responsAbility Investments, the impact investing arm of M&G, has raised $460 million in commitments at the fifth closing of its Asia Climate Strategy. The fund is designed to accelerate the deployment of low-emission technologies across Asia, targeting measurable carbon reductions while supporting the region’s fast-growing energy needs.

Launched in November 2023, the strategy was established with a $500 million target and an ambition to deliver lifetime emissions reductions of approximately 16 million tonnes of CO2 across its portfolio. The latest closing brings the fund close to its target and signals continued investor appetite for climate-focused strategies in emerging Asian markets.

Investing Where Emissions and Energy Demand Converge

Asia accounts for more than half of global CO2 emissions and is expected to see a significant rise in energy demand through mid-century. responsAbility has positioned its Asia Climate Strategy to address this dual challenge by directing capital toward technologies and infrastructure that support decarbonisation without constraining growth.

The fund’s investment focus spans renewable energy generation, battery storage and e-mobility, energy efficiency solutions, and circular economy models. These sectors are viewed as critical to reducing emissions intensity while expanding access to reliable and affordable energy across rapidly developing economies.

According to responsAbility, the strategy is structured to mobilise private capital at scale in markets where public funding alone is insufficient to meet climate and energy transition goals.

Read more: AllianzGI Secures $690 Million First Close for Emerging Markets Climate Credit Strategy

Broadening the Investor Base

The fifth closing introduced two new investors to the strategy, including Anthos Fund & Asset Management and Calvert Impact Capital. The round also included an increased commitment from the International Finance Corporation, which had previously announced a $50 million investment.

Catherine Godschalk, Chief Investment Officer at Calvert Impact, described the fund as an example of how public and private capital can work together to deliver targeted climate solutions. She highlighted the importance of mobilising finance at scale in Asia, given the region’s central role in global climate outcomes.

The participation of development finance institutions alongside commercial and values-driven investors reflects a blended capital approach aimed at balancing risk, impact, and financial performance.

Sustained Demand for Climate-Linked Returns

responsAbility said the latest commitments underline sustained interest from investors seeking both competitive risk-adjusted returns and measurable climate outcomes. Stephanie Bilo, Chief Client and Investment Solutions Officer at the firm, noted that continued backing from long-standing partners reflects confidence in the strategy’s ability to deliver impact alongside performance.

The fund’s design combines sector-specific expertise with active portfolio management, enabling responsAbility to target projects and companies with the potential for scalable emissions reductions and long-term value creation.

Explore OneStop ESG Marketplace: Renewable Energy

Significance for Asia’s Energy Transition

As Asian economies navigate the tension between development, energy security, and climate commitments, access to patient, climate-aligned capital is becoming increasingly important. Funds such as responsAbility’s Asia Climate Strategy play a role in bridging financing gaps for technologies that can materially reduce emissions while supporting economic growth.

With the strategy nearing its $500 million target, the latest closing positions responsAbility to deepen its footprint across Asian climate markets. The scale and focus of the fund highlight how impact-oriented investment is moving beyond niche allocations and becoming a more central component of global climate finance, particularly in regions that will shape the trajectory of future emissions.

Explore ESG Solutions on our marketplace - OneStop ESG Marketplace.

Keep abreast of the top ESG Events on OneStop ESG Events.

OneStop ESG Educate: Your go-to source for top ESG courses and training programs tailored to your needs.

Stay informed with the latest insights on OneStop ESG News.

Discover meaningful career opportunities on OneStop ESG Jobs.