Mirova and Phitrust put biodiversity on the agenda of CAC 40 general meetings
Mirova, an affiliate of Natixis Investment Managers dedicated to sustainable investing, and Phitrust, a pioneering management company for impact investing, are launching a campaign of written questions ahead of general meetings, focused on high biodiversity stakes CAC40 companies.
This unprecedented action aims to encourage large companies to demonstrate the ambition of their biodiversity strategy, with a dual objective:
- Encourage them to use the nature reporting framework carried out by the Taskforce on Nature-related Financial Disclosures (TNFD), and at least ask them to report on biodiversity as a material subject for their activities under the Corporate Sustainability Reporting Directive (CSRD)1;
- Encourage these companies to realize their ambition to preserve natural ecosystems through science-based objectives (e.g., Science-Based Targets for Nature, or SBTN) in the medium term.
Beyond climate change, the preservation and conservation of biodiversity are structural challenges of sustainable growth on which urgent action is needed. Half of global GDP is dependent on nature and its essential ecosystem services, and their collapse could lead to a $2.7 trillion GDP loss by 20302. According to the European Central Bank, 75% of European loans have been granted to companies highly dependent on nature3.
In order to guide companies in considering the topic, an international nature disclosure framework was published by TNFD in September 20234, a key step positioning “nature” risk at the same level as financial, operational and climate risk and redirecting capital flows to the most responsive companies in the face of biodiversity loss. The TNFD recommendations are intended to be consistent with the regulatory obligations of European companies such as the European Sustainability Reporting Scheme (ESRS)5 of the Sustainability Disclosures Directive (CSRD).
More than 320 companies worldwide have already committed to publishing a report aligned with TNFD recommendations in the next two years, and several companies are already planning to validate their SBTN land and water aligned targets in 2024. Mirova and Phitrust are working to promote these standards to companies, particularly those high biodiversity stakes.
With this first campaign, we expect clear and detailed answers from companies to our questions. Biodiversity must emerge in the communication of companies as well as the remuneration of leaders or climate issues. With this initiative, we hope that the topic will be systematically addressed on the agenda of the next General Meetings and included in the communications of companies.
1 Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending. Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting.
2 The Economic Case for Nature A Global Earth-economy model to assess development policy pathways, World Bank, 2021.
3 The economy and banks need nature to survive, European Central Bank, 2023.
4 Final TNFD Recommendations on nature related issues published and corporates and financial institutions begin adopting, TNFD, 2023.
5 Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023 supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards.
NEWS
On Thursday, the Estonian energy company Evecon and Mirova, an asset manager dedicated to sustainable finance, opened the largest solar park in the Baltics, located in Kirikmäe in Pärnu County. The production capacity of the Kirikmäe park, spread over nearly 110 hectares, is 77.53 MW, which is more than twice the capacity of the largest existing solar park in Estonia. It covers the estimated annual energy needs of 35,000 households. The Kirikmaë Park is owned by the Baltic Renewable Energy Platform (BREP), a joint venture set up by Evecon and Mirova in December 2022, for the financing, the construction, the operation of a portfolio of more than 100 MWp of Solar Parks in Estonia.
The cornerstone was laid today for the largest battery park complex in continental Europe, in Kiisa, Estonia, by Baltic Storage Platform. This is an important step to ensure the synchronisation of the Baltic countries to the European grid in 2025.
Mirova, an affiliate of Natixis Investment Managers dedicated to sustainable investing, is developing new innovative solutions to continue supporting projects in emerging markets. These markets are currently underserved by Western investors despite actively addressing the challenges of the energy transition. To help scaling up project finance solutions in these regions, Mirova is reorganizing its operations and reinforcing its commitment to growth in this area.
