Sustainability Report 2022

message from our managing partners.

We are publishing our 2022 Sustainability Report amidst a storm of uncertainty, from soaring inflation to social and political divisions. Even so, the unstoppable forces behind the environmental transition have not been derailed. In fact, the race to net zero is continuing to gain momentum.

Today, that means supporting the transition to an economy that is Circular, Lean, Inclusive, and Clean: a CLIC^® economy. We expect to see the consequences in changes to four crucial systems: Energy, Land & Oceans, Materials, and Pricing Externalities such as Carbon.

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

That is why, in addition to existing partnerships with Systemiq and the University of Oxford, 2022 saw Lombard Odier announce a landmark multi-year partnership with Enterprise for Society (E4S), the academic venture spearheading the transition to a circular economy. Meanwhile, our participation in Building Bridges in Geneva and the World Economic Forum in Davos places us at the heart of the debate on climate and sustainable investment.

Following a thorough due diligence process, we were delighted when B Lab confirmed our recertification in June 2023. We also made significant progress on reducing our emissions last year, especially those related to energy and business travel that make up the majority of our carbon footprint.

Due to open in 2024, our new global headquarters in Geneva is a physical manifestation of our sustainability strategy. The project has already achieved multiple preliminarily sustainable construction certifications.

In 2023, we look forward to working with our clients to help them manage their wealth sustainably.

The new investment imperative is to understand the trajectory of these economic systems and seize the opportunity

transforming key systems.

The transition to a CLIC^® economy is already underway, and it’s 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.

As the endpoint of this transition becomes increasingly clear, we as investors must understand the key system transformations that will define the investment landscape in the coming decades. We believe the transition will play out in changes to four key systems:

Energy: Electricity’s share of global energy demand will increase from 20% in 2020 to over 70% by 2050. We will ramp up renewables and other zero-carbon electricity sources as we phase out fossil fuels.

Land and Oceans: We will transform our food systems to produce more with less. Innovative distribution methods will cut food waste. Such developments will enable us to return millions of hectares to nature.

Materials: We will extract less while recycling and re-using more. New materials, recycling methods, low-carbon secondary materials, and service-based business models will enable us to break the link between production and resource extraction.

Carbon: We will find new and better ways to efficiently price carbon across sectors through carbon markets. Carbon credit schemes that fail to deliver their promised real-world impacts will fall out of favour. Predictable increases in carbon prices will incentivise the shift to low-carbon technologies.

accelerating systems changes.

Following these convictions, we’ve embarked on a journey to develop our range of strategies that invest in companies enabling and accelerating the transition to a CLIC^® economy. We leverage in-house research and insights gathered in collaboration with our research partners to delve deeply into the disruptive changes occurring in value chains across sectors.

Through these strategies, we can now offer our clients exposure to investable opportunities across our Energy, Land and Oceans, Materials systems, underpinned by Carbon Pricing.

Watch our video with Jeremy Oppenheim, founder and Senior Partner at Systemiq, the leading system change firm. By building multi-stakeholder partnerships across private and public markets and driving innovative solutions to reach a net-zero, nature-positive and socially-just economy, Systemiq accelerates the transformation of key economic systems.

our sustainability strategies.

In Energy systems, our range of Target Net Zero strategies invest in companies leading the transition to net zero through ambitious, credible decarbonisation objectives.

In Land and Oceans systems, the Planetary Transition strategy invests in a high-conviction portfolio of companies accelerating environmental transitions. And our new Food Systems strategy looks to capture the upside of a transformation in how we produce, distribute, and consume food.

In Materials systems, our Circular Economy strategy invests in the circular bioeconomy, resource efficiency, the outcome-oriented economy, and zero waste. And in 2022, we partnered with the Alliance to End Plastic Waste to launch our USD 500 million Plastic Circularity strategy, which will target scalable solutions for cleaning up plastic pollution and driving the transition towards a circular plastic economy.

In Carbon systems, our new Global Carbon Opportunities strategy offers investors access to voluntary and compliance carbon markets.

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 and transitions in Energy, Land and Oceans, Materials, and Carbon systems. 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 2022, we focused particularly on the climate transition, using stewardship at scale and in depth to help drive the task of guiding the economy to a 1.5 °C path.

USD 5.5 trn

infrastructure investment required per year until 2030 to limit global warming to 2 ºC

70 %

electricity’s share of global energy supply by 2050

USD 1.5trn

value of opportunities in food systems expected by 2030

1.1°C

current average global temperature increase since pre-industrial times

82%

of global primary energy comes from fossil fuels

37bn

tonnes of CO₂ are emitted each year

1 mn

tonnes of plastic is estimated to enter the oceans annually

11.6 %

proportion of global deaths caused
by air pollution each year

14%

proportion of the world’s population who are illiterate

the next generation.

With the largest global intergenerational wealth transfer to date projected to occur over the next five years, we engage with next-generation clients who, often, have an increased focus on environmental and social factors in their investment decisions.

In 2022, the Capstone Millennials project – launched by Lombard Odier – highlighted the expectations of next-generation clients. This comprehensive analysis is based on research conducted by around fifteen student groups from the business schools ESCP Paris and IAE Nice. As the next generation increasingly strives to invest sustainably, the insights we gained will inform our future projects and enable us to better serve our clients’ evolving needs.

