What is impact investing?
Impact investing means investing in companies that aim to deliver meaningful societal outcomes by addressing the world’s major societal and environmental challenges, while at the same time looking to produce a financial return.
Are we losing the chance for a better future?
The next few years will be absolutely pivotal to closing the annual SDG financing gap – estimated to be around US$2.5 trillion. The annual "M&G SDG plc Reckoning report", issued by our parent company M&G plc since 2020, recalled that the scale of financial flows addressing the SDGs is insufficient. It is evident that both the public and private sector must augment action and direct capital towards addressing global problems such as food insecurity, health inequalities, discrimination, pollution, global warming and habitat loss.
Discover in this video Impact Investing at M&G and our own interpretation of how much work is required to fulfil the SDGs.
Please note, while we support the UN SDGs, we are not associated with the UN and our funds are not endorsed by them.
A rigorous approach to impact assessments
Our impact team, representing a wide range of expertise, from fund managers, impact analysts and sector specialists, are dedicated to putting your assets to work, aiming to generate strong returns while also delivering clear benefits to society and the planet.
Selection begins with a global universe of stocks, which is initially screened for minimum liquidity and market-cap criteria, as well as screening out any companies deemed to be in breach of the UN Global Compact principles on human rights, as well as any sin stocks.
The remaining stocks are scored on their III credentials, and require above average results for inclusion in a fund’s watch-list, as well as consensus agreement of a company’s merit from all members.
Our impact framework
We have designed a framework that scores companies on their investment, intention and impact (III). We only choose companies that score highly across all three categories.
How strong is the business model?
Can the company generate sustainable returns?
Is positive impact an explicit company aim or just an accidental outcome?
What are the material, measurable benefits the company is delivering to help improve society and the planet?
Examples of companies we invest in
SDG 12: Responsible consumption and production
Brambles: making logistics sustainable
SDG 9: Industry, innovation and infrastructure
Helios Towers: providing telecommunications for underserved populations
SDG 4: Quality education
Cogna: rolling out much-needed education in Brazil’s most deprived areas
SDG 5: Gender equality
Bright Horizons: contributing to workplace gender equality through family support services
SDG 13: Climate action
Horiba: measurement and analytical solutions to improve efficiency and reduce emissions