Mobilizing private sector capital
responsAbility Asia Climate strategy surpassed USD 200 million at second closing
Zurich, 5. August 2024 – Global impact pioneer responsAbility Investments AG has successfully raised USD 100 million in private sector capital from M&G plc’s Life business as part of the second closing of its climate investment strategy for Asia. M&G plc’s Life business serves more than 4.6 million retail customers whose long-term retirement savings are invested in M&G’s flagship PruFund range and the £129 billion Prudential With-Profits Fund.
This investment powerfully underscores the importance of mobilizing private sector capital in the fight against the climate crisis. After the strategy had already received public capital from the German development bank KfW and the Dutch development bank FMO in its first closing at the end of 2023, a significant investment of USD 100 million in private sector capital is now being invested by M&G as part of the second closing. This brings the total fund volume to over USD 200 million.
Ciaran Mulligan, CIO of Investment Management and Oversight, Prudential With-Profits Fund at M&G: "We are pleased to be investing in responsAbility's climate investment strategy for Asia. Investing in emerging markets is crucial and this substantial allocation reflects our commitment to fostering sustainable development and economic growth in regions that are most vulnerable to the impacts of climate change.”
The blended finance strategy offers investment opportunities
responsAbility's climate investment strategy uses a blended finance structure that combines public funding with private sector capital to support transformative projects with high CO2 reduction potential.
Stephanie Bilo, Chief Client & Investment Solutions Officer at responsAbility, said: "Achieving the energy transition requires substantial financial commitment. While governments cannot provide all needed funds, the private sector has the potential to fill the gap. Our focus is on creating investment opportunities that attract private capital to support decarbonization. Through blended finance, we aim to raise USD 500 million for Asia, one of the regions with the most pressing needs for low-carbon energy solutions.
Effective CO2 reduction through targeted investments in Asia
The strategy targets achieving a high level of transparency and direct CO2 savings of around 16 million tons1 over the entire lifetime of the investments. This is accomplished by focusing on sectors with high CO2 reduction potential in Asia, including renewable energy, battery energy storage, electric mobility, energy efficiency and circular economy.
Transparent and measurable impact on the climate
Asia faces a double challenge: the continent is already the largest emitter of greenhouse gases, accounting for more than 50 percent of global CO2 emissions2, and is facing a projected strong increase in energy demand by 2050. This underscores the urgent need to invest in climate-friendly technologies and infrastructure.
International recognition by John Kerry on the global stage
The climate investment strategy for Asia received prestigious recognition at COP28. John Kerry, former U.S. Special Presidential Envoy for Climate 3, announced that the strategy had been selected to receive an award from the U.S. Department of State, in partnership with USAID, and the Ministry of Foreign Affairs of Denmark under the Blended Finance for the Energy Transition (BFET) competitive award process. This accolade reaffirms the strategy’s relevance and effectiveness in terms of sustainable development and climate protection.
About responsAbility Investments AG responsAbility Investments AG is a leading impact asset manager specializing in private market investments across three investment themes. These themes directly contribute to the United Nations Sustainable Development Goals (SDGs): Financial Inclusion, to finance the growth of Micro & SMEs; Climate Finance, to contribute to a net zero pathway; and Sustainable Food, to sustainably feed an ever-growing population. All responsAbility investment solutions target specific measurable impact alongside market returns.
Since its inception in 2003, responsAbility has deployed over USD 15.7 billion in impact investments. With over 270 employees collaborating across 8 offices, as of 30 September 2024 the company manages USD 5.1 billion in assets across approximately 300 portfolio companies in around 70 countries. Since 2022, responsAbility has been part of M&G plc, the international savings, and investments business, and contributes to enhancing M&G’s capabilities in impact investing.
About M&G plc M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has €408.2 billion of assets under management (as at 30 June 2024). M&G plc has customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members. For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate. M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme.
M&G plc has committed to achieve net zero carbon emissions on its total book of assets under management and administration by 2050 and committed to reduce operational carbon emissions as a corporate entity to net zero by 2030.
1 Current estimate, calculated based on a USD 500 million fund size 2 Asia and the Pacific's Climate Bank | Asian Development Bank (adb.org) 3 The U.S. Department of State and USAID Announce Award Winners of the Blended Finance for the Energy Transition Program - United States Department of State
Contact
Richard Rogers
responsAbility Investments AG
+41 44 403 2151
media@responsability.com
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