Equity Investment Strategies

Lombard Odier Investment Managers expanded its TargetNetZero platform with two new strategies, TNZ US Equity and TNZ Japan Equity, bringing the decarbonization-focused franchise to over $6.8 billion in assets under management across 11 pooled funds since its 2021 launch. Both strategies use the firm's proprietary Implied Temperature Rise methodology to identify credible transition leaders across sectors, including hard-to-abate industries.

The ITR tool translates a company's projected emissions trajectory into a temperature metric, helping build portfolios aligned with the Paris Agreement's 2°C target while keeping tracking error low relative to benchmarks. TNZ US Equity tracks the MSCI USA Index with 300 to 350 holdings, while TNZ Japan Equity tracks the MSCI Japan Index with 100 to 150 holdings.

LOIM's expansion signals that temperature-based emissions metrics are becoming a standard tool for building diversified equity portfolios that balance financial and sustainability objectives.