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 producing 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.
In this video discover our approach to impact investing at M&G and our own interpretation of how much work is required to fulfil the SDGs.
The SDG Reckoning Report - Can the world catch up?
Discover more in the M&G plc SDG Reckoning report
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.
Investment
How strong is the business model?
Can the company generate sustainable returns?
Intention
Is positive impact an explicit company aim or just an accidental outcome?
Impact
What are the material, measurable benefits the company is delivering to help improve society and the planet?
Examples of companies we invest in
Discover our strategies related to impact investing
The value of the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.