Climate Change Data

M&G Investment Funds (10)

Climate Impact & Sustainability Data (2021, 2022-01 to 2023-01, 2023-04-01 to 2024-03-31)

Reporting Period: 2021

Environmental Metrics

Scope 1 Emissions:2127 tCO2e (2019 baseline)
Scope 2 Emissions:1880 tCO2e (2019 baseline)
Scope 3 Emissions:9449 tCO2e (2019 baseline)

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • 39% year-on-year reduction in Scope 1+2 carbon emissions (influenced by pandemic)
  • 80% reduction in business travel emissions (influenced by pandemic)
  • Achieved 84.12% of 2030 net zero target for corporate operations (influenced by pandemic)

Social Achievements

  • Engaged with over 230,000 clients and customers regarding thermal coal phase-out
  • Engaged with over 630 institutional clients and intermediaries on thermal coal policy

Governance Achievements

  • Implemented a thermal coal exclusion policy in 2021
  • Implemented M&G Investments’ Thermal Coal Investment Policy in April 2022
  • 107 climate-related engagements with companies, 42 successful

Climate Goals & Targets

Long-term Goals:
  • Net zero carbon emissions across all AUM/AUA by 2050
Medium-term Goals:
  • Net zero carbon emissions across all AUM/AUA by 2050
Short-term Goals:
  • Reduce carbon emissions intensity by 50% for $80 billion in assets by 2030 (NZAM interim target)

Environmental Challenges

  • Pandemic impact on business travel and building occupancy affecting emissions reduction figures
  • Data limitations and methodology issues for certain asset classes in portfolio emissions reporting
  • Achieving client consent for thermal coal policy implementation in segregated mandates
Mitigation Strategies
  • New global business travel policy
  • Reconfiguration of office spaces to optimize space and energy usage
  • Transitioning corporate fleet to fully electric vehicles by 2026
  • Engaging with suppliers on net-zero alignment and adding climate clauses to contracts
  • Ongoing engagement with clients and investees to address climate-related risks

Supply Chain Management

Responsible Procurement
  • Engaging with suppliers on environmental impact and net-zero plans
  • Adding climate clauses to contracts
  • Assessing corporate governance across material suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Net Zero Asset Managers (NZAM), Net Zero Asset Owner Alliance (NZAOA), Partnership for Carbon Accounting Financials (PCAF), Science Based Targets initiative (SBTi), Task Force on Climate-related Financial Disclosures (TCFD), UN Global Compact, UN Sustainable Development Goals (SDGs)

Certifications: RE100

Reporting Period: 2022-01 to 2023-01

Environmental Metrics

Total Carbon Emissions:4,842 tCO2e (Scope 1, 2 and selected Scope 3)
Scope 1 Emissions:1,350 tCO2e
Scope 2 Emissions:11 tCO2e (market based)
Scope 3 Emissions:3,316 tCO2e (selected)
Renewable Energy Share:99% of purchased electricity
Total Energy Consumption:21,257 MWh
Water Consumption:4 m3
Waste Generated:409 tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate change
  • Diversity and Inclusion

Environmental Achievements

  • 64% reduction in operational Scope 1, 2 and selected Scope 3 emissions against 2019 baseline
  • 62% reduction in 2022 reported Scope 1 & 2 (market-based) emissions for offices from 2019
  • 68% reduction in Scope 3 business travel emissions compared to 2019

Social Achievements

  • £4.3m total community investment spend
  • 37% female representation on M&G Executive Committee and direct reports
  • 12% ethnic diversity within the M&G Executive Committee and direct reports

Governance Achievements

  • Established a Central Sustainability Office
  • Created an Executive Sustainability Committee
  • Executive Compensation Linked To ESG: Yes (7.5% weighting for emissions reduction and gender diversity targets in 2022 LTIP; increased to 25% in 2023 LTIP)

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050 across operations and investment portfolio
Medium-term Goals:
  • 50% reduction in emissions intensity (tCO2e/$m invested) for in-scope public equity and corporate debt by 2030
  • 36% reduction in emissions intensity (kgCO2/m2) for in-scope real estate assets by 2030
  • At least 50% of real estate portfolio to hold green building certification by 2025 and 90% by 2030
Short-term Goals:
  • Reduce emissions from corporate offices by 46% by 2030; 100% renewable electricity by 2025
  • Reduce business travel emissions by 46% by 2030
  • Achieve 40% female representation and 20% representation from Black, Asian and minority ethnic backgrounds at the Executive Committee and their direct reports by 2025

Environmental Challenges

  • Increasing expectations from stakeholders and evolving needs of clients
  • Significant shifts and ongoing uncertainty in the global economic and political environment
  • Data limitations in measuring and reporting climate-related risks and opportunities, particularly for private assets
Mitigation Strategies
  • Strengthening foundations by building out sustainability capabilities and supporting governance framework
  • Improving climate data and modelling capabilities
  • Developing enhanced data collection, management and reporting for private and alternative assets
  • Licensing new scenario models (Aladdin Climate and expanding Marsh model) to improve climate risk assessment

Supply Chain Management

Supplier Audits: Over 1,000 suppliers contacted in 2022 to assess supply chain emissions

Responsible Procurement
  • Supplier Code of Conduct
  • Preferred supplier list with minimum sustainability standards

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Flooding
  • Hydrometeorological hazards
Transition Risks
  • Regulatory changes
  • Market shifts
  • Stranded assets
Opportunities
  • Investment in climate solutions
  • Development of sustainable products and services

Reporting Standards

Frameworks Used: TCFD, SFDR, SASB, GRI, UNGC

Certifications: ISO 14001

Third-party Assurance: PwC

UN Sustainable Development Goals

  • Goal 7
  • Goal 9
  • Goal 13

Investments and initiatives contribute to affordable and clean energy, industry, innovation and infrastructure, and climate action.

Sustainable Products & Innovation

  • Planet+ fund range
  • Real Asset Impact Fund

Awards & Recognition

  • Top 75 company in the Social Mobility Employers Index
  • Bloomberg Gender-Equality Index
  • LGBT Great’s Financial Services Gold Standard
  • National Equality Standard (NES)

Reporting Period: 2023-04-01 to 2024-03-31

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Better Health and Well-being
  • Positive Societal Impact
  • ESG criteria and sustainability criteria

Environmental Achievements

  • Not disclosed

Social Achievements

  • Not disclosed

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Uncertainty due to events in Ukraine
  • High interest rates impacting equity valuations and end-demand for certain products
  • Beleaguered solar market due to high interest rates and reduced incentives
  • Cyberattack on Johnson Controls International
  • Class action lawsuit against Johnson Controls International related to PFAS contamination
Mitigation Strategies
  • ACD monitoring associated risks
  • Conservative stance on credit selection in the Sustainable Global Corporate Bond Fund
  • ESG engagement with companies to improve sustainability practices and address challenges
  • Johnson Controls International reviewing and strengthening risk mitigation strategy, hiring new CIO and CTO

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed