Who’s Doing Good?

16 March 2020 - 29 March 2020

THE GIVERS
Philanthropists are funding vaccine research, donating supplies, and setting up funds to support hard-hit communities. Crowdfunding websites in Indonesia and Singapore are also seeing a surge in donations.

Jack Ma, Alibaba co-founder, has donated millions of masks, test kits, and other relief materials to countries around the world. This includes the hardest-hit countries—the United States, Korea, Iran, Spain, and Italy—as well as other countries across EuropeAsia, Latin America, and Africa. Ma’s initiative is a collaboration between his eponymous foundation and Alibaba Foundation. The Jack Ma Foundation pledged US$14.4 million to vaccine research—including US$2.15 million to Australia’s Peter Doherty Institute for Infection and Immunity and US$2.15 million to researchers at Columbia University in New York. 

Anand Mahindra, Mahindra Group chairman, offered 100% of his salary to a new Mahindra Foundation fund that will assist hardest-hit communities like small businesses and self-employed individuals.

Lei Jun, Xiaomi CEO, contributed US$1.8 million to relief efforts. The donation went to his home province of Hubei—the epicenter of the outbreak.

Li Ka Shing, Hong Kong tycoon, donated US$13 million to help Wuhan amidst its outbreak. His eponymous foundation also sourced medical supplies for hospital workers in Hong Kong and Wuhan.

The Lee family, which controls Henderson Land Development, set up an anti-epidemic foundation with seed-funding of US$1.4 million.

Adrian Cheng, scion of the family group behind New World Development and Chow Tai Fook Jewellery, donated over US$7 million to nonprofits, schools, and hospital in Hong Kong and Guangzhou.

Indonesian crowdfunding platform Kitabisa sees surge in fundraising campaigns for Covid-19. A total of 513 campaigns have been initiated by public figures, nonprofits, and members of the general public. Total donations amounted to US$1.4 million as of March 23.

Giving.sg, sees 67% spike in donations. More than US$1.5 million was raised on Singapore’s official fundraising site. 15% of the total was raised from campaigns included in the SG United Movement—a government initiative launched on February 20th to streamline contributions to coronavirus-related initiatives.

THE NONPROFITS
Charities in different cities are stepping up their operations and raising money for communities both at home and abroad.

The Hong Kong Jockey Club Charities Trust set up a HK$50 million (approximately US$6.5 million) Covid-19 Emergency Fund to provide emergency support to local communities and mitigate the health and societal impact of the outbreak.

Singapore Red Cross collected donations worth more than US$4.5 million for relief efforts related to the outbreak. Approximately US$1.7 million went to purchasing and distributing protective equipment for hospital staff and other healthcare workers in China. The charity also worked to educate Singaporeans about the outbreak by calling and visiting senior citizens to ease their concerns.

Pakistan’s largest charities, including Al-Khidmat Foundation and Saylani Welfare, are aiding the country’s Covid-19 efforts. Al-Khidmat Foundation is distributing soaps, sanitizers, and face masks across the country, and has designated isolation wards in the 52 charity hospitals it runs. Saylani Welfare has introduced a mobile phone application and telephone service where families in need can register themselves to get rations and supplies.

THE BUSINESSES
Companies are setting up their own Covid-19 relief funds, leveraging their resources to contribute to relief efforts, and supporting government initiatives. Others are donating through charities or donating needed medical supplies. Companies across Asia are also taking a “business not as usual” approach to help relieve financial stress.

Setting up funds to help combat Covid-19.

Tencent announced a US$100 million Global Anti-Pandemic Fund, with an initial focus on sourcing medical supplies for hospitals and healthcare workers. Prior to this global fund, Tencent had also established the China Anti-Pandemic Fund, which had allocated US$211 million towards research, medical supplies, technology support, as well as towards support for frontline workers, patients and their families. 

Alibaba set up a US$144 million fund to source medical supplies for Wuhan and Hubei province.

