Ideas
This document is part of a series published by Mirova to illustrate our approach to sustainability sector-by-sector. We aim to address solutions, risks, and how we optimize impact through investment. This ninth paper focuses on environmental, social and governance issues of medical services.
According to the United Nations, 55% of the world’s population now lives in cities, a rate that is expected to rise to 68% by 20501. Given this outlook, with nearly two billion people still without adequate housing2, and with greenhouse gas emissions from buildings accounting for about 20% of global emissions and 36% of European Union emissions3, building and renovating differently is a necessity. Buildings are a massive source of emission reductions: this has been well embedded in public policy, as demonstrated by Fit for 554, which raises the annual renovation target for buildings to 3%5, and provides for the creation of a sector-specific emissions trading scheme and an increase in the percentage of renewable energy used in buildings. Suzanne Senellart and Camille Barré explain how the Mirova Europe Environmental Equity Strategy6 contributes to the achievement of the Fit for 55 objectives, by investing in innovative solutions capable of meeting the challenges of the building sector, whether in terms of energy restraint, greenhouse gas emission reductions, materials used and their recycling, or preservation of biodiversity.
The environmental transition is a multi-faceted subject that affects both our production modes and our consumption patterns. It is fully aligned with economic reality, in the aim of significantly reducing our impact on the environment and preserving our planet. These issues are increasingly well understood and supported by stimulus measures, particularly in Europe. The environmental and energy transition is fully integrated into the heart of government policy and legislation, as demonstrated by Fit For 551, which sets out measures of unprecedented scope aimed at reducing greenhouse gas emissions by 55% by 2030 compared to 1990 while increasing carbon sequestration in the soil. In this article, Suzanne Senellart and Hadrien Gaudin-Hamama present the main implications of Fit for 55, how the Mirova Europe Environmental Equity strategy2 contributes to achieving its objectives, notably by investing in the circular economy3.
Forests cover almost a third of world land surface, on a decreasing trend as reforestation notably in the West and in Asia does not compensate local deforestation, in South America and Africa. But the rationale for forest expansion is strong, and developing wood-based productions can contribute to meeting some global challenges in various ways. In this context, properly designed and well managed forest plantations should be considered in impact-oriented investment universes, to support the development of a sustainable economy.
In addition to our responsible investment activities, which motivate us on a daily basis, we are convinced that the evolution towards a fairer and more sustainable world must first and foremost take place voluntarily at the level of each organisation. We are therefore committed to being exemplary and consistent with the standards we defend. Our ambition is to be a role model in our sector and to promote best practices, in line with our pioneering position, on the theme of responsibility. Mirova is pleased to publish the first edition of "Acting as a Responsible Company".
The time for all-out mobilisation For many decades now, we have been witnessing, year after year, an exacerbation of the consequences of climate change. Droughts, heat waves, heavy rain, flooding and landslides are all happening with increasing frequency. In parallel, rising sea levels and ocean acidification are continuing under the effects of global warming. We also know that climate change contributes to accelerating the disappearance of biodiversity which has already been endangered by human activity, independent of the climate. Drastic change has now become an urgent matter, both in power generation and in manufacturing processes and consumer habits. To make the current energy system compatible with the climate challenge, it is crucial to support the acceleration of the transition towards a zero carbon economy, and this mobilisation must happen across the board. Finance is no exception to the rule, and has a key role to play by leading a profound transformation in its capital allocation choices. Manuel Coeslier, Portfolio Manager for the Mirova Climate Ambition strategy1, and Ladislas Smia, Head of Sustainability Research, offer insight onto the widespread mobilisation that THE definitive challenge of the 21st century now requires.
Carbon neutrality, adaptation to climate change, preservation of biodiversity, and combating inequality: these are all complex and interconnected issues that need to be addressed in a holistic manner, rather than piecemeal. Investors wishing to participate in the transition to a fairer and more sustainable economy, will not lack for challenges the coming decades, nor should they lack opportunities to play a positive role.
This is a methodological document aimed at clarifying how Mirova takes into account sustainable development issues in the framework of the environmental, social and governance analysis of each sub-sector of activity.