We believe in personal relationships and bespoke investment solutions
Frédéric Rochat, Managing Partner

reducing our footprint.

In 2022, Lombard Odier’s global carbon footprint was 5,989 tons CO₂e, a 17.9% decrease compared to our 2019 baseline.

We internally map our operational sustainability initiatives and impact to the Lombard Odier 3+1 framework by measuring our efforts around our use of renewable energy, efficient utilisation of materials and physical assets, the protection of nature, and carbon emissions reductions. We align our global efforts to reduce our environmental footprint, and aim to make our operations Circular, Lean, Inclusive, and Clean (CLIC^®). Besides having a positive impact on the environment and our stakeholders, reducing our carbon footprint also increases our operational efficiency and reduces costs.

100%

renewable electricity sources

8.5GHh

electricity used

8.1mn

pages printed

0.8mn

km travelled by train

16.6mn

km travelled by plane

34%

decrease in travel-related emissions compared to 2019

> 80%

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

33%

reduction in energy consumption since 2019

We measure our efforts around our use of renewable energy, efficient utilisation of materials and physical assets, the protection of nature, and carbon emissions reductions

our colleagues.

Our people are the foundation of our success, and so we place them at the heart of everything we do. Over 2,700 colleagues work for Lombard Odier across our 25 global offices, each of whom reflects the diversity of their cultures and communities.

Together, we strive to make our bank an even better place to work. This includes creating an ethical, inclusive, and equal work environment for all our employees, as outlined in our Code of Conduct and Shared Values and other internal policies.

Volunteering provides our people with opportunities to develop their skills and leadership qualities in a non-work setting. We support employees who want to volunteer by offering all our colleagues one paid day off for volunteering per year.

We empower our colleagues to achieve an optimal work–life balance. In 2022, we introduced a new home-working guideline that formally allows all our employees to work remotely up to two days a week, provided that they can continue to fulfil their responsibilities.

Depending on the country and office, Lombard Odier employees enjoy a range of benefits, including maternity, paternity, and adoption leave and pay; subsidised travel passes; and health insurance.

We conduct anonymous employee satisfaction surveys every two years to encourage our people to express their views on a range of topics. In the years between, we conduct a survey with a specific objective. In 2022, this survey gathered feedback from new joiners on their first experiences with the company. These surveys enable us to monitor employee satisfaction and identify areas for improvement.

63%

men

37%

women

nationalities

22.8%

of senior managers are women

196

employees promoted

8.6 years

average tenure

EDGE certification.

At Lombard Odier, we value equality of opportunity. In 2022, following a rigorous third-party audit, our work in this area was recognised when we were awarded the EDGE MOVE certification for gender equality for the second time.

The audit revealed that the Group has made good progress on gender representation as well as the effectiveness of policies and practices in most areas, especially those related to equal pay for equivalent work and flexible working. We are proud to have been awarded EDGE MOVE certification once again, and of the ongoing work around gender equality it represents.

philanthropy and community engagement.

In response to the war in Ukraine, Fondation Lombard Odier committed to helping the International Committee of the Red Cross (ICRC), the United Nations Refugee Agency (UNHCR), and UNICEF address the most pressing needs of people affected by the conflict. And because many of our colleagues also wanted to contribute financial support, Fondation Lombard Odier offered to both channel and match their donations to these humanitarian agencies’ Ukraine relief programmes.

At the onset of the Covid-19 pandemic, Fondation Lombard Odier’s Covid-19 Relief Initiative supported those most affected by donating to a series of institutions and projects in Switzerland and elsewhere. To share what we’ve learned from this work, Fondation Lombard Odier and the Center for Philanthropy Studies (CEPS) at the University of Basel published Lessons Learned from Funding Culture in Switzerland during the Pandemic, an autumn 2022 report on how donors can help build a resilient post-pandemic cultural sector.

our new headquarters.

When we decided to construct our new global headquarters on the shore of Lake Geneva, we knew we wanted to create a building that embodies the highest standards of sustainability.

Watch our video with our Managing Partner, Annika Falkengren, on Lombard Odier’s plans to unite our colleagues under 1Roof. Our new sustainable headquarters, built on the shores of Lake Geneva, has been designed by renowned architects Herzog & de Meuron. This landmark building has been constructed in line with the highest sustainability criteria.

A sustainable construction needs a framework, and so we aim to achieve three sustainable construction certifications: Standard Nachhaltiges Bauen Schweiz (SNBS), Minergie-P, and BREEAM®. We’ve developed solutions in a number of areas, including:

Leveraging nature

Building automation features will monitor electricity and water usage. Large windows will fill the building with natural light, while deep balconies will provide enough shade to limit the energy required for cooling.

Protecting nature

150 trees – more than three times the number removed for construction – will be planted in our garden, which will host beehives and insect hotels. A rare type of orchid discovered on our land was safely relocated during construction before being replanted in our new grounds.

Renewable energy

700 m² solar roof panels will help power the building, and all the energy we purchase will be renewable. The GeniLac project will provide a 100% renewable, thermal solution that uses water from Lac Léman for temperature control.

download the full 2022 sustainability report.

download the report.

download the full report here

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our sustainability report 2022.

message from our managing partners.

Get your copy now

transforming key systems.

accelerating systems changes.

our sustainability strategies.

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.

EDGE certification.

philanthropy and community engagement.

our new headquarters.

download the full 2022 sustainability report.

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