Godrej Group earmarked a fund of around US$7 million for community support and relief initiatives in India focused on public health.

Swire Group Charitable Trust (Swire Trust) established the HK$3 million (approximately US$400,000) “Community Fund to fight Covid-19” to support NGOs in delivering their services safely amidst the outbreak. Swire Group also donated over US$1.5 million to help combat the outbreak in Hong Kong.

K. Wah International (KWIH) announced a roughly US$500,000 donation through its KWIH Anti-Epidemic Fund for Tung Wah Group of Hospitals (TWGH). The fund will convert part of the Jockey Club Ngai Chun Integrated Vocational Rehabilitation Centre into a surgical mask production factory. TWGH will provide job training for people with disabilities to assist in the production of an estimated 2.2 million surgical masks per month.

Samsung Group raised nearly US$1 billion for an emergency support fund to aid to its subcontractors amidst Covid-19.

HSBC announced a US$25 million Covid-19 donation fund. The money will support international medical response, protect vulnerable communities, and ensure food security around the world. US$15 million will be made available immediately, with the remaining designated for long-term Covid-19 commitments.

Supporting government initiatives.

Unilever Vietnam committed US$2.245 million and partnered with the Ministry of Health and Ministry of Education and Training to implement its “Stay Strong Vietnam” initiative. Unilever also pledged to donate 550 tonnes of personal hygiene items, sanitization products, and food products to over 1.6 million people across 3,000 schools, hospitals, and isolated communities.

Petronas contributed nearly US$5 million worth of medical equipment and supplies for medical front-liners in Malaysia through its CSR arm Yayasan Petronas. The contribution will be carried out in stages in collaboration with Malaysia’s Ministry of Health and the National Disaster Management Agency.

Government-Linked Companies (GLCs) and Government-Linked Investment Companies’ (GLICs) Disaster Response Network, is coordinating support from companies to assist the Malaysian Health Ministry in tackling the Covid-19 pandemic. The Disaster Response Network is managed by a joint secretariat led by Yayasan Hasanah, a foundation under Khazanah Nasional, and Telekom Malaysia. Early contributions from GLCs, GLICs, and private sector entities exceed US$9 million.

Malaysian companies including Spanco, DRB-HICOM, MMC Corp, and YTL Corp contributed donations ranging from US$230,000 to US$500,000 to the Covid-19 fund launched by Prime Minister Tan Sri Muhyiddin Yassin.

11 Filipino-Chinese organizations, led by the Federation of Filipino-Chinese Chamber of Commerce and Industry, announced a donation of nearly US$2 million worth of medical supplies. The donation will help the Philippines’ Department of Health acquire testing kits and other protective equipment.

Tencent joined Baidu and ByteDance to donate a total of US$115 million towards researching new treatments and helping authorities in the most affected areas in China.

Adaro Energy, Indonesia’s major coal producer, gave the government US$1.3 million to help it fight Covid-19 through its task force.

Leveraging their own resources.

Alibaba Cloud, DAMO Academy, and DingTalk together launched a series of AI technologies and cloud-based solutions to support companies and research organizations worldwide.

Mahindra Group offered resorts owned by the company to be used as Covid-19 hospitals. The Group’s chairman announced that the company is prepared to help government efforts. The Group’s engineering team also indigenously developed a prototype for a ventilator that could cost less than US$100 each.

Reliance will make 100,000 masks per day and offer free fuel to emergency vehicles. Reliance’s CSR arm has prepared one of its hospitals in Mumbai to be India’s first 100-bed facility for Covid-19 patients, and is offering free meals in various cities to support affected communities.

New World Development is outfitting a factory to manufacture more than 200,000 masks per day, and it has partnered with a nanotechnology company to research how nanodiamonds can be used to make masks more protective against bacteria and viruses.

Donating through charities or donating supplies.

