Sustainability Report 2021

message from our managing partners.

We are publishing our 2021 Sustainability Report as we begin to emerge from a global pandemic and amid rising global tensions. Even so, the unstoppable forces behind the transition to a sustainable economy and the race to net zero are continuing to gain momentum.

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MANAGING PARTNERS
From left to right: Alexandre Zeller · Denis Pittet · Annika Falkengren
Jean-Pascal Porcherot · Patrick Odier · Frédéric Rochat · Hubert Keller

In 2021, we launched our Target NetZero strategies, which invest in companies that are transforming their business models to ensure their alignment with, and ongoing profitability in, a decarbonising world. Meanwhile, our new Natural Capital strategy focuses on investing in companies that protect and leverage the regenerative power of nature, upon which over 50% of our economy depends.

We are fully committed to aligning our Group with the Paris Agreement by 2050. Last year, we pledged to reach net zero in our operations by 2030.

At COP26 in Glasgow, we hosted the Zero-Hour Sessions, a series of events that saw experts discuss topics from decarbonisation pathways to the importance of policy. Shortly after, Lombard Odier was a driving force behind the second Building Bridges conference in Geneva, which brought together diverse international stakeholders to promote a sustainable financial system.

We believe that banks play a pivotal role in our economy and society. At the end of 2021, Lombard Odier’s total client assets stood at CHF 358 billion. Consequently, we are convinced that we can positively influence a large proportion of the economy through our work.

Lombard Odier is committed to achieving net zero throughout its operations by 2030

an economic transformation.

At Lombard Odier, we believe the current global economic model is unsustainable. It is ‘WILD’: Wasteful, Idle, Lopsided, and Dirty. However, we also recognise that the economy is already transitioning towards what we call a ‘CLIC^®’ model: one that is Circular, Lean, Inclusive, and Clean. This transition is fundamentally re-shaping risk and return dynamics across all sectors and asset classes. As such, we understand that sustainability has now become one of the most important drivers of risk and return.

To arrive at a CLIC^® economy, we believe the global economy will have to address eight key sustainability challenges:

our rigorous investment approach.

We have developed several science-based tools to help us contribute to achieving a net-zero economy. Implied Temperature Rise (ITR) metrics enable us to define the rate at which each industry must decarbonise to align with a 1.5°C or 2°C increase in global temperatures, assess companies’ decarbonisation trajectories, and measure the alignment of our investments and portfolios with the goals of the Paris Agreement. Meanwhile, our Climate Value Impact (CVI) framework allows us to evaluate the financial implications of the climate transition on companies and portfolios that will result from transitional risks and opportunities, and physical and liability risks.

harnessing the power of nature.

We believe that we must increase investment in our natural capital, and that this requires simpler access to clear opportunities. That is why we launched our Natural Capital strategy in November 2020. Last year, we joined the Forest Investor Club (FIC), a group of public and private financial institutions and other investors that seeks to enable access to investments in natural capital by connecting its network with complementary partnerships and clearing bottlenecks.

Lombard Odier is a founding member of the Circular Bioeconomy Alliance (CBA). Watch Dr. Marc Palahí, Director, European Forest Institute (EFI) and Chair, Circular Bioeconomy Alliance (CBA), discuss the transformational role forests can play in developing a circular bioeconomy.

stewardship: influencing companies towards sustainability.

Lombard Odier Investment Managers (LOIM), our asset management business, uses investment stewardship to make a positive contribution to the CLIC^® economy through engagement and proxy voting. Our approach incorporates The Oxford Martin Principles for Climate-Conscious Investment, the recommendations of the Financial Stability Board’s (FSB) Taskforce on Climate-related Financial Disclosures (TCFD), and emerging best practice on natural capital, as well as more traditional core ESG considerations. In 2021, we focussed particularly on the climate transition, using stewardship to help drive the monumental task of guiding the economy to a 1.5°C path.

Watch Rebeca Coriat, Head of Stewardship at Lombard Odier, discuss the importance of stewardship in helping companies adopt sustainable business models.

