Impact investing at M&G

Discover how we’re helping to address society’s greatest challenges

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.

The challenges facing the world today



How do impact funds differ from ethical and ESG investing?

Ethical funds

Avoid companies in ‘sin sectors’ such as alcohol, tobacco and pornography – a range that many funds have expanded today to include fossil fuels.

ESG funds

Invest in companies across a wide range of industries, giving weight to those that score well on environmental, social and governance issues.

Impact funds

Invest in companies that explicitly aim to have a positive impact on the societal and environmental issues that face the world. In our approach to impact investing, every company must demonstrate measurable benefits. For example, investments might show CO2 emissions saving in tonnes.



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 III 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.

We also invest in three categories of companies that aim to provide diversification across industries, markets and maturity of business models.

Measurability is key

We focus on companies whose positive impact can be clearly measured and demonstrated, so you and your clients receive full transparency. Our annual impact reports will demonstrate the net positive impact of each company within our holdings.

Our impact funds

M&G (Lux) Positive Impact Fund

A financial future built to make a positive impact

View fund

M&G (Lux) Climate Solutions Fund

Working to build a cleaner future

View fund

 

You have to focus on positive impact companies generating or directing their business towards big social, environmental challenges as a core part of what they do and the impact has to be measurable. 

Ben Constable Maxwell - Head of Sustainable and Impact Investing

 

Our team

Responsible Investing

Find out more about our approach to responsible investing. 

Read more

Insights

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.