The Ministry of Corporate Affairs in India announced that the spending of CSR funds towards Covid-19 initiatives is eligible to be counted as CSR activity under the Companies Act. This frees up around US$2 billion in philanthropic capital to go towards combatting Covid-19.

Tata Trusts has committed nearly US$200 million to fight Covid-19. The funds will be used to buy protective equipment for medical workers, respiratory systems, testing kits, as well as for setting up modular treatment facilities for patients.

Shimao Property Holdings donated around US$4 million, via the Red Cross Society of China, to help combat the outbreak.

APP, a subsidiary of Indonesia-based Sinar Mars Group, donated US$14.4 million to the Overseas Chinese Charity Foundation of China.

Huawei contributed to the construction of the Huoshenshan Hospital in Wuhan and donated medical supplies, computer tablets, and other technological equipment to several European countries. This includes 2 million face masks.

Hyundai Motor Group, SK Group, and LG Group donated over US$4 million each to the Community Chest of Korea to assist the hardest-hit city of Daegu and North Gyeongsang province.

Samsung Group donated a combined US$24.6 million to the Korea Disaster Relief Association.

Hana Financial Group, Shinsegae Group, Doosan Group, and CJ Group each offered nearly US$1 million in donations to the Korea Disaster Relief Association.

Lotte Group donated nearly US$1 million, of which US$254,000 went to the Korean Red Cross.

For hard-hit communities, including those in North Gyeongsang province, SK Group’s SK Siltron announced nearly US$400,000 for face masks and hand sanitizers. LG Household & Healthcare announced nearly US$1 million for hand sanitizer. Lotte provided meals and hygienic supplies to welfare facilities and gave sanitization products, food, and daily necessities to lower-income households, senior citizens, and healthcare workers.

SoftBank CEO Masayoshi Son pledged to donate 1 million masks to elderly care facilities and doctors in Japan.

Fast Retailing, the parent company of Uniqlo, is donating 10 million masks to medical institutions in Japan and around the world. It’s also donating garments for medical staff and 1 million masks to countries with high infection rates—including the United States and Italy. 

Shiseido Group donated US$1.43 million to the Shanghai Charity Foundation and US$143,000 to the Charity Foundation of Wuhan. It also announced the Relay of Love Project, which will allocate 1% of the Group’s sales in Asian markets, between February and July this year, as in-house funds to support regions most affected by Covid-19.

Ayeyarwady Foundation together with Max Myanmar Group, AYA Bank, and AYA Sompo Insurance contributed over US$72,000 worth of medical supplies, hospital equipment, and protective materials to Waibargi Hospital and Yankin Children Hospital.

“Business not as usual” approach.

Gojek is offering a stipend to its driver-partners that test positive for Covid-19. Gojek is also extending support to healthcare workers in Indonesia by waiving food delivery fees in areas near hospitals and offering vouchers for trips to and from hospitals and testing centers.

Ayala Group announced around a US$47 million response package to offer financial relief to businesses within its ecosystem. This includes salary continuance for affected employees and partners, as well as rent-free periods for tenants of Ayala malls, which are closed during the community quarantine till April 14.

Bangkok Bank donated over US$300,000 to Thammasat University Field Hospital, the King Chulalongkorn Memorial Hospital and Thai Red Cross Society. The bank is also introducing financial relief measures such as reducing minimum payment rate for credit card customers to 5%.

CIMB in Malaysia is offering a six-month moratorium for customers on all types of financing payments except for credit cards. Credit card customers can now opt in to convert their outstanding balances into a term loan/financing over a period of up to 36 months.

THE SOCIAL ENTERPRISES
Social enterprises are adjusting their work to address the needs arising from Covid-19.

Hong Kong social enterprises are rising to the occasion to help combat the outbreak. SoapCycling has distributed masks and soap salvaged from local hotels to nearly 3,000 of the city’s street cleaners. Sew On Studio is selling face mask kits with fabric made by the city’s elderly tailors. Rooftop Republic, which usually promotes urban farming, is making washable, eco-friendly masks that can be worn over surgical masks.

