Singapore's Alliance to End Plastic Waste, Geneva-based investment firm Lombard Odier aim to raise US$500M for scalable solutions to remove plastic waste from environment, increase recycling; global value chain for plastic packaging to reach US$1T by 2030

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GENEVA , May 12, 2022 (press release) –

  • The Alliance to End Plastic Waste and Lombard Odier Investment Managers join forces to launch circular plastic fund
  • Capital markets are critical for scaling sustainable solutions to end plastic waste

The Alliance to End Plastic Waste (“Alliance”) and Lombard Odier Investment Managers (“LOIM”) today announce their intention to launch a new circular plastic fund. The fund will aim to raise US$500 million from institutional and other accredited investors for scalable solutions to remove plastic waste from the environment, increase recycling, and drive the global transition towards a circular economy for the plastic value chain. The Alliance will serve as a cornerstone investor in the fund.

Following an extensive and competitive tender, the Alliance has mandated LOIM to build and manage the fund with the objective of generating positive environmental, social, and economic impact together with attractive financial returns.

There is tremendous opportunity for turning plastic waste into a resource, as well as driving economies of scale and economic returns. According to industry estimates, the transition to a circular value chain for plastic packaging represents a potential US$1 trillion global economic opportunity by 2030.

The fund will aim to target key themes which can directly contribute to a circular economy for plastic and accelerate opportunities in overall waste management (both upstream and downstream) —including collection and sorting infrastructure, technology-enabled recycling infrastructure, design solutions for improved plastic durability, reuse and recyclability. It will also aim to drive innovation in plastic chemistry and production which can simplify or make end of life treatment easier or more effective.

The Alliance will act as technical adviser to the fund via a team of experienced professionals who will provide industry-led expert advice on the technical feasibility, commercial viability and scalability of plastic circularity solutions, as well as waste management technology and infrastructure.

Catalyzing capital for investible opportunities

The obstacles to recycling are well known. Only 9% of the world’s plastic is recycled; most of it ends up in incineration, open dump sites, landfill or enters the environment as plastic waste. While solutions to countering these issues exist—ranging from infrastructure and collection systems and scaling innovative technologies, to systemically addressing market inefficiencies and turning linear supply chains into a closed loop—there is vastly more to do to end plastic waste. All these solutions require significant capital investment.

Jacob Duer, President and CEO of the Alliance said: “Our goal in partnering with Lombard Odier in relation to a circular plastic strategy is to grow investments in solutions that can help end plastic waste and contribute to a circular economy. The strategy harnesses the collective intelligence of the plastic value chain and connects it with capital, bringing much needed solutions to scale. I am confident this will help focus financial market attention on the investment opportunity that plastic circularity represents, and help to catalyze multiple sources of financing for investments in circular solutions for plastic waste.”

Accelerating the drive to end plastic waste

Jim Fitterling, Chairman and CEO of Dow and Alliance Chair, commented: “The systemic transformation needed to enable a plastic circular economy requires societal, infrastructure and technology innovations. This strategy presents a meaningful opportunity to put the plastic waste management ecosystem firmly on the agendas of institutional investors to accelerate the transition to a global plastic circular economy.”

Jean-Pascal Porcherot, Co-Head of LOIM and Managing Partner of Lombard Odier Group said:“LOIM is proud to be partnering with the Alliance to build and manage a ground-breaking fund that addresses the plastic circularity issue with true solutions. This important mandate reflects the shared values between the Alliance and LOIM, and recognizes our deep expertise and highest credentials in sustainable investing.

“This strategy presents a compelling investment opportunity. It will target opportunities across all segments of the private equity spectrum - including direct and co-investments investments - with the objective to reduce plastic waste issues worldwide and deliver attractive financial returns and sustainability outcomes.”

About Lombard Odier IM

At Lombard Odier Investment Managers, we are rethinkers with one goal in mind. To provide our clients with outstanding investment solutions that meet their needs for the long term and evolve to thrive in the challenging world in which we all live.

We are focused investment specialists, seeking out investment opportunities that lie on less trodden paths, where our diverse and talented team can add genuine, persistent, value to our clients. We constantly rethink what we know and do, innovating to create new strategies and develop new ways of investing.

