This document is part of a series published by Mirova to illustrate our approach to sustainability sector-by-sector. We aim to address solutions, risks, and how we optimize impact through investment. This sixth paper focuses on environmental, social and governance issues of retail, apparel and household.
This document is part of a series published by Mirova to illustrate our approach to sustainability sector-by-sector. We aim to address solutions, risks, and how we optimize impact through investment. This fifth paper focuses on environmental, social and governance issues of pharmaceuticals and medical products.
The news from December 2017 to March 2018 was particularly rich in announcements in sustainable finance. This document summarizes the main announcements with a focus on the French government, investors, as well as the European Commission's action plan.
Until a green and social sovereign bond market develops – something that Mirova actively promotes and encourages – Mirova has developed a sustainability analysis that would be used as a proxy for impacts and is integrated into Mirova’s responsible investment decision making process. Furthermore, the Energy & Climate risk score co-developed with Beyond Ratings would allow for the integration of material energy and climate related risks into the solvability of sovereign debt.
Mirova does not exclude any industry on principle. Within certain industries, however, case-by-case analysis may result in a “Risk” or “Negative” rating for all of the companies of that sector when practices do not provide an adequate level of assurance that the risks associated with the product are properly managed. “Risk” and “Negative” ratings mean that the issuer cannot be included in Mirova’s portfolios. The rating can nevertheless evolve following the evolution of the company
The green bond market has undergone rapid expansion over the last five years. Given its still small size compared to the bond market as a whole, investors remain cautious regarding certain features of green bonds, such as the liquidity of the market.