Are we hitting a green bubble or is Sustainable Investing here to stay?
Deputy CEO, Head of Private Equity and Natural Capital
Mirova, Paris
mirova.com
08.03.2022
Dear Ms. Roucher, Mirova is a pioneer in ESG Investing, what should investors be thinking about when they invest in sustainable solutions?
They should be clear about their expectations, before looking at matching them with the right solutions providers (ESG integration, Impact approach in ESG, focus on specific theme in E, S or G space, etc.) more fundamentally. I think that these days remind us that we need to defend the values in which we believe (cf. Ukrainian war). Investments with an ESG mindset are a way to align our investment «power» with our values. In this respect it is important to look for ESG investment solutions that have a real impact / additionality for our world.
The interest in Impact is becoming much larger but how do you really measure it?
Three key points about Impact: it is real if it is i) intentional (and therefore here to stay), ii) additional (contributes to change) and iii) measurable measurements should encompass qualitative analysis / reporting to give a qualitative overview, and also quantitative measurement of physical impacts (such as carbon footprint, biodiversity footprint, impact on diversity, etc.). Quantitative data don’t need to be provided on too many topics, what matters is that they are relevant and enable to draw comparisons (within a given sector, compared to global economy, etc.).
Investor appetite for ESG seems to be growing unabated. Do you see a green bubble appearing?
The secular growth trend is here to stay ; then there can be short term green bubbles effects, this is why active management is so relevant (trimming or adding the positions depending on market valuations).
Is ESG a demand from all investors or which groups are more interested in ESG?
Overall both individual investors and institutional investors show a lot of interest, with variations in the investment strategies they prefer. Individual investors have strong interest for thematic strategies, whereas institutional investors are more sophisticated and open to a larger set of investment solutions with different risk / return profiles, and also exposure to illiquid assets.
ESG has become mainstream, what will be the future development (next steps)?
ESG becomes mainstream, the next challenge is to make Impact investing mainstream, that is what is needed in terms of capital reallocation to finance the shift towards a more sustainable world.
Link to disclaimer
Anne-Laurence Roucher is a graduate of the French business school ESCP (École supérieure de commerce de Paris). She began her career in 1999 as a Project Manager for a company aiming to help get people out of work for a long period back into employment in the catering industry, thereby reconciling social and economic performance. In 2000, Roucher joined the management consulting firm AT Kearney as a Business Analyst and then as a Senior Associate with financial institutions. In this role she worked on a wide array of strategic, development and restructuring projects for asset managers, insurers, private equity firms and merchant and investment banks. Anne-Laurence Roucher joined Natixis in 2005 before becoming Head of Strategic Planning at Natixis Asset Management in 2007. While in this position she played a pivotal role in highlighting the importance of responsible financing. This strategic priority led to the creation of a business unit within Natixis Asset Management dedicated to responsible investment, which later developed into Mirova. In 2021, Anne-Laurence Roucher became Head of Private Equity and Natural Capital, a business unit bringing together Mirova’s investment activities in natural capital and private equity, with the aim of building a coherent platform in Europe and in emerging countries.