Welcome back to the EUVC Podcast, where we explore the frameworks moving European venture, finance, and policy.
Two weeks after Building Bridges 2025 in Geneva, Andreas Munk Holm and Enrique, Chi Impact Capital sit down with Patrick Odier — Chairman of the Supervisory Board of Lombard Odier and Chair of Building Bridges — to get practical on financing systemic transition. Odier argues for a shift from “risk and exclusion” to opportunity and system redesign, spotlighting circularity, materials, and real-economy partnerships as core alpha.
🎧 Here’s what’s covered
03:15 Why circularity = business — Input/output efficiency, risk (physical, legal, reputational), and investment edge across the real economy.
04:50 Three big transition arenas — (1) Energy & electrification; (2) Nature & land-use systems; (3) Materials (extraction, use, re-use) as a vast investment universe.
06:48 Odier’s journey — From 1990s exclusions → best-in-class → transition of business models with macro “planetary limits” as the north star.
11:57 Tools & targets — From COP21 to portfolio methodologies (e.g., temperature alignment) to favor transition leaders.
14:35 Sector stance — No blanket bans: even “hard-to-abate” sectors can be alpha if they’re truly transitioning.
17:40 Asset classes — Why private assets (esp. venture & growth/PE) are pivotal to de-risk early tech and unlock later capital at scale.
22:37 Impact vs. returns — Not either/or: aim for a risk–impact–performance triangle; measurement comparability is the current frontier.
25:32 Where to invest now — Energy systems, regenerative ag & food waste, materials (plastics, cement, steel, aluminum), reuse/refill/repair models, and recycling infrastructure.
29:21 Plastics deep-dive — Industrial partnerships, sorting, advanced recycling, refill/repair, and why “ending waste” is an investable value chain.
31:20 Geopolitics & headwinds — Non-linear transition, policy swings, but market forces (cheaper renewables, storage, infra) keep compounding.
38:06 Bottom-up pull — Next-gen leaders (e.g., IMD students) already demand sustainable models; culture is catching up with capital.
39:57 Alliance models — Working with producers (e.g., Alliance to End Plastic Waste) to validate feasibility and scale innovations.
42:17 Policy matters — Targeted regulation beats volume of rules; e.g., virgin-plastic taxes rising push manufacturers to redesign.
✍️ Show Notes
From “sustainable or not” to “transition leaders vs. laggards”
Odier’s team reframed investing around planetary limits and macro constraints. The question isn’t green vs. brown, it’s: Which companies are actively transitioning their business model to be future-fit? Those tend to outperform on risk, talent, legal exposure, and cost of capital.
“If a business has to be successful, it’s because it’s going to be sustainable. Sustainable business models can enhance long-term performance.”
Circularity is an alpha theme, not a side quest
Circularity improves input/output economics and reduces multi-dimensional risk. It’s investable across:
Design & materials (lower-carbon inputs, substitution where feasible)
Use & service models (refill, repair, reuse; marketplaces)
Sorting & recycling (collection tech, robotics, advanced processes)
Data & traceability (value-chain transparency to unlock procurement & compliance)
Three systemic plays to underwrite now
Energy & electrification — Renewables + storage + grid/charging infra.
Nature systems — Regeneration, soil health, biodiversity-aligned production.
Materials — Plastics, cement, steel, aluminum: reduce, redesign, recycle.
“Materials sit at the origin of every product. Technology plus industrial partnerships now make it an expansive investment universe.”
Plastics: from politics to portfolios
Despite treaty delays, the economics and policy stack is shifting: rising virgin-plastic taxes and brand commitments force change. Investment lanes include low-carbon value chains, refill/repair, high-yield sorting, and advanced recycling — best built with incumbents who understand scale manufacturing and logistics.
Venture’s role (and private assets broadly)
Early-stage tech is a transition lever: it absorbs initial risk, widens the solution set, and crowds-in later capital. Private markets (VC/growth/PE/infra) are essential complements to listed strategies when redesigning systems.
Impact AND performance
Ditch the false trade-off. Target risk-adjusted returns and measurable outcomes. The field’s next step is comparable impact measurement across sectors so LPs and CIOs can allocate at scale with confidence.
Policy with purpose
Good regulation is pertinent, not just plentiful. Clear objectives (e.g., reducing plastic waste) + transparent value chains = faster product and capital allocation shifts.
💡 One-liner takeaway
Finance the transition, don’t sideline it: back circularity and materials with venture-to-private scale, measure outcomes, and partner with incumbents — because choosing future-fit business models is just good investing.
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