignment metrics for net-zero investments. In addition, we launched four ITR-based strategies that enable investors to design net zero-aligned equity and fixed-income portfolios without compromising on diversification.
Finally, this valuable partnership is enabling us to share this pioneering research with our clients through dedicated joint Lombard Odier – University of Oxford Executive Education courses, as well as with students of the newly launched MSc in Sustainability, Enterprise and the Environment at the SSEE.
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