Lombard Odier yesterday launched a Natural Capital strategy. “For the first time – the Swiss company stated – there is the opportunity to invest in public companies that leverage the regenerative power of nature, Natural Capital. We believe these companies will deliver strong growth and become the winners of the future.”
The Natural Capital strategy is a unique global investment strategy, which is directly inspired by His Royal Highness the Prince of Wales and developed in partnership with the Circular Bioeconomy Alliance, established under his Sustainable Markets Initiative. The Circular Bioeconomy Alliance, of which Lombard Odier is a founding member, aims to drive transformational change to a climate and nature positive economy by connecting investors to sustainable investable solutions.
“Some of the most convincing returns opportunities lie in the transition to a sustainable economic model”, said yesterday Hubert Keller during an event led by the Prince of Wales.
The Natural Capital fund will open with about $400 million of assets under management and will invest in a portfolio of as many as 50 small- to medium-sized publicly traded companies in North America, Europe and Asia, according to the Swiss company.
“Nature is the most productive asset of our economy. We rely on nature directly and indirectly across multiple sectors, including healthcare, agriculture, industrials, tourism and real estate. With eight billion people on the planet, our linear take-make-waste economic model is now dangerously depleting this most productive asset, despite its regenerative nature. This is a risk for our global economic activity”, the company claimed.
However, powerful forces are now pushing for this outdated linear model to evolve into a new circular economy that is harnessing the power of nature on the one hand, and preserving it on the other. Harnessing the power of nature is about greater reliance on bio-materials and an increased take-up of nature-based materials. It is also about using waste as a resource, about bioenergy, and a variety of regenerative farming, forestry and fishery practices