We believe that the next economic revolution has already begun and that sustainability will be a major driver of returns for the foreseeable future and beyond. For those with the skills to adapt to this new reality, sustainability will create new sources of alpha, open up new investment opportunities and lead to enhanced return and reduced portfolio risk.

Our team of sustainability experts combine sophisticated data sources, academic rigour and technical innovation to create leading-edge, science-based tools that provide unique insights that are available to all our investment professionals.

These unique insights are reflected directly in our growing range of dedicated sustainable investment strategies that are aligned to this core belief - That our economic model must move from being Wasteful, Idle, Lopsided and Dirty to become Circular, Lean, Inclusive and Clean. We call this The CLICTM Economy.

With more than 180 investment professionals, we are a global business with a network of 13 offices across Europe, Asia and North America and have assets under management of 71 billion CHF (as of 31 December 2021).

About the Alliance to End Plastic Waste

The Alliance to End Plastic Waste (Alliance) is a global non-profit organisation with the mission to end plastic waste in the environment. Its focus is implementing projects and investing in innovative solutions to develop or enhance waste management systems. As of December 2021, its portfolio comprises over 35 projects across 29 countries worldwide.

Tackling plastic waste is a complex challenge that requires collective action. Since 2019, the Alliance has convened a global network of over 90 industry leaders across the plastics value chain, together with government, civil society, entrepreneurs, and communities to work towards advancing a circular economy for plastic waste. For more information, visit: www.endplasticwaste.org

Contact:

Celeste Herriger
Head of PR, 
Lombard Odier Investment Managers
+44 (0) 203 206 6167 
C.Herriger@lombardodier.com

Tania Tan 
Head of Corporate Communications, 
Alliance to End Plastic Waste 
+65 9692 2887
tania.tan@endplasticwaste.org 
For more information: www.lombardodier.com

Important Information:

This document has been issued by Lombard Odier Funds (Europe) S.A. a Luxembourg based public limited company (SA), having its registered office at 291, route d’Arlon, 1150 Luxembourg, authorised and regulated by the CSSF as a Management Company within the meaning of EU Directive 2009/65/EC, as amended; and within the meaning of the EU Directive 2011/61/EU on Alternative Investment Fund Managers (AIFMD). The purpose of the Management Company is the creation, promotion, administration, management and the marketing of Luxembourg and foreign UCITS, alternative investment funds ("AIFs") and other regulated funds, collective investment vehicles or other investment vehicles, as well as the offering of portfolio management and investment advisory services. Lombard Odier Investment Managers (“LOIM”) is a trade name. This document is provided for information purposes only and does not constitute an offer or a recommendation to purchase or sell any security or service. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful. This material does not contain personalized recommendations or advice and is not intended to substitute any professional advice on investment in financial products. Before entering into any transaction, an investor should consider carefully the suitability of a transaction to his/her particular circumstances and, where necessary, obtain independent professional advice in respect of risks, as well as any legal, regulatory, credit, tax, and accounting consequences. This document is the property of LOIM and is addressed to its recipient exclusively for their personal use. It may not be reproduced (in whole or in part), transmitted, modified, or used for any other purpose without the prior written permission of LOIM. This material contains the opinions of LOIM, as at the date of issue. Neither this document nor any copy thereof may be sent, taken into, or distributed in the United States of America, any of its territories or possessions or areas subject to its jurisdiction, or to or for the benefit of a United States Person. For this purpose, the term "United States Person" shall mean any citizen, national or resident of the United States of America, partnership organized or existing in any state, territory or possession of the United States of America, a corporation organized under the laws of the United States or of any state, territory or possession thereof, or any estate or trust that is subject to United States Federal income tax regardless of the source of its income. Source of the figures: Unless otherwise stated, figures are prepared by LOIM. Although certain information has been obtained from public sources believed to be reliable, without independent verification, we cannot guarantee its accuracy or the completeness of all information available from public sources. Views and opinions expressed are for informational purposes only and do not constitute a recommendation by LOIM to buy, sell or hold any security. Views and opinions are current as of the date of this presentation and may be subject to change. They should not be construed as investment advice. No part of this material may be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorised agent of the recipient, without Lombard Odier Funds (Europe) S.A prior consent. ©2022 Lombard Odier IM. All rights reserved.

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