Impact Report 2021 Althelia Sustainable Ocean Fund - Mirova

Impact Report 2021 Althelia Sustainable Ocean Fund - Mirova
Althelia Sustainable Ocean Fund

Impact Report 2021
Impact Report 2021 Althelia Sustainable Ocean Fund - Mirova
About this report
The Althelia Sustainable Ocean Fund Impact
Report, produced during 2021, is based on
project submission data from 2020 as well
as projected data.

Table of contents
04          Introduction

06          Fund profile

08          The team

10          Selected highlights

12          Impact approach

14          Investments

34          ESG risk management

36          Detailed positive impact indicators
Impact Report 2021 Althelia Sustainable Ocean Fund - Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                                                                                                                                         P5

Tipping point                                                                                                                                                     Blue resilience

   2020 was set to be a banner year for biodiversity. We had                                   At Mirova, we have taken advantage of this time to                 Welcome to the 2021 edition of the                                                 ultimately making its way into rivers and then into the
   hoped that a series of international events spread over                                     continue building, collaborating and creating impact. We           Sustainable Ocean Fund Impact Report.                                              oceans where it is mistaken, for example, as jelly fish
   several months would bring significant progress in the                                      became an “entreprise à mission” (mission-led company)1                                                                                               or creates an entanglement risk for a variety of fish and
   form of hard commitments from public authorities and                                        and received our B-Corp2 status in December. We have               The Althelia Sustainable Ocean Fund (SOF) reached its                              animals. The SOF is working on solutions for the safe
   private actors. But with the COVID crisis and its attendant                                 taken time to consider our theoretical and practical vision        final close in May 2020 securing over US$ 130m of public                           disposal and recycling of single use plastics through
   lockdowns, restrictions and disruptions of various kinds,                                   for the impact an investment company can aspire to. We             and private investor commitments to support sustainable                            its pipeline in India, Indonesia, Fiji and the Dominican
   none of these much-anticipated events has yet taken                                         have also created an endowment fund in order to support            blue economy investments in emerging markets globally.                             Republic.
   place. Nonetheless, the pandemic has accelerated a                                          development of the impact finance ecosystem.                       This was achieved in the middle of the coronavirus
   growing awareness, both in civil society and amongst                                                                                                           pandemic and the team has been working hard through                                The ocean is critical to life on earth and we can only
   companies, of our shared reliance on natural resources—                                     In each of these endeavours, nature and biodiversity               this period of disruption to manage and deploy capital in                          address global sustainability and climate change through
   and the impact we have on them.                                                             have remained our key concerns now and for the future.             a rapidly changing world.                                                          protecting a healthy and vibrant ocean. Whilst the current
                                                                                               We have pushed forward with our commitments—                                                                                                          environment has made it more difficult to complete
   This year was an opportunity to reassess. We have                                           whether developing biodiversity impact indicators for our          At the time of writing SOF has now completed eight                                 investments, the pandemic underlines that investing into
   brushed up against the limits of certain economic                                           portfolios or directly investing in sustainable agriculture        investments across our target themes of sustainable                                nature is now even more critical in order to address the
   models and been forced to ask ourselves hard questions                                      projects, forest conservation and ocean protection.                seafood, the circular blue economy and ocean                                       significant environmental issues the world faces.
   about value—how it is shared and what role companies                                                                                                           conservation. These represent nearly $45m of initial
   and finance should play in our ecosystems.                                                  The year 2021 began with the latest edition of the                 commitments of which four were executed during 2020:                               We continue to place environmental, social and
                                                                                               One Planet Summit in Paris focused on protecting                   Recycled Technologies, Plastic for Change, nextProtein                             governance (ESG) risk management and impact at the
   Of course, such considerations are hardly new. Some                                         biodiversity. Major events, such as the IUCN World                 and Clean Marine Group.                                                            heart of our investment selection and management
   companies have made environmental and social impact                                         Conservation Congress, the COP26 climate change                                                                                                       process and we are pleased to present our progress over
   a central tenet of their business models. Here, naturally,                                  conference and the biodiversity COP will likely take place         As with all businesses globally we have had to adapt                               2020 to addressing ocean environmental issues.
   I am thinking of B-Corp entities, and more broadly, of                                      in 2021. One year behind schedule is but little in terms           to the realities of the ongoing global COVID pandemic.
   contributors to an inclusive economy or green finance.                                      of the transformations underway—but it is a great deal             Whilst in early Q1 2020 the team made trips to Belize and                          Mirova thanks you for your support and more importantly
   However, the current crisis has shaken the economic                                         given the urgent need for action. It is our belief that the        the Caribbean, they spent the remaining part of the year                           your interest in the ocean.
   world, and its tremors reach far beyond existing converts.                                  collective engagement will be all the stronger and our             marooned, working from home in the UK, France and the
   It is hastening the transformation of companies that                                        shared determination all the greater for the wait. The key         USA. Despite this, the team has worked well under the                              Yours sincerely,
   had already begun exploring the topic and pushed                                            is to continue our efforts, so that the first encouraging          new arrangements and has been busy on new projects,
   those who had never questioned their models to reflect.                                     signs may now grow into a transformation of our                    as well working with the existing portfolio to manage the                          Simon Dent
   Never before has debate over environmental, social                                          models of production and consumption and redefine the              economic and environmental effects of COVID-19.                                    David Barley
   and governance topics—or the impact of business on                                          relationship between business and nature.
   nature—reached such a pitch.                                                                                                                                   The pandemic has in many cases increased ocean                                     Investment Directors, Sustainable Ocean Fund
                                                                                                                                                                  issues, triggering a huge increase in the global use of
   2020 has by no means been a loss. It is poised to                                                                                                              personal protective equipment. Some estimates placing
   become a tipping point.                                                                     Philippe Zaouati                                                   associated disposals at some 129 billion face masks and
                                                                                                                                                                  65 billion gloves every month,1 likely to contribute further
                                                                                               Chief Executive Officer, Mirova                                    to the 80% of ocean plastics coming from land. In the
                                                                                                                                                                  developing world, this plastic often ends up mismanaged
                                                                                                                                                                  in open dumps, eventually leaking into the environment,

   References to a ranking, award or label have no bearing on the future performance of any fund or manager.
   1.    Mirova is a mission-driven company since 2020. For more information :
   2.    The B Corp's objective is to certify companies that integrate social, societal and environmental objectives into their business models and operations.
         For more information: Mirova is B-corp certified since 2020.                                                         1.   “COVID-19 Pandemic Repercussions on the Use and Management of Plastics”, Environmental Science & Technology (2020).
Impact Report 2021 Althelia Sustainable Ocean Fund - Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                                                          P7

Fund profile

                                                                                                  The fund

                                                                                                        Fund Size

Ocean Fund
                                                                                                        Fund Life
                                                                                                        9 years from
                                                                                                        June 2018, 3.5
                                                                                                        years investment
The challenge
                                                                                                        40% Latin
Oceans play a crucial environmental and socio-economic role for the planet;
                                                                                                        America &
regulating climates, providing natural resources, enabling international trade
                                                                                                        Caribbean, 30%
and ensuring livelihoods and food security for a large portion of the world’s
                                                                                                        Africa, and 30%
population. According to the World Wildlife Fund, our oceans’ combined assets
                                                                                                        Asia and Pacific
can be valued at over $24 trillion when including their direct financial outputs,
such as fisheries’ products, with indirect services like carbon sequestration and                 Sustainable
enabling international transport or tourism.                                                      Development Goals
Uncontrolled human activities are putting the oceans’ health under threat,
adversely affecting their biodiversity, their capacity to mitigate climate change,
and putting at risk many communities’ source of incomes and food. This is

especially the case in small island developing states and in the global south.

Investment solution
The Sustainable Ocean Fund (SOF) is addressing these challenges by investing                                                                                                                    of global fish stocks are either
in scalable, impact-aligned companies and projects whose models offer a                                                                                                                         fully exploited or overfished1
sustainable alternative to business-as-usual, making a positive impact on
the environment and society, and delivering economic returns. By investing
in initiatives that harness the ocean’s natural capital, the fund aims to build
resilience in coastal ecosystems and create sustainable economic growth
and livelihoods in the blue economy.

                                                                                                                                                                                                tonnes of plastic enter the oceans
                                                                                                                                                                                                every year2

                                                                                                                                                                                                59, 500,000
                           Sustainable seafood               Circular economy            Ocean conservation
                       Investment in sustainable          Investment into coastal         Coastal and marine
                      fisheries and best practice        infrastructure, innovative        conservation and                                                                                     millions people are directly
                         aquaculture, as well as       businesses and technology       management to improve                                                                                    employed in sustainable capture
                      post-harvest value addition:        to unlock the value from    biodiversity and resilience                                                                               fisheries and aquaculture
                       processing, improvement              waste, pollution and       in coastal communities,                                                                                  production1
                        traceability, certification,    recycle/ upcycle products          creating business
                          technologies enabling             so that the ocean is        opportunities through
                        improved sustainability,           protected. The fund is     eco-tourism and payments
                      and sustainable alternative          particularly focused on     for ecosystem services.
                         inputs (i.e. aquaculture        plastics and wastewater                                           1. “The State of World Fisheries and Aquaculture”, FAO (2020)
                                   feed)                        management.                                                2. “Plastic waste inputs from land into the ocean”, Science (2015)
Impact Report 2021 Althelia Sustainable Ocean Fund - Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                                           P9

                                            The Team
                                            SIMON DENT                                                      DAVID BARLEY                                                       TRIP O’SHEA
                                            BLUE INVESTMENTS                                                INVESTMENT                                                         LATIN AMERICA
                                            DIRECTOR                                                        DIRECTOR                                                           INVESTMENT DIRECTOR
                                            Simon is the Founder                                            David is Investment                                                Trip joined MNC from
                                            and Principal of the Althelia                                   Director at MNC, Fund                                              Encourage Capital where
                                            Sustainable Ocean Fund (SOF) and                                Manager for SOF and sits on its                                    he originated transactions and
                                            leads the investment committee                                  investment committee. He has                                       managed investments in the food
                                            for the fund. He has more than                                  extensive career experience working                                and agriculture space, with a focus on
                                            20 years of transactional and                                   in the sustainable resources sector                                sustainable seafood and aquaculture.
                                            senior management experience                                    and particular expertise in sustainable                            Before Encourage, he was an
                                            in commodity and conservation                                   agriculture, clean energy and ocean                                investment banker in the Global Power
                                            finance. Simon is a recognised                                  sectors. David was previously a Senior                             & Utilities coverage group at Barclays
                                            leader in the blue economy space                                Advisor to HRH The Prince of Wales’                                in New York, working primarily in the
                                            where he is focused on developing                               International Sustainability Unit,                                 renewable energy sector. Earlier in his
                                            investable project models that                                  where he managed the organisation’s                                career, Trip spent five years in Central
                                            provide clear impact and economic                               programme on global food, energy                                   America where he launched a social
                                            returns for ocean stakeholders.                                 and water security, and to the natural                             enterprise consulting practice and
                                            He was previously a Managing                                    capital advisor, Beetle Capital Partners.                          worked as a conservation finance
                                            Director at BNP Paribas where he                                Prior to that, he worked in investment                             analyst with The Nature Conservancy.
                                            was instrumental in setting up the                              in Climate Change Capital and was a                                Trip is based in the USA and is
                                            bank’s environmental trading desk                               strategy consultant at Accenture.                                  covering Latin America for SOF.
                                            and led the bank’s carbon emissions

                                            ANTOINE ROUGIER                                                 LISA HUBERT                                                        VA N E S S A C A RVA L H O
                                            TECHNICAL DIRECTOR                                              INVESTMENT MANAGER                                                 INVESTMENT MANAGER
                                            Antoine is SOF’s Technical                                      Lisa joined the SOF                                                Vanessa joined the
                                            Director. He is responsible                                     team in January 2020                                               MNC team in April 2021
                                            for providing technical                                         as an Investment                                                   as an Investment and
                                            expertise to assist in identifying                              Officer after three years working                                  Portfolio Manager. Vanessa covers
                                            and evaluating ocean projects and                               on deal sourcing, due diligence and                                Africa and Asia for SOF. Vanessa has
                                            investments as well as supporting                               structuring of new deals as well as                                13 years of investment experience
                                            due diligence, data analysis and                                portfolio management for the other                                 across infrastructure, real estate,
                                            environmental and biodiversity impact                           MNC funds. Lisa is covering Latin                                  agriculture and consumer in different
                                            assessment. Prior to joining MNC,                               America and Africa for SOF. Lisa has                               geographies. Prior to joining MNC,
                                            Antoine worked for almost ten years                             10 years of field experience working                               Vanessa spent five years at CDC
                                            at the frontier between international                           with rural communities, cooperatives                               Group working on investment
                                            development and the fisheries and                               and value chain actors in developing                               strategy, deal origination, execution
                                            aquaculture sectors with social                                 countries. Her sector focus is                                     and structuring of equity investments
                                            enterprises, NGOs (Blue Ventures,                               natural resources, value chains,                                   in the Food and Agriculture group in
                                            EJF) and a specialist consultancy,                              climate change, infrastructure and                                 Africa and Asia. She worked in BNDES
                                            including over seven years based in                             finance. She worked for six years as                               (Brazil) for six years where she was in
                                            the field in Madagascar and Ghana,                              economist and investment officer for                               charge of a credit portfolio in water,
                                            and working with partners such the                              development partners including IFAD,                               sanitation and waste management
                                            EU, the IFC and the FAO.                                        World Bank, IFC and FAO Investment                                 sectors.

                                            The reported data reflect the situation as of the date of this document and are subject to change without notice. Source: Mirova
Impact Report 2021 Althelia Sustainable Ocean Fund - Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                                                                                            P11

