Global wealth and asset manager Lombard Odier Investment Managers (LOIM) announced today the launch of a new actively managed strategy, aimed at capturing opportunities across carbon markets worldwide.
Demand for carbon offset projects that counteract the release of greenhouse gases, and related credits, is expected to increase significantly over the next several years, as companies and businesses increasingly launch net zero ambitions, and turn to offsets as a bridge to their own absolute emissions reduction efforts, or to balance difficult to avoid emissions.
In response to the rapidly growing demand, several initiatives have emerged to help scale the development of the carbon credit market, including the London Stock Exchange’s launch last month of the first public markets capital raising solution for the voluntary carbon market, and the introduction in September by Salesforce of Net Zero Marketplace, a new carbon market built on its eCommerce platform. The Stock Exchange of Hong Kong Limited (HKEX) also announced the launch of a carbon market last month.
Lorenzo Bernasconi, Head of Climate and EnvironmentalEnvironmental criteria consider how a company performs as a steward of nature. Solutions at LOIM, said:
“We believe that the carbon markets are one of the most exciting investment opportunities of the climate transition mega-trend. We are seeing growing and more ambitious climate commitments, covering over 90% of global GDP, and an increasing proportion of these are legally binding. Carbon markets are a mission critical policy tool for meeting government and corporate climate commitments and are trading at a deep discount to where they need to be.”
According to LOIM, key features of its new Global Carbon Opportunity strategy will include pursuing upside participation in attractive risk/return opportunities globally including hard to access new and emerging carbon markets, and seeking quality alpha generation by capitalizing on market inefficiencies, while promoting the net zero and nature positive transition. The strategy will also actively manage tail risk to protect against price shocks.
LOIM recently hired Callum Lee as Portfolio Manager of the strategy, who joined the firm after serving as Head PM of Global Carbon at Altana Wealth. Callum will work with LOIM’s Head of Climate and EnvironmentalEnvironmental criteria consider how a company performs as a steward of nature. Solutions, Lorenzo Bernasconi, and Ruben Lubowski, Chief Carbon and EnvironmentalEnvironmental criteria consider how a company performs as a steward of nature. Markets Strategist, and the team will be supported by LOIM’s Sustainability Research teams and have access to an independent global Expert Advisory Group.
Jean-Pascal Porcherot, Co-Head of LOIM and Managing Partner at Lombard Odier, said:
“At Lombard Odier, sustainability is a core investment conviction and we believe that carbon markets will play a central role in accelerating the global economic transition towards a more sustainable future. Our Global Carbon Opportunity strategy seeks to capture these market opportunities, with the objective to promote the net zero transition and generate compelling sustainability-linked alpha for investors.”
The post Lombard Odier Launches Fund Targeting Carbon Market Opportunities appeared first on ESG Today.