Chinese social enterprise Yishan, a data-driven donor advisor, has built a platform for donations towards supporting Covid-19 relief efforts. So far, Yishan has registered over 40,000 grantmakers and 5,000 public charities, who have raised over US$4.5 billion thus far for their efforts in fighting Covid-19.

THE VOLUNTEERS
New volunteers are stepping up and coming together to help their communities during the crisis.

A new generation of volunteers emerges in Wuhan. Amidst the Covid-19 outbreak, ordinary people stepped up and joined forces to take care of emergency needs unmet by an overwhelmed government. Networks of young volunteers were formed over social media to respond to a variety of needs, from sourcing masks for hospitals to driving medical staff to and from work.

THE TRUSTBREAKERS 

In this section, we usually share stories about scandals that are having negative repercussions for the social sector. With the fear and anxiety surrounding Covid-19, there are some trust-breaking stories circulating from price-gouging to faulty medical supplies. Fortunately, the stories of people being constructive during these times far outnumber them. We look forward to bringing more of these positive stories to you in the coming weeks.

RESOURCES
The Covid-19 pandemic has brought much attention to financial markets and businesses, but the nonprofit sector has also been severely impacted in these unprecedented times. These resources offer guidelines for how the sector can weather the storm.

India Development Review highlights five ways funders around the world are helping their partners cope with Covid-19. IDR has also crowdsourced guidelines and practices that social sector organizations—from donors to field workers—are taking in response to Covid-19.

Who’s Doing Good?

02 March 2020 - 15 March 2020

THE GIVERS

Jack Ma to donate test kits, masks to US in fight against coronavirus. Chinese billionaire and Alibaba co-founder Jack Ma announced a donation of 500,000 coronavirus testing kits and 1 million masks to the United States, according to Nikkei Asian Review. Ma’s initiative, a collaboration between his eponymous foundation and Alibaba Foundation, also includes donating relief materials to Japan, Korea, Italy, Iran, and Spain. Ma has also urged for international cooperation and speedy, accurate testing to fight the health crisis. “The pandemic we face today can no longer be resolved by any individual country,” he said in a statement. As the number of cases rise in the United States, American billionaires Mark Zuckerberg and Bill Gates have also recently announced initiatives to expand testing in their localities.

THE NONPROFITS

Gates Foundation and Wellcome set up US$125 million coronavirus drug fund. The world’s two largest medical research foundations are committing US$50 million each in “seed funding” for a Covid-19 Therapeutics Accelerator, according to Financial Times. Mastercard’s Impact Fund charity is joining the effort with a US$25 million contribution. The Accelerator aims to develop treatments for Covid-19 and serve as a catalyst to draw in more funding. Wellcome director Jeremy Farrar expressed hope that other donors will see the Accelerator as an attractive vehicle to support research and development of Covid-19 treatments. Farrar sits on the board of the Global Preparedness Monitoring Board, which recently estimated that US$1.5 billion will be required for research and development of a portfolio of four Covid-19 treatments. The Accelerator will work with the World Health Organization, governments and the private sector to provide fast and flexible funding at all stages from research to scale-up.

Coronavirus-battered NGOs say Hong Kong’s charity sector needs government aid to keep doing their work, avoid redundancies. A group of larger Hong Kong nonprofits is calling for help as donations decline amid the coronavirus outbreak. The nonprofits told South China Morning Post that the sector is struggling to stay afloat as many fundraising events have had to be cancelled. This comes after a difficult year for nonprofits, who were already facing fundraising challenges amidst last year’s anti-government protests. While the government rolled out a HK$30 billion (approximately US$4 billion) relief package last month, nonprofits are saying the sector—which employs 52,000 people—is not among those benefiting from the relief package. Sue Toomey, executive director of HandsOn Hong Kong, a charity that connect volunteers with community needs, noted “In the same way as the government seems to be acting quickly to help small businesses, we’d like to see similar consideration given to nonprofit organizations.”

