Publications

We introduce a new method for assessing portfolio coherence with climate scenarios using a database of lifecycle carbon emissions both “induced” and “avoided” at company-level alongside the International Energy Agency’s investment projections. The result is a function of lifecycle emissions intensity and the percentage of investments in carbon-implicated sectors.

The President of the United States of America has decided to honor one of his campaign promises by committing to exit the Paris Climate Agreement. This decision is an affront to humanity, American citizens foremost, making no sense from a historical perspective and an economic error. Paradoxically, we see in this announcement an opportunity to accelerate the transition to a low carbon economy.

The chemical industry is often presented as a source of strong sustainability risks, with high environmental negative impacts and toxicity issues. However, this industry is also a great source of solutions for sustainability challenges, that can have significant impact on anthropogenic emissions of greenhouse gases and pollutant. As such, it deserves a place in a responsible investment strategy.

In line with its responsible investor philosophy, Mirova is committed to steering financing towards responsible projects offering sustainable solutions. In the pursuit of consistently applying this philosophy to all asset classes, this document is intended as a framework to ensure the relevance of each infrastructure investment decision.

Interview of Marc Briand, Head of Fixed income at Mirova & Chris Wigley,Fund Manager at Mirova

President-elect Donald Trump’s energy policies mark a profound departure from those of his predecessor. A vocal climate change skeptic, he vows to reduce regulations which limit the production and use of fossil fuels, re-initiate Keystone XL, and if possible, exit the Paris Agreement.

Since her appointment as Prime Minister, Theresa May has made multiple statements on corporate governance and had already announced several reform commitments on executive remuneration issues. The purpose of this paper is to analyze her proposals to better understand strengths and limitations of existing speeches on executive compensation.

Today, responsible investing has to go beyond awareness. It must also consider the role the financial system should play in financing our economies. The legitimacy of the SDGs should pave the road for investors who are ready to commit to sustainable impact investing. Mirova has identified three levers allowing investors and regulators to facilitate this development.

Hitorically and famously fossil-fuel dependent, the U.S. energy and electricity mixes are evolving quickly as costs fall for renewables, regulations mandate their implementation, and fiscal policy incentivizes their installation. Overall, a progressive lowering of traditional barriers is leading to the potential for continued growth in solar and wind power throughout the U.S.

The objective of this study is to shed light on the main characteristics and dynamics of the emerging market related to Land Degradation Neutrality (LDN).

It has become abundantly clear that the financial system has an essential role to play in the transition toward a low carbon economy.In the midst of this context, a debate is raging over what position institutional investors ought to adopt. Can they continue to support the fossil fuel industries? Should they massively redirect their capital into financing a low carbon economy?

After four years of hard work, the COP21 has culminated in a climate agreement that was accepted by 195 countries. This agreement is the first to involve all world economies in the fight against climate change. Beyond the pledges made by the governments, the COP 21 also aimed to highlight solutions that are backed by the private sector.

Mirova is publishing the first measurement of its equity portfolios’ carbon impact. They total € 2.8 billion and 47% of its assets under management, in accordance with the commitments made as part of the Montreal Carbon Pledge and the Portfolio Decarbonization Coalition.

Current methods of carbon footprint measurement are not adequate to determine an investment portfolio’s contribution to the issues of energy transition. Following this observation, Mirova and Carbone 4 decided to create a partnership dedicated to developing a new methodology capable of providing a carbon measurement that is aligned with these issues: Carbon Impact Analytics (CIA).

The object of this study is to examine the potential of the green bond market for contributing to financing a low carbon economy.

What levers are at the disposal of institutional investors to help make the transition to a low carbon economy a reality? The present study examines the question within the context of a new collaborative engagement undertaken by Mirova, as part of its commitment to fully play its role as a responsible investor and act to promote the development of a new, low-carbon economy.

The object of this study is to examine the potential of the infrastructure markets for contributing to financing a low carbon economy.

The object of this study is to examine the potential of the equities markets for contributing to financing a low carbon economy.

This study, conducted by Mirova’s team of Responsible Investment Research analysts, covers the main issues and challenges of the technological transformations underwau to enable the transition to a low carbon economy.

This study analyses the challenges climate change poses to our societies from three points of view: understanding, action and accountability. Its details our comprehension of the issues raised by climate change, an overview of the investment solutions that we have identified, as well as the tools at our disposal to provide accountability for our actions and measure their impact.

