Mirova is a pure player in the RI market. Considering this positioning, the incorporation of ESG in its investment processes forms an integral part of its business model.

As a consequence, all its funds systematically take into account E, S and G criteria.

Environmental and social factors are analysed for all funds on a sector-specific basis, either through a multi-thematic approach or a thematic one (for more details, please refer to LEI.07 or SG.15) on the following basis:

- A Risk / Opportunity Approach

- Taking advantage of opportunities ; .
- Managing Risks ;
- Targeted Issues
- A Life Cycle Analysis
- A Qualitative and Absolute Assessment

Governance issues are analysed at two levels:

- the sustainability governance analysis evaluates how environmental and social performance are managed by the issuer; this is performed directly by the RI research team;

- the corporate governance analysis evaluates how the economic performance is managed by the issuer; this is performed directly by PMs.

The processes in place to ensure ESG integration is based on robust analysis are the same than those described for the screening (please refer to LEI.5 for further information).

In addition, optimum ESG Integration is fostered by constant interactions between the RI Research team and the portfolio managers:

- not only do they share the same offices, they take part in several common internal meetings (Conviction meetings, Thematic clusters, etc.)

- they hold open meetings where anyone can attend (with company management, external strategists/analysts, etc.)

- together, they perform combined financial & extra-financial stock-notes, with a standard section dedicated to sustainability opinion.

- they share a common, proprietary and internal tool: OCTAVE (Online Collaborative Tool for Analysis, Vote and Engagement).

This collaborative modus operand fosters trust and idea sharing.

Mirova systematically captures how ESG information and research was incorporated into investment decisions to ensure that all the companies included in its portfolios are compliant with its high standard ESG and thematic requirements. Mirova is fully transparent with regard to this ESG quality commitment and discloses publicly the breakdown of its portfolios in terms of “Sustainability Opinion” in the funds’ monthly factsheets, available on its website: http://www.mirova.com/en-UK/p/our-funds.

The equity investment team has a conviction-driven, stock picking approach based on a bottom-up investment process. ESG issues are therefore mostly taken into account at the stock-selection and portfolio construction levels.

Achieving the SDGs requires taking two different dimensions into account that often go together.

- Taking advantage of opportunities

- Managing Risks:

This analysis structure gives equal importance to opportunities and risks. It is the primary prism through which we analyse sustainable development issues.

Targeted Issues

Our risk/opportunity analysis focuses on the elements most likely to have a tangible impact on the assets studied and on society in general. Additionally, the issues that economic agents face are very different depending on the sector, and can even vary within the same sector.

A Life Cycle Analysis

In order to identify the issues that could impact an asset, the analysis of environmental and social issues must consider the entire life cycle of products and services, from raw material extraction to end-of-life.

A Qualitative and Absolute Assessment

The primary result of these analyses is an overall qualitative opinion on a five-tier scale. This score demonstrates how the asset performs in terms of sustainable development goals.