Mobilizing private sector capital

responsAbility Asia Climate strategy surpassed USD 200 million at second closing

August 20243 min readClimate FinanceBlended Finance, Emerging Markets, Energy, ImpactPrivate Debt

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 15.3 billion in impact investments. With over 270 employees collaborating across 8 offices, as of 30 June 2024 the company manages USD 5.0 billion in assets across approximately 280 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 plc is an international savings and investments business, managing money for more than 4.6 million individual customers and more than 900 institutional clients from 38 offices worldwide. As at 31 December 2023, we had £343.5 billion of assets under management and administration.

With a heritage dating back more than 170 years, M&G plc has a long history of innovation in savings and investments, combining asset management and insurance expertise to offer a wide range of solutions. We serve our retail and savings customers under the M&G Wealth and Prudential brands in the UK and Europe, and under the M&G Investments brand for asset management clients globally.


Contact

Richard Rogers
responsAbility Investments AG
+41 44 403 2151
media@responsability.com

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