Investing responsibly in Asia's climate future:

responsAbility launches USD 500 million climate investment strategy for Asia

November 20233 min readClimate FinanceEmerging Markets, Energy, ESG, Impact, Blended Finance

Zurich, 28. November 2023 - In response to rising CO2 emissions in Asia, global impact pioneer responsAbility Investments AG ("responsAbility"), together with Germany's development bank KfW and the Dutch development bank FMO, has launched a USD 500 million climate investment strategy. The strategy aims to make an active contribution to CO2 reduction in Asia through targeted investments in low-emission technologies and offers institutional investors attractive investment opportunities.   

Asia faces a double challenge: the continent is already the largest emitter of greenhouse gases, accounting for more than 50 percent of global CO2 emissions, and is facing a projected strong increase in energy demand by 2050. This underlines the urgent need to invest in climate-friendly technologies and infrastructure.  

Transparent and measurable impact on the climate

responsAbility's climate investment strategy focuses on sectors with high CO2 savings potential in Asia, including renewable energy, battery energy storage, electric mobility, energy efficiency and circular economy. A key element of the strategy is the innovative "Climate Impact Assessment and Monitoring Framework", which ensures high transparency and targets direct CO2 savings of an estimated 10 million tons over the entire lifetime of the investments. The climate investment strategy will have a positive impact on selected Sustainable Development Goals (SDGs), in particular climate action (SDG 13), industry, innovation and infrastructure (SDG 9) and responsible consumption and production (SDG 12).   

The blended finance strategy offers investment opportunities  

responsAbility's climate investment strategy uses a blended finance structure that combines public funding with private capital to support high-impact transformative projects. The aim is to mobilize USD 500 million and involve a significant amount of private capital. This blended finance approach will enable institutional investors to participate in solving Asia's climate challenges while achieving an attractive risk-adjusted return on their portfolios. 

Ewout van der Molen, Head of Climate Finance, responsAbility, says: "Our investment strategy appeals to institutional investors who are looking for both environmental impact and financial value from their investment. As a key step towards a low-carbon economy in Asia, responsAbility provides a significant opportunity for investors to make a tangible and measurable difference in the fight against climate change. The successful launch will enhance access to capital for Asian businesses that are keen to reduce their carbon footprint.” 

Stephanie Lindemann-Kohrs, Director of Global Equity and Funds, KfW, says: “KfW Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development, strives to increasingly channel private sector capital into the SDGs. Through its blended finance structure and KfW’s investment into the first loss tranche, the climate investment strategy is ideally positioned to mobilize private funding at scale for investments that foster the energy transition and contribute to greenhouse gas abatement.”

Marnix Monsfort, Director Energy, FMO, says: “We are very pleased to participate in climate investment strategy as an anchor investor as we jointly accelerate the renewable energy transition in Asia. By providing energy solutions to various sub-sectors - commercial and industrial, energy efficiency, e-mobility, and battery energy storage - FMO endeavours to contribute and realize much-needed impact in climate action and attract much private capital in our energy transition journey.” 

About responsAbility Investments AG responsAbility Investments AG is a leading impact asset manager specializing in private market investments across three investment themes to 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 14 billion in impact investments. With over 270 employees collaborating across eight offices, as of 1 October 2023 the company manages USD 4.7 billion in assets across approximately 270 portfolio companies in 72 countries. Since 2022 responsAbility is part of M&G plc, the international savings, and investments business, and contributes to enhancing M&G’s capabilities in impact investing.

About KfW  KfW Bankengruppe, founded in 1948, is the German promotional bank and one of the world’s leading promotional banks. It is 80% owned by the Federal Government and 20% by the federal states. The business sector KfW Development Bank carries out Financial Cooperation (FC) projects with developing countries and emerging economies on behalf of the German Federal Government, especially of the Federal Ministry for Economic Cooperation and Development (BMZ). KfW Development Bank employs approximately 1,200 people at the head office in Frankfurt am Main and well 400 specialists at more than 60 international locations, who cooperate with partners all over the world. Their goal is to combat poverty, secure peace, protect the environment and the climate as well as ensure fair globalization. KfW Development Bank is a competent and strategic adviser for current development policy issues.

About FMO FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and hasa 50+ yearproven track-recordinempowering entrepreneurs to make local economies more inclusive, productive, resilient and sustainable. FMO focuses on three sectors that have high development impact: Agribusiness, Food & Water, Energy, and Financial Institutions. With a total committed portfolio of EUR ~13 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. 

Contact

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

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This information was produced by responsAbility Investments AG together with its partners to the best of its knowledge and belief. However, responsAbility Investments AG provides no guarantee with regards to its content and completeness and does not accept any liability for losses which might arise from making use of this information. The opinions expressed in this information material are those of responsAbility Investments AG at the time of writing and are subject to change at any time without notice. If nothing is indicated to the contrary, all figures are unaudited. This material is provided for information purposes only. It does not constitute an offer or a recommendation to buy or sell financial instruments or services and does not release the recipient from exercising his/her own judgment. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law.

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