Ideas
Meet Gen Z, which are individuals born between 1996 and 2016, and accounting for a third of the global total population1. They never knew a world without internet and are more likely to be connected much of the time. We also believe they are more socially and environmentally aware and not afraid to voice their opinion. They are entering the workforce and are inclined to choose companies that are more aware of sustainability. We think that other generations will have to adapt to them, not the other way around, and they better do it fast and sustainably, as we feel the Gen Z disruption is in motion.
The gradual reduction of public support measures is ushering renewable energies into a new era: that of autonomy on electricity trading markets. The way in which the associated risks are managed (volatility, cannibalisation effects, modification of the supply/demand equilibrium, buyer consideration, etc.) therefore becomes a fundamental issue in the project’s business plan and consequently for all stakeholders. In this article, Mirova offers a look at merchant risk, how it can be analysed, the strategies to guard against it and the opportunities that can be seized.
As Joe Biden prepared for the inauguration, he tweeted "It’s a new day in America". And what a day! Hours after taking the presidential oath, Biden announced that the United-States would rejoin the Paris Climate Agreement as promised during his electoral campaign (in essence the starting of a new climate era in the U.S. and the global race to a net zero economy).
Understanding the markets, Investing, Engaging in dialogues, Measuring Impact... Read the new issue of Mirovα: Creating Sustainable Value
One of the most important challenges for institutional investors is to deploy large amounts of capital and manage increasingly high liability commitments in an environment of low-yielding opportunities. At the same time, one of the biggest challenges for the world as a whole is dealing with climate change, its impacts on the economy and more broadly with what it already implies in terms of adaptation for all humanity. While seemingly disparate, these two challenges have converged to a point where they become synergetic: today, the renewable energy production infrastructure sector has reached maturity and offers investment opportunities with a good risk/return ratio, while participating in the reduction of greenhouse gas emissions. For investors, renewable energy infrastructure has thus established itself as an asset class in its own right.
Improving the transparency of financial institutions on environmental and social issues is a strongpoint of the European Commission's action plan on sustainable finance. The cornerstone of this enhanced transparency, the Sustainable Finance Disclosure Regulation (SFDR) which entered into force in March 2021 for its initial phase.
Whether it is “grey”, “blue”, “yellow”, or “green”, hydrogen is the topic on everyone’s lips today. While it is already widely consumed in many sectors, its use as a source of energy is only in its early stages. Its applications are as numerous as they are promising, most notably in the mobility sector. For it to become the best facilitator for the transition towards a low carbon economy, many challenges still need to be met, starting with the mass production of a zero-carbon hydrogen which will require substantial investment in the coming years.