Which charities to donate to? Singapore’s new index to help public decide at a glance. Charities in Singapore could be “graded” by next year in a new initiative announced by the Senior Minister of State for Culture, Community, and Youth. The new regulatory compliance indicator is expected to be rolled out next year on the government’s charity portal website. Aiming to help donors make informed choices, the new indicator will show whether a charity has met the minimum 80% regulatory compliance prescribed in the Code of Governance for Charities and IPCs, and whether its audit opinion has been qualified. A national initiative will also be rolled out to encourage legacy giving (planned donation from a person’s assets). The Community Foundation of Singapore’s chief executive underscored its importance, saying, “There are donors interested in making legacy gifts, but they want more knowledge to make informed choices. They want accountability for their gifts and trust is important before they are willing to donate.” An online pledge system will also be introduced, streamlining the process.

THE BUSINESSES

Hong Kong’s social enterprise sector needs HK$40 million (approximately US$5.2 million) relief package to survive coronavirus crisis, government told. Similar to the nonprofit sector in Hong Kong, the social enterprise sector is also seeking assistance. The Hong Kong General Chamber of Social Enterprises (HKGCSE) surveyed 214 social enterprises, around a third of the city’s social enterprise sector, to showcase the challenges social enterprises are facing during the coronavirus outbreak. The survey revealed that nearly 20% had no revenue at all, and one in four had either closed or suspended operations. The average turnover of most companies interviewed more than halved in January and February, compared with the same period last year. With around 40% reporting that their cash flow will only sustain them for less than three months, the HKGCSE is urging the government to phase in a series of measures to help such as HK$80,000 (approximately US$10,000) for each social enterprise which has received government funding, rent waivers, and special subsidies to cover the salaries of handicapped staff. Perhaps in response, the Hong Kong government has just announced a HK$5.6 billion (US$722 million) “Retail Sector Subsidy Scheme” under the “Anti-epidemic Fund,” which is open to applications from social enterprises. The Scheme will provide a one-off subsidy of HK$80,000 to retailers facing financial difficulties amidst the coronavirus outbreak. Retail stores of social enterprises are eligible to apply through the Social Enterprise Business Centre (SEBC).

THE INNOVATORS

United Nations ESCAP and SEAF partner to unlock US$150 million in capital to advance female entrepreneurship in Asia. The United Nations Economic and Social Commission for Asia and the Pacific and the Small Enterprise Assistance Funds (SEAF) have partnered to “catalyze women’s entrepreneurship through impact investing in Asia.” The collaboration aims to unlock growth capital through the development and management of private equity impact funds focused on women. SEAF will launch and manage the SEAF Women’s Economic Empowerment Fund as well as expand SEAF Bangladesh Ventures. ESCAP will support SEAF with technical assistance and grant support. Together the two funds will collectively bring over US$150 million in capital towards catalyzing the women’s entrepreneurship ecosystem in ASEAN and Bangladesh.

THE VOLUNTEERS

Singapore sees spike in donations, volunteers in February. Giving.sg, a fundraising website run by the Singapore’s National Volunteer and Philanthropy Centre (NVPC), supports over 500 organizations in sourcing volunteers and donations. Donations to the site significantly increased last month amid the coronavirus outbreak, raising more than SG$2.2 million (approximately US$1.5 million). According to NVPC, this is 67%, or almost SG$900,000 (approximately US$650,000), more than that raised in the same period last year. The number of people who volunteered through the site in February also rose to over 1,000 volunteer sign-ups, a 10% uptick from February last year, according to Straits Times. The NVPC reported that 15% of the amount raised last month was from its 19 campaigns that are part of the SG United Movement—which the government launched on February 20th—to “streamline contributions to help those affected by the virus outbreak, including linking to coronavirus-related initiatives on the Giving.sg site.”

