UK asset manager M&G has become the latest firm to pledge an end to coal-related investments.
It has joined the Powering Past Coal Alliance (PPCA) and announced that it intends to end in investment in thermal coal by 2030 for developed countries and 2040 for emerging markets.
The move would keep M&G in line with its ambition to have net zero emissions across its portfolio by 2050 at the latest.
The restrictions would be applied to investments in power generation and mining where coal generates more than 30% of revenue or where new expansion is planned.
It also includes sectors whose main business is not coal but they have coal-related operations.
The divestment from developed markets will begin in March 2022 with emerging markets divestment following two years later.
“M&G fully intends to apply its thermal coal position to all M&G plc’s assets under management including dedicated funds and third-party mandates, unless the client requests otherwise, or the fund has been exempted for risk management reasons,” the firm stated.
The company will also be using third party data providers MSCI, ISS and the Global Coal Exclusions List “to identify the initial list of ‘coal-related’ issuers in scope”, although M&G noted that such third-party data can “be subject to inaccuracies and obsolescence” and will be using additional qualitative analysis of securities across benchmarks and portfolios.
The firm joins a number of UK fund managers who have made net zero pledges in recent months including Scottish Widows, Jupiter, Aviva and Aegon.
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