This is a methodological document aimed at clarifying how Mirova takes into account sustainable development issues in the framework of the environmental, social and governance analysis in light of the COVID-19 pandemic.
At a time when most of the historical players in the energy sector are often moving forward with a forced march towards the environmental transition, some are establishing themselves as the new leaders in the energy sector, bearers of solutions to the climate challenge. This is the case of the Danish Orsted, which is to the green transition what unicorns are to tech1.
We all have a role to play in the environmental and social transition, and neither finance nor the bond markets are an exception. Read this document detailing Mirova's approach to green bonds.
According to the United Nations, 55% of the world’s population now lives in cities, a rate that is expected to rise to 68% by 20501. Given this outlook, with nearly two billion people still without adequate housing2, and with greenhouse gas emissions from buildings accounting for about 20% of global emissions and 36% of European Union emissions3, building and renovating differently is a necessity. Buildings are a massive source of emission reductions: this has been well embedded in public policy, as demonstrated by Fit for 554, which raises the annual renovation target for buildings to 3%5, and provides for the creation of a sector-specific emissions trading scheme and an increase in the percentage of renewable energy used in buildings. Suzanne Senellart and Camille Barré explain how the Mirova Europe Environmental Equity Strategy6 contributes to the achievement of the Fit for 55 objectives, by investing in innovative solutions capable of meeting the challenges of the building sector, whether in terms of energy restraint, greenhouse gas emission reductions, materials used and their recycling, or preservation of biodiversity.
The environmental transition is a multi-faceted subject that affects both our production modes and our consumption patterns. It is fully aligned with economic reality, in the aim of significantly reducing our impact on the environment and preserving our planet. These issues are increasingly well understood and supported by stimulus measures, particularly in Europe. The environmental and energy transition is fully integrated into the heart of government policy and legislation, as demonstrated by Fit For 551, which sets out measures of unprecedented scope aimed at reducing greenhouse gas emissions by 55% by 2030 compared to 1990 while increasing carbon sequestration in the soil. In this article, Suzanne Senellart and Hadrien Gaudin-Hamama present the main implications of Fit for 55, how the Mirova Europe Environmental Equity strategy2 contributes to achieving its objectives, notably by investing in the circular economy3.
Forests cover almost a third of world land surface, on a decreasing trend as reforestation notably in the West and in Asia does not compensate local deforestation, in South America and Africa. But the rationale for forest expansion is strong, and developing wood-based productions can contribute to meeting some global challenges in various ways. In this context, properly designed and well managed forest plantations should be considered in impact-oriented investment universes, to support the development of a sustainable economy.
In addition to our responsible investment activities, which motivate us on a daily basis, we are convinced that the evolution towards a fairer and more sustainable world must first and foremost take place voluntarily at the level of each organisation. We are therefore committed to being exemplary and consistent with the standards we defend. Our ambition is to be a role model in our sector and to promote best practices, in line with our pioneering position, on the theme of responsibility. Mirova is pleased to publish the first edition of "Acting as a Responsible Company".