Who’s Doing Good?

3 February 2020 - 16 February 2020

THE GIVERS

Bill & Melinda Gates Foundation increases donation to US$100 million for coronavirus relief efforts. Having initially pledged US$10 million to help combat the novel coronavirus, the Foundation recently announced it is increasing its spending to US$100 million. A statement by the Foundation said that its funds will be used to “find a vaccine for the virus, limit its spread, and improve the detection and treatment of patients.” US$20 million will be immediately directed to groups including the US Centers for Disease Control and Prevention and the World Health Organizations. Funding will also be allocated to public health agencies in China and other affected countries. Prominent business leaders also continue to pledge millions, including Xiaomi CEO Lei Jun who recently contributed US$1.8 million to relief efforts in his home province of Hubei—the epicenter of the outbreak.

THE THINKERS

Encouraging businesses to give back to society. CAPS’ Chief Executive Ruth Shapiro discusses the upcoming Doing Good Index 2020 in The Annapurna Express. The index examines philanthropic environments across 18 Asian economies through the lenses of regulations, tax policies, procurement and societal ecosystems related to private social investment. Shapiro states, “By compiling the DGI, we want to understand what enables the giving and receiving of money and other resources, and what holds it back.” Shapiro also highlights the importance of philanthropy, and how it goes beyond charity, “Philanthropy is more systematic. We are trying to bring about system change instead of a one-off reaction. So philanthropy is a more strategic way to help others.” Doing Good Index 2020, which covers three extra economies (Nepal, Bangladesh, and Cambodia) compared to the inaugural 2018 edition, will be released in Spring 2020.

THE BUSINESSES

Corporate China opens its wallet to fight coronavirus outbreak. Nikkei Asian Review reports on the rise of charitable contributions by Chinese companies amidst the COVID-19 outbreak. Around 130 listed companies have pledged ¥725 million (US$104 million) in cash or in-kind donations, according to a Nikkei Asian Review tally of official disclosures on the Shanghai and Shenzhen stock exchange websites. Some companies are leveraging their global networks to source in-kind donations ranging from masks and protective suits to free meals and drinking water. While companies are driven by a desire to help during uncertain times, the article highlights that over 20 companies have indicated hopes that their donation will help reflect their commitment to social responsibility and raise their social profile.

KKR closes US$1.3 billion global impact fund. The leading global investment firm announced the final closing of the KKR Global Impact Fund at US$1.2 billion. The Fund is “dedicated to investment opportunities in companies whose core business models provide commercial solutions to an environmental or social challenge.” The Fund is focused on identifying investment opportunities in lower middle market companies that contribute measurable progress towards at least one of the UN Sustainable Development Goals. A KKR partner noted, “We are thrilled to see our investors’ shared enthusiasm for the tremendous opportunity we see ahead for KKR Global Impact and will build on this to help set the new standard across investing, value creation and measuring success in the space.”

THE INNOVATORS

Tech startup Village Link is improving yields for farmers in rural Myanmar. Founded in 2016, Village Link focuses on strengthening Myanmar’s agriculture sector, which is estimated to account for 38% of the country’s GDP. Since agricultural productivity in Myanmar is still relatively low, the tech startup launched an app, Htwet Tow, for farmers to connect and learn from agriculture experts. For example, farmers can upload photos of their crops for a “diagnosis” and receive advice on best practices. The app also connects farmers to distributors and buyers, and offers updates on weather changes, market prices of crops, and best crop cultivation techniques. According to the startup, the app has gained around 46,000 monthly active users as of December 2019 and recently became the first winner from Myanmar in the ASEAN AgTech category at the ASEAN Rice Bowl Startup Awards.

