Mirova Global Green Bond Fund: 2025 Impact Report

Our dependence on fossil fuels: a key driver of geopolitical and economic instability

Global geopolitical strains have recently triggered a war in Iran, which is located at the very heart of the energy market’s most strategic region. This comes as a stark reminder of the extent to which our dependence on fossil fuels poses both a climate risk and an economic risk.

The energy transition has occasionally found itself on the back burner lately, for security emergency and crisis management reasons; and yet our dependence on fossil fuels is precisely one of the main drivers of today’s geopolitical and economic instability. Does the energy transition not offer a solution to these challenges? After all, the global fleet of electric vehicles reduced the world’s consumption of oil by no fewer than 1.7 million barrels per day in 2025¹ .

Some climate policies are being held back by social unrest, political polarisation and other short-term priorities, making the status quo a tempting fallback position precisely at a time when the scientific consensus is emphasising that the 2020–2030 decade will be decisive in keeping the Paris Agreement on track.

Renewable energies now seem cheaper than fossil fuels and vast amounts are being invested in them, having increased six-fold since the Paris Agreement was signed.

Setting its ecological objectives aside, the energy transition has thus established itself as a major, rational economic choice. Renewable energies now seem cheaper than fossil fuels and vast amounts are being invested in them, having increased six-fold since the Paris Agreement was signed.

As renewables become more competitive, so nations are becoming more strategically autonomous, for instance in Europe and in the Indian subcontinent, as they now have less need to import unstable fossil fuels.

Renewables are thus becoming a means of securing their energy supplies and their future.

Another highlight in 2025 was the surge in artificial intelligence (AI)! While AI consumes resources on a massive scale, encouraging us to adopt a more efficient approach to our energy transition, it is first and foremost a formidable ally. It makes our power grids smarter, it optimises our generation of renewable energies, it offers us a closer understanding of the climate risks we face, and it enables us to analyse non-financial data and decarbonisation pathways more effectively. AI is therefore a vital catalyst for a greener future!

One key event held in 2025 was the COP30 in Belém, in the heart of the Amazon. The summit was a stark reminder that efforts to tackle climate change remain inextricably linked to other issues such as biodiversity conservation, territorial matters and the rights of indigenous peoples, all of which constitute an ecosystem that is essential to the world’s equilibrium.

This is the backdrop against which the market for green and sustainable bonds has continued to expand at a growth rate of around 6%, exceeding the symbolic threshold of $1,000bn² for the first time ever.

The market reached another maturity milestone in 2025 thanks to the recently introduced EU Green Bond Standard (EU GBS), taking it a huge step forward with an exacting shared framework, closer alignment with the European taxonomy, and higher transparency and reporting standards. The EU GBS lends greater credibility to the market and helps to steer more capital towards projects that are truly aligned with climate targets.

In line with an active pursuit of performance, our Mirova Global Green Bond fund consistently aims to finance projects that concretely contribute to decarbonization, improve our impact measurement, and engage closely with issuers to ensure the transparency and ambition of their decarbonization strategies.

This 2025 Impact Report presents our key indicators, our top investment picks and some examples of our engagement initiatives. It reflects our long-standing conviction that, notwithstanding today’s uncertain economic climate, an uncompromising approach to savings management is what is needed to fulfil our transition commitments and build a prosperous and sustainable future.