Webinar: “Sustainability as an Investment Conviction”

We are pleased to invite you to our webinar with Dr. Thomas Höhne-Sparborth, Head of Sustainability Research at Lombard Odier Investment Managers, who will deliver a presentation titled “Sustainability as an Investment Conviction”. Full recording available here!

Interest in sustainability has increased, but it is often still considered through the lens of traditional, backwards-looking ESG data. For Lombard Odier, sustainability forms part of our investment convictions. We believe our current economic model is both inefficient and highly damaging both to our environment, and to economic growth, and must be replaced by a model that is Circular, Lean, Inclusive and Clean (CLIC™). Climate change presents one of the most acute challenges in this regard, and requires a new framework for investors to deal with the challenges it creates. Transitional risks and opportunities, physical risks, and liability risks, are likely to escalate, although their scale and shape will vary across scenarios. Their combined impact (which we refer to as climate value impact) is significant, making understanding its implications for risk and return part of an asset owner’s and asset manager’s fiduciary duty.
To mitigate these new challenges, more forward-looking perspectives are needed. Simply divesting out of higher-carbon sectors is not the solution, as it is precisely in these sectors where financing is most urgently needed, and where some of the most relevant investment opportunities may be found. Instead, new metrics such as Implied Temperature Rise (ITR) seek to assess not only emission levels today, but the ambition and credibility of company’s de-carbonisation strategies. Ultimately, these strategies ensure improved alignment to regulatory frameworks, the Paris Agreement, and are better positioned with respect to the value impact on risk and return of climate change and the climate transition.

Biography of the Speaker:

Dr. Thomas Höhne-Sparborth is the Head of Sustainability Research at Lombard Odier and leads a team focused on the transition to a Circular, Lean, Inclusive and Clean (CLIC™) economy. Dr. Höhne-Sparborth led the development of Lombard Odier’s proprietary Temperature Alignment methodology and is leading the further elaboration of forward-looking metrics, with a particular focus on financial implications, through a concept known as Climate Value Impact. He joined Lombard Odier from Roskill Consulting Group, where he was Director of Economics & Analytics. He holds a Master of Arts SAIS and a doctoral degree from the LSE.

Find below the complete recording of the webinar: