Portfolio companies generated impact for over 20M people; avoided 1.68MT of CO2 Emissions
- Singapore-based impact investor to further focus on investing in technologies that can scale and deliver meaningful impact for Asia
- Portfolio additions in 2022 included French biotechnology company Innovafeed, China-based child autism intervention services provider DaMi & XiaoMi, and United Kingdom-based precision liquid cooling technology specialist Iceotope
- Discloses fund Theory of Change and adopts industry operating frameworks and principles
28 March 2023, Singapore – ABC Impact, the Singapore-headquartered impact private equity investor, today launched the third edition of its annual Impact Report, “Shaping the Climate for Impact”, to share its impact progress and outcomes achieved in 2022. In 2022, the impact private equity fund continued to steadfastly shape its portfolio anchored on innovative solutions that can address the most pressing environmental and social problems in Asia. In the course of the year, the fund added three new investments to its impact portfolio – French biotechnology company Innovafeed, China-based child autism intervention services provider DaMi & XiaoMi, and United Kingdom-based precision immersion cooling technology specialist Iceotope.
With the support of ABC Impact, its portfolio companies have collectively delivered the following impact outcomes:
- 20.26M people supplied with essential services
- 7.78M students provided access to quality education content digitally
- 31,747 stakeholders benefited from autism therapy services
- 2.64M individuals & micro-enterprises gained access to financial services
- 7.76M farmers globally gained access to customised farming advice and information
- 1.68M metric tonnes of CO2 emissions avoided
- 42.6B litres of water saved through avoidance of livestock agriculture
Since inception in 2019, ABC Impact has invested USD199M in 10 companies in Asia and Europe from its inaugural USD300M fund, with one successful exit.Established in 2019, ABC Impact’s founding investors are Temasek Trust, Temasek, Pavilion Capital, Mapletree Investments, Seatown Holdings, SP Group, and Sembcorp Industries. The impact private equity fund operates as a division of Singapore-based global asset management firm Temasek Trust Asset Management.
Investing In Technologies To Scale And Deliver Meaningful Impact For Asia
Asia is in a prime position to address climate-related challenges and capture opportunities that come from effectively managing climate risks. Asian countries are urbanising rapidly and building up infrastructure, which in turn highlight opportunities to deliver sustainable development and improve climate resilience for its societies.
David Heng, CEO of ABC Impact, said, “In 2022, we observed both alarm and ambition toward addressing the global climate crisis. There has been an uprising of solutions and opportunities to aid the Net Zero agenda and we are currently seeing low-carbon innovations advancing rapidly. The fund believes that the next wave of creating equality and prosperity lies in the drive towards a decarbonized economy.”
Committing To Impact Investing Standards, Discipline, And Transparency
In 2022, ABC Impact adopted the Operating Principles for Impact Management. The principles are designed to promote greater discipline, transparency, and credibility to the impact investment market. The fund also engaged impact verification provider BlueMark to provide an independent assessment and review of its impact measurement systems. In the same year, the impact investor signed on to the United Nations-supported Principles for Responsible Investment (“UN PRI”). The UN PRI is the world’s leading proponent of responsible investment. As a signatory, ABC Impact incorporates the UN PRI’s six principles for responsible investment into its investment and management practices to foster a more sustainable global economy.
In its third Impact Report “Shaping the Climate for Impact”, ABC Impact also publishes for the first time its fund Theory of Change. The Theory of Change model is referenced by the impact investment industry for effective impact measurement and management. With this model, ABC Impact sets out how its investments will generate results that support the intended impact outcomes.
These initiatives underscore ABC Impact’s commitment to impact investing standards, discipline, and transparency. Through its investments as well as the adoption of these industry standards, the fund hopes to contribute towards the shaping of a conducive climate for impact transformation in Asia.
Outlook – The New Economy
The collective race towards net zero, alongside the rise of a new generation of environmentally and socially conscious consumers who expect companies to do good, is creating a new economy – one led by sustainable, scalable, and impact-driven companies creating solutions to address critical social and environmental challenges.
David said, “Going forward, we continue to see compelling investment opportunities in solutions addressing inclusion, climate change, and the energy transition. Our strategic goal remains to seek out relevant and applicable technologies and business models for the Asia context. As an Asia specialist, ABC Impact is well-positioned to help these companies achieve scale and deliver meaningful impact in the region.”