Swiss impact investor responsAbility Investments AG has announced securing $100 million from a unit of its parent company, investment manager M&G plc, to hold the second close for its Asia climate investment strategy.
The latest commitment was made by M&G’s Life business, which manages the long-term retirement savings of more than 4.6 million retail customers. Its contribution brings the total funds raised by the responsAbility strategy to over $200 million.
Launched in November with a target of $500 million, the climate investment strategy uses a blended finance structure that combines public funding with private sector capital to support projects with high CO2 reduction potential. At the end of 2023, responsAbility had secured $100 million from the German development bank KfW and the Dutch development bank FMO for its first close.
“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,” said responsAbility chief client and investment solutions officer Stephanie Bilo in a prepared statement.
The climate strategy aims for direct CO2 savings of about 16 million tons over the investments’ lifetime. It focuses on high CO2 reduction potential sectors in Asia, such as renewable energy, battery storage, electric mobility, energy efficiency, and the circular economy.
Earlier in March, DealStreetAsia reported that the International Finance Corporation (IFC) was considering a $100-million investment in responsAbililty’s climate investment strategy. According to an IFC disclosure, the fund will focus on investments in India and Southeast Asia.
Asia, the largest emitter of greenhouse gases, with over 50% of global CO2 emissions, is expected to see a substantial increase in energy demand by 2050. The Swiss investor said the situation highlights the urgent need for investment in climate-friendly technologies and infrastructure.
responsAbility focuses on private market investments in financial inclusion, climate finance, and sustainable food, contributing to the UN Sustainable Development Goals. It manages $5 billion in assets across approximately 280 portfolio companies in around 70 countries.
In June 2023, it raised $106 million for its climate-smart agri and food fund, targeting investments in Asia Pacific, Latin America, and Africa. The firm has also invested in Indonesia’s eFishery, Vietnam’s VinFast EV infrastructure, and Indonesia’s Qoala, among others.
