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.
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 eighth paper focuses on environmental, social and governance issues in the Utilities sector.
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 seventh paper focuses on environmental, social and governance issues in the Infrastructures and Construction industries.
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.
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.