Mirova Global Sustainable Equity Strategy: impact report 2024

Embracing long-term megatrends and driving sustainable growth

Our conviction-driven investment approach focuses on megatrends shaping the global economy over the long term. The strategy seeks to deliver both financial outperformance and a superior sustainability profile compared to the broad market. In today’s volatile and complex market environment, we reaffirm our commitment to sustainable investing, a guiding principle that has shaped our investment strategies and engagement efforts for more than a decade.
 

We believe the world is undergoing gradual yet significant changes. How we live today and how we will live in ten years’ time is dramatically different. We are witnessing strong transitions related to demographics, the environment, technology, and governance & culture. These are secular transitions that transcend economic cycles and will persist regardless of the geopolitical backdrop or political leadership in any given country. Despite opposition for climate action in some regions, climate change remains a systemic risk. In our portfolio, we seek companies that effectively manage their climate-related risks and offer solutions to mitigate and/or adapt to the effects of climate change.
 

Beyond climate, we continue to observe other megatrends impacting the economy and the way we do business such as an aging population, urbanization, an emerging middle class in developing countries, growing economic inequalities, rethinking of globalization and global supply chains, and generational shifts. 

We focus on sustainable companies well positioned within these transitions. These are companies that don’t take irresponsible risks, that manage their material sustainability risks well, and can contribute to a more sustainable economic model, enabling us to deliver a portfolio that has a better sustainability profile than the broad market, while supporting long-term risk-adjusted return potential. Our engagement strategy serves as a critical extension of our investment approach, further supporting these objectives.
 

Through our consistent approach that intentionally integrates megatrends and sustainability analysis, we are confident in our ability to navigate short-term noise and the evolving landscape to capitalize on emerging long-term opportunities that may be overlooked by the market.
We would like to thank all of our clients that have entrusted us with their investments over the years, and we look forward to continuing to partner with you. We hope this report offers valuable insight into how we are delivering on our goal to contribute to sustainable development.

Executive Summary

This is the fifth annual impact report for the Global Sustainable Equity Strategy. This report aims to provide a comprehensive and transparent overview of how our strategy has met its sustainability objectives over the past year. It is also an opportunity to share key milestones achieved and to highlight the qualitative impacts of our investment decisions. The report includes updates on our shareholder engagement efforts and proxy voting, illustrating our commitment to fostering positive change. Additionally, we will outline our sustainability themes for 2024, which include climate, biodiversity, diversity, equity, and inclusion, and resilient supply chains.