Oh, goodness, I wish I had a glass ball to know what 2021 was going to be the year

of but let's hope its the year of a new normal.

It's been tumultuous, for sure. If we can think of some good things, it could

be that 2021 will start to see investments into nature,

as well as into climate. In our view, the economy today is W.I.L.D.

And by wild we mean wasteful, idle, lopsided and dirty.

But what we are also realising at Lombard Odier

was that there is a transition happening, it's already underway.

And that is what we call a C.L.I.C.™ economy. And that's a circular, lean, inclusive and

clean economy. And we love the fact that the acronym C.L.I.C.™

also encompasses digitalization and technology

because for us that is a key enabler of the transition.

As greener becomes cheaper that's exactly when investors can wake up

and say actually, this isn't about ethical investing.

This is about returns. We've seen oil and gas companies

that have woken up to the need to transition. And have completely changed themselves around

to becoming renewable energy companies. And you've seen the valuations of those companies

skyrocket. I think the pandemic has provided a catalyst.

But it's not the only catalyst. I think a lot of this change was already happening.

2021 is a year where we're going to see a lot more regulation on sustainability.

And we've got COP 26 happening in Glasgow. We expect to see a lot more countries coming

out with targets on climate. With the EU Green Deal we saw the plastics

tax has just come in in January.

We're expecting in 2021 to see more regulation for companies

on how they need to disclose on nature. While regulation is changing

it is still a little bit lagging towards what is needed.

And we're constantly developing new tools, new methodologies.

And one of those tools we've recently developed is a Temperature Alignment Tool.

So that we can look at where companies are positioned today

in terms of their temperature trajectory and whether they are aligned with Paris, the

Paris Agreement and net zero. And for us, we believe it is absolutely vital

to do that level of analysis. We want to find those companies that really

are reacting fastest. And we're excited by the opportunities ahead.

We see huge amounts of investment opportunities. Urbanisation as a trend will be something

in focus in 2021 but certainly this should mark a point in

time for cities to rethink the way they're structured.

There's so much that can be rethought. Electrification is really exciting. Because

it's driving change. It's driving much more sustainability, we

just need to think outside of the box and away from it being

an electric car. If we can think about electric two wheelers,

electric pods electric tuk-tuks in developing markets.

I'm super excited about micro mobility. I'm hopeful that 2021 will really bring an

acceleration and focus on sustainability. And that that focus will broaden sustainability

beyond climate, and encompass nature as well. Nature is vital, and we have to protect it.

And we have to invest in it. There are lots of opportunities across the

spectrum of natural capital to invest.