Jake Moeller, senior investment consultant at Square Mile Investment Consulting:
Managed by Michael Rae, M&G Climate Solutions has a dual objective in that financial returns are sought alongside positive impact, which the manager intends to achieve through thematically led investment in companies delivering solutions to the most pressing issues facing the environment. The manager and investment team utilise a number of methodologies, including their proprietary ‘III’ screen, to ensure that their holdings are delivering a high degree of impact in respect of three key areas; clean energy, green technology, and the propagation of the circular economy.
Each stock is also mapped to at least one Sustainable Development Goal (SDG), as well as one of the three thematic impact areas previously mentioned. For example, the company Ansys Inc., an American engineering software company, has a 100% revenue exposure to activities M&G believes to be related to SDG 9: industry, innovation and infrastructure. In this way, the manager is able to quantify and demonstrate the impact the portfolio is able to generate.