Selected highlights 2020
                                                                                                                            May                                              Mirova's
                                                                                                                            For the fourth year                              Sustainable
                                                                           Mirova’s Natural                                                                                  Ocean Fund
                                                                                                                            in a row, Mirova
                                                                           Capital Platform                                 Natural Capital is                               reaches a final
                                                                           becomes a signatory                              honoured to be                                  close of $132m
                                                                           of the Operating                                 among the Impact                                 of commitments,
                                                                           Principles for Impact                            Assets 50 (‘IA 50’)                              exceeding its
                                                                           Management,                                                                                       target.
                  January                                                  a framework
                                                                                                                            list for its natural
                  Execution of
                                                                                                                            capital activities.                                                       September
                                                                           for investors to
                  the contract                                             ensure that impact                                                                                                         The Sustainable
                  with SafetyNet                                           considerations                                                                                                             Ocean strategy
                                                                           are purposefully                                                                                                           wins the award of               Mirova is awarded
                  to take the next                                         integrated throughout                                                                                                      “Impact project /                    B Corp status
                  important steps in                                       their funds’                                                    May                                                        investment of the                   and announces
                  commercialising                                          investment life                                                                                                            year – Oceans                     has signed up to
                                                                           cycles.                                                         Execution of the                                           and coastal
                  its pioneering light-                                                                                                                                                                                              become a ‘Mission-
                                                                                                                                           contract with                                              zone” at the
                  emitting bycatch-                                                                                                                                                                                                      led Company’, a
                                                                                                                                           nextProtein                                                Environmental
                  reduction technology,                                                                                                                                                                                             French accreditation
                                                                                                                                           (Tunisia) which                                            Finance's 2020
                  Pisces.                                                                                                                                                                                                           whereby signatories
                                                                                                                                           produces feed                                              Impact Awards.                   must define their
                                                                                                                                           raw materials
                                                                                                                                                                                                                                           “raison d’être”
                                                                                                                                           and insect-based
                                                                                                                                                                                                                                        and one or more
                                                                                                                                                                                                                                          social, societal
                                                                                                                                                                                                                                       or environmental
                                                                                                                                                                                                                                      objectives beyond
                                                                                                                                                                                    September                                                       profit.
                                                                                                                                                                                    Mirova Natural
                                                                                                                                                                                  Capital platform
                                                                                                                                                                                        is awarded
                                                                                                                                                                                “Investment team
                                                                                                                                                                              of the year – Asset
                                                                                                                                                                                 manager” during
                                                                                                                                 May                                                Environmental           October
                                                                                 March                                                                                              Finance's 2020          Mirova is one of
                                                                                                                                 Execution of
                                                                                 The World Health                                the contract                                 Impact Awards, for            the two French
                            March                                                Organisation                                    with Plastics for                             its comprehensive            management
                            Execution of                                         officially declares                             Change (India)          May                 product range within
                                                                                                                                                                                                            companies to
                                                                                                                                                                                the natural capital
                            the contract                                         the outbreak of                                 which developed         Vincent Gradt                                      join the Principles              October
                                                                                                                                 the world's first                                investing space.
                            with Recycling                                       COVID-19 a global                                                       joins the team as                                  for Responsible                  Execution of the
                            Technologies                                                                                         Fairtrade verified
                                                                                 pandemic.                                                               CEO of Mirova                                      Investment (PRI)                 contract with Clean
                            (UK) to accelerate                                                                                   recycled plastic
                                                                                                                                 supply chain.           Natural Capital                                    Leaders group,                   Marine Group, for
                            transition to
                            circular economy                                                                                                             Ltd, acting as a                                   a group of 36                    the construction
                            for plastic.                                                                                                                 SOF Investment                                     companies at the                 of a MARPOL port
                                                                                                                                                         Committee                                          forefront of this                reception facility in
                                                                                                                                                         member.                                            year’s theme, climate            Freeport, in
References to a ranking, prize or label do not anticipate the future results of the latter, or of the fund, or of the manager.                                                                              reporting.                       The Bahamas.
Impact Report 2021 Althelia Sustainable Ocean Fund - Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                                                              P13

Impact approach                                                                                             Key impact themes targeted by SOF1

                                            The fund, by virtue of its broad approach, is built around
At every stage of the investment            sustainable seafood, the circular economy and marine
process, starting at the identification     conservation. Its investments contribute to the targets of
                                            SDG14: ‘To conserve and sustainably use oceans, seas
of investment opportunities, the            and marine resources’. This ranges from reducing marine                                                                          Climate Change
priorities of the Sustainable Ocean         pollution and protecting coastal ecosystems to ending
                                            illegal fishing and addressing the impacts of climate change
                                                                                                                                                                             Mitigation and
                                                                                                                                                                            Circular Economy
Fund are a positive impact on the           on the oceans.
marine environment and on society,          With a strict ESG policy and ambitious goals in other
and an alignment with the SDGs.             social impact areas, SOF investments plan to have further
                                            positive impacts beyond the targets covered by SDG14
                                            that are specifically related to the marine environment.
                                            The aim is to contribute to the SDGs that cover climate,                                                                                                              Socio-Economic
                                            conservation, sustainable industry and innovation, as well                       Sustainable Productive                                                                Development,
                                                                                                                              Land and Seascapes                                                                  Livelihoods and
                                            as supporting the fight against poverty, inequality and
                                                                                                                                                                                                                    Decent Work
                                            gender discrimination.

                                            The impact strategy and metrics that SOF is monitoring are
                                            presented here and detailed at project level in the following
                                            pages of this report.

                                                                                                                                                              Natural                                 Inclusion

                                                                                                                                                                                               2018               2019          2020

                                                                                                             Number of enteprises/ organisations created or strengthened by SOF                1                  2             6

                                                                                                             Percentage of enterprises meeting sustainable certification standards             0%                 50%           50%

                                                                                                             Number of jobs created or supported by SOF investments                            47                 76            303

                                                                                                             Percentage of jobs created/ supported held by women                               15%                17%           34%

                                                                                                            Source: Mirova

                                                                                                            1. Please refer to page 36 for detailed ESG impact indicators
Impact Report 2021 Althelia Sustainable Ocean Fund - Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                                                                                                             P15

                                                                                                                                                                                                                                By SOF investment pillar

                                                                                                                                                                                                                                             Conservation                                  Circular
                                                                                                                                                                                                                                                      2%                                   Economy
                                                                                                                                                      SafetyNet Technologies                Recycling Technologies
                                                                                                                                                              U K(Global)                          U K(Global)
                                                                                                                                                              Europe & North America               Europe & North America

                                                                                                                                                            Investment status                    Investment status
                                                                                                                                                            Executed                             Executed
                                                                                                                                                            Type                                 Type
  Kampachi Worldwide Holdings                              Clean Marine Group                                       Biomega
                                                                                                                                                            Circular Economy                     Circular Economy
              Mexico                                                   Bahamas                                             Norway (Global)                                                       Start up/Post Revenue
              Caribbean & Latam                                                                                            Europe & North America           Start up/Post Revenue
                                                                       Caribbean & Latam
                                                                                                                                                            Post Revenue                         Post Revenue
            Investment status                                        Investment status                                    Investment status                 Activity                             Activity
            Executed                                                 Executed                                             Executed                          Sustainable seafood                  Chemical plastic recycling      Sustainable
            Type                                                     Type                                                                                                                                                           Seafood
            Sustainable Seafood                                      Circular Economy                                     Circular Economy
            Start up/Post Revenue                                    Start up/Post Revenue                                Start up/Post Revenue
            Post Revenue                                             Start up                                             Post Revenue                                                                                          By region
            Activity                                                 Activity                                             Activity                                                                                              Middle East &                                   3%
            Marine aquaculture                                       Port reception facility                              Seafood waste biorefinery                                                                              North Africa

                                                                                                                                                                                                                                 Europe &                                              Caribbean
                                                                                                                                                                                                                                    North                                              & Latam
                                                                                                                                                                                                                                 America                                               55%

                                                                                                                                                                                                                                By business type
                              Martec Industries                                           TASA
                                                                                                                                                                                                                                   Post                                                    Start-up /
                                          Costa Rica                                                  Belize                                          nextProtein                           Plastics for Change                                                                            project
                                          Caribbean & Latam                                           Caribbean & Latam                                                                                                                                                                    38%
                                                                                                                                                             Tunisia                               India                            62%
                                                                                                                                                             Middle East and North Africa          Asia
                                        Investment status                                          Investment status
                                        In contracting                                             Executed                                                 Investment status                     Investment status
                                                                                                                                                            Executed                              Executed
                                        Type                                                       Type
                                        Sustainable Seafood                                        Marine Conservation                                      Type                                  Type
                                                                                                                                                            Sustainable Seafood                   Circular Economy
                                        Start up/Post Revenue                                      Start up/Post Revenue
                                                                                                                                                            Start up/Post Revenue                 Start up/Post Revenue
                                        Start up                                                   Post Revenue
                                                                                                                                                            Start up                              Post Revenue
                                        Activity                                                   Activity
                                                                                                                                                            Activity                              Activity
                                        Marine aquaculture and                                     Marine Protected Area
                                                                                                                                                            Insect protein                        Fair Trade recycled plastic
                                        seafood processing                                         management

The reported data reflect the situation as of the date of this document and are subject to change without notice.                                                                                                               % per invested amount. For the nine investments executed
Source: Mirova                                                                                                                                                                                                                  at date of release of the report.
Impact Report 2021 Althelia Sustainable Ocean Fund - Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                           P17

Kampachi Worldwide                                                                                                              Reported impacts
                                                                                                                                                  Obtained              Jobs created or supported
                                                                                                                                                  ASC                   2018
                                      Kampachi Worldwide Holdings operates an ASC certified1 integrated marine

                                      aquaculture operation in La Paz, Mexico. It manages the whole production cycle of
                                      longfin yellowtail from producing eggs to marketing fresh and frozen fish.
                                                                                                                                                  in June 2019
                                      Kampachi’s operations have been designed to be best-in-class, growing a native species
                                      (Seriola rivoliana) in a sustainable manner, mitigating potential negative impacts and
                                      offering a sustainable alternative to wild caught fish species. It is being sold to the                                           2019

     SDGs                             export and domestic markets as “King Kampachi”.

