CREATING SUSTAINABLE VALUE www.mirova.com
Mirova: Responsible investment solutions for sustainable development Towards a sustainable development model: a vital economic requirement Depletion of natural resources, global warming, 840 million people suffering from undernutrition (1)... the current economic development model is no longer sustainable. Driven by their awareness of these issues, some companies are creating innovative products and services that are real levers of growth over the long term. These initiatives are currently not being given the credit they deserve, and are underrated in particular by financial markets, which remain focused on the short term. A new approach to responsible investment For Mirova, Natixis Asset Management's responsible investing subsidiary, responsible investment is a necessary lever for sustainable development. Mirova aims to provide solutions to clients who are concerned about the sustainability of their investments, and seek to create long-term value. Connection between finance and the real economy: investing in the business models that will shape our future. Value creation: identifying sustainable assets that are likely to generate long-term performance. Responsibility and engagement: becoming actively involved in improving company, industry and financial practices. Philippe Zaouati Head of Mirova "We are convinced that we need to see finance from a new perspective in order to better understand the risks and opportunities of a changing world " Mirova crowned as 2014 leading fund management firm/best at SRI/ESG by Thomson Reuters Extel during the UKSIF SRI & Sustainability Survey Awards*. *The 2014 Survey represents the views of over 360 investment professionals from 27 countries, making it the most extensive assessment of socially responsible investing (SRI) in the European investment community. Voting was conducted from 24th March to 7th May 2014. It reflects a contribution from 179 buy-side firms and 14 brokerage firms/research houses. For more information, go to www.uksif.org. Referring to any ranking or award does not guarantee future results of the fund or the investment manager. A unique array of offerings built on 5 pillars Listed Equities Fixed Income Infrastructure Impact Investing (2) Voting & Engagement (1) Source: Food and Agriculture Organization of the United Nations, 10/2013. (2) Impact Investing: Investing with a social and/or environmental impact.
Listed equities and fixed income Investing in sustainable business models that create long-term value The Mirova approach Key figures For equity strategies, proposing a conviction-based fundamental asset management approach on European and global companies that provide innovative solutions to address the challenges of sustainable development. An original approach to market analysis using 8 sustainable investment themes to identify investment opportunities throughout the value chain and across all industries. Energy Health Assets under management of approx. 3.4 billion (1) 2 nd -largest European asset manager in terms of AuM in open-ended SRI funds (2) A dozen specialists (1) Mobility Buildings and cities Consumption Information and communication technology Finance Resources (1) Source: Mirova, as of 31/12/2013. (2) Source: Feri Lipper 11/2013 (Excluding money-market funds) A selection of "future winners" - businesses that are capable of delivering performance over the long term. An assessment of all risks: market, environmental, reputational, political, social, governance risks, etc. For fixed-income strategies, combining ESG issuer selection with an active conviction-based management style covering several bond types with a particular focus on green bonds. Areas of expertise Thematic Equity Climate change Water, agribusiness, energy Multithematic Equity Global Euro Europe Fixed Income Credit Aggregate Jens Peers CIO Equity, Fixed Income and Impact Investing
Infrastructure Supporting responsible infrastructure projects The Mirova approach Key figures Funding infrastructure projects that address the challenges of sustainable development and generate regular cash flow over the long term. Renewable energy Funds investing in the European renewable energy sector (wind, solar, biomass, etc.). Portfolios of low volatility assets with an objective of high and recurring returns. 1.4 million tons of CO2 emissions avoided through the funded projects (585 MW of clean energy). The expertise and experience of about fifteen professionals A total commitment of over 428 million* Source: Mirova, as of 31/12/2013. General infrastructure Funds investing in projects of public utility. Financing a wide variety of infrastructure projects (universities, stadia, hospitals, urban and rail transportation, etc.) with high potential returns. Significant participation in partnership projects representing an aggregate amount of nearly 6 billion. * Including 320 million invested in infrastructure projects. Raphaël Lance Head of renewable energy Gwénola Chambon Head of general infrastructure
Impact Investing (1) Reconciling positive social and/or environmental impacts with a financial return The Mirova approach Key figures Investing a portion of assets in unlisted companies and structures with a strong social and/or environmental impact. Seeking to achieve a social and/or environmental return by funding needs that are inadequately met by traditional financial channels in France. Supporting, via targeted investments: Investors in significant social impact projects Projects in collaboration with recognised partners to assess and monitor funded projects (France Active, Planis ResponsAbility, Sidi ). 30 years of experience (2) N 1 in Impact Investing in France (3) and Europe (4) N 1 in France (3) in SRI employee savings funds (2) With Natixis Impact Nord-Sud Développement launched in 1985. (3) 2012 Finansol Barometer. Impact investing: of which 55 million invested directly in solidarity organizations. (4) Source: Feri Lipper 11/2013. Supporting job creation Financing companies and solidarity structures that actively contribute to the creation or consolidation of jobs for people who are experiencing difficulties. International microfinance Enabling the most underprivileged to gain access to credit. Multithematic offer Addressing issues related to employment, social needs and housing, environment and international solidarity through a multithematic offering. (1) Impact Investing: asset management with a social/environmental impact.
