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Natixis commited to energy transition

Just a few months ahead of the COP21 conference to be held in Paris next December, Natixis continues to mobilize to provide concrete solutions in favor of energy transition and the fight against climate change.

COP21 is the 21st Conference of the Parties, which this year is organized from November 30 to December 11, 2015 in Paris. The goal is to reach an agreement to limit global warming to two degrees Celsius above pre-industrial levels. The agreement must set binding targets that are applicable to all countries and comply with the differentiation principle.

The event builds momentum for developing companies' activities towards energy transition. The involvement of financial institutions is a powerful lever for action.

In this area, Natixis boasts an array of expertise to cover the main challenges at stake:

  • financing renewable energy for over 20 years;
  • supporting energy performance;
  • supporting the development of green bonds
  • investment strategies that address climate change issues

Financing of renewable energy

Natixis has been acting since the mid-nineties to arrange the financing of renewable energy projects of all sizes and in all types of technology (solar, wind power, hydroelectricity and biomass), across the world. It is today one of the major players of energy transition by number of financed transactions and by amount.

  • Since early 2015, Natixis has financed 9 new renewable energy projects in metropolitan France and in the French overseas departments through its subsidiary Natixis Energeco. Abroad, Natixis arranged the financing of eight new transactions in Europe and in America.
  • In the asset management business, Mirova, the management company dedicated to SRI subsidiary of Natixis Asset Management, launched the EUROFIDEME 3 fund in 2014 (read more). This 3rd fund enables European institutional investors to invest in project-companies that are developing renewable energy assets. It complements the existing Fideme and Eurofideme 2 funds, which were created in 2002 and 2008 respectively and are fully invested.

Supporting energy performance

AEW Europe, a subsidiary of Natixis Global Asset Management (NGAM), takes into account environmental criteria in managing its real estate portfolio:

  • for the acquisition of newly-built properties, it selects only those with environmental certification (HQE, BREEAM, LEED or BBC*);
  • for the acquisition of already existing properties and for the portfolio under management, it carries out environmental performance assessments and implements action plans in coordination with owners and tenants.

The FIDEPPP fund (the first French fund dedicated to Public-Private Partnerships, created in 2005) and FIDEPPP2 *(created in 2012) help the Government and the French local governments carry out their infrastructure and equipment projects, specifically the construction of buildings and of high energy performance transport networks.

The BTP Impact Local fund complements the investment range as a tool to access public orders for SMBs.

Supporting the development of green bonds

Several business lines of Natixis participate in the booming market for green bonds (bonds with a social and/or environmental benefit), which arouse growing interest among investors:

  • Natixis supported the green bond issues in the public and private sectors: the European Investment Bank, the Région Île-de-France local government, Engie (ex-GDF Suez) and Abengoa.
  • The SRI research teams have developed specific expertise in green bonds and published reports to help investors structure their methodological approach in this field. Read Mirova' study.
  • Mirova launched a fund dedicated to green bonds to enable investors to finance projects with strong environmental impact while taking advantage of the performance potential of international bonds. Read the press release.

Investment strategies that address climate change issues

Mirova is strengthening its commitment to the fight against climate change by developing jointly with the company Carbone 4 an innovative methodology to measure the carbon impact of its equity portfolios (read the press release). The methodological principles will be published in September 2015 and notified to all the financial players interested in the approach.

 

* HQE: Haute qualité environnementale (high environmental quality), a voluntary French standard; BREEAM: Building Research Establishment Environmental Assessment Method, a voluntary UK standard; LEED: Leadership in Energy and Environmental Design, a voluntary US standard. BBC: Bâtiment basse consommation (low-energy building).

** FIDEPPP, FIDEPPP 2 and BTP Impact Local are managed by Mirova