                                                                                                                                Gender (women employed)

                                      Kampachi’s focus for 2020 was almost

     Impacts                          exclusively on exporting fresh fish to the food                                                                                   2020
                                      service and gastronomy sectors in the USA.
                                                                                        “We strive to continually
                                      COVID-19 therefore created a challenging
                                      environment for the company, closing down           improve the processes                                  12.1%       12.3%
                                                                                          that express our
     Date of investment               the vast majority of its market channels over
     Nov 2018                         the first half of the year. This pushed the
                                      company to reinforce efforts to develop and         commitment to
                                      expand domestic markets and develop frozen
                                      and packaged products suitable for retail
                                                                                          fish welfare and                                                              Surface of the farming
                                      customers.                                          environmental                                                                 offshore concession
                                                                                          stewardship, consciously

                                      Despite this, the company managed to double
                                      its annual production to 580 tonnes with much       raising King Kampachi
                                      of this being directed to frozen inventory and
                                      around half supplying retained food service
                                                                                          and Kampachito.”
                                      clients.                                          Jorge Schmidt
                                                                                        Director General, Kampachi Mexico                                                                 ha
                                      A new harvest boat has been designed and                                                           2018    2019            2020
                                      is now registered with the Mexican health
                                      authorities and able to export product
                                      internationally, including to Europe. This                                                Production of sustainable fish
                                      innovative vessel “Kampachito” is equipped
                                      with an “ikijime” machine, allowing for a quick
                                      and humane fish harvest while preserving

                                      The existing Aquaculture Stewardship Council
                                                                                                                                2018                         2019                2020

                                                                                                                                0.608                        224                 580
                                      (ASC) certification is subject to an annual
                                      review and has been renewed for 2020,
                                      confirming the sustainability best-in-class
                                      status of the company.

                                                                                                                                tonnes                       tonnes              tonnes

1.     For more information, please refer to:                                                      Source: Mirova
Impact Report 2021 Althelia Sustainable Ocean Fund - Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                 P19

SafetyNet                                                                                                                       Reported impacts
                                                                                                                               84                                     12

                              SafetyNet Technologies (SNTech) is designing and building devices that increase the                                  deployed

 UK                           selection of commercial fishing operations, reduce bycatch (endangered, juvenile,                                    in 2019            ongoing trials
                              low-market-value non-target species) and make the industry more sustainable by
                              supporting precision fishing. The company is developing a range of devices to do
                              this with the most advanced being “Pisces”, a collection of LED lights attached to                                   devices

                              fishing gear. The lights have a range of colours, brightness and flashing rate which are                             deployed           2020
                              adjusted to repel the target specie and by-catch that needs to be avoided.                                           in 2020

                              After a seed funding round was finalised at                                                                                             ongoing trials
                              the end of 2019, SNTech accelerated the            KEY TRIALS

                              development of its Pisces devices, shifting        SNTech is partnering with Associated
                              from prototyping to mass production. A set         Seafood Ltd, Marks & Spencer and
                              of additional accessories has been developed       Young’s Seafood in a one-year trial to                                                      commercial

                              to support effective deployment on fishing         test the Pisces devices onboard the
 Date of investment           vessels and an experienced sales lead has          bottom trawler Virtuous FR253. This
 Dec 2019                     been hired.                                        fishing vessel operates off north-east
                                                                                 Scotland in a mixed demersal fishery with                                                   scientific
                              The COVID-19 pandemic disrupted the                nephrops, or “scampi” being the key target
                              expected roll-out of the devices, limiting         species and a bycatch of whitefish (cod
                              ability to reach out to prospective clients
                              and implement new trials. However, SNTech
                                                                                 and haddock). The fishery is currently
                                                                                 undergoing improvement to achieve an
                              managed to agree key commercial trials             MSC certification. The trial will aim at
                              involving international NGOs and major
                              seafood companies.
                                                                                 improving the selectivity of the fishing
                                                                                 fleet using different configurations of the
                                                                                 Pisces device on the pilot fishing vessel
                              R&D was accelerated this year with the
                              recruitment of a PhD student in partnership
                                                                                 between April 2021 and April 2022.
                                                                                                                               Gender                                 Peru
                              with the University of Exeter who is focusing
                                                                                                                               (women employed)
                              on the perception of lights by a range of

                              marine species. This will fine-tune Pisces’
                              effectiveness. SNTech has been developing
                              additional technologies that further promote                                                                       50%
                              “precision fishing”. One of these is focusing on                                                                                        UK
                              advancing Enki, a sensor designed to fit onto
                              fishing gear that collects ocean data in-situ.
                              This informs decision-making for fishers and
                              other ocean stakeholders and thus allows
                              better ocean management. Success in grant
                              applications has enabled access to more
                              resources for accelerating R&D and increasing
                              product quality.

                                                                                                                                                 2019          2020
                                                                                                                                Source: Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                                                            P21

Recycling                                                                                                                        Projected impacts
                                                                                                                                                     Potential to save up to around
                                                                                                                                                                                                           PLAXX   PLAXX   PLAXX   PLAXX

                              Recycling Technologies Ltd (RT) is meeting the growing global demand to make
                              plastic a more circular material by using its patented technology to recycle plastic                                                                tonnes                   PLAXX   PLAXX   PLAXX   PLAXX

                              waste back into oil.
                                                                                                                                                     of C02e /year (through the diversion
                              RT’s flagship product is the RT7000 which has the capacity to process 7,000 tonnes                                     of plastic away from incineration)                    PLAXX   PLAXX   PLAXX   PLAXX

                              of waste per year and turns hard-to-recycle plastic waste into a valuable chemical
                              feedstock called Plaxx®. This can be used to make virgin-quality plastic products. The
 SDGs                         RT7000 will be sold to existing waste operators to enable them to turn waste plastic,
                                                                                                                                                                                                           PLAXX   PLAXX   PLAXX   PLAXX

                              which would otherwise be burned or sent to landfill, into a profitable revenue stream by
                              selling the recycled plastic feedstock back to the petrochemical industry, promoting a             At full operation, the first 12 RT7000 machines
                              circular economy approach.
                                                                                                                                                                                                           PLAXX   PLAXX   PLAXX   PLAXX

                                                                                                                                 will have a combined processing capacity of

                                                                                                                                                                                                           PLAXX   PLAXX   PLAXX   PLAXX

 Date of investment           A successful Series A investment round was         UK: INEOS Styrolution and Trinseo
 Feb 2020                     completed with Mirova and Neste becoming           RT is working with INEOS Styrolution and                                                                                  PLAXX   PLAXX   PLAXX   PLAXX

