The Mirova Global Green Bond Fund

Here at Smart Pension, we are focussed on achieving great outcomes for our members. Additionally, we feel it’s our duty to play a part in shaping the world our members will retire into, safeguarding our planet, people and society by investing in funds which aim to reduce some of the most damaging effects of climate change. So that’s why we have partnered with Mirova to invest in their Global Green Bond Fund. Watch our Investing in Green and Sustainable Bonds video to learn more about our investment partnership with Mirova .

Investing in renewable energy*

Coal, oil and gas currently account for around 80% of the primary energy used in the world today. The process of burning these fossil fuels creates huge greenhouse gas emissions, contributing to global warming and posing a threat to biodiversity. Overall, the energy value chain generates around 73% of global greenhouse gas emissions.
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For the energy industry, Mirova’s ambitions are to support players deploying solutions that are sustainable from an environmental and social perspective, that address energy transition issues and are compatible with mitigating climate change.

Typically, renewables are a key investment area within the energy sector, with the potential for strong returns for our members. These principally include the development of wind and photovoltaic solar projects, but also hydropower, bioenergy, geothermal power and naturally companies supplying equipment and services essential to these industries. Finally, energy efficiency in power transmission and storage are also key investment themes supported by Mirova within the energy sector.

*This example is taken from the Mirova Global Green Bond Fund: Impact Report 2021.

Investing in cleaner transport*

Transportation currently accounts for 15% of global greenhouse gas emissions. To achieve net zero greenhouse gas emissions by 2050, the International Energy Agency scenario requires a 20% reduction in the emissions generated by the transportation sector – equivalent to 5.7 Gt by 2030*. It is therefore essential to implement policies that encourage the adoption of low-carbon transport systems, particularly within the automotive industry, through electric vehicles.

Mirova invests in companies that have begun the shift towards environmentally-sound mobility by making reasonable technological choices and adopting a risk management approach that accounts for the vehicle’s entire life cycle. Hydrogen fuel cells, improved battery recycling and a denser network of charging stations are just some of the solutions that exist.

Supporting their growth means supporting a greener mobility and the transition towards a carbon neutral economy.

*This example is taken from the Mirova Global Green Bond Fund: Impact Report 2022.

Please note, each investment is subject to risks, including the risk of capital loss.

Why we partner with Mirova

“When choosing the bond fund, it was important to us to ensure transparency and traceability. Mirova produces an impact report that tracks the environmental benefits of projects to ensure that their fund makes a real difference.”

Fiona Smith, Investment Proposition Manager – Smart Pension

“At Mirova, we’ve invested in green and sustainable bonds for over 10 years, and these investments now amount to almost 3 billion euros. That’s why we’re uniquely placed to achieve a significant impact on environmental projects, by selecting opportunities that could reshape our future.”

Agathe Foussard, Mirova Portfolio Manager, 31 December 2022

Our default growth fund will be net zero by 2040

We are focused on achieving great outcomes for our members. We want to help them secure not just long-term financial growth but also a safer, healthier world in which they can retire. We believe the pension industry has a golden opportunity to drive faster decarbonisation, by investing in businesses that are serious about cutting carbon emissions. Our investments are fully sustainable and we expect these to play a key role in achieving our 2040 net zero target.

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