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LOMBARD ODIER, a pioneering bank in sustainable asset management

1. Organizational Governance

Context

Lombard Odier is a Swiss investment bank founded in 1796 in Geneva. The company, owned by 7 partners, manages approximately USD 290 billion per year. According to Patrick Odier, CEO of the company, our current business model has reached its limits and there is an urgent need to move towards a more sustainable business model. To accelerate this revolution, Lombard Odier has decided to become a pioneer in sustainable asset management.

Objectives

  • S’assurer que les investisseurs sachent qu’ils investissent dans les entreprises durables, ce qui accroît la fidélité de la clientèle

  • Rendre le capital plus accessible aux entreprises durables

  • Motiver les autres banques d’investissement à obtenir des investissements durables, ce qui contribuera davantage à la sauvegarde de l’environnement

APPROACH

With environmental problems more real than ever, some companies have adopted sustainable business practices and Lombard Odier is investing heavily in these companies while motivating others to disrupt their model.
To accelerate this revolution, Lombard Odier aims to allocate capital to companies that are the most sustainable in their practices. They use a three-pillar approach to integrate sustainability into portfolio management. Thus, are examined :

  • Sustainability of the company's financial model: does the company have a good financial position?
  • Sustainability of the company's business practices: what are the company's positive impacts and negative externalities on stakeholders? What is the company's performance against environmental, social and governance (ESG) criteria?
  • Sustainability of the company's business model: what is the company's long-term growth potential?

The 3 Pillars methodology enables the bank to pursue its impact investment strategy, i.e. to take into account the impact of their investment on people and the planet. They want to anticipate future regulations and clients' expectations in terms of sustainable development before they materialise, in order to build the best possible portfolio for their clients.

CONTRIBUTION TO COMPANY PERFORMANCE

  • Hausse de 13% du bénéfice net et de 6% du résultat opérationnel en 2018

  • 71% des fonds des gestionnaires de Lombard Odier Investment ont réalisé des performances dans le premier ou le deuxième quartile de leur catégorie depuis 2016

  • Obtention de la certification BCorp en 2019

  • Récompensé à 3 reprises aux prestigieux European WealthBriefing Awards 2019

Benefits

  • 38 éoliennes ont été installées dans le parc éolien de Tafila (Jordanie) et compensent près de 250 000 tonnes de CO2 par an

  • Réduction des écarts de richesse : ANNAPURNA FINANCE offre des services de microfinance à 10 millions de femmes et de ménages pauvres depuis 2018

  • Impact sur les pensées : série de vidéos intitulée « FT Rethink » sur la révolution du développement durable

  • Égalité des sexes au sein de l'entreprise : 2 associés directeurs sur 7 sont des femmes

This Best Practice has been translated voluntarily by an anonymous contributor. If you have any comments, please contact mpaquin@reseau-alliances.org.

Country
Switzerland

Mise à jour le 28/01/2020

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