lombard odier and the university of oxford.

As the global economy undergoes profound system changes, investors must adapt to capture the opportunities and mitigate the risks of this transition. At Lombard Odier, we believe this requires robust, science-based methodologies that assess how companies and portfolios align with a future economy that is net-zero, nature-positive, socially constructive and digitally enabled. 

To support this vision, we began developing our own Implied Temperature Rise (ITR) methodology in 2020. This approach enables investors to assess whether a company’s projected emissions trajectory aligns with international climate goals – and whether it remains a compelling investment in the context of the transition to a net-zero emissions energy system. That same year, our methodology was independently peer reviewed by climate scientists, economists and sustainable finance experts at the University of Oxford. Their input played a key role in helping us improve and refine our models. 

We have also collaborated with researchers in the Oxford Sustainable Finance Group on a white paper, published in July 2021, on how to design temperature alignment metrics for net-zero system change investments. In addition, we launched four ITR-based strategies that enable investors to design net zero-aligned equity and fixed-income portfolios without compromising on diversification. 

Finally, this valuable partnership is enabling us to share this pioneering research with our clients through dedicated joint Lombard Odier–University of Oxford Executive Education courses, as well as with students of the newly launched MSc in Sustainability, Enterprise and the Environment at the SSEE.