Ideas
Understanding the markets, Investing, Engaging in dialogues, Measuring Impact... Read the #2 of Mirovα: Creating Sustainable Value
Understanding the markets, Investing, Engaging in dialogues, Measuring Impact... Read the #1 of Mirovα: Creating Sustainable Value
The markets closed out the year significantly down and 2018 officially became the worst year on record since the Financial Crisis. A general climate of gloom prevails, in sharp contrast with the optimistic beginning of 2018.
The transition from a carbon-intensive and ecosystem-destroying extractive economy to a green economy has begun. Green growth, which creates environmental value first, will also contribute to the creation of economic and shareholder value.
The green bond market has undergone rapid expansion over the last five years. Given its still small size compared to the bond market as a whole, investors remain cautious regarding certain features of green bonds, such as the liquidity of the market.
Nuclear power makes up about 9% of global electricity generation, with 443 reactors and 385 GW of capacity in operation today. This includes reactors in 31 countries, with Belarus and the United Arab Emirates currently constructing their first (World Nuclear Organization 2016).
Understand, take action, and be accountable. If we are to successfully address the challenge to our civilizations posed by climate change, these are imperatives that must be heeded, not only by political decision-makers and regulatory bodies, but companies as well. Obviously, the responsibilities and levers for action relevant for various parties will differ significantly. But few today can claim that these issues are no concern of theirs. The financial industry especially, and more broadly, the many players holding roles in the capital markets, possess considerable leverage for driving change. This conviction is the cornerstone of Mirova’s foundation as a business, as a company.
For some, a responsible investment is by definition a long-term investment. And they’re right, to be sure. Problems arise, however, with any attempt to define these terms. Surprisingly, it is almost as difficult to achieve a consensus on the meaning of long-term investment as it is to arrive at a broadly acceptable definition of responsible investment.