                              strategic investors, enabling the company to       Trinseo to develop the first polystyrene
                              move forward to commercial scale.                  recycling plants in Europe, aiming to make      tonnes of plastic
                                                                                 polystyrene a more circular material. A pilot                                                                             PLAXX   PLAXX   PLAXX   PLAXX

                              Supported by a team of over 120 (27% women,        plant will be built in the UK in 2022.
                              47% at management level), the company is
                              working on several key projects:                   Additionally, Recycling Technologies                                                                                      PLAXX   PLAXX   PLAXX   PLAXX

                                                                                 implemented their Environmental Management
                              Scotland: Binn Eco Park, Perth                     System at two sites, achieving ISO14001
                              RT is installing the first RT7000 to help          certification with zero non-conformances.                                                                                 PLAXX   PLAXX   PLAXX   PLAXX

                              Scotland realise their 2030 target of making all
                              plastic packaging economically recyclable.
                                                                                                                                                                                                           PLAXX   PLAXX   PLAXX   PLAXX

                              Indonesia: East Java, Mojokerto
                              RT is working with local waste management
                              companies and the Alliance to End                                                                                                                                            PLAXX   PLAXX   PLAXX   PLAXX

                              Plastic Waste to evaluate the feasibility of
                              using chemical recycling technologies to
                              complement a new general waste recycling                                                                                                                                     PLAXX   PLAXX   PLAXX   PLAXX

                              facility in Mojokerto.

                              France: Project Fuscia                                                                                                                                               PLAXX   PLAXX   PLAXX   PLAXX   PLAXX

                              RT is working with Total, Mars, Nestle and the
                              compliance body CITEO, as part of a cross-
                              sector consortium to integrate chemical                                                                                                                      PLAXX   PLAXX   PLAXX   PLAXX   PLAXX   PLAXX

                              recycling into existing waste management

                                                                                                                                                                                      This is equivalent to

                                                                                                                                 Source: Mirova                                       tonnes of Plaxx
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                                       P23

Plastics for                                                                                                            Projected impacts
Change                                                                                                                  CO2 footprint                             At full operation (2024)

                                                                                                                                                                  Over 25,900
                                                                                                                        CO2 /tonne

                              Plastics for Change (PFC) is a Fair Trade plastic recycling company that enables brands
 India                        and manufacturers to source quality recycled plastic from ethical supply chains. PFC                               1,824.3kg
                              has created solutions that connect waste picking communities across India -and in                                                   waste pickers and informal waste workers in
                              particular in coastal cities- with global companies establishing a more formal and                                                  PFC supply chain will be benefiting from improved
                              dignified system that help to manage the social issues associated with the informal
                              waste sector in India.
                                                                                                                                                                  and stable prices (ratio is approximately 1,440
                                                                                                                                                                  beneficiaries per PFC center)

                              The SOF investment in May 2020 initiated
                              the scale-up of PFC’s model, expanding their                                                  1,104.4kg
                              network in the informal plastic recycling sector
 Impacts                      of India and connecting them with international       “With support from
                              brands. PFC secured partnerships and sales
                              with international brands such as The Body
                                                                                      SOF, we’ve been                         Recycled             Virgin
                              Shop, Cosnova, Garnier and Bunzl.                       expanding our Fair                       plastic             plastic
                                                                                      Trade supply chains
 Date of investment

                                                                                                                                                 Over 28,800
 May 2020                     Despite the disruption of logistics and
                              operations by the COVID-19 crisis, PFC                  across the coastlines
                                                                                      of India, helping
                              managed to grow its team to 68 people and
                              develop three aggregation centres. These serve
                              249 local plastic collection facilities, supporting
                              these informal enterprises in their transition to
                                                                                      thousands of informal                         tonnes of plastic recycled a year (1,800 tonnes/aggregation center/year)
                              become established plastic small businesses,            waste collectors earn
                              while generating revenues for over 3,750
                              marginalised waste-pickers.                             a decent living wage
                                                                                      through this plastic
                              Beyond the logistical challenges, the pandemic
                              triggered a humanitarian crisis amongst the
                              marginalised communities PFC is working
                                                                                    Andrew Almack
                              with. Social actions by PFC Foundations were
                                                                                    CEO, Plastics for Change
                              accelerated and 9,190 waste-pickers were
                              reached with COVID-relief aid, supporting the
                              communities with access to social services,
                              health and sanitation.

                                                                                                                        900                                  18                         50%
                                                                                                                        jobs supported in                    PFC aggregation            franchises to be
                                                                                                                        aggregation centers                  centers by 2024            onboarded in coastal
                                                                                                                        at full operation                                               cities
                                                                                                                        Source: Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                                 P25

nextProtein                                                                                                                Projected impacts

                                                                                                                                            of the jobs created in Tunisia are
                                                                                                                                            expected to be held by women
                              Founded in 2015, nextProtein is a start-up specialising in black soldier fly (BSF) larvae
 Tunisia                      production and processing with operations based in Tunisia and R&D and sales based in

                                                                                                                           2,500 tonnes

                              The model is based on a circular economy approach, using agricultural and food processing
                              waste as feedstock to grow BSF larvae. NextProtein is producing insect meal and insect oil

                              for the aquaculture feed sector as an alternative to fishmeal, and for the animal feed and
 SDGs                         petfood sectors, as well as insect frass that can be used as a fertilizer in agriculture.

                                                                                                                                                                                  waste degradation
                                                                                                                           of insect meal per year (at full operation).                (direct impact)
                              The investment into nextProtein by SOF and                                                   Its fishmeal equivalent would require:
 Impacts                      other impact-driven investors in the first half

                                                                                                                                                                                   Soy substitution
                                                                                                                           7,400 tonnes
                                                                                 “Insect protein
                              of 2020 was intended to bring the company’s
                              insect protein pilot in Tunisia up to industrial

 Date of investment
                                                                                   provides solutions                                                                                in aquafeed
 May 2020                     nextProtein began the scale-up at the end           to major societal                                                                                   (indirect impact)
                                                                                                                           of whole fish (source: IFFO)
                              of the year, using four years of experience in
                              BSF production and an established sourcing
                                                                                  problems: a growing
                              network of agricultural waste. An upgraded          population with
                                                                                  a higher demand
                              pilot production facility and the establishment
                              of a new industrial scale plant will be
                              operational in 2022.                                for fish and meat,                                           Organic fertiliser
                              To support this growth, the company has             and a degrading                                              produced as by-product sold
                              established a multidisciplinary team with 39
                              employees (51% of whom are women). The
                                                                                  environment.”                                                to the local agricultural sector
                              team is focused on production optimisation,        Syrine Chaalala
                              industrial scale-up, commercial development        Co-Founder and Managing Director

                              and additional R&D.

