There is a growing ambition to develop more rigorous and sustainability-led investment portfolios that extend beyond risk avoidance and exclusion. This is helping to channel greater amounts of private capital towards investments that offer tangible, real world impact to tackle global challenges from climate change and pollution, to better healthcare and education.
At M&G, we naturally allocate long-term capital to responsibly-managed businesses and have been financing impact investments on behalf of our clients since the 1930s. By demonstrating that investments can generate attractive risk-adjusted returns, as well as benefit society and the environment, we are able to work together with our clients towards achieving the same global goals.
ESG risks and opportunities have always played an important role in our analysis, due diligence, investment and engagement processes. We believe incorporating ESG factors into investment and asset allocation decisions where they have a meaningful impact on risk and return can help to better manage risk and generate sustainable, long-term returns.
M&G has a growing suite of ESG-focused investment strategies that encompass a broad range of sustainable investment approaches. While the aims of these investment strategies vary, the common theme underlying all these strategies is an explicit emphasis on environmental, social, and / or governance issues.
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.