HI Uplift: RIVE takes sustainability to the bank

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by Mike Stones

6 December 2024

Pauline Gasquet at Helicopter Investor London 2024 pictured with fellow panellist Gerard Deterne, of Pteron Valuations.

Sustainability is a “value creation factor”. That’s how Pauline Gasquet, head of Sustainability at RIVE Private Investment described the topic at our Helicopter Investor London 2024 conference back in June. So, as the old year ebbs, we checked back with RIVE to seek practical examples of sustainability in action.

“The three best examples I have relate to decarbonising, but it should not be seen as the only sustainability topic,” Gasquet tells us. Her top three examples involve: measuring greenhouse gas emissions (GHG), cost management and the supply chain.

First, quantification. “RIVE with Safran has pioneered the accurate quantification of GHG emissions based on mission profiles and motorisation,” she says. “This initiative is transforming the way we measure environmental impact of helicopters. It also provides valuable insights to guide our investment strategies as we advance our decarbonisation efforts.”

Incentivises the use of SAF

Splitting costs is the second. RIVE incentivises the use of sustainable aviation fuel (SAF) by offering lease reductions to operators who align with EU SAF consumption guidelines and achieve at least 5% SAF integration in their operations. “This goes beyond simply meeting targets – it establishes a practical and collaborative pathway toward decarbonisation,” says Gasquet.

RIVE’s third example involves the whole supply chain. Lessors, operators and end-users all have a role to play in sponsoring this transition. “The example of Vestas is a great one: in its commitment to carbon neutrality, the company is rethinking offshore wind operations,” she tells us. “By diversifying transportation methods and partnering with Leonardo, Vestas has committed to becoming carbon neutral by 2030 without carbon offsets.”

New benchmarks

Global energy company Vestas has invested heavily in SAF and drone cargo solutions for its fleet, with implementation planned for 2025 onward. RIVE says these examples highlight how sustainability principles can drive innovation, setting new benchmarks for the aviation industry to follow.

Gasquet is “a firm believer” in sustainability rather than ESG (environmental, social, and governance) principles. ESG is mainly regulatory, focusing on compliance and reporting past performance whereas sustainability encompasses a broader concept of meeting present needs without compromising future generations. “In essence, sustainability includes ESG. It provides value not only financially but also socially and environmentally by de-risking and seizing opportunities,” she argues.

“Sustainability should be embedded in the way we conduct business. For operators, it is linked to improving the efficiency of their operations, identifying costs savings actions and start using SAF – for example, eco-flying to reduce fuel consumption, using second hands parts in maintenance etc,” says Gasquet. For investors, it means creating value by investing in future-proof sectors and in the right assets – to avoid depreciation – while partnering with operators able to tackle the sustainability transformations of the next 15 years.

‘Frequently scrutinised’

“Sustainability lies at the core of the transformation required, especially in the helicopter industry – a sector frequently scrutinised for its environmental footprint,” she says. RIVE believes it offers a unique opportunity to lead, innovate and create long-lasting value for both end-customers, operators and investors. This requires joining financial, operational and sustainability data.

So much so, the topic has become a key focus in discussions with the banks to finance helicopters, and with RIVE’s investors to raise funds. The firm believes raising debt at discounted rates if sustainability key performance indicators (KPIs) are achieved will become increasingly common.

“By focusing on a broader sustainability concept, the helicopter industry can go beyond the environmental impact and integrate the social impact of the helicopters by looking at the big picture,” Gasquet tells us. “Indeed, most of our helicopters serve critical missions and thus contribute to improving people’s health and well-being.”

12-aircraft financing deal

Putting this commitment into action in September RIVE revealed it had partnered with Investec Aviation Finance on a 12-aircraft financing deal to support helicopter emergency medical services (HEMS) in France and Spain. The transaction involves a facility covering Airbus H135 and Leonardo AW109 helicopters, for three different operators.

Two key points critical to advancing sustainability in the helicopter industry are collaboration and data, according to the lessors. It believes collaboration across stakeholders – including lessors, operators, manufacturers and regulators – is essential to driving sustainability. Aligning on emissions targets, promoting SAF adoption and standardising reporting require collective action – no single player can achieve meaningful progress alone and it will be key to finance assets.

Equally important is data. Robust data – ranging from emissions metrics to mission profiles –enables the industry to quantify impacts, align with regulations like the EU taxonomy, and showcase the critical societal role of helicopters, says Gasquet.

‘Reflect my values’

For her, the application of sustainability principles to helicopter finance is far more than simply a business opportunity. “I need my work to reflect my values,” she tells us. “I have a very holistic vision of sustainability, and I am always up for a challenge.” Her latest challenge began in March this year when she was appointed to her current role. Before that Gasquet was sustainability senior consultant with the Paris-based consultancy Ansa following previous consultancy roles elsewhere.

It is work experience that has enabled her to develop what she describes as “a Swiss knife” collection of skills and abilities augmented by emotional intelligence. Connecting with people from different cultures and perspectives is critical for driving change in sustainability, she says.

To succeed in her new(ish) role, Gasquet thinks it is key to understand what motivates others to change and align sustainability goals with their personal and professional drivers. “This combination of entrepreneurship and emotional intelligence allows me to navigate the complexities of the role while fostering meaningful progress in sustainability initiatives.”

More than simply a means of maximising revenues in 21st century business, meeting sustainability objectives is, for her, a way of honouring a responsibility to the future. “While sustainability is, of course, about decarbonisation, it is mostly about creating an environment and society that is liveable for future generations,” says Gasquet. “Sustainability is one of the means to achieve this. I see it as a way to give back.”

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