                              nextProtein’s products were approved under
                              the EU Trade Control and Expert System

                              (TRACES), allowing it to export aquaculture
                              and animal feed ingredients to all the member
                              countries of the EU along with a prerequisite
                              to accelerate commercial development in the
                              aquaculture and animal feed markets.
                                                                                                                           of local biowaste recycled into BSF production
                                                                                                                           at full operation, diverting this waste from
                                                                                                                           landfill and illegal dumping

                                                                                                                           Source: Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                                                        P27

Clean Marine                                                                                                                          Projected impacts
                              The Clean Marine Group (CMG) project will establish a waste facility initially focusing
                              on oily wastes in Freeport Harbour, Grand Bahama, a major commercial and cruise

                              ship port in the region. This will support small island developing states throughout

                              the wider- Caribbean towards compliance with the UN International Maritime
                              Organisation’s Convention on the Prevention of Pollution from Ships (MARPOL) Port
                              Reception Facility (PRF) requirements. The process will split oily waste into water and
                              recovered oil that can be sold as fuel, promoting a circular economy approach.
                                                                                                                                        of oily waste from ships and port oil storage facilities will be
                                                                                                                                        processed annually at Free Port harbour by
                              Merchant vessels produce a variety of              In addition to the technical progress, CMG             CMG. This would otherwise potentially be dumped at sea.
                              potentially harmful waste streams during their     is securing commercial agreements with
 Impacts                      normal operations at sea. The UN MARPOL            international shipping and cruising companies
                              convention defines the roles, responsibilities     for the treatment of their oily and liquid wastes,

                              and requirements for managing and                  as well as identifying relevant clients for the
                              processing these waste streams. Port States        reprocessed oil.
 Date of investment
                              that subscribe to MARPOL have an obligation                                                                                                                                  direct jobs created
 October 2020
                              to provide adequate PRFs to take waste from                                                                                                                                  at full operation
                              ships. However, it is a challenge for many
                              developing countries to deal with waste from
                                                                                 “We are delighted
                                                                                                                                                                      Converting polluted
                              visiting ships and the wider Caribbean region

                                                                                   to have received
                              has no adequate facility for receiving and

                                                                                                                                                                      water to clean water
                              processing most shipping waste, increasing
                              the risks of illegal waste dumping at sea and
                              threatening the region’s sensitive marine
                                                                                   such overwhelming
                              habitats.                                            support from SOF.
                              The SOF investment, alongside a loan and             Not only have we
                              technical co-operation grant from the Inter-         been able to complete
                                                                                   the pilot development
                              American Development Bank, was finalised
                              during the second half of the year, allowing the
                              company to begin the deployment phase of
                              their project in Grand Bahama. CMG expanded
                                                                                   despite the COVID-19
                              its team and is finalising the agreement with        Pandemic, but it
                              local stakeholders and engineering partners for
                              the construction of their MARPOL PRF in the
                                                                                   has allowed us to
                              port of Freeport.                                    carry out all of the

                                                                                   scoping and design
                              At the same time, the company set-up a pilot
                                                                                   of the PRF, with a                                                                     3
                                                                                                                                                                              per year
                              plant in partnership with the Grand Bahama

                                                                                   view to commencing
                              Shipyard, using similar technologies as the
                              future plant at a smaller scale. This pilot
                                                                                                                                                                                                                     oil used for
                              project will allow CMG to start receiving and
                              processing waste and producing recycled fuel,
                                                                                   construction in Q4 of                               estimated recovery of oil/fuel from waste treated,
                                                                                                                                                                                                                     local energy
                              fine tuning the process to ensure that the full-     2021.”                                              reducing extraction of fossil fuel and import of
                              scale plant adopts all the best practices.                                                               fuel to The Bahamas
                                                                                 Michael Fitton,
                                                                                 CEO of CMG Ltd.                                      Source: Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                                                                               P29

Biomega                                                                                                                            Projected impacts

                                                                                                                                            Traceable salmon
                              Biomega is a Norwegian company that produces high-value food-grade marine ingredients
                              using a patented continuous enzymatic hydrolysis process. This upcycles fresh salmon
                                                                                                                                            undervalued raw material
                              undervalued raw material into hydrolysed salmon protein, salmon meals and salmon oils.                         (69,000 tonnes/year in 2025 at full operation, 42,661 tonnes in 2020)
                              Biomega has been a best-in-class player in the marine hydrolysed peptides sector since
                              2001. Majority acquired by Amerra in 2017, the company is now investing in international
                              expansion with the support of SOF. Biomega is also developing human-focused health and
 SDGs                         nutrition products to increase further the value created from salmon unused parts.
                                                                                                                                     certifications for
                              An impressive leap in the recovery of salmon       The SOF investment will increase processing         Biomega products/

                              undervalued raw material occurred in the last      capacity starting with a new bio-refinery plant
                              decade of the 20th century, from 17% of the        in Hirtshals Denmark. It will also support the
 Date of investment           waste being used in 1988 to more than 98% in       development of human health and nutrition           IFFO RS

 January 2021                 1999. However, the potential for optimal value-    products that will unlock additional value from     Friends of the Sea (FOS)
                              creation from salmon unused food grade parts       salmon by-products.                                 GMP+

                              has not been fully realised by the aquaculture
                              industry, with often only basic treatment
                              applied to the waste.
                                                                                                                                     Certification of raw
                              Biomega optimises the addition of undervalued                                                          material:                   (patented continuous
                              raw materials into a range of high-value
                              products. These include improved oils for the                                                          33% volumes from ASC        hydrolysis process)
                              aquafeed sector, protein meal for petfood and                                                          certified supplier
                              high value nutraceutical products for human                                                            21% FOS or other food
                              health and nutrition.                                                                                  safety certification
                              Biomega’s approach aligns with the SOF
                              impact strategy in several ways. It is based
                              on a circular economy model, promoting a
                              zero-waste approach and optimising resource
                              utilisation by using traceable fresh salmon
                              parts as raw material to produce a range of
                              high-value products. Oil produced from salmon                                                           Salmon oil                                                Fish oil produced for
                              waste and used in feed for aquaculture is a                                                                                                                       aquafeed at scale (2025):
                              sustainable alternative to fish oil derived from
                              wild-capture fisheries and creates a positive
                                                                                                                                      Salmon meals                                              equivalent to the oil
                                                                                                                                                                                                produced from
                              impact on the ocean.
                                                                                                                                      Hydrolysed salmon proteins
                                                                                                                                                                                                287,550 tonnes
                                                                                                                                                                                                of wild caught anchoveta
                                                                                                                                          Aquaculture Petfood               Human
                                                                                                                                             feed                          nutrition/
                                                                                                                                                                                                Derived from ratio presented in Avadí A, Fréon P, Tam J (2014)
                                                                                                                                                                                                Coupled Ecosystem/Supply Chain Modelling of Fish Products
                                                                                                                                                                                                from Sea to Shelf: The Peruvian Anchoveta Case"
                                                                                                                                                                                                Source: Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                                          P31

Turneffe Atoll                                                                                                                  Reported impacts
Association - TASA                                                                                                              Turneffe Atoll               Biodiversity
                                                                                                                                Marine reserve               protection:

                              TASA was founded in 2013 as an NGO for the purpose of managing the Turneffe Atoll
                              Marine Reserve (TAMR) in Belize, established in 2012. TASA was appointed by the Belize
                              Fisheries department and represents the various key stakeholders and users of TAMR,
                              overseeing its day-to-day management and administration.
                                                                                                                                131,690                      >260
                                                                                                                                                             fish species
                              TASA also handles the enforcement of the marine reserve management plan,
                              the research efforts that inform this plan, the education and outreach for TAMR
 SDGs                         stakeholders, and the collection of visitor fees and other reserve activity.

