Acting as a mission-driven company - 2023 Report

Editorial

Mirova was created just over ten years ago and has since become a renowned leader in the field of sustainable investment thanks to its approach to impact, which it deploys through its broad spectrum of expertise spanning the whole range of asset classes. We are now embarking upon a new phase of our growth in circumstances that differ greatly from those of the past decade, with sustainable finance now a  more  widespread  phenomenon, some clouds on the horizon and many challenges ahead.

Responses to ESG¹ asset management have become extremely polarised in the USA and now in Europe as well. Opponents accuse it of being a front for companies of a politically anti-capitalist disposition. This has prompted some financial firms to tone down their reporting or even backpedal on their commitments, including those made towards the climate. Here in Europe, the Sustainable Finance Plan launched by the European Commission back in 2018 has been implemented gradually. It has given rise to a large number of new regulatory tools, including the European taxonomy for “green” assets, the Non-Financial Reporting Directive for companies and the ESG Ratings Regulation for rating agencies. This new regulatory landscape can make it difficult for the market to adapt and has led to criticism. Last of all, the world is currently beset by armed conflict and increasingly polarised geopolitical views, which means that sustainable finance is having to face a revival of short-termism as well as more challenging market conditions. Against this backdrop, Mirova’s status as a mission-driven company has continued to serve as a compass, one that has proved more vital than ever when navigating these choppy waters. I would like to thank all the members of our Mission Committee, and especially its Chairman Alexis Masse; they have managed to keep providing strategic guidance with consistency and  goodwill,  encouraging 
us to continuously improve our expertise, our products and our engagement initiatives. We are aware that there is still a lot of room for improvement and that we still have some way to go.

We have continued to develop our business throughout 2023, shaping finance to promote the ecological transition and a more inclusive society. Our assets under management amounted to close to €30 billion at end-2023², international growth picked up, and we successfully launched a renewable energy fund in developing countries, a high-integrity and high- quality carbon credit solution, and an equity  investment strategy  geared towards  biodiversity. We provided assistance for companies and projects working in the areas of clean mobility, energy efficiency and sustainable land use. We adapted our ESG rating process to the latest regulatory requirements. We also announced the creation of the Mirova Research Centre, which aims to build even closer ties with academia. This is a non-exhaustive list of our accomplishments in 2023.

Besides making investments, we also pursued efforts to advocate for the values we believe in, for instance to promote the mission-driven business model. Given the challenges of the day, we believe it is increasingly essential and  appropriate  to  modernise corporate governance in order to factor in each and every one of its aspects and impacts.

I invite you to learn more about our commitments,  achievements  and progress made in 2023 in this third edition of our annual “Acting as a mission-driven company” report.
 

¹ Environment, Social, Governance – refers to the framework for analysing the sustainable performance of assets under management.
² 29.7 billion euros as of 31/12/2023 - Source: Mirova and affiliates.