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How tech startups can help tackle climate change
Interview published in Forbes.fr, 25 April 2023
Founded in 1796, Lombard Odier is a Swiss private bank with a strong international presence, most notably in Paris, which has been home to the bank’s France office for over 20 years. The Firm specialises in wealth and asset management and is the only bank of its kind to be certified B Corp™. Among Lombard Odier’s central investment convictions is a commitment to sustainable investment, where the bank has taken a leading role within the industry, forging unique cross-sector partnerships and disrupting the status quo.
We are facing numerous challenges – inflation, climate change, and a tense geopolitical environment. How does Lombard Odier navigate these storms?
With its long-term vision and diversified approach to investment, our Firm has overcome more than 40 crises since its founding more than two centuries ago. By constantly questioning the world around us we are able to anticipate the challenges of our time – today there is none bigger than climate change and the need to transition to a sustainable economy.
It is important to avoid a moralising debate about this, instead we must ensure scientific rigour. One of the ways we do this is through our research partnership with the University of Oxford, which we integrate into the heart of our investment process. Our aim therefore is to put money into the companies that will win through in the environmental transition, by identifying those best placed to drive the sustainable changes we need, and those that will benefit from a zero-carbon economy.
Read also: Lombard Odier recertifies as B CorpTM with improved score
Why is the partnership with France Digitale so important for you?
Having witnessed the dynamism of the new generations of French entrepreneurs, we are convinced that the tech start-up ecosystem will play a crucial role in solving the environmental and social issues we face. Millennials currently account for 5% of our clients, but this figure is expected to rise to 50% within the next five years.
The key areas of focus for Lombard Odier have not changed for 225 years. But millennials need bankers who belong to the same ecosystem as they do, and understand what matters to them. Through partnerships such as the one with France Digitale we are able to evolve alongside each new generation. In this way, we can continue to meet the challenges of our times by identifying investment themes that both match our clients’ expectations and offer investment performance over the long term.
Which asset or investment class makes you stand out from your peers?
Private equity. Investing directly in the private sector offers higher returns than the listed market (median return 2008-2018: 19.5%). This makes it a particularly attractive asset class, despite the liquidity risk. Long term, investing in private equity allows us to decouple from the market and to counteract systemic shocks. We offer investors a broader approach to private equity. This enables them to diversify in the long term by investing in different sectors and jurisdictions, smoothing the way to market entry.
How do you support entrepreneurs and their families in managing their wealth?
At Lombard Odier, we are also entrepreneurs. We speak the same language. And we are a family business. This gives us a deeper understanding of the needs of entrepreneurs and their families, and helps us to support them at key times in their lives, such as when preparing to sell a company or when structuring an estate.
We are a human-sized firm, big enough to bring broad international expertise but small enough that we are able to offer a bespoke approach, work closely with our clients and maintain personal relationships with them. Our clients value the access they have to their personal banker and the wider Lombard Odier team.
Important information
This document is issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This document was not prepared by the Financial Research Department of Lombard Odier.
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