Voting and engagement Exercising its shareholders responsibility with guidance from governance and engagement experts The Mirova approach Supporting institutional investors and asset managers in exercising their voting rights and implementing engagement actions, the goal being to create long-term value for all stakeholders. Custom-tailored advisory services based on the following features: Pragmatic: analysis from the investor s perspective, taking into account the macro-economic context and the specific features of the local environment and companies. Responsible: review of resolutions integrating environmental and social criteria. Constructive: on-going dialogue with companies. Key figures 38.3 billion in assets under advisory Engagement with 110 companies in 2013 More than 16.000 resolutions reviewed (European, US and Japanese stocks) of which 33% we contested in 2013 (1) Source: Mirova, as of 31/12/2013. Areas of expertise Voting policy Resolution analysis Engagement policy and actions Zineb Bennani Head of governance and engagement
Diversity, expertise and sharing: Mirova vision "All of our internal and external research resources aim at generating investment ideas that respond to sustainable development issues." Multidisciplinary experts driven by a common vision Mirova draws on the expertise of some 40 specialists with complementary backgrounds: experts on thematic strategies, engineers, financial and ESG (1) analysts, and project finance and solidarity finance professionals. These specialists work collaboratively and share a single ambition: to identify the drivers of sustainable economic development. Hervé Guez Head of responsible investment research Sharing knowledge and experience In order to build a thorough understanding of global technological, political, regulatory and social conditions, Mirova s research teams engage in from various collaborations such as: Long-term relationships with companies management, Tailored research by external brokerage houses, A research partnership with the University of Cambridge based on idea sharing and joint publications. Actively participating in several international organisations sponsoring SRI initiatives (PRI (2), ICGN (3), IRC (4)...), Mirova is constantly seeking to improve financial practices. (1) ESG: Environment, Social/Societal and Governance. (2) PRI: Principles for Responsible Investment. (3) ICGN: International Corporate Governance Network. (4) IRC: Integrated Reporting Committee.
MORE INFORMATION www.mirova.com @Mirova_RI Mirova LEGAL INFORMATION Mirova is a subsidiary of Natixis Asset Management. This information purpose only document is a non-contractual document intended only for professional clients in accordance with MIFID. It may not be used for any purpose other than that for which it was conceived and may not be copied, distributed or communicated to third parties, in part or in whole, without the prior written consent of Mirova. No information contained in this document may be interpreted as being contractual in any way. This document has been produced purely for informational purposes. Mirova reserves the right to modify any information contained in this document at any time without notice, including any reference to management process which do not constitute an undertaking from Mirova. This document consists of a presentation created and prepared by Mirova based on sources it considers to be reliable. 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CONTACT Anne-Laurence Roucher, head of development and coordination of Mirova...anne-laurence.roucher@mirova.com Eco-responsible printing - September 2014 Natixis Asset Management Limited Company - Share Capital: 50 434 604,76 RCS Paris 329 450 738 - Regulated by AMF: GP 90-009 Registered Office: 21 quai d Austerlitz - 75634 Paris Cedex 13 Mirova Limited liability company - Share capital 7 461 327, 50 Regulated by AMF under n GP 02-014 RCS Paris n 394 648 216 Registered Office: 21 quai d Austerlitz 75 013 Paris