Through green and sustainable bond issuances, investors can contribute to the low-carbon transition while making a twofold impact: financial and environmental.
Mirova has been a pioneer of investing in green and social bonds. Our fixed income strategies, which cover the eurozone and the world, place the selection of issuers at the heart of their investment process in order to generate both financial performance and environmental and social benefits.
assets under management invested in bonds
to green and social bonds
We are convinced of the value of debt instruments dedicated to projects with an impact, and which offer traceability, transparency and reporting on the projects financed. Our experts have supported the development of the green bond market by actively participating in the main market institutions, as well as by internally developing a stringent methodology for analysing these instruments and creating one of the first strategies dedicated to green and social bonds.
This focus on green bonds complements our ‘traditional’ bond selection, which aims to offer our investors financial performance combined with an environmental and social impact.
Positive selection guided by a long-term approach
We have built our fixed income investment process around our long-term convictions. Thus, the selection of issuers is based on financial characteristics as well as an ESG rating that analyses the contribution of the issuer or the projects financed to sustainable development issues.
This rigorous selection process, combined with our forecasts regarding the yield curve and the risk factors that can affect bond yields, allows us to generate value over the long term and contribute to a more sustainable economy.
Impact investing, thanks in particular to green and social bonds, is at the heart of Mirova's bond strategies.
To put together and manage its bond strategies, Mirova relies on a team of experienced asset managers, who are pioneers in the green bond market.
News and insights
The Greenium – the yield that investors concede to companies issuing a green bond compared to the performance they would have required from these same companies for a conventional bond with the same maturity - was long perceived as volatile, hovering in one direction or another according to the seasonality. But it finally became a key issue in 2020.
We all have a role to play in the environmental and social transition, and neither finance nor the bond markets are an exception. Read this document detailing Mirova's approach to green bonds.
The world was alerted to climate and environmental issues more than 30 years ago by the IPCC1, and governments took measures to deal with these subjects more than 10 years ago, with the goal of reaching carbon neutrality and thus limiting global warming to 1.5°C2. And yet we are far from this target: the UN published a report in September 2021 stating that the world is on a catastrophic trajectory headed towards 2.7°C of global warming5. It has therefore become a necessity to undertake an industrial and environmental revolution to accelerate the environmental and energy transition. Through green and sustainable bond issuances, investors can contribute to the low-carbon transition while making a twofold impact: financial and environmental. Such is the purpose of the Mirova Global Green Bond3 strategy.