Ideas
When growth capital builds the clean mobility of tomorrow At the heart of social and societal issues, cities and urban areas are one of the drivers of climate change, causing collateral damage to biodiversity, resources, air and health. At the forefront, the transport and construction sectors are facing a challenge of unprecedented magnitude: to transform themselves fundamentally in order to drastically reduce their impact on the environment. In this context, Mirova’s Impact Private Equity strategy focuses on solutions and technologies that will help to make sustainable cities a reality. In this article, we take a closer look at mobility.
While the "food system" as a whole is a major driver of climate change, the agriculture sector face a challenge of unprecedented magnitude: to undergo a profound transformation to produce more and better with less while reducing its environmental footprint. Within this context, Mirova's environmental impact private equity strategy focuses on proven agro-technologies to lead this transition towards a more sustainable system.
According to the United Nations, 55% of the world’s population now lives in cities, a rate that is expected to rise to 68% by 20501. Given this outlook, with nearly two billion people still without adequate housing2, and with greenhouse gas emissions from buildings accounting for about 20% of global emissions and 36% of European Union emissions3, building and renovating differently is a necessity. Buildings are a massive source of emission reductions: this has been well embedded in public policy, as demonstrated by Fit for 554, which raises the annual renovation target for buildings to 3%5, and provides for the creation of a sector-specific emissions trading scheme and an increase in the percentage of renewable energy used in buildings. Suzanne Senellart and Camille Barré explain how the Mirova Europe Environmental Equity Strategy6 contributes to the achievement of the Fit for 55 objectives, by investing in innovative solutions capable of meeting the challenges of the building sector, whether in terms of energy restraint, greenhouse gas emission reductions, materials used and their recycling, or preservation of biodiversity.
The environmental transition is a multi-faceted subject that affects both our production modes and our consumption patterns. It is fully aligned with economic reality, in the aim of significantly reducing our impact on the environment and preserving our planet. These issues are increasingly well understood and supported by stimulus measures, particularly in Europe. The environmental and energy transition is fully integrated into the heart of government policy and legislation, as demonstrated by Fit For 551, which sets out measures of unprecedented scope aimed at reducing greenhouse gas emissions by 55% by 2030 compared to 1990 while increasing carbon sequestration in the soil. In this article, Suzanne Senellart and Hadrien Gaudin-Hamama present the main implications of Fit for 55, how the Mirova Europe Environmental Equity strategy2 contributes to achieving its objectives, notably by investing in the circular economy3.
The world and the economy today are facing long-term challenges such as resource security, a need to keep ecosystems healthy, and climate stability. Since there is no Planet B to turn to, it is a matter for all to work for the environmental and energy transition’s acceleration. Finance is no exception and has a role to play to reach carbon neutrality in 2050 and therefore limit temperatures increase to 1.5°C.1 Investments can also contribute to the transition to an economy that gives back to the planet more than it takes out in resources, and helps improving biodiversity. This is the purpose of the Mirova Global Environmental Equity strategy, a theme-based equity strategy aiming to invest in companies which develop robust solutions and cutting-edge services that generate a significant impact on the environmental value chain, in particular in energy and the rapid reduction of greenhouse gas emissions.
Natixis Investment Managers and Mirova invite you to join a journey towards a more sustainable world. Because many opportunities arise from the most profound upheavals, Green Vision invites you to discover how players from different sectors can contribute to the transition towards a more sustainable model and revolutionise the way you think about your investments. Mirova's ESG experts will provide you with the insight to identify the risks and opportunities of these sectors.
Undisputedly, 2021 will have exposed, more than any year previously, the harsh reality of global warming and the environmental challenges that we all face.For the world of finance, this observation confirms that the goal should no longer be to merely finance the environmental transition to a low carbon future: the aim is to accelerate this transition by financing high-impact solutions that help the world act faster and more powerfully.
