Biotechnology company InnovaFeed’s facility in Nesle, France has an annual capacity of 15,000 MT of insect protein and 5,000 MT of insect oil.
Impact Review 2023

Our Focus

Accelerating Impact at Scale

We focus our investments on late-stage venture and growth-stage companies addressing pressing challenges. These companies are positioned for exponential impact, and that’s where we step in, offering both capital and expertise to accelerate the scaling of their solutions.

Double Bottom Line Driven

We actively seek founders who demonstrate an unwavering commitment to creating positive impact. A firm commitment to impact is non-negotiable—it must be ingrained and integral to the success of their business models. This alignment ensures that driving positive change directly correlates with achieving robust financial performance.

Positive Changes in Asia

Our primary focus is on investing in solutions that tackle Asia’s most urgent challenges. Leveraging our team’s extensive regional experience, we adeptly navigate diverse markets and effectively mitigate associated risks.

In 2023, ABC Impact invested in two innovative companies: Polymateria Limited, a biotransformation technology firm, and Winnow Solutions Ltd., a leading food waste management platform.

Fighting Plastic Pollution

Why It Matters

Plastic pollution is a major global challenge. Polymateria’s revolutionary biotransformation technology safely breaks down plastic items in the open environment into water, CO2, and biomass, without leaving microplastics or toxic residue. Widespread adoption of Polymateria’s technology could significantly reduce plastic pollution, protect ecosystems, conserve resources, as well as improve health and wellbeing.

Use of Funds

ABC Impact, together with industrial Indorama Ventures, led a £20 million Series B funding round for Polymateria. The funding will help to accelerate Polymateria’s expansion globally, particularly into developing Asia where plastic pollution is severe and collection infrastructure is poor. Polymateria also plans to boost its R&D capabilities, further enhancing the technology’s scalability and potential impact.

Read Press Release

Reducing Food Waste

Why It Matters

Food waste is not just a kitchen mishap but a global crisis as millions face hunger and greenhouse gas emissions runaway. Winnow’s AI-powered food waste reduction platform empowers commercial kitchens across 70 countries to slash their waste by an average of 50%. Its technology tracks food wastage in real-time and analyses patterns for the development of smarter practices for a more sustainable and equitable future for the world.

Use of Funds

ABC Impact’s investment will fuel Winnow’s expansion in Asia and further enhance its AI capabilities, ensuring maximum efficiency and drive behavioural change to build a sustainable food industry in the region.

Read Press Release

A Joint Message from Our Chief Investment Officer and Chief Impact Officer ABC Impact

Reflecting on the progress made in 2023 and with a hopeful outlook for the future, we are pleased to share our collective observations, learnings, and outlook for the year ahead. 

Navigating Global Challenges
In the face of geopolitical tensions and economic fluctuations in 2023, the ABC Impact team navigated the global investment landscape with agility and purpose. The uncertain global conditions, including geopolitical tensions such as trade disputes and regional conflicts, alongside economic fluctuations marked by inflationary pressures and supply chain disruptions, posed significant challenges. Despite these headwinds, we remained focused on identifying resilient business models and key adoption factors. Our strategic and disciplined approach anchored by our investing and impact frameworks, as well as the support from our founding investors, enabled us to weather the uncertainties and demonstrate the resilience of steadfast impact investing in turbulent times.

Combatting Climate Change and Embracing Technology
One area where we saw significant opportunity for impact was in combating climate change through technology. The urgent need to address climate change has propelled the development of innovative solutions aimed at reducing greenhouse gas emissions and building climate resilience. By investing in climate technology innovators and supporting the deployment of scalable solutions in Asia, we are playing our part in the global effort to mitigate the impacts of climate change.

The potential role of artificial intelligence (AI) in driving impact solutions is particularly promising. AI-powered solutions can analyse vast amounts of data to optimise resource use, enhance decision-making processes, and drive efficiency across various sectors, including renewable energy, agriculture, and waste management.

With the launch of ABC Impact Fund II, we expect to continue directing our efforts towards identifying climate tech solutions that can address the climate crisis. From renewable energy technologies to carbon capture and storage solutions, these innovations have the potential to drive transformative change and accelerate the transition to a low-carbon economy.

Market Trends Shaping Impact Investing
In addition to our internal efforts, we are also mindful of the broader market trends shaping the impact investing landscape. Sustainable food systems, stronger biodiversity conservation efforts, measures to combat greenwashing, increasing recognition of the importance of private investments in emerging markets, and a growing confidence in impact investing returns, are among some of the key trends driving change in the industry.

In particular, the recognition of emerging markets as engines of sustainable development has led to increased private investment in these regions. Impact investors are partnering with local entrepreneurs and businesses to address social and environmental challenges while unlocking economic opportunities and fostering inclusive growth.

The growing evidence of positive financial returns alongside meaningful social and environmental impact has also bolstered confidence in impact investing. More investors are incorporating impact considerations into their investment strategies, driving a shift towards responsible and purpose-driven capital allocation. The successful launch and first closing of our ABC Impact Fund II underscores this positive momentum.

These market trends reflect a continuing and broadening shift towards sustainable and inclusive investment practices, aligning financial objectives with societal and environmental goals.

Upholding Industry Standards and Best Practices
Since our inception, ABC Impact has remained steadfast in our commitment to establishing a robust impact measurement and management system. This framework not only underscores our dedication to sustainability and responsible investing but also guides our decision-making process.

In 2023, we reinforced our impact framework by aligning our metrics with international standards, obtaining B Corp certification, and actively participating in initiatives such as the 2xGlobal gender initiative and the ESG Data Convergence Initiative.

This commitment to industry standardisation and best practices strengthens our credibility and ensures accountability.

Collaborative Approach To Success
The Chief Investment Officer and Chief Impact Officer work hand in hand towards ABC Impact’s mission, recognising that there is no trade-off between commercial or impact outcomes for us. Our track record from our inaugural fund, where we invested in 12 impact companies across our investment themes and made one successful exit, is a testament to the close collaboration between our investment and impact teams. By aligning our investment strategy with our impact objectives, we create value for both our investors and society.

Call to Action and Appreciation
As we navigate these trends and challenges, we call upon founders, investors, and other stakeholders to join us in our mission to drive positive change and create a better tomorrow for all.

We would also like to extend our heartfelt gratitude to Temasek Trust, Temasek, and our other investors for their unwavering support, as well as to our portfolio companies and founders for their dedication and partnership in our journey towards meaningful impact.

Envisioning a Brighter Future
With a collective effort, optimism, and a commitment to sustainable impact, we envision a brighter future for generations to come. Together, we can build a world where prosperity is shared, the environment is protected, and opportunities abound for all.

TAN Shao Ming
Chief Investment Officer
Sugandhi MATTA
Chief Impact Officer
Copyright 2024 © ABC Impact. All Rights Reserved

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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.