Full-length version of our study which focuses on the topic of food security, and more specifically looks at business solutions to closing the ‘food gap’ while increasing agricultural sustainability. This second piece of research (available on www.mirova.com) is part of a series created in partnership with Cambridge University's Institute for Sustainability Leadership (CISL).

With an increasing focus on carbon emissions and a progressive strengthening of regulatory constraints in the building sector, the environmental impact of construction materials is becoming a major concern.What are the investment opportunities that these trends present today?

What is our conception of private enterprise and which good governance principles can we derive from it? How do we consider our role as an investor and which kind of ethical choices guide our investment decisions? These questions are interrelated and only after answering them can we define a voting policy.

Main findings of our last study which focuses on the topic of food security, and more specifically looks at business solutions to closing the ‘food gap’ while increasing agricultural sustainability. This second piece of research (available on www.mirova.com) is part of a series created in partnership with Cambridge University's Institute for Sustainability Leadership (CISL) on topics that present investment opportunities with the potential to meaningfully affect key issues of sustainability, whether social, environmental or economic.

In compliance with Article 314-101 of the AMF’s General Regulations, Mirova drafted the ‘Voting Rights Report’ document in order to disclose the exercise of voting rights associated with the securities held in the UCITS/AIF1 that it manages.

Read MIROVA INSIGHTS, Mirova's third research review gathering studies, research papers and analyses from the responsible investment research team.

As the market for green and social bonds takes off, attracting ever more attention from the financial community and from agents engaged in promoting the development of a more sustainable economy, we intend to revisit some larger questions that this market raises. How far along have we come in the market’s development? What controversies does it provoke? What is valuable about this market and how should we be thinking about its future development?

While they cannot be called new, various forms of shareholder engagement have independently been taking shape in different areas of the world. Today, this issue is gaining ground: investors seem to be taking a stand more often and, what is new, regulatory measures have increased. The purpose of this study is to provide an overview of the issues, actors and current trends affecting shareholder engagement in Europe and the United States that explains the objective basis for Mirova’s choices within its own engagement policy.

Multipurpose, efficient and inexpensive, drones have met with considerable success in the civilian realm, both among the general public (leisure drones) and as an alternative technology or source of innovative solutions in a professional context. The development of this market has been fostered by a large number of actors and an ever widening array of applications which should continue to multiply as regulatory mechanisms are established in countries across the globe.

In answer to the challenges of climate change and reducing greenhouse gasses, the two following sectors will be the object of substantial investment as we move forward: - Low carbon energy: the most recent IPCC report estimates at $147bn the annual increase of investments in low carbon technologies, particularly renewables between now and 2035. - Energy efficiency: the IPPC anticipates that investments in improving energy efficiency in building, transport and industry will grow by $336bn annually over the same period.

After the Rana Plaza collapse in April 2013, many people were hoping that it would serve as a catalyst to stir change in the textile industry. As such, a group of concerned investors organized a trip to Bangladesh to find out more information on the ground on what has happened since. While the messages given to us were at times mixed, one clear message was that progress was indeed being made – slowly but surely.

The oil and gas sector is undergoing profound changes: rising costs and increasingly challenging operational conditions leave little room for doubt that the era of easy oil is over. As major oil companies are increasingly forced to explore unconventional frontier reserves, investors’ concern over the riskiness of these investments, especially vis-à-vis potential carbon regulation and the uptake of alternative technologies, is putting the sector under unprecedented pressure to demonstrate a capability to find a sustainable mode of operation.

With the expected reduction in production costs and growing environmental concerns, the LED lighting market is set for a promising growth in the years to come.

Here, we look at working conditions in the supply chain from the standpoint of responsible investment. Working back from the analysis of supply chain risks, we attempt to define areas for improvement that take into account the specificities of each sector and company, and thereby encourage progress among the groups we invest in.

Interview of Michael Green, economist and writer based in London. He is the CEO of the Social Progress Imperative, a US-based non-profit organisation.

Given pollution spikes in China that have earned the name 'airpocalypses,' and increasingly restrictive legislation both in Europe and the US, coal's growth appears set to wind down. But the sheer magnitude of coal reserves is nothing to sneeze at and means this fuel will remain a threat.