                              TAMR is the largest Marine Protected Area in      SOF structured a blended finance approach
                              Belize, covering 131,690 hectares of important    for the investment into TASA. The fund’s loan

                                                                                                                                                             48 10 16
                              natural habitats. It is part of the wider Meso-   investment is being leveraged by a grant
                              American Reef System that stretches over          from the IUCN Blue Natural Capital Financing

 Date of investment           1,126 km along the coasts of Mexico, Belize,      Facility. The combined funding of more than
 June 2021                    Guatemala, and Honduras.                          $1 million will support TASA’s capacity to
                                                                                generate its own sources of sustainable
                              TAMR is a multi-use marine reserve, combining     revenue to support and fund the surveillance,                                coral species      mammal species       reptile species
                              responsible economic activities such as small-    management and conservation missions in         under full protection
                              scale fisheries and eco-tourism with research     TAMR.
                              and core conservation, and a fully protected
                              area of 15,400 hectares.                          TASA has entered a technical partnership with
                                                                                                                                                             Multi-uses reserves
                                                                                Blue Finance to design and implement nature-
                              The reserve’s biodiversity includes several       based tourism and blue carbon strategies.
                                                                                                                                                                   Artisanal fisheries           Ecotourism
                              endangered and iconic species of fish, marine     TASA will collect users’ fees from tourism in
                                                                                                                                                                   756                           10,600
                              mammals, reptiles, invertebrates and birds.       TAMR to create eco-tourism solutions and
                              Commercially important species also thrive        develop “payment for ecosystem services”
                              on the reserve such as spiny lobsters, key        such as blue carbon credits from mangrove                                          individual fishers            stay-over tourists in
                              resource for the Belizean artisanal fishers       conservation.                                                                      for 296 boats                 2019
                              who rely on TAMR for a substantial share of
                              their catch. This fishery is currently working                                                    mangroves with blue carbon
                              towards the Marine Stewardship Council
                              (MSC) certification with the support of TASA                                                      credit potential             Surveillance of the reserve
                              and other partners. Tourism also depends

                                                                                                                                                                                   334               3,088
                              on healthy ecosystems, with the majority of
                              visitors coming to scuba dive or for catch and
                              release fly-fishing.

                                                                                                                                                                                   patrol days       controls of
                                                                                                                                                                                   in 2019           fishing vessels

                                                                                                                                Source: Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                                                                                                 P33

Martec Industries                                                                                                                    Reported impacts
In Contracting

                                                                                                                                     Overall impacts

                              Martec Industries was established in Quepos in 1982 and is now one of Costa Rica’s largest             Aquaculture                                                                    Fisheries
 Costa Rica                   marine seafood exporters. Initially focused on wild capture fish sourcing and trading,
                              Martec has diversified its activity to include tropical finfish aquaculture and over the last
                              decade has been a pioneer and leading producer of farm-raised snapper.

                              With a change in leadership in early-2019, Martec has made a strategic shift towards
                              sustainable seafood production, creating a platform for developing sustainable snapper
 SDGs                         aquaculture, responsible fisheries and processing, value-addition and trading.

                              Martec is uniquely positioned within the             Beyond the positive environmental impacts,

                                                                                                                                                27 48                                                               Improvement project


                                                                                                                                                                                                                                                          Fishing gear: long-line
 Impacts                      Latin American sustainable seafood sector.           Martec’s local social impact is substantial, as                                                                                  involving:
                              The company includes a vertically integrated         its operations directly support the livelihoods
                              native rose snapper aquaculture business and         of over 340 people and indirectly benefit
                                                                                                                                                 cages                                      cages
 Date of investment
                              a wild-caught seafood sourcing, processing,          hundreds of local fishermen, while diversifying
                                                                                   the country’s rural coastal economy.                        (baseline)                                  by 2025                                        artisanal
                              distribution, and retail operation run at a
 July 2021                    commercial scale.
                                                                                   SOF is lending the working capital required to
                              Its snapper farm is the largest in Latin America     finance purchases of sustainable aquaculture
                              and promotes best practice aquaculture               feed that support its farming operations. This
                              (certified BAP and pending ASC) using                will allow Martec to free up resources for                                                                                       Key target species:
                              low-impact practices. The fishmeal fish oil          scaling up its production strategy, enabling it
                              used in the feed is derived from by-products         to achieve its vision of becoming the market
                              resulting in a very low Fish in-Fish Out ratio       leader in sustainable seafood across Latin
                              and the offshore cages are in deep waters            America.                                                                          Concession of:

                                                                                                                                                              1,500 ha
                              ensuring proper exposure to current and good
                              water circulation. The rose snapper produced
                              are therefore a sustainable and traceable
                                                                                                                                                                                                                      Ye                      a
                                                                                                                                                                                                                         llo   w fi n tun
                              alternative to wild caught snapper, a family of

                              fish prone to fraudulent labelling, poor fisheries

                                                                                                                                                                                                                                           i ma
                              management, and illegal fishing in Latin
                              America.                                                                                                                                  Production:
                                                                                                                                                                                                                                      Ma h
                              As part of its wild capture business, Martec
                              is actively supporting the responsible
                                                                                                                                                             680 tonnes
                              management of the fisheries it sources from.                                                                                     in 2020, rising to
                              It is working with artisanal Costa Rican long-
                                                                                                                                                             5,800 tonnes in 2025
                              liners to achieve Marine Stewardship Council
                              (MSC) certification for a Fishery Improvement

                                                                                                                                     340                                                    40 tonnes
                              Project (FIP) focused on small-scale longline                                                                                                                 Processing plant with                 Plant

                              caught yellowfin tuna and mahi-mahi. Under
                              this FIP, Martec will implement and monitor the
                              progress of an ambitious workplan to improve
                              governance, data collection and management
                              of ecosystem impacts.                                                                                  employees                                              capacity per day                      certified
                                                                                                                                     1.   For more informaiton, plase refer to:                                      Source: Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                      P35

ESG risk
The Sustainable Ocean Fund’s investments are driven by                                          • a desktop review complemented by communications
positive social and environmental impacts. Excellence in                                          with the project developer (E&S questionnaire and
the management of environmental, social and governance                                            discussions) to understand likely key ESG risk areas and,
(ESG) risks in the companies the fund supports is also                                            at a high level, how they are currently being managed,
a crucial component of the investment journey. These
aspects are taken into consideration throughout the life of                                     • full ESG due diligence process including site-visits and
the investment, from the initial screening of an opportunity                                      detailed document review. This step may involve the
to the end of Mirova’s engagement.                                                                recruitment of external experts or local support.

The Fund’s ESG risk management approach in the                                                  Both the pre-investment assessment and the post-
investment process ensures that productive activities                                           investment monitoring of projects involves collaboration
are established on robust and systematic assessment                                             between the SOF Marine Technical Director and Senior ESG
and management of environmental and social risks,                                               Specialists in the MNC ESG team, supported by technical or
underpinned by sound, accountable governance.                                                   local external experts whenever relevant.

ESG standards                                                                                   The outcomes of this process are:
SOF assesses each potential investment project against
applicable exclusion lists, ESG risk and minimum                                                • a final opinion on the ESG performance (impacts and
performance criteria. These ESG assessments of projects                                           risks) of the project, assessing whether the project meets
are based on the Mirova Natural Capital (MNC) ESG Policy                                          the fund’s requirements on ESG risk management and on
as well as on the SOF ESG Annex that state the Platform’s                                         impacts targeted per environmental and social themes;
and Fund’s commitments and expectations in terms of ESG
performance. An exclusion list also clarifies the activities                                    • an Environmental and Social Action Plan (ESAP)
that should not be supported by SOF, reflecting company’s                                         designed to bridge the identified ESG performance gaps
vision and investor requirements.                                                                 or enhance the project’s ESG risk management. The
                                                                                                  ESAP is always agreed with the project developers and
At the core of these ESG policies is a commitment to                                              included in the investment contract; and
ensure that all projects in which SOF invests achieve
material compliance with the IFC Performance Standards                                          • an agreement on a project-specific monitoring plan to
(and associated sector-specific EHS guidelines) and                                               keep track of Impact and ESG performance of the project
that they achieve E&S certifications where relevant.                                              over the duration of the investment.
Considering SOF’s scope, Aquaculture Stewardship Council
(ASC) certification for aquaculture operations or Marine                                        Post-investment, we work closely with all projects as
Stewardship Council (MSC) certification for fisheries related                                   they implement their ESAP. Alongside quarterly reporting
projects are typically applicable.                                                              requirements, we ensure more comprehensive annual
                                                                                                reviews of the performance of individual project with a
A project’s ESG journey                                                                         focus on its key ESG topics. Field visits may be included in
                                                                                                the Fund’s monitoring to complement the assessment on
Every project considered for investment is analysed                                             an ad-hoc basis.
according to a three step process:

