Impact Review 2023

Investing in Resilience

The future of Asia pivots on addressing inequality and climate change. Empowered communities actively combat climate change, while a stable climate nurtures thriving communities. At ABC Impact, we invest on both fronts. Our dual strategy aims to maximise impact, mitigate risk, and foster resilience.

Social Inequality and Solutions

In Asia, despite significant economic growth, social inequality remains a pressing issue. Millions of people lack access to basic necessities. According to the Asian Development Bank, approximately 263 million people live below the poverty line of US$1.90 per day. ABC Impact recognises the urgency of addressing these critical needs among underserved populations.

Our investment strategy focuses on social solutions such as healthcare, education, and financial inclusion, which demonstrate consistent demand even during economic downturns. Moreover, many Asian governments prioritise social impact, creating a stable regulatory environment for responsible businesses.

Through our investments, we aim to achieve positive social impact while also generating resilient financial returns, contributing to a more inclusive and prosperous Asia.

Climate Change and Environmental Investments

The growing recognition of climate change’s severity has become increasingly apparent, with the heatwave in 2023 underscoring the urgency of climate action. Asia, responsible for half of the world’s emissions and about 85% of fossil fuel-based energy, plays a pivotal role in mitigating climate change.

ABC Impact is an early investor in late-stage venture and growth ventures aimed at combating climate change in the region. We focus on scaling existing climate businesses like renewable energy and waste management while also introducing relevant global technologies to address the region’s pressing needs.

Investing in climate solutions not only aligns with global priorities but also fosters regulatory stability and drives innovation towards a more sustainable future.

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Chairman

Looking Ahead

At ABC Impact, we understand that impact investing goes beyond just numbers. While quantitative metrics are crucial, we believe in taking a deeper dive. We know that to truly measure our impact on people and the environment, we need to conduct thorough qualitative analysis and assessments. 

That is why we are constantly seeking innovative solutions to address data scarcity, especially in emerging Asian markets. This ensures that we can validate our impact every step of the way throughout the investment cycle.

But our commitment does not stop there. We are always learning and improving. We are conducting in-depth beneficiary studies to see first-hand how our investments are changing lives in communities, and we intend to eventually measure and report biodiversity impact as well.

And it is not just about our portfolio. As a leading pan-Asian impact investor, we are all about sharing knowledge, developing standards, and building connections in the industry. While impact investing in Asia has come a long way, there are still misconceptions about how to achieve solid investment returns.

But we see immense opportunities ahead, especially as we tackle the region’s most pressing social and environmental challenges. At ABC Impact, we are ready to seize these opportunities and make a real difference in Asia and beyond.

CIOs Message

Since inception, ABC Impact has been laser-focused on building a robust impact and investment measurement system. This allows us to demonstrate our commitment to sustainability and responsible investing, showcasing progress, while also informing future decisions.

2023 had presented challenges with geopolitical tensions, spiking commodity prices, and increased cost of capital. Amidst this backdrop, our impact fund navigated with agility and purpose having honed our lens, identifying the right business models to back and the key factors for adoption.

Technology emerged as a bright spot, driving continued investment such as AI solutions. This highlights the enduring power of innovation in shaping a more sustainable and equitable future and we made two investments in tech-driven companies to fight plastic pollution and reducing food waste.

Beyond investments, we focused on solidifying our impact framework. We continued to align our metrics with international standards, earned B Corp certification, and joined the 2xGlobal gender initiative and the ESG Data Convergence Initiative, actively contributing to standardization and best practices.

Collaboration remains a cornerstone of our approach. We partnered with the Centre for Impact Investing and Practices (CIIP) to share knowledge and mentor emerging impact investors. We actively participated in industry events and knowledge-sharing initiatives, contributing to the growth of the impact investing ecosystem.

Looking ahead, we are optimistic. We have a strong foundation, a refined investment strategy, and a deep network of partners. We are confident that by continuing to prioritize impact and financial returns, we can deliver exceptional value for our investors and make a lasting positive difference in the world.