Lombard Odier is a Swiss private bank and asset management company that is popular for its leadership in the move toward sustainable asset management. They have even trademarked the “CLIC” (Circular, Lean, Inclusive and Clean) Economy. At Lombard Odier, they actively denounce the Wasteful, Idle, Lopsided, Dirty (WILD) practices of todays economic models. However, an investment fund managed by Lombard Odier Asset Management entered into an agreement with BPC for more than 10 million dollars to support its drilling activities in the Pristine waters between the Cay Sal Bank and the West Side of Andros, two of the Bahamas’ largest and most unique protected areas.
The Bahamas Petroleum Company began drilling an exploratory oil well in the Bahamas on December 20th, 2020. An oil spill in the area could lay waste millions of acres of critical wetlands on the West Coast of Andros and seabird nesting areas on the Cay Sal Bank and potentially reach as far North as Florida’s Atlantic Coast. The potential impact to the natural ecosystems, Bahamian fishing and crabbing culture would far exceed the ability to recover in the foreseeable future. This epitomizes the Wasteful economy Lombard Odier Speaks against.
Lombard Odier also points out the Lopsided nature of the world economy with wealth distributed unevenly across the globe. In particular, access to healthcare, racial and gender inequality are mentioned. The primarily black fishing and farming communities of Andros Island (the closest populated Bahamian Island to the BPC Perseverance 1 well), have not been consulted thoroughly with regard to the drilling operation. Long term mental health effects on people in oil spill zones have been documented by Oceana in their report “Time for Action:Six years after Deepwater Horizon”. The threat of an oil spill while Bahamians are still reeling from the impacts of Hurricane Dorian and the COVID-19 Pandemic pushes an ever growing mental health crisis in the country. Significant work has also shown the long lasting mental, physical and physiological effects of oil exposure in local coastal communities and oil spill response workers. In fact, after the land-based Equinor oil spill on Grand Bahama Island, Joe Darville pointed out the lack of proper protective equipment on local cleanup crews. Later, Mr. Darville later found multiple locations where oil removed from the recovery site were dumped in previously unaffected areas. Local families can be expected to bear the brunt of future medical costs and persistent environmental toxicity.
Lombard Odier has responded to local news agencies and even local and international environmentalists regarding the divergence from its sustainability mantra, saying they “regret the situation”, it was not “aligned with their commitment to sustainability” and that they are “taking actions to address” it.
The multimillion dollar investment from Lombard Odier represents a significant portion of BPC’s operating expenses. Our Islands, Our Future will continue to watch Lombard Odier as it responds to the situation.