Facing a climate emergency, Europe was willing since 2018 to define a framework in order to determine the truly sustainable activities by implementing a defined taxonomy, and direct European capital towards activities and companies committed to carbon neutrality by 2050, the proposals which were finally put in the form of a final report on the taxonomy of sustainable activities, published last March 2020.
The post-Covid context and high market volatility having comforted investors in their conversion to sustainable investment, they now have access to a wide range of funds managed on the basis of ethical selection criteria, such as Best-in class, Best-in-universe, Shareholder engagement, Weighting, Low-Carbon or Exclusion.
In this booming green market, we find in particular the emergence of ESG index funds which raised in Europe 1 billion euros at the highest pick of the market crisis in March, 6 billion in the first quarter of 2020 and more than 10 billion euros at the end of May,and the strong collection of thematic funds related to the environment and sustainable development, the success of which is explained by the visibility of the displayed theme: water, climate, education, smart energies, etc.
Among the funds that raised the most in 2019, we find the Nordea 1 – Global Climate and Environment Fund and the Fidelity Funds – Sustainable Water Waste Fund, both present in the CFM Indosuez fund.
Monaco, committed very early to integrating sustainable development “at the heart of the action” of the government. As of 2003, this sovereign desire was reflected in the creation and distribution of adequate financial products, including the CFM Environnement Développement Durable fund, a Monegasque common investment fund, dedicated to innovative investments in the environment. , renewable and clean energies, water, raw materials, waste recycling, and the development of ecological infrastructures.
The fund’s asset classes have evolved over time in line with innovations and technological advancements. We also find in this fund – to name a few – the funds :
PICTET Clean Energy based on clean energy theme for which the market is in high demand (electric cars, energy-efficient lighting, etc.), renewable energies which benefit from a reduction in production / material costs thanks to technological progress achieved, an economy of scale and more competitive storage costs.
MIROVA Europe Environmental Equity Fund EUR labeled since 2016 SRI and Greenfin, which invests in green activities and provides solutions to the Energy and Ecological Transition (EET). The green theme of the fund covers renewable and transitional energies, clean mobility, eco-buildings, digitalization, circular economy and sustainable use of land and water. The position in this Mirova Europe Environmental fund was increased by 2% this year
PICTET Timber which has a long experience in the timber industry and its evolution over the last twelve years; a period during which technology has greatly increased its fields of use, sometimes replacing more polluting materials or materials with high carbon emissions. Wood is now present in clothing, packaging, personal hygiene, or real estate, and is a renewable, sustainable and attractive product for investors.
The CFM Environnement Développement Durable follows an investment strategy that targets expert funds in “niche” markets or with in-depth expertise in sustainable sectors.
Article: Joana Foglia