Using ESG to reshape portfolios for a changing world

See how ESG is a powerful lens that can help uncover opportunities and mitigate risks.

As highly active managers, Natixis Investment Managers is committed to ESG (environmental, social, governance) principles. Through the expertise of our affiliated manager Mirova, we have more than 35 years of experience in sustainable investing. The majority of our managers integrate ESG factors into their investment process. Globally, more than 92% 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. Learn more by downloading our ESG Capabilities Brochure.


ESG Investing: Uncovering Opportunities, Mitigating Risks

“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 manage a full range of risks. All else equal, well-run companies with sustainable business models may be better long-term investments. Additionally, as there is more and more evidence to show that ESG considerations may be financially material for companies over different time horizons, incorporating them in investment-decision-making process can aid in risk management and alpha generation. 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 ESG investment solutions on the part of institutions, individuals, and retirement plan participants. Investors of all types are looking for ways to invest more sustainably.

6 in 10

investment professionals agree there is alpha2 to be found in sustainable investments.3

Nearly 2/3

of institutional investors believe ESG will become an industry standard within the next five years.4

61%

of workers said they would be more likely to contribute, or increase contributions, to their workplace retirement savings plan if they knew their investments were doing social good.5

 

Most of today's ESG investing approaches 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.

ESG Positive Negative Screening icon
POSITIVE/NEGATIVE SCREENING
Screening securities on ESG or values-based criteria

ESG Integration icon
ESG INTEGRATION
Incorporates ESG factors into fundamental analysis to pursue alpha and mitigate risk

ESG Impact icon
SUSTAINABILITY-THEMED
Investment selection may be guided by long-term environmental, demographic, social, sustainable development or other trends





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