From resource-intensive mass production methods that often lead to overconsumption, to anti-green practices that contribute to the continuous degradation of the environment, many of today's investment strategies employ models that are not sustainable. Lombard Odier has aptly named these models WILD or "Wasteful, Idle, Lopsided, Dirty", an issue UnionBank Private Banking is similarly trying to address, in the context of sustainable investing in the local landscape.
There are many factors that Filipino ultra-high net worth individuals consider when choosing a bank. Sustainability, one such factor, is starting to grow in weight of preference. According to the whitepaper "Connection, Transition, Transformation: engaging Asia's UHNWI in the New Normal" published in February 2021 by Lombard Odier and UnionBank Private Banking together with Lombard Odier's other strategic alliances in the region, many UHNWIs have noted their concern for climate change and the need for action once the pandemic has ended with 89% of the respondents believing that the sustainability trend in one form or another is here to stay in the long run.
As an answer to the WILD model, Lombard Odier has created the CLIC framework. Short for "Circular, Lean, Inclusive, Clean," the CLIC framework promotes sustainable and forward-looking business practices and further drives the ongoing shift toward a circular and leaner economy, where waste and emissions are minimized, and growth is inclusive. Through the framework, Lombard Odier aims to meet the long-term objectives of its private banking clients through strategies that are aligned with the United Nations Sustainable Development Goals.
“The CLIC economy leverages efficient production and consumption, and the sharing economy, reducing the wasteful accumulation of idle assets. It reduces the dependence on ever-greater extraction of mineral resources and draws on the substantial value of the materials and components that constitute the products that we so readily discard today. The transition to a circular, lean economy; one which invests to protect and regenerate its natural capital; will unlock trillions in untapped value,” said Dr. Christopher Kaminker, Head of Sustainable Investment, Research, Strategy and Stewardship at Lombard Odier. “The transition is already underway, and we are seeing many regions across Asia embrace the CLIC revolution.”
UnionBank Private Banking believes in the power of the CLIC framework to usher in a new age where economic growth can enjoy a harmonious co-existence with eco-conscious efficiency and innovation. Because the framework synergizes perfectly with UnionBank's "Tech Up Pilipinas" advocacy, the Bank is once again leveraging on its strategic alliance with Lombard Odier to inspire Filipino UHNWIs to become catalysts of the CLIC economy in the Philippines.
“UnionBank's “Tech Up Pilipinas” sustainability thrust revolves around three focus areas- Digital Transformation, Sustainable Finance, and Inclusive Prosperity, which are compatible with Lombard Odier’s CLIC™ framework. We are happy that this synergy allows us to be one of the movers in the local banking industry to pioneer an ESG-led investment program for our UNHWI clients.” said UnionBank Senior Vice President and Head of Private Banking Atty. Arlene Agustin.
“The Philippines is one of the countries in the region that is on the lower side of the transition towards Sustainable Investments. However, we see positive change where more and more investors are looking towards the better business models and practices. UnionBank Private Banking continues to strive towards a more cognizant approach towards sustainable investing and pave a way towards more sustainable frameworks such as CLIC. We are committed towards this positive change that could lead to a shift in methods within the local market. We share the same belief as Lombard Odier that it is time to let go of old wasteful, idle, lopsided, and dirty practices to bring forth a clean change towards society.” Arlene added.
Join UnionBank Private Banking and Lombard Odier in a live virtual event “E-conoMix: Shaping the Future with Sustainable Investing” on July 29 where subject-matter experts from both banks will share their current global and local market views as well as insights on sustainable investing and transitioning to a CLIC Economy.