Sustainable debt securities experienced spectacular growth in 2013. As the vehicles of highly specific social or environmental benefits, these financial instruments have proven seductive for socially responsible investors, as demonstrated by the increasing numbers of issues. Initiatives aimed at providing a framework are now underway in order to consolidate this expansion and support further development.

What exactly are the environmental and social impacts associated with producing and consuming palm oil? And what conclusions can we draw regarding investment in companies that participate in this value chain?

The remuneration issue is a recurrent topic of concern for shareholders, as well as in broader societal debates. Trends in remuneration provide a good indication of how the value created by a company is distributed among stakeholders. In terms of engagement, compensation is one of the principal points of leverage by which investors can encourage the emergence of a sustainable economy compatible with the social environmental issues facing the 21st century.

Read MIROVA INSIGHTS, Mirova's second research review gathering studies, research papers and analyses from the responsible investment research team.

Arctic offshore projects provide major technological challenges for the industry and will continue to do so. Being able to boast of technological success is not a sufficient indication of the industry’s ability to respond to the challenges of future projects, situated in the ‘extreme’ Arctic, where the operational risk profiles are higher.

The American agency responsible for promoting human health and food safety, the Food and Drug Administration (FDA), recently moved one step closer to banning trans fats in processed food products. This decision is in keeping with increasing awareness worldwide of the relationship between diet and health.

This study focuses on the topic of mobility, and more specifically,the lightweighting of passenger vehicles, currently a key theme in the transport sector.

Mirova seeks to participate in the real economy by promoting investment in projects offering significant social and environmental benefits. So, Mirova has developed a new methodology for social and environmental analysis of Infrastructure projects.

The most recent publications suggest that a long-term temperature rise of +4°C is becoming increasingly likely. If this were to be the case, it would lead to a whole series of natural disasters...

The recent horsemeat scandal has highlighted how the integrity of today’s food supply chain can easily be broken down. Due to the mislabelling, consumers have lost trust in the industry in assuring the quality and transparency of their food.

Can we talk about a “spring of corporate governance” in France? Difficult to say. An abandoned draft law, a report on responsibility and company performance, and a revised version of the AFEP-MEDEF Code. Mirova aims to find out and identify the work still to be done.

A Mercer study on the implications of climate change on traditional management schemes.

On the morning of 24 April 2013, Rana Plaza building, home to five garment factories collapsed in Bangladesh. This has prompted people to question how to bring about change in the textile industry’s global supply chain, and which players should be responsible for initiating such change?

Read MIROVA INSIGHTS, Mirova's research review gathering studies, research papers and analysis from the responsible investment research team.

The European Securities and Markets Authority (ESMA) has produced a report on the regulation of the activity of proxy advisors. What are the main findings?

Foxconn, the largest private employer in China announced its intention to hold elections for independent labour union representatives in its Chinese factories. A real change?

Since his re-election, Barack Obama has multiplied his statements in favour of reinforced action on behalf of the United States in the fight against climate change. What consequences?

The practice of flaring undermines the credibility of environmental action in the Obama administration. What is flaring? What are the environmental implications?

What social and environmental consequences arising from the use of alternatives to traditional energy resources such as shale gas?

Kay Review is a report on the short-termism seen in the English markets and the dysfunctional nature of Agency relationships within the investment chain. What are the main conclusions of this report ?

Despite the major drought in the U.S. in 2012, US farmers have registered record profits for 2012, partly due to agricultural insurance indemnities. What are the implications?

The International Integrated reporting Council (IIRC) launched a structuring initiative in order to respond to investors' need for adequate information to allow them to make responsible investment choices. What lessons?

What are the implications of the Dodd- Frank Wall Street Reform and Consumer Protection Act on the social corporate responsibility?

Recognized as an oil region for decades, can we pretend that the arctic is a new Eldorado oil field?

Back to Hurricane Sandy and to sensitivity of economies to climatic vagaries.

Is that the Say on Pay (practice of allowing shareholders to vote on the fixed and variable remuneration of directors) will be introduced in the next law project in France?

On the 13th December 2012, the French Senate definitively adopted a law aiming to remove bisphenol A from all food containers. What is bisphenol A? Where is it used? What regulations are in place?

The Fukushima nuclear accident has reignited the debate on nuclear power in Japan. What are the implications?

The electric vehicle meets the challenges of sustainable mobility. How? What are the barriers to development?

Interview of Thierry Philipponnat, in charge of Finance Watch’s strategy,advocacy, output and staff of Finance