• The Green Bond Principles are a set of guidelines that have acted as an industry standard for structuring green bonds, even though they are not a regulatory body.
  • The Principles cover the use of bond proceeds, the process for project evaluation and selection, management of proceeds, and required reporting.
  • Some investors criticize the green bond market for not implementing regulations to verify the authenticity and track the proceeds of green bonds, but the Principles are a market-driven organization, not a regulator.
  • Mirova believes using an active green bond manager may help alleviate investor concerns related to the legitimacy of the market.
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 a portfolio's universe of investments may be reduced. It may sell a security when it could be disadvantageous to do so or forgo opportunities in certain companies, industries, sectors or countries. This could have a negative impact on performance depending on whether such investments are in or out of favor.

This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted and results will be different. Data and analysis does not represent the actual or expected future performance of any investment product. Natixis believes the information, including that obtained from outside sources, to be correct, but cannot guarantee its accuracy.

Mirova is operated in the US through Mirova US LLC (Mirova US).