100 bn

tonnes of natural resources are extracted globally each year

70bn

tonnes of waste is produced annually

$428bn

the annual cost of damage to the Earth’s oceans caused by our WILD economy by 2050

1.2°C

current average global temperature increase since pre-industrial times

84%

of global primary energy comes from fossil fuels

35 bn

tonnes of CO₂are emitted each year

8 mn

tonnes of plastic is estimated to enter the oceans annually

2/3

of the world’s population live on
less than $10 a day

50-65%

proportion of time offices are vacant

the next generation.

With the largest global inter-generational wealth succession to date projected to take place over the next five years, we foresee an increased focus on environmental and social factors as the next generation begins to engage in investment decisions.

In 2009, Lombard Odier partnered with the Family Business Network (FBN) to create the FBN Next Generation (NxG) Lombard Odier Award. The award supports young innovators based on strict criteria, including contribution to family business renewal, corporate sustainability, and impact.

New clients are younger, entrepreneurial in spirit, and socially conscious
Frédéric Rochat, Managing Partner

2021

reducing our footprint.

In 2021, our global carbon footprint was 4,268 tonnes CO₂e, an increase from 2020 but down from 7,547 tonnes CO₂e in 2019. Since the Covid-19 pandemic’s effects on travel and work significantly affected our 2020 footprint, we use 2019’s figures as a baseline for our emissions reduction comparisons and plans.

We internally align our efforts to reduce our footprint and aim to make our operations Circular, Lean, Inclusive, and Clean (CLIC^®). In addition to having a positive impact on the environment and our stakeholders, reducing our carbon footprint also produces economic benefits in the form of increased operational efficiency and reduced costs.

100%

renewable electricity sources

64tonnes

of paper recycled

1tonne

of plastic used

0.6mn

km travelled by train

3.8mn

km travelled by plane

4.6tonnes

of glass and metal used

> 80%

of our Geneva offices heating comes from an in-house circular system

1tonne

of coffee capsules recycled

Reducing our carbon footprint produces economic benefits in the form of increased operational efficiency and reduced costs

our colleagues.

At Lombard Odier, we see The Sustainability Revolution as the biggest investment opportunity of our generation and a driver of higher returns. Our success depends on our colleagues, who enable us to tap into that opportunity on behalf of our clients. That is why we place our people at the centre of our considerations.

Lombard Odier strives to provide an ethical and inclusive workplace for all our employees, as outlined in our Code of Conduct, Shared Values, and other internal policies. We believe that it’s important for Lombard Odier to be seen as an employer of choice, and we are fully committed to providing a stimulating, open, innovative working environment.

Our colleagues can access personal development courses and training through our Learning Management System, LO University. We continually add new training programmes to our offering, which represents a sustainable choice to invest in our human capital.

Since we created our Gender Initiative in 2016, we have seen a positive evolution in the role of women within the Group. This has led to the gradual emergence of new trends, evidenced by a high retention rate after maternity leave and an increase in part-time work among male employees.

Lombard Odier supports flexible hours, part-time solutions, and remote working to empower our colleagues to manage their professional and personal responsibilities effectively. We provide a range of ongoing sports and wellness programmes to support the physical and mental well-being of our people.

Last year, our annual Women’s Leadership Programme enabled 19 talented women to work across all the Group’s different units and offices to help them develop their management skills and support them in their careers.

64%

men

36%

women

nationalities

21.4%

of women in senior management

141

employees promoted

8.51

years is the average tenure per employee

partnering with the leaders of tomorrow.

In partnership with the International Committee of the Red Cross (ICRC) and the International Institute for Management Development (IMD), Fondation Lombard Odier has created a new course that aims to develop participants’ organisational capacity to conduct innovative finance transactions in the humanitarian and development fields.

Watch Jean-François Manzoni, President of the International Institute for Management Development, discuss the role of leadership in accelerating The Sustainability Revolution.

philanthropy and community engagement.

