What is the SFDR?
The Sustainable Finance Disclosure Regulation (SFDR) aims to provide greater transparency in terms of environmental and social responsibility on the financial markets, in particular by providing information concerning the sustainability of financial products (integration of risks and negative impacts in terms of sustainability). Its objectives are to ensure that marketing documents align with the real practices in place, to ensure the comparability of products in these terms, and to channel private investment towards more responsible investments. The regulation is applicable at the entity level (asset management companies, investment companies, financial advisors) as well as the product level. Corporate publications and pre-contractual documents for products are to be changed.
To start with, the SFDR regulation requests that each product be categorized according to its characteristics. The definition of each of these categories is as follows:
- Article 6: the product has no sustainability objective
- Article 8: a product’s communication includes environmental and social characteristics even if this is not its central point, or the central point of the investment process. The product promotes environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices
- Article 9: the product has a sustainability objective.
Positioning of Mirova funds
Integrating and contributing to the achievement of sustainable development issues is central to Mirova’s mission. Our aim is to offer investors strategies that help reconcile financial yield and a positive social impact. This search for impact can be applied transversally in all our asset classes and through the x-ante integration of sustainable development issues in the investment objectives of all our funds, and the systematic ex-post measurement of environmental and social impact.
For the listed investment strategies (equities, bonds, balanced), investments are primarily channeled towards companies that provide solutions to sustainable development issues. Environmental and social issues are an integral part of investment decisions and are the subject of systematic monitoring of the sustainable development component of portfolios.
Investment strategies in Energy Transition Infrastructure are exclusively focused on solutions favoring the energy transition i.e. the production of clean energy, green mobility etc. and systematically integrate a review of environmental and social issues in the projects’ analysis.
Meanwhile, Natural Capital strategies invest in restoring and protecting biodiversity in the ecosystems affected by climate change (forests, oceans etc.) by financing projects with high environmental and social impacts.
The Mirova Solidaire strategy aims to finance non-listed companies and projects with a high social and environmental impact in France, particularly those aimed at supporting people in vulnerable situations.
The Mirova funds are to be classified “Article 9” under the framework of the new European SFDR.
INTEGRATION OF SUSTAINABILITY RISKS INTO INVESTMENT PROCESSES
The integration of sustainability risks into investments processes is specified in the transparency codes which can be consulted by clicking on the links below.
INTEGRATION OF POTENTIAL NEGATIVE IMPACTS IN TERMS OF SUSTAINABILITY
Mirova takes into account the main negative impacts of investment decisions on sustainability factors. The policy regarding these negative impacts is described in the note "Our approach to ESG1 assessment" accessible via the link below.
 Environmental, Social and Governance
INTEGRATION OF SUSTAINABILITY RISKS INTO REMUNERATION POLICY
The integration of sustainability risks into remuneration policy can be consulted by clicking on the link below.