• a preliminary ESG analysis of its potential eligibility in the
  Fund’s mandate,

The reported data reflect the situation as of the date of this document and are subject to change without notice.
Source: Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                                                                                               P37

Detailed positive
impact indicators
                                                                                                    SDG                                                                                                                                                       SDG
 KPI #        Target outcome                Key Performance Indicators                              targets                  KPI #            Target outcome                                         Key Performance Indicators

  Climate: Climate Change Mitigation and Circular Economy                                                                    KPI-8            Sustainable enterprise creation                        # of new enterprises/organisations created or            9.3
                                                                                                                                                                                                     strengthened by the project

 KPI-1        Climate change mitigation     Tonnes of CO2 saved through SOF investments             13.1
                                                                                                                             KPI-9            Long-term enterprise viability                         % of enterprises within the project operating on         9.3
                                                                                                                                                                                                     commercially viable basis (all five enterprise
                                                                                                                                                                                                     viability indicators met)
 KPI-2        Pollution prevention          Volume of waste treated or valued by the projects       9.4; 12.5; 14.1
                                                                                                                             KPI-10           Increased access to capital                            $ of additional finance invested into the project as a   9.3
                                                                                                                                                                                                     result of SOF investments

  Sustainable Productive Land and Seascapes
 KPI-3        Sustainable landscape/        # hectares of land and seascape under sustainable       14.2; 14.7; 15.1;
              seascape management           management                                              15.2; 15.9               KPI-11           Gender equality                                        % of direct/non-job livelihoods created that are held    5.1
                                                                                                                                                                                                     by women

 KPI-4        Sustainable production        % enterprises meeting/achieving internationally         12.2; 12.6; 14.4
                                            recognised certifications

  Natural Ecosystems

 KPI-5        Biodiversity conservation:    # hectares of land/seascape under strengthened          4.2; 14.5; 15.5
              Habitat                       conservation

  Socio-Economic Development, Livelihoods and Decent Work

 KPI-6        Economic empowerment          # of jobs created or directly supported in coastal      1.1; 8.5; 14.7, 14.B

 KPI-7        Economic empowerment          # of indirect beneficiaries of the projects supported   1.1; 10.1; 14.7,
                                            by SOF(# of non-job livelihoods created/and or          14.B
                                            supported by project)
                                                                                                                           The reported data reflect the situation as of the date of this document and are subject to change without notice.
                                                                                                                           Source: Mirova
Sustainable Ocean Fund Impact Report 2021                                                                                                                                                         P39

Legal notice

This document is prepared by Mirova Natural Capital             The prospectuses of the Funds are the only authorised           As discussed in the Memorandum, the Volcker Rule
(“MNC”) which is authorised and regulated by the Financial      documents for offering of shares of the Funds and may           restricts a “banking entity”, such as Natixis and any affiliate
Conduct Authority (“FCA”) in the United Kingdom. The            only be distributed in accordance with the laws and             of Natixis, including the Investment Adviser and General
investment products and services of MNC are only                regulations of each appropriate jurisdiction in which any       Partner, from investing in or sponsoring a covered fund
available to persons who are professional clients and           potential investor resides. Nothing described herein is         (such as the Fund) unless the investment or activity is
eligible counterparties as defined in FCA’s rules. They         intended to imply that an investment in the Funds is “safe”,    conducted in accordance with an exclusion or exemption.
are not available to retail clients. Mirova Natural Capital     “conservative”, “risk free” or “risk averse”. This document     The Volcker Rule’s asset management exemption permits
Limited (“MNC”) is an investment advisor to Alter Domus         does not consider the specific investment objective,            a banking entity to invest in and sponsor a covered fund in
Management Company S.A, the Alternative Investment              financial situation or particular needs of any investor and     connection with directly or indirectly organising and offering
Fund Manager (AIFM) for the Sustainable Ocean Fund              an investment in the Funds is not suitable for all investors.   the fund, subject to certain conditions. These conditions
(SOF).                                                          Investors are reminded that past performance should not         include, among others, restrictions on investments in
                                                                be seen as an indication of future performance and that         the covered fund by the banking entity and its affiliates
MNC is an affiliate of Mirova, an asset management              they might not get back the amount that they originally         and employees, and restrictions on extensions of credit,
company dedicated to sustainable investment, itself an          invested. The price of shares can go up as well as down         guarantees and certain other covered transactions between
affiliate of Natixis Investment Managers. Thanks to its         and can be affected by changes in the rates of exchange.        the banking entity and its affiliates, on the one hand, and the
conviction-led management style, Mirova’s objective is                                                                          covered fund on the other. These conditions apply to the
to combine a quest for long-term value creation with            The views expressed in this document are the views of           Investment Adviser’s and General Partner’s relationships
sustainable development. Pioneers in many areas of              MNC at the time of publication and may change over time.        with the Fund. Any losses in the Fund will be borne solely
sustainable finance, Mirova’s talents are committed             Nothing in this document constitutes investment, legal,         by investors in the Fund and not by the Investment Adviser,
to innovation in order to provide their clients with high       tax or other advice, nor is it to be relied upon in making an   General Partner, Natixis or any of their affiliates. Therefore,
environmental and social impact solutions. Mirova and its       investment decision. No recommendation is made, positive        the Investment Adviser’s, the General Partner’s, Natixis’ or
affiliates manage €19.6 billion as of 31 December 2020.         or otherwise, regarding individual securities mentioned         any of their affiliates’ losses in the Fund will be limited to
Mirova has been awarded the B Corp* label and the status        herein. No guarantee is made as to the accuracy of the          losses attributable to the ownership interests in the Fund
of “mission led company”. *References to a ranking, award       information provided herein, which has been obtained from       held by any such entity in their respective capacity as
or label do not prejudge the future performance of the fund     sources believed to be reliable. The information contained      investors in the Fund or as beneficiary of a restricted profit
or the manager.                                                 in this document is strictly confidential and is intended       interest held by the Investment Adviser, the General Partner,
                                                                only for use by the person to whom MNC has provided the         Natixis or any of their affiliates.
This document is not intended for distribution to, or use       material. No part of this document may be divulged to any
by any person or entity in any jurisdiction or country where    other person, distributed, and/or reproduced without the        Ownership interests in the Fund are not insured by the
such distribution or use would be contrary to local law or      prior written permission of MNC.                                Federal Deposit Insurance Corporation, and are not
regulation. In particular, this document is not intended for                                                                    deposits, obligations of, or endorsed or guaranteed in any
distribution in the United States or for the account of U.S.    In light of the Investment Adviser’s and General Partner’s      way, by any banking entity.
persons (as defined in Regulation S under the United States     statuses as affiliates of Natixis, the Investment Adviser
Securities Act of 1933, as amended (the “Securities Act”)       and the General Partner are subject to a provision of U.S.
except to persons who are “qualified purchasers” (as defined    law known as the “Volcker Rule”. Because the Fund is a
in the United States Investment Company Act of 1940, as         “covered fund” under the Volcker Rule, we are required to
amended (the “Companies Act”)) and “accredited investors”       provide you with the following disclosures. Capitalised
(as defined in Rule 501(a) under the Securities Act).           terms used in this supplemental disclosure have the
                                                                same meaning as in the Memorandum.
This document is provided for information purposes
only and should not be regarded as an offer to buy or a
solicitation of an offer to buy shares in the funds managed
by MNC (the “Funds”). Investment in the Funds managed by
MNC carries significant risk of loss of capital and investors
should carefully review the terms of the Funds’ offering
documents for details of these risks.

                                                                                                                                Non-contractual document, issued in June 2021.
You can also read