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PRI reporting framework 2020

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Outputs and outcomes

LEI 12. How ESG incorporation has influenced portfolio composition

12.1. Indicate how your ESG incorporation strategies have influenced the composition of your portfolio(s) or investment universe.

Describe any reduction in your starting investment universe or other effects.

For each company, the RI research team produces a “Sustainability Opinion”, which assesses whether the investment is compatible with the UN Sustainable Development Goals. The team’s guiding philosophy is publicly available on Mirova’s website*.

There are 5 levels of Sustainability Opinions: “Negative”, “Risk”, “Neutral”, “Positive” and “Committed”. Only issuers rated “Neutral”, “Positive” or “Committed” are eligible for investment at Mirova.



Specify the percentage reduction (+/- 5%)

40 %

Describe any alteration to your investment universe or other effects.

Considering its thematic approach (please refer to LEI.01 and LEI.07 for further details), Mirova targets sectors that positively contribute to tackle sustainable development issues by addressing one (or several) of its eight sustainability investment themes, and then automatically avoids those with negative ESG externalities. As a result, some sectors are not eligible to Mirova’s investment universe; not on an ex-ante basis as a matter of principle, but rather as a result of the RI Research. Mirova’s ESG analysis is “absolute”. Hence, an entire industry might be rated “Risk” if industry practices as a whole are not sufficient or if their current business model does not fit into a sustainable world. (e.g. Mirova does not invest in tobacco, in military industry, in coal nor in oil E&P*). Conversely, a low-risk industry or an industry with good practices might see none of its actors rated “Risk”.

*except through green bonds on the fixed income side

Select which of these effects followed your ESG integration.

12.2. Additional information.[Optional]

Mirova is a pure player in the RI market. The investment universe of Mirova and PMs is therefore not only taking into account ESG factors but directly defined by ESG factors analysis. Only stocks that are attributed a “committed”, “positive” or “neutral” sustainability optinion therefore remain in the investment universe.

As a consequence, Mirova’s portfolio managers (PMs) systematically take all relevant ESG inputs into consideration in their investment decisions. ESG issues are therefore fully integrated in Mirova’s investment processes, and can impact each step (investment universe definition, idea generation, portfolio construction / weight decisions, buy / sell decisions, etc.).

The figure for the percentage of reduction of the investment universe provided at LEI 12.1 is the same in practice as last year.

LEI 13. Examples of ESG issues that affected your investment view / performance (Private)