Our ESG analysis methodology is tailored to each category of project (solar, wind, rail transport, energy services, etc.) to better identify risks and opportunities arising from the key sustainability issues. The criteria disclosed above are only examples that can:

-Be relevant or not, in terms of Sustainability Opportunities, depending on the nature of the project. A mapping of sustainability opportunities, that crosses sectors with sustainability issues has been developed by our in-house RI Research team so as to identify compliant projects.
-Be weighted differently in the ESG risk review, depending on the social /  environmental externalities related to the project and existing levers for improvement.

This targeted ESG research approach enables a focus on relevant criteria and KPIs, which are monitored all along the project (some examples are provided in INF.12.2 above)

Once the partnership contract has been signed, a monitoring process is set up to measure the project’s impact, by using information gathered from gap analysis and actions undertaken during the project, as well as from annual and punctual reports on the project.

It is also worth noting that our ESG assessment and monitoring process during the management phase includes meetings or calls with the projects’ operators in order to confirm or disprove the initial ESG assessment, and to encourage them to improve the ESG practices as part of our engagement approach

The majority of risks related to the operation and maintenance phase  are anticipated upstream, at the moment of the project’s conception. However, following-up on environmental (energy consumption and other resources, waste management) and social performance (pollution, noise, visual pollution, security and comfort for users, working conditions for maintenance personnel) ensures responsible management of the project in its entirety.

A first ESG analysis is carried out and drafted before the investment decision is taken. Some areas for improvement are defined during this analysis to favour progress in ESG practices during the construction and operation phases. Maintenance projects are therefore included in potential issues in the operation phase.

The project’s ESG analysis is updated with the responses provided by the companies responsible for the project throughout the projects’ lifecycle.

Projects are systematically subjected to dialogue with the key stakeholders of each project (i.e. the regulatory agency, communities, civil society, etc.) as part of our procedure for filing permits; this also includes impact studies and research. Every investment within our portfolio is subject to these procedures.

It is also worth noting that our ESG assessment and monitoring process* applied by Mirova, includes meetings or calls with project operators if the qualitative information is not sufficient to cope with the assurance of sustainability risks management or to better understand the sustainability contribution of the project's purpose.

In addition to these individual engagement initiatives, Mirova actively contributed to promote the integration of ESG issues in the infrastructure asset class.

- We actively took part in the launch in 2015 of GRESB Infrastructure, a global sustainability benchmark for infrastructure assets, as well as first campaigns;
 - We also were sponsors of the Global Infrastructure Basel (GIB) (for further information about these initiatives, please refer to INF.8).

Please refer to INF.01 for further details about our proprietary ESG assessment methodology suited to infrastructure projects.

*The annual engagement report is available on Mirova's website: http://www.mirova.com/en-INT/voting-and-engagement