Testimonial from Céline Bonnenfant, ESG & Impact Manager at Rivage Investment

Faced with growing expectations from investors committed to net-zero trajectories and the need to align infrastructure portfolios with the goals of the Paris Agreement, Rivage Investment chose to structure its climate strategy methodically. Céline Bonnenfant discusses their collaboration with Carbone 4 and the use of the CIARA methodology, which has now become an integral part of their approach.

Embedding climate considerations into an infrastructure asset management strategy

Specializing in infrastructure debt, Rivage Investment has over 69% of its assets under management exposed to this asset class. Céline Bonnenfant, in charge of ESG strategy, explains: “Our climate challenges are twofold: meeting the regulatory requirements of the SFDR while addressing the growing expectations of our clients—especially signatories of the NZAOA or the Forum for Insurance Transition to Net Zero (FIT)—who aim to align with a 1.5°C pathway.”

To structure its Paris Agreement alignment trajectory, Rivage relies on Carbone 4’s CIARA methodology, specifically designed for infrastructure assets. “CIARA has been a real lever for setting our Paris Agreement alignment strategy at the management company level. Thanks to this tool, we can manage the overall temperature objective of our infrastructure funds to stay below +2°C by 2040, compared to a reference scenario established in 2023 based on our existing portfolios.”

A methodology that structures, trains, and aligns teams

Collaboration with Carbone 4 took place in several stages: team training, modeling of carbon footprint and temperature indicators, and integration into analysis processes. “The CIARA training strengthened our analysts’ and portfolio managers’ understanding of Paris Agreement alignment challenges and the importance of monitoring related metrics. The temperature of assets is now systematically tracked and used in our investment committees.”

This ownership has had concrete results: two funds (one Article 9 and one Article 9 impact fund) now include the <2°C objective among their impact goals in their prospectuses. A third fund is being structured following the same approach.

Operational integration into investment decisions

The temperature indicator is gradually becoming a key criterion during the due diligence phase. “Today, temperature is not yet a deal breaker, as the transition trajectory extends to 2040, although it could become one in the future. Thanks to the experience gained with CIARA, we can now identify higher-risk cases.”

The tool has also enhanced dialogue with borrowers, particularly through the introduction of climate clauses in the loan agreements of impact funds. “For now, we haven’t implemented ESG-linked coupons related to the environmental pillar, but it’s a serious consideration, especially for senior debt.”

An environmental vision extending to biodiversity

Beyond climate, Rivage is also exploring biodiversity issues, with the support of Carbone 4 and its BIARA (Biodiversity Impact Analytics for Real Assets) methodology. “The initial work on solar assets was very interesting. We’re continuing to make adjustments, with the goal of expanding to new asset types such as roads or waste-based cogeneration plants.”

Toward an increasingly integrated climate strategy

Rivage’s ambition is to integrate climate considerations into every stage of the investment cycle.
“We may consider including temperature objectives in the performance fee conditions for certain funds, particularly when climate alignment is central to their strategy.” Today, Rivage has a robust tool to manage its Paris Agreement alignment strategy, structure its commitments, engage with stakeholders, and anticipate future developments. It is a demanding but necessary approach to align finance, infrastructure, and transition.

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