The challenge is to know not only how changes in our environment impact our business, but also what impact our business has on changes in our environment. This is true for the companies and projects we invest in, true for us, and true for our investors.
A research philosophy focused on the Sustainable Development Goals
Seeking to act as a ‘responsible investor’ implies an understanding of the economic sphere, and more generally of the society and environment in which it is embedded. This approach cannot be limited to a study of the short- to medium-term profitability of each individual asset.
This approach requires an understanding of interactions among all the various participants: public and private actors, small, medium and large companies, developed and developing economies, in order to ensure that the growth of each is compatible with the equilibrium of the system as a whole. It must also adopt a long-term scale, ensuring that today's choices will not have negative consequences for future generations.
To understand these interactions, our fundamentals-driven management draws on a responsible investment research team, strengthened by the complementary expertise of its members and united around a common philosophy, aligned with the Sustainable Development Goals (SDGs) defined by the United Nations.
These 17 Goals lay a framework for positive action on key environmental and social challenges. For companies and investors, this means not only socially responsible conduct, but also an ability to offer solutions via innovative products, services and technologies.
Our approach to analysis seeks above all to identify those companies and projects able to provide solutions that will help meet the SDGs.
Source: United Nations, 2015
Minimum Standards and Exclusions
Carbon neutrality, adaptation to climate change, preservation of biodiversity, and combating inequality: these are all complex and interconnected issues that need to be addressed in a holistic manner, rather than piecemeal. Investors wishing to participate in the transition to a fairer and more sustainable economy, will not lack for challenges the coming decades, nor should they lack opportunities to play a positive role.
As sustainable investment is confirmed both as a crucial need and a growing trend, climate and ESG1 corporate disclosures remain on top of regulators and investors’ agenda. The European Union (EU) is currently revising its requirements for corporates sustainability disclosure (Corporate Sustainability Reporting Directive or CSRD). International bodies, the International Financial Reporting Standards (IFRS) and International Organization of Securities Commissions (IOSCO), are aiming for a climate disclosure “building block” to align practices at the global level. In June, the US Securities and Exchanges Commission (SEC) finalized a public consultation on corporate climate disclosures, to which Mirova responded. We share below our views that we have conveyed to the SEC and across various jurisdictions and initiatives (the EU, TCFD2…) in order to build robust, meaningful and useful frameworks for corporate climate and sustainability disclosure.