Phasing out thermal coal: Our forward-looking approach to support a just energy transition

10 min read 31 Mar 21

Summary: 

On 2 March 2021, M&G announced its plans to phase out investments in thermal coal and that it had joined the Powering Past Coal Alliance, a coalition of governments, businesses and organisations working to advance the transition from unabated coal power generation to clean energy.

We outline M&G’s new policy on investing in thermal coal in more detail, including how it will be implemented through a two-stage approach: firstly through engagement with investee companies, then through divestment where companies do not comply with our restrictions on coal-related investments.

  • We believe addressing coal is a key step in the journey to transition our investments to net zero emissions by 2050
  • We will use our influence as a global investor to drive positive change and help decarbonise the energy system
  • We commit to removing our public equity and fixed income exposure to unabated coal by 2030 in OECD countries and the EU, and by 2040 across the rest of the world
  • We will be actively engaging with companies to support their phase-out from coal and transition to Paris alignment
  • We will begin divestment in developed markets, where engagement efforts have been unsuccessful and companies fail our criteria, from March 2022, and in developing markets from March 2024

To read the note in full, please click here

By M&G Investments

The views expressed here should not be taken as a recommendation, advice or forecast.

The value and income from any fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that any fund will achieve its objective and you may get back less than you originally invested. 

Related insights