Lombard Odier Investment Managers
Lombard Odier Investment Managers is an investment management firm with 13 offices across Europe, Asia, and North America. It joined the Net Zero Asset Managers Initiative on 29 March 2021 and its initial target disclosure was published on 1 May 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
70% of total AUM (USD $49 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio decarbonisation reference baseline
Portfolio decarbonisation reference target
GHG scopes included:
This target comprises scope 1, 2 and relevant scope 3 emissions. Relevant scope 3 emissions are defined as those upstream and downstream emissions that are reasonably and primarily within a company’s ability to decarbonise, through supply chain engagement or improved product design.
Science Based Target initiative for Financial Institutions
Our custom benchmarks are aligned at a sectoral level to scenarios outlined in the IPCC’s global warming of 1.5°C report. More detailed industry-specific pathways are aligned to these sectoral benchmarks, but offer more granularity, having been derived from the CTI/ClimateWorks ‘Net Zero 2050’ model for the EU, adapted by Lombard Odier and its research partners.
Proportion of AUM committed:
The 70% target represents 100% of the AUM and asset classes where we presently have access to the methodologies, metrics and data needed to assess alignment. Increased coverage of carbon data and carbon metrics is the key priority, and most significant constraint we still face today. We are actively seeking to expand coverage of alignment metrics to infrastructure, hedge funds, and other alternatives, which would allow us to expand the coverage of our target. The assessment of alignment of sovereign debt issuance is a key near-term priority. We have already developed a draft version of alignment metrics for this asset class, and are working with Oxford University to further refine these assessments.
Policy on coal and other fossil fuel investments:
For all AUM in scope, we apply these exclusions and restrictions.
Target setting: Our coverable universe is 70% AUM (this represents the asset classes that are within scope of our target setting). The calculation of our current alignment, for the baseline year of our target, is based on the 54% of total LOIM AUM (77% of the coverable universe) where we currently have good data. We are actively working on expanding the coverage of our assessment of alignment to cover the entire coverable universe as soon as possible.