As investors, we believe companies aligning sustainably will lead to a positive, long term value creation that benefits both shareholders and the broader stakeholder community.
In 2020, as the pandemic occurred, the scrutiny on corporations needed to think through their stakeholders and their broader impact on society and the planet has heavily increased. As such, we wouldn’t say that the pandemic was an inflection point for corporate governance, but we believe it clearly accelerated a pre-existing and necessary corporate transition towards fairer capitalism. Fortunately, companies had started to question their business model and the way they interact with suppliers, contractors, customers and communities before the various lockdowns and economic turbulences.
“In other words, the discussion on how the G factor could play a role in transforming the society and the environment was already initiated”.
Yet, we feel the pandemic has been a major upheaval for us all, as individuals, citizens, companies, and investors. It severely impacted global public health, as well as our economies and societies Companies had to face many challenges, having to handle day to day operations while protecting the health and financial security of their employees. Since the beginning of the pandemic, we witnessed companies adopting short term measures such as paid leave, donations to hospitals, employees’ bonuses, extension of payment terms for suppliers to support their stakeholders. Nevertheless, the transition towards fairer capitalism will be supported by longer-term measures, such as favoring better representation of employees within the board or include sustainable development criteria in top management’s compensation.
“As investors, we believe companies aligning sustainably will lead to a positive, long term value creation that benefits both shareholders and the broader stakeholder community”.
- We don’t believe that the pandemic was an inflection point for corporate governance, but it clearly accelerated a pre-existing and necessary corporate transition towards a fairer capitalism.
- Advocating stakeholders’ value and not just shareholder value has always been at the core of Mirova’s vision, and thus since inception in 2014.
- In order to ensure we invest in companies sharing our vision of sustainable corporate governance, we try to use as many tools as we find relevant, including a robust voting and engagement policy.
* CFA® and Chartered Financial Analyst® are registered trademarks owned by the CFA Institute.
** Mirova US is a US- based investment advisor that is a, wholly owned affiliate of Mirova. Mirova is operated in the US through Mirova US. Mirova US and Mirova entered into an agreement whereby Mirova provides Mirova US investment and research expertise, which Mirova US then combines with its own expertise when providing advice to clients.
*** The information provided reflects Mirova’s opinion as of the date of this document and is subject to change without notice.
For more information about our voting policy, please refer to Mirova website at www.mirova.com/sites/default/files/2021-03/mirova-voting-policy-2021.pdf.
For more information on our methodologies, please refer to our Mirova website: www.mirova.com/en/research.
1 Environment, Social, Governance
2 Sustainable Development Goals
3 For more information www.bcorporation.net/about-b-corps
4 For more information www.entrepriseamission.com
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