Industry News: ESG5

Spotlight on Investors: Mirova

Founded in 2012, Mirova is an affiliate of Natixis Investment Management, one of the biggest asset management companies in Europe. Mirova's investment approach is defined by the Sustainable Development Goals framework, as it enables to capture the contribution of an asset to environmental and social sustainability. As of September 30th, 2018, Mirova had USD 11.8 billion of assets under management.

Mirova only invests in countries and firms that contribute to the SDGs. To assess a security's alignment, the organization conducts bottom-up research involving security-level analysis of risk and opportunities, a life-cycle analysis to identify where the impact occurs, and finally an issue-level analysis to understand how specific themes affect the securities. Mirova seeks alignment with the Paris Agreement targets by monitoring the carbon footprint of the equities and bonds they hold in their portfolios. Beyond their investment choices, their approach involves a voting policy aligned to their values, which are accompanied by engagement procedures with issuers and public authorities.

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Plastics, Regulation and Climate Risk: Five Key Green and ESG Investment Trends for 2019


Investment Week: ESG classified investment products account for more than $20trn in assets under management, or roughly a quarter of all professionally managed assets around the world, according to Forbes.

A third of investors are also keen to increase their exposure to sustainable investments over the next two years, as concerns over climate risks escalate and evidence grows that ESG investments can consistently outperform the market.


Water Makes Mark in Investors’ Minds


Top 1000 Funds: “The diamond-water paradox,” or “The Paradox of Value”, first pondered by the founder of modern economics, Adam Smith, in the 1700s (and featured much more recently on the US National Public Radio program Planet Money), is due to the widely held perception by investors that water is an abundant and endless resource with minimal value. But in a world of rising global water demand and climate-driven water stresses, that’s a risky bet. More than ever, water’s true value as a finite and precious resource is starting to be realised, and a growing number of investors are paying attention.


Dutch Regulator Warns of €97bn ‘Water Scarcity’ Risk


IPE: Dutch regulator De Nederlandsche Bank (DNB) has urged pension funds to map out social and ecological risks to their investments and minimise underlying problems if necessary.


Do the Capital Markets Reward Low-Carbon Business Models?


All About Alpha: A new study by two scholars, an American and an Italian, presents evidence that financial markets are pricing the risk of reliance upon carbon, penalizing carbon-intensive assets and rewarding low-carbon assets.


ABP to Commit €500m to Green Mortgages


IPE: The €409bn Dutch civil service scheme ABP has committed €500m to “green mortgages”, which come with a discount for energy-efficient residential property.

The discount would not only apply to purchased assets with the highest energy efficiency, but also to the mortgaged property after it has been converted to meet the requirements of energy label ‘A’ during the duration of the mortgage.


Investors Support Baltic Cleanup Through New Bond Issue


Investment Europe: Nordic investors have highlighted a new fixed income instrument designed to support the cleanup of the Baltic Sea, one of the most polluted parts of the world's oceans.

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ESG: UK Fund Management Body Proposes Standard Definitions


IPE: The trade body representing UK asset managers has launched an industry-wide consultation on sustainability and responsible investment in a bid to bring more clarity to the growing area of activity.


Apex and ISS to Launch ESG Reporting for Investment Managers


Global Custodian: Apex Group has teamed up with Institutional Shareholder Services (ISS) to develop an environmental, social and governance (ESG) reporting service to investment managers.

A study from Aite Group in December 2018 highlighted the growing demands for analytics and reporting in ESG and suggested that securities services providers could be primed to step into the space.


New Standard to Drive Global Finance Closer to the SDGs


Triple Pundit: Impact investing is increasingly expected to close a looming funding gap to achieve the United Nations Sustainable Development Goals (SDGs). According to the U.N., achieving the SDGs by 2030 will require a total annual global spend of $5 trillion to $7 trillion, with an investment gap in developing countries of about $2.5 trillion. But how do the investors who are willing to step up to the plate know that their money is driving real impact?

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