Three decades of sustainable investment experience within Natixis Investment Managers.
The Natixis Investment Management platform has been growing for more than 30 years, with a comprehensive range of specialist management teams and tailored strategies for every investor need. ESG has been an important component throughout – and even before Natixis existed in its present form.
One of the earliest movers in the environmental and societal impact space was Natixis Investment Managers affiliate Mirova*. Mirova has built long-term expertise within a multi-asset strategy including Equities, Fixed Income, Energy transition infrastructures, then Natural Capital.
«The sustainability profile of our strategies is deliberate, with a clear link between financial outperformance and the fight against global warming,» says Jens Peers, CEO and CIO of Mirova U.S.
Delivering on Promises
Impact investing is not just about doing good by people and the planet, there must be a clear and rationale investment case too, believes Peers. He says years of shared experience in Mirova’s research team help filter out over-promises and fake claims by companies claiming they have a green agenda.
«We want to maximize the positive impact, so we’re not going to invest in everything. We will only invest in those companies where we believe we have significant upside and secular growth, but also add value from a sustainability point of view,» he says.
Peers also warns about the rapid uptake and new product launches in the ESG, sustainable and impact space that has spread from Europe to the US and now Asia. Investors need to ask hard questions of their strategy investment teams, about their experience, processes and ability to adapt in a fast-changing world and global economy.
«The popularity of ESG and sustainability is positive because it raises awareness for companies like Mirova. But there is a risk of greenwashing, a term I dislike, where investors cannot compare like with like, and are disappointed as a result,» he says.
Long-Term View
At Mirova, acting as a responsible investor means looking at the economy in the context of the environmental and societal issues integrated within it, going beyond the short- and medium-term profitability of individual assets. It requires an understanding of the interactions between private and public actors, between companies of different sizes, and between developed and developing economies to ensure that the growth of each is compatible with the system’s overall balance.
«Responsible investing must be considered over the long term to make sure that today’s choices will not have a negative impact on future generations,» says Peers.
«Our proprietary ratings on Environmental, Social and Governance factors allow us to maximize exposure to highly rated companies. Those are companies we believe have a positive impact on the UN Sustainable Development Goals. Companies involved in controversial activities are systematically removed from the investment universe,» says Peers.
Transition Or Risk
The sustainable, global ESG equity strategy universe is growing and increasingly diverse, by sector and by region. «We’re looking at the speed at which various companies are transitioning their businesses toward the future. We try to find companies that have identified trends early, and that are among the first movers within their peer group,» says Peers.
More corporations will have to review their business models as environmental and societal changes affect their growth prospects. Initiatives such as the UN Sustainable Development Goals will also focus the minds of investors, channeling equity and bond flows to adaptable businesses whose activities have a lesser impact on the world.
Jens Peers and his colleagues at Natixis see more opportunities ahead and even more demand for ESG to such an extent that sustainable investment may be the default criteria for investors in the future.
As Harald Walkate (pictured above), Head of CSR and ESG at Natixis points out: «At Natixis Investment Managers, we believe that ESG integration can enhance risk management. So, we believe that smart, active investors will realize that climate change is important but is not the only relevant investment consideration. When we talk about ESG that makes a difference, we talk about the importance of speaking with our clients about the need to be clear on their investment goals and clear on ESG related goals.»
*The 1st SRI fund was created in 1984 within Ostrum Asset Management (Mirova was previously a division of Ostrum AM, Mirova has been created in 2012).
Reserved to Professional Clients Only. All investing involves risk, including the risk of capital loss. This material is provided for informational purposes only and should not be construed as investment advice, or a recommendation or an offer to buy or to sell any security, or an offer of services. Investors should consider the investment objectives, risks and expenses of any investment carefully before investing. The views and opinions expressed are as of the date indicated, and may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted. Mirova – an affiliate of Natixis Investment Managers – French Public Limited liability company – Share capital: €8,813,860 - RCS Paris no. 394 648 216 - Regulated by AMF under no. GP 02-014 - 59 Avenue Pierre Mendès-France, 75013 Paris - www.mirova.com In Switzerland: This material is provided by Natixis Investment Managers, Switzerland Sàrl, Rue du Vieux Collège 10, 1204 Geneva, Switzerland or its representative office in Zurich, Schweizergasse 6, 8001 Zürich.