In 2021, Fondation Lombard Odier’s Covid-19 Relief Initiative continued its work with a particular focus on supporting cultural institutions in Switzerland. Temporary closures and restrictions resulting from the Covid-19 pandemic have severely impacted the Swiss cultural sector, causing significant income losses for cultural enterprises, actors, and associations.

After three years of work, the exterior of the Royal Chapel of the Château de Versailles has been restored to its former glory. This is the third such project in Versailles to be funded by a Swiss donor through Fondation Philanthropia, which also contributed to conserving the traditional expertise of artisans by enabling them to transfer their skills to the next generation through the training of apprentices.

Watch the interview with Frédéric Didier, Chief Architect for Historic Monuments, Château of Versailles, and Denis Pittet, Managing Partner of Lombard Odier and Chairman of Fondation Philanthropia. Fondation Philanthropia has been working with the Palace of Versailles on several restoration projects since 2012. Furthermore, it is the principal sponsor of the restoration works on the Royal Chapel.
^©Château de Versailles / Thomas Garnier
^© Château de Versailles / AMP

our new headquarters.

As the construction of Lombard Odier’s new global headquarters in Bellevue, Geneva, steadily progresses, we are continuing to ensure that our new home embodies the highest sustainability standards, both during construction and in the future.

We aim to achieve three sustainable construction certifications (Standard Nachhaltiges BauenSchweiz (SNBS), Minergie-P, and BREEAM^®) by developing solutions in a number of areas, including:

Leveraging nature

Efficient water use and re-use with a 200m³ rainwater collection container in the basement, and a green roof that covers 85% of the roof surface.

Green mobility solutions

e-Bikes and charging stations for electric cars and bikes, as well as a bike repair and maintenance workshop.

Renewable energy

use of 700 m² solar roof panels and participating in the GeniLac project: a 100% renewable thermal solution that uses water from Lac Léman to cool and heat buildings.

download the full 2021 sustainability report.

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download the report

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our sustainability report 2021.

message from our managing partners.

Get your copy now

an economic transformation.

our rigorous investment approach.

harnessing the power of nature.

stewardship: influencing companies towards sustainability.

the next generation.

our sustainability history.

Since 18412021

Alexandre Lombard warns against investing in southern US firms reliant on slave labour

Contribution to the foundation of the future Red Cross

Among the first private companies to establish an employee pension fund

Development of proprietary Environmental, Social and Governance (ESG) scoring methodology

Early signatory to UN Principles for Responsible Investment

Partnership with Generation Investment Management

Launch of new ESG/ Consciousness, Actions and Results (CAR) materiality scoring methodology

Certified Economic Dividends for Gender Equality (EDGE)

Partnership with Affirmative Inv. Mgmt. on a Global Climate Bond Strategy

Signatory to UN Global Compact

First global wealth and asset manager to be awarded B Corp Certification

Supporter of Task Force on Climate-Related Financial Disclosure (TCFD)

Imprim’Vert certification for our Geneva printing plant

First publication of our carbon footprint

Member of the Green Bond Principles

Participant of Climate Action 100+

Commissioner to the Energy Transitions Commission (ETC)

Founding member Building Bridges, Geneva

Launch of Climate Transition Strategy

First stone of our new global headquarters layed down

Founding member of The Circular Bioeconomy Alliance

Launch of Natural Capital Strategy with HRH The Prince of Wales’ Circular Bioeconomy Alliance

Multi-year sustainable investment partnership signed with Oxford University

Signatory to UN Principles for Responsible Banking

“Positive Actions” label received by the Luxembourg Ministry of Equality

Participant COP26

Net Zero Investing Strategies

Committed to reach net zero by 2050 through the Net Zero Asset Managers initiative

Commitment to net zero by 2030 for our own Operations

Publication of our Group Corporate Social Responsibility Ambition and our Supplier Code of Conduct

Partner of the Business for Nature coalition

reducing our footprint.

our colleagues.

partnering with the leaders of tomorrow.

philanthropy and community engagement.

our new headquarters.

download the full 2021 sustainability report.

download the report.

Get your copy now

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