Our approach to impact and ESG assessment

Any responsible investment approach involves assessing  how entities consider environmental, social, and governance (ESG) issues.

Whether investing in companies, local authorities, government bodies, or projects, investors need to be able to understand the complexity of the sustainable development issues faced by these players and how they address, or fail to address, these challenges. 

Despite numerous and rapidly evolving regulations and frameworks, none have established a standard practice, leaving financial market participants with some flexibility to define their own standards. We believe it is crucial to be transparent about the principles and indicators that we have chosen to inform our investment decisions and that shape our communications with clients and other stakeholders. This document aims to ensure this transparency. Mirova’s proprietary assessment methodology has a twofold objective: assessing the asset’s contribution to one or more of the Sustainable Development Goals (SDGs) and their capacity to mitigate risks of obstructing their  achievement of the SDGs. This evaluation covers impacts, risks, and opportunities stemming from an asset’s activities (products or services) and practices (management of operations), following a lifecycle approach. 

This document will be updated at least every two years to reflect the latest developments in the market.