Sustainable Equity Management
Mirova, with 100% of its funds labeled SRI and all its investment portfolios aligned with a 2°C trajectory, is one of the major players in sustainable equity management. To investors, who want to direct their capital to the achievement of the Sustainable Development Goals (SDGs), we offer equity strategies whose ambition is to reconcile financial performance with a positive environmental and social impact. We believe that investors have a key role to play in transforming the economy into a more sustainable model, and that they will benefit from it.
It is through a long-term vision that we are contributing to the emergence of a greener and more sustainable economy, by taking into account the relevance of the business model, the strategic and financial strength of the company, as well as the environmental, social and governance criteria (ESG criteria) in each investment decision. Our equity management is based on this strong conviction that is shared by our management and research teams.
assets under management invested in listed equities around the world
in investment, who are both managers and analysts
in environmental, social and governance issues are the team of the Responsible Investment research
Sustainable equity management: responsible investment at the core of our portfolios
It is now clear that our economy must be transformed. We are facing environmental, social, as well as governance issues, which urge us to rethink our growth model to make it greener and fairer.
Taking into account environmental, social and governance (ESG) criteria in the management of equity portfolios has become essential for asset managers, in order for them to identify opportunities and meet investors' expectations but also to anticipate risks.
However, Mirova’s management philosophy goes far beyond the integration of ESG criteria. We seek to offer investors the investment solutions that enable them to participate in financing the most advanced companies from an ESG perspective1, and innovations needed to transform the economy across all sectors. We believe that both of these approaches, financial and extra-financial, are a powerful lever for long-term value creation for investors and society as a whole.
This is how we have gradually built up a range of thematic and multi-thematic investment strategies with environmental and social impact. These strategies meet the best standards of sustainability and reporting: they are at least SRI labeled and have other specific labels when relevant (label ISR, Finansol, Greenfin, Febelfin). Further, all our portfolios are aligned with a global warming trajectory of 2°C.
These strategies are part of green and sustainable growth dynamics, which seems to us to be the only option in the long term.
 ESG: Environmental, Social and Governance.
Reference to a ranking and/or a price does not indicate the future performance of the strategy, the fund, or the fund manager.
Thematic funds and impact investing: the winning combination of our equity management
Mirova offers sustainable equity management applying both active investing and fundamental-based management focused on innovation and models able to provide business solutions for the UN Sustainable Development Goals (SDGs). Our investment strategy goes largely beyond the simple integration of ESG criteria, since we have chosen to put environmental and social impact at the heart of the definition of our investment universes. We have developed a range of impact-based thematic equity strategies, in line with our ambition to pursue both financial performance and sustainable growth. Each of these strategies targets a specific issue addressing it through the choice of investments, and also through the implementation and monitoring of impact indicators.
Our range of thematic equity strategies:
Financing environmental transition
Environmental transition is a key issue for our economic model, but it is also the source of many innovations. Our equity strategy Environmental Transition proposes to invest in innovative companies, in the so-called “green industries”: sustainable waste and water management, sustainable agriculture, green building, industrial energy efficiency, renewable energy, clean transportation. [This strategy is applied to two geographical zones: Europe and the World]
What if investing could help create jobs in France?
In France, employment is a major matter of economic, societal and individual concerns: it allows access to housing, consumption, and is a vector of social cohesion. However, too little attention has been paid to this topic regarding the management of savings. Job creation is also a driver of value creation for a company. Further, we have also developed a dedicated thematic equity strategy, which aims to invest in French and international companies that promote job creation in France, by identifying opportunities across the value chain and all sectors. An analysis methodology has been developed, which allows the publication of an impact report each year.
Gender equality: a question of justice as well as of performance
The empowerment of women and achieving equality in the workplace are among the issues identified by the UN (SDG 5). To support the promotion of women in companies, and as we are convinced that gender diversity is a factor of performance for the company, in 2019, Mirova launched a global thematic equity strategy to invest in high-performance companies committed to gender equality, notably improving women’s access to decision-making bodies and equality in the workplace. Our research and management teams have developed their own quantitative and qualitative analysis methodology to assess companies, as well as a corporate engagement strategy. Finally, Mirova has established a unique partnership with UN Women, to which we pay a portion of the management fees to finance the empowerment of women in developing countries.
Diversification close to the benchmarks, but for carbon
We created a Climate Ambition investment strategy for investors who are particularly concerned about the climate issue and convinced that low-carbon investments will be a source of outperformance over the medium term, but who also want a strong sectoral diversification of their portfolio. Close to the benchmarks in terms of sectoral allocation, this strategy offers a very broad diversification across the economic sectors. Further, it allows to be consistent with a global warming trajectory of 1.5 °C by investing in climate assets. This strategy seeks to outperform the market in terms of returns and impact, and to control risks as well.
Our range of multi-thematic equity strategies : Financing solutions for Sustainable Development Goals
To enable investors to participate in the financing of solutions for the Sustainable Development Goals as a whole, we have created multi-thematic equity strategies broken down by geographical areas: the euro area, Europe, world, and world excluding the US. Each of the strategies, in its geographical area and depending on the opportunities, seeks to invest in all the themes of sustainable development through an active investment management based on responsible conviction. We believe that the most virtuous companies today will be the winners of tomorrow, and we are applying this vision throughout our asset allocation.
Mirova has developed a range of innovative equity strategies for its investor clients, the aim of which is to reconcile financial performance with environmental and social impact.
Mirova offers active, conviction-based management based on the ability of our asset managers to identify business models that provide solutions to sustainable development challenges.
Our latest ideas
The way investors allocate capital can and will make a difference in meeting global sustainability challenges and succeeding in the energy transition. We encourage investors to avoid overreliance on a single scenario or emissions pathway, so our method emphasizes and supports the multitude of potential pathways to 2°C, free from pre-defined sectoral allocations. It is applicable across all asset classes, versatile, and scalable, with many potential applications within the investment process. The outcome is a simple-to-interpret indicator – climate change trajectory in °C – consistent with qualitative analysis.
Our latest news
AXA Investment Managers, BNP Paribas Asset Management, Mirova, and Sycomore Asset Management strongly believe that preserving the planet’s biodiversity is an urgent priority. Together, they have launched a call for expressions of interest (CEI) for a partner to develop and implement an innovative tool to measure the impact of investments on biodiversity. The goal of the CEI is to find a player capable, on a large scale, of measuring companies’ biodiversity impact.
A pioneer in impact investing, Mirova is pleased to announce that it will be launching a new thematic equity fund which will focus on companies that are committed to promoting gender equality and increasing women’s representation in top-level management.