23rd Sep 2024 09:10
(Alliance News) - Prudential PLC on Monday said it launched a framework for climate transition funding and committed to up to USD350 million of investments.
The Asia-focused insurer said it is particularly focused on looking at emerging markets in relation to financing related to the climate transition.
The company told shareholders on Monday that it had now set up a framework to address particular challenges related to these investments.
It will seek to address issues related to financing "high carbon to low carbon" projects and the lack of a standardised definition for these.
Prudential said the framework will also help address a need for flexibility linked to emerging markets in Asia and Africa.
Prudential confirmed that it will invest USD200 million as a founding investor in Brookfield's Catalytic Transition Fund, their first dedicated fund for transition investing in emerging markets.
It also said it is committing up to USD150 million to a climate-focused strategy managed by global investment firm Kohlberg Kravis Roberts & Co Inc, known as KKR, which seeks to make infrastructure equity investments in Asia focused on the energy transition.
Ben Bulmer, chief financial officer of Prudential, said: "Our responsible investment strategy leverages our unique position as a large asset owner in Asia and Africa.
"Our presence in emerging markets in these regions gives us a unique voice on responsible investment.
"We use this opportunity to influence industry, peers and investee companies to consider the role that emerging markets must play in the global energy transition."
Sean Kidney, chief executive officer and founder of the Climate Bonds Initiative, said: "If we're going to leave our children a liveable and prosperous world, the global transition needs to be credible, ambitious, and rapid.
"By using clear robust investment frameworks and guidance like this, asset owners and asset managers can play a significant role in aligning economies with net zero pathways and avoid portfolio risks like emissions lock-ins, while growing and thriving in a net zero economy."
Prudential shares were 0.5% higher at 629.80 pence each on Monday morning in London.
By Henry Saker-Clark, PA Deputy Business Editor
Press Association: Finance
source: PA
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