Sustainable, Responsible, and Impact Investing
Specialized Investment Managers, Diverse Investment ExpertiseSustainable, Responsible, and Impact Investing
As highly active managers, Natixis Investment Managers is committed to ESG (environmental, social, governance) principles. Through the expertise of our affiliated managers, we have more than 30 years of experience in responsible investing. The majority of our managers integrate ESG factors into their investment process. Globally, 75% of our assets are managed by affiliates that are signatories to the United Nations Principles for Responsible Investment (UN PRI).1
We offer a range of funds and strategies centered on the belief that ESG factors can play a meaningful role in uncovering opportunities, identifying potential risks, and generating competitive returns for investors.
We offer a range of funds and strategies centered on the belief that ESG factors can play a meaningful role in uncovering opportunities, identifying potential risks, and generating competitive returns for investors.
ESG 101
“ESG” is a general term that covers a variety of investment approaches. ESG strategies factor environmental, social, and governance considerations into the investment process, with the goal of generating long-term, sustainable returns for investors.- Environmental – Renewable energy, lower carbon emissions, water management, pollution control
- Social – Labor practices, human rights, data protection, selling practices, corporate supply chains
- Governance – Board makeup, corruption policies, auditing structure
Considering ESG criteria can help portfolio managers identify companies capable of creating sustainable value and managing a full range of risks. All else equal, well-run companies with sustainable business models may be better long-term investments. For these reasons, the investment criteria inherent in ESG analysis may be well-aligned with the interests of long-term investors.
Growing Investor Interest in Sustainable Investing
Survey data gathered over the past several years documents increasing interest in responsible investment solutions on the part of institutions, individuals, and retirement plan participants. Investors of all types are looking for ways to invest more sustainably, consistent with ESG factors.
 A majority of institutional investors believe there is alpha2 to be found in sustainable investments.3 |
 7 in 10 individual investors worldwide would like their investments to do social good.4 |
 74% of plan participants would like more socially responsible investments in their retirement offering.5 |
Implementing ESG Strategies
There are many ways to implement responsible investing strategies, but they fall into three basic categories. Diversifying across strategies may help manage investment risk and increase opportunities for return. Natixis Investment Managers offers solutions from our affiliated asset managers in all three categories.
 POSITIVE/NEGATIVE SCREENING Screening securities on ESG or values-based criteria |
 ESG INTEGRATION Incorporates ESG factors into fundamental analysis to pursue alpha and mitigate risk |
 IMPACT/THEMATIC Investment selection guided by ESG themes and positive impact |
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2 A measure of the difference between a portfolio's actual returns and its expected performance, given its level of systematic market risk. A positive alpha indicates outperformance and negative alpha indicates underperformance relative to the portfolio's level of systematic risk.
3 Natixis Investment Managers, Global Survey of Institutional Investors conducted by CoreData Research in September and October 2017. Survey included 500 institutional investors in 30 countries.
4 Natixis Investment Managers, Global Survey of Individual Investors conducted by CoreData Research, February-March 2017. Survey included 8,300 investors from 26 countries.
5 Natixis Investment Managers, Survey of Defined Contribution Plan Participants compiled by CoreData Research, August 2016. Survey included 951 US respondents.
Sustainable investing focuses on investments in companies that relate to certain sustainable development themes and demonstrate adherence to environmental, social and governance (ESG) practices; therefore the universe of investments may be limited and investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria. This could have a negative impact on an investor's overall performance depending on whether such investments are in or out of favor.
The ability of an active investment to achieve its objectives will depend on the effectiveness of the investment manager.
All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed-income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.