UK-based asset manager M&G has committed US$100 million to impact investor responsAbility’s climate investment strategy, which aims to reduce carbon emissions in Asia.

The strategy will invest in climate-friendly technologies and infrastructure like renewable energy, electric mobility and energy efficiency, and target direct carbon dioxide ( CO2 ) savings of around 16 million tonnes over the entire lifetime of its investments – the equivalent of running four coal power plants continuously for a year.

Investments will focus on sectors with high potential to reduce CO2 production in Asia, the largest global emitter of greenhouse gases, whose CO2 output accounts, according to the Asian Development Bank, for more than 50% of global CO2 emissions.

The strategy uses a blended finance structure that combines public funding with private capital to support high-impact climate-friendly projects. These include a business establishing infrastructure for electrical vehicle charging across India, projects providing renewable energy solutions directly to large commercial and industrial companies in Vietnam, and a global industrial waste water treatment company providing energy efficient water treatment solutions to customers across Asia.

M&G acquired responsAbility, which has 20 years’ experience in private debt and equity across emerging markets, in 2022, and is, it says, “pleased to have this opportunity to take advantage of its specialist investment teams that allow customers exposure to opportunities in diverse sectors and locations such as this Asia climate strategy”.

Ciaran Mulligan, M&G’s CIO of investment management and oversight, Prudential With-Profits Fund, adds: “This substantial investment reflects our commitment to fostering sustainable development and economic growth in regions that are most vulnerable to the impacts of climate change.”