A unique fund to date, addressing the challenges of biodiversity through private debt investments in Europe
Classified as Article 9 under the SFDR regulation, Sienna Biodiversity Private Credit Fund[1] aims to support European companies and projects that contribute to the preservation and restoration of biodiversity, in particular through impact clauses. It primarily addresses three of the five pressures that directly affect biodiversity, defined at the global level by IPBES, namely the transformation of land and seas, pollution, and the direct exploitation of organisms, and is also part of the Kunming-Montreal Global Biodiversity Framework.
The fund focuses its investment strategy on three main areas:
- Solutions for biodiversity,
- companies engaged in a transition process, aimed at reducing their negative impact on biodiversity,
- the “Best Practices” approach, favouring companies that significantly outperform their sector’s practices in terms of biodiversity preservation.
Each financed company will have been subjected to an in-depth analysis by Sienna IM, which will be based, in particular on the extra-financial expertise of the Quebec environmental solutions company Habitat. Systematic financial, extra-financial, and biodiversity monitoring will be carried out through tailor-made indicators, reflecting the materiality and commitment of the company to biodiversity issues, such as the volume of water saved per m3, the percentage of wetlands preserved, or the percentage of raw materials from certified sustainable sources. Sienna IM has established a network of biodiversity experts that can be called upon depending on the sector covered by the financing under consideration. In addition, due to the bilateral nature of the financing, the ongoing dialogue between Sienna IM and each company will facilitate the implementation of relevant tailor-made indicators, regardless of the sector.
The fund will rely on all the management teams in order to multiply its action: mid-market corporate financing, real estate debt, energy transition, and public sector. This multisectoral approach is one of the strong differentiating elements of this fund, which seemed necessary, given the multifaceted nature of biodiversity.
A convergence of SRI strategies within the Malakoff Humanis group
Malakoff Humanis and La France Mutualiste, a mutual insurance company affiliated to the Malakoff Humanis group since April 2024, are continuing to implement their SRI policies and are investing €100 million in this new fund managed by Sienna Investment Managers. Through this investment, the two players choose one of the most attractive asset classes of the moment, making it possible to reconcile yield and commitment.
After the launch of a private debt fund with social impact[2] in May 2022, co-constructed with Sienna IM, this new fund illustrates Malakoff Humanis‘ desire to increase its impact on both environmental and social facets. The creation of this fund is part of Malakoff Humanis’ socially responsible investment (SRI) strategy, which sets a three-year target of +€1.3 billion of investment in labelled bonds, thematic funds, and unlisted impact funds. In 2024, Malakoff Humanis wants to go further and define its biodiversity strategy, which is part of the global framework of Kunming-Montreal, of which one of the targets is private financing and investment contributing to the preservation and restoration of biodiversity.
“In terms of sustainable finance, at Malakoff Humanis we share a high standard of requirement with La France Mutualiste. Our decarbonization strategy on climate issues is now well integrated, which allows us to increase our scope of action on biodiversity issues. As investors, we have a decisive responsibility: we must also encourage the development of innovative methods for measuring the footprint of activities on natural resources. This is not only an environmental imperative, but also an essential lever to ensure resilient and sustainable performance in an economic framework undergoing profound change”, says Aurélie Baudhuin, Investment Director of Malakoff Humanis.
As for La France Mutualiste, this fund is fully in line with the continuity of sustainable investments. Since 2019, La France Mutualiste has shown a determination to invest in environmentally friendly projects and to support a greener and fairer economy. For example, this summer, the mutual savings company took a decisive step in its commitment to sustainability by announcing that it had exceeded the threshold of €1 billion in sustainable bonds. La France Mutualiste also has 23% green and sustainable assets[3] in its euro fund as of June 2024, which allows it to be “Article 8” under the SFDR regulation.
