Investing in the green economy

2 min read 7 May 21

As a long-term infrastructure investor, we have both the opportunity and the responsibility to make economic growth more inclusive and sustainable. Taking as our compass the UN Sustainable Development Goals, we are committed to investing in and managing businesses which are similarly committed to sustainability. We believe this will have real benefits for society. We recognise that sustainable growth will deliver long-term value for investors and is consistent with our commitment to manage clients’ capital responsibly. Full consideration of environmental, social and governance (ESG) issues are embedded throughout our investment lifecycle. Infracapital’s ESG Management System has four pillars:

  1. Investment strategy to deliver environmental, social and financial value
  2. Investment appraisal to identify the key ESG risks and opportunities
  3. Active asset management
  4. Monitoring and oversight

As the controlling investor or the owner significant minority stakes, we work closely with the management teams of investee companies to ensure effective management of ESG issues and strong governance. We require regular reporting on relevant key performance indicators (KPIs) and ESG metrics.

M&G is helping the UK to move to cleaner forms of transport through its investments in new battery technology and electric vehicles. Our infrastructure business, Infracapital, has invested £150 million to help Zenobe Energy accelerate the electrification of vehicle fleets and the utilisation of batteries to support renewable power generation in the UK and overseas. Within two years, Zenobe Energy expects to deploy around 1,000 more electric buses or vehicles through its network, saving approximately 770,000 tonnes of CO2 over 15 years – a carbon saving equivalent of 2.5 million trees. This is just one example of how institutional capital can be used to support the development of new technology that will combat climate change and improve air quality for us all.