Impact Report 2021 Althelia Sustainable Ocean Fund - Mirova
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Althelia Sustainable Ocean Fund Impact Report 2021
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
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 : https://www.entreprisesamission.com/
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: www.bcorporation.net/about-b-corps. Mirova is B-corp certified since 2020. 1. “COVID-19 Pandemic Repercussions on the Use and Management of Plastics”, Environmental Science & Technology (2020).
Sustainable Ocean Fund Impact Report 2021 P7
Fund profile
Althelia
Sustainable
The fund
Fund Size
$132M
Ocean Fund
Fund Life
9 years from
June 2018, 3.5
years investment
period
Geographies
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
(SDGs)
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
93.8%
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.
Scope
8,000,000
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)
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
business.
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.
Centre.
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 P11
Selected highlights 2020
June
May Mirova's
March
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
December
with SafetyNet considerations Ocean strategy
are purposefully wins the award of Mirova is awarded
Technologies
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
fertilizers.
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.
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
Ecosystems
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
Sustainable Ocean Fund Impact Report 2021 P15
Investments
By SOF investment pillar
Marine
Conservation Circular
2% Economy
54%
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
Type
45%
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
Asia
Activity Activity Activity Middle East & 3%
Marine aquaculture Port reception facility Seafood waste biorefinery North Africa
11%
Europe & Caribbean
North & Latam
America 55%
31%
By business type
Martec Industries TASA
Post Start-up /
Costa Rica Belize nextProtein Plastics for Change project
Revenue
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.
Sustainable Ocean Fund Impact Report 2021 P17
Kampachi Worldwide Reported impacts
Holdings
Obtained Jobs created or supported
ASC 2018
certification
Kampachi Worldwide Holdings operates an ASC certified1 integrated marine
47
Mexico
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
66
SDGs export and domestic markets as “King Kampachi”.
Gender (women employed)
17.5%
Kampachi’s focus for 2020 was almost
57
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
120
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
quality.
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: https://www.asc-aqua.org/fr/ Source: Mirova
Sustainable Ocean Fund Impact Report 2021 P19
SafetyNet Reported impacts
Technologies
84 12
2019
devices
SafetyNet Technologies (SNTech) is designing and building devices that increase the deployed
116
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
14
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
SDGs
After a seed funding round was finalised at ongoing trials
the end of 2019, SNTech accelerated the KEY TRIALS
6
development of its Pisces devices, shifting SNTech is partnering with Associated
Impacts
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
8
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
France
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
Indonesia
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)
Spain
on the perception of lights by a range of
54.5%
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: MirovaSustainable Ocean Fund Impact Report 2021 P21
Recycling Projected impacts
Technologies
117,000
Potential to save up to around
PLAXX PLAXX PLAXX PLAXX
Recycling Technologies Ltd (RT) is meeting the growing global demand to make
UK
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
Impacts
will have a combined processing capacity of
84,000
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
63,000
infrastructure.
This is equivalent to
Source: Mirova tonnes of PlaxxSustainable 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)
SDGs
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
resource.”
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: MirovaSustainable Ocean Fund Impact Report 2021 P25
nextProtein Projected impacts
60%
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
France.
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
Agricultural
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
scale.
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
40,000
and additional R&D.
nextProtein’s products were approved under
the EU Trade Control and Expert System
tonnes
(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: MirovaSustainable Ocean Fund Impact Report 2021 P27
Clean Marine Projected impacts
Group
The Clean Marine Group (CMG) project will establish a waste facility initially focusing
Bahamas
on oily wastes in Freeport Harbour, Grand Bahama, a major commercial and cruise
175,000m
ship port in the region. This will support small island developing states throughout
3
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.
SDGs
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,
45
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
89,000m
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
Recovered
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
production
scale plant adopts all the best practices. fuel to The Bahamas
Michael Fitton,
CEO of CMG Ltd. Source: MirovaSustainable Ocean Fund Impact Report 2021 P29
Biomega Projected impacts
Traceable salmon
Norway
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.
Existing
Impacts
certifications for
An impressive leap in the recovery of salmon The SOF investment will increase processing Biomega products/
Biomega
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
operations:
Date of investment waste being used in 1988 to more than 98% in development of human health and nutrition IFFO RS
bio-refinery
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+
process
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/
health
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: MirovaSustainable Ocean Fund Impact Report 2021 P31
Turneffe Atoll Reported impacts
Sustainability
Association - TASA Turneffe Atoll Biodiversity
Marine reserve protection:
Belize
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
hectares
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.
15,408ha
Impacts
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
(12%)
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
11,000ha
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: MirovaSustainable 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.
Certification:1
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
150
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
longliners
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
hi
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
BRC
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: https://www.bapcertification.org/ Source: MirovaSustainable Ocean Fund Impact Report 2021 P35
ESG risk
management
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: MirovaSustainable 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
targets
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
Inclusion
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
communities
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: MirovaSustainable Ocean Fund Impact Report 2021 P39
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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
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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
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except to persons who are “qualified purchasers” (as defined law known as the “Volcker Rule”. Because the Fund is a
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This document is provided for information purposes
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solicitation of an offer to buy shares in the funds managed
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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.
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