Safeguarding biodiversity is at the heart of La France Mutualiste’s sustainable investment strategy. Among the investments made in 2023, La France Mutualiste participated in the debt-for-nature exchange in the Galapagos Islands and was thus one of the twelve investors involved in this innovative operation to protect biodiversity.
“We are very proud to be one of the first two investors in Sienna Biodiversity Private Credit Fund, the first innovative and pioneering private debt impact fund in Europe dedicated to the preservation and restoration of biodiversity. This commitment is fully in line with our ambitious strategy of sustainable investments and in particular for the permanence of ecosystems. It embodies the mutualist values that drive us, while contributing positively to a better future for future generations”, says Pierre Laly, Investment Director of La France Mutualiste.
About Malakoff Humanis
A major player in social protection, Malakoff Humanis was created in January 2019 from the merger of the Malakoff Médéric and Humanis groups. With €8.7 billion in equity, 414,000 insurance and savings client companies, and more than 9 million people protected (policyholders and beneficiaries), Malakoff Humanis holds nearly 15% of the group insurance market.
As part of the Agirc-Arrco supplementary pension, the Group pays €42.2 billion in benefits to 6.3 million beneficiaries, and manages the contributions of 601,000 companies and more than 7 million contributors.
Malakoff Humanis is a joint member, mutual and non-profit company that puts its performance at the service of social utility: in 2023, the Group devoted €201 million to supporting people in socially vulnerable situations.
malakoffhumanis.com @MalakoffHumanis
About La France Mutualiste
La France Mutualiste is the individual savings mutual of the Malakoff Humanis Group. With more than 130 years of experience, it aims to enable all French people to build up solid savings and shape their retirement. With its 480 employees, 276 volunteers, and a network of 58 branches, La France Mutualiste advises and supports 220,000 members in their savings strategies.
In 2023, La France Mutualiste posted a turnover of €468 million and a solvency rate of +250%, reflecting its financial strength and the confidence of its members.
Its values of solidarity, transparency, and proximity guide its commitment. In addition, its ambitious responsible investment policy aims to reconcile financial performance with a positive impact on society and the environment.
More information on lafrancemutualiste.fr
La France Mutualiste, Tour Pacific, 11-13 cours Valmy, 92977 PARIS LA DEFENSE CEDEX, National Mutual Retirement and Savings Scheme subject to the provisions of Book II of the Mutual Insurance Code, Registered in the SIRENE register under the SIREN number 775 691 132.
Press contacts for Sienna IM
Féten Ben Hariz – fbenhariz@fargo.agency +33 (0)6 16 83 64 06
Maria Krellenstein – maria.krellenstein@sienna-im.com +33 (0)6 64 37 69 63
Press contacts for Malakoff Humanis
Élisabeth Alfandari – elisabeth.alfandari@malakoffhumanis.com +33 7 60 09 25 30
Hugues Schmidt – huguesschmidt@primatice.com +33 6 71 99 74 58
Victoria Rey – victoriarey@primatice.com + 33 6 26 94 54 79
Press contacts for La France Mutualiste
Marine Lathuilliere – m.lathuilliere@la-france-mutualiste.fr +33 (0)6 65 12 56 08
Sandra Codognotto – sandra.c@oxygen-rp.com +33 (0)6 63 92 36 00
[1] Managed by Sienna AM France, an AMF-approved management company n°GP97118, a member of the Sienna IM group
[2] This social impact fund aims in particular to finance companies with clear and measurable objectives in terms of parity or employment of people with disabilities. It is managed by Sienna Gestion, a member of the Sienna IM group, a management company approved by the AMF under number GP97020, and manages the FCPEs available in employee savings schemes, UCITS, FIVGs and institutional mandates as well as all the related financial services.
[3] In the absence of an official definition, La France Mutualiste adopts a cautious approach by including in this sustainable portion labelled bonds, funds classified as “Article 9” and impact funds, labelled real estate assets, as well as invested companies where more than 50% of capital expenditure (capex) is aligned with the taxonomy.
