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.”

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.

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.

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.

The climate investment strategy for Asia received prestigious recognition at COP28, where it was awarded by John Kerry, U.S. Special Presidential Envoy for Climate³. This accolade reaffirms the strategy’s relevance and effectiveness in terms of sustainable development and climate protection.

Source: responsAbility