The markets closed out the year significantly down and 2018 officially became the worst year on record since the Financial Crisis. A general climate of gloom prevails, in sharp contrast with the optimistic beginning of 2018.
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.
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.
Nuclear power makes up about 9% of global electricity generation, with 443 reactors and 385 GW of capacity in operation today. This includes reactors in 31 countries, with Belarus and the United Arab Emirates currently constructing their first (World Nuclear Organization 2016).
Regulation, cost reduction, and the rise of renewable energy in the United States.
Historically 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.
For some, a responsible investment is by definition a long-term investment. And they’re right, to be sure. Problems arise, however, with any attempt to define these terms. Surprisingly, it is almost as difficult to achieve a consensus on the meaning of long-term investment as it is to arrive at a broadly acceptable definition of responsible investment.