Asian Development Bank (ADB) unveils venture platform to invest in impact technology startups. ADB Ventures will support and invest in startups offering impact technology solutions focused on the Sustainable Development Goals in the Asia-Pacific region. ADB Ventures Investment Fund 1—the facility’s anchor trust fund—has a target size of US$50 million. Unlike traditional venture capital funds, ADB Ventures Investment Fund 1 has a three-year US$12 million technical assistance program through two arms. ADB Ventures SEED is a grant program to de-risk technology pilots and promote expansion into emerging markets. ADB Venture Lab is a suite of corporate innovation programs, industry, and accelerators, which will support these startups and help generate technology pilot opportunities.

THE VOLUNTEERS

Food charities in Singapore get wave of help following appeal. Food banks and other volunteer-run charities are facing challenges amid the COVID-19 outbreak. Singaporean nonprofit Food From The Heart saw 90% of its volunteering sessions cancelled as companies suspended their CSR volunteer programs for employee safety reasons. Monetary donations are also declining in this uncertain climate. The nonprofit Free Food For All estimated a 50% drop in donations received, but its founder said that “asking for donations during this time is a thorny issue.” Luckily, individual volunteers are stepping up to fill this gap. One food charity saw a surge in offers to help from schools, corporations, and even the Singapore Land Authority. Singapore’s National Volunteer and Philanthropy Centre (NVPC) has also set up a centralized platform to “give all donors and volunteers a single point of reference for the most pressing needs during this period of the COVID-19 outbreak.” Here, charities can appeal for volunteers and share their fundraising efforts.

Who’s Doing Good?

20 January 2020 - 2 February 2020

THE GIVERS

Jack Ma donates US$14 million to develop coronavirus vaccine. CNN reports that China’s richest man Jack Ma has donated a total of ¥100 million (US$14.4 million) through his eponymous foundation to help develop a vaccine for the novel coronavirus. The Alibaba founder has earmarked ¥40 million (US$5.8 million) for two Chinese government research organizations, while the remainder will support prevention and treatment measures. Alibaba has also announced a ¥1 billion (US$144 million) fund “to buy medical supplies for Wuhan and Hubei province, the epicenter of the virus outbreak.” According to the China Daily, other Chinese companies are also donating funds and offering measures of support to coronavirus treatment efforts.

Chinese tech giants and global philanthropists donate to help fight coronavirus outbreak. In addition to Alibaba, Chinese tech giants Baidu, Tencent, Huawei, and ByteDance are also offering support to help combat the novel coronavirus. Together, Baidu, Tencent, and ByteDance have pledged ¥800 million (US$115 million) to research new treatments and help authorities in the most-affected areas. Huawei has contributed by supporting the construction of the new Huoshenshan Hospital in Wuhan. Other companies from Chinese sportswear brand Anta Sports to large multinationals in the U.S. and Europe are also joining the effort. The Bill & Melinda Gates Foundation announced that it would commit US$10 million to support first responders in China and Africa, including US$5 million for treatment and vaccine development.

THE THINKERS

Philanthropists save their legacy, but the next generation saves the world, according to new report. A new Campden Wealth report, Global Trends and Strategic Time Horizons in Family Philanthropy 2020, reveals little variation in environmental priority for philanthropists globally. Educational causes remained the biggest beneficiaries of average philanthropic portfolios—with Asia-Pacific families being the biggest allocators to education. But next-gen philanthropists are shifting priorities as they move into decision-making roles in their families’ charities. Campden Wealth’s director of research noted, “Beyond next-gens’ strong influence in the sustainable investment space, they are also set to significantly affect philanthropic giving. This can result in more meaningful funding for certain important causes, such as the environment.”

THE NONPROFITS

Gates Foundation launches new agriculture-focused nonprofit. The Bill & Melinda Gates Foundation Agricultural Innovations, or Gates Ag One, is a new nonprofit subsidiary of the foundation. It will focus on helping smallholder farmers—the majority of whom are women—adapt to climate change. As the president of the Gates Foundation’s Global Growth & Opportunity division noted, “While smallholder farms are highly vulnerable to the impacts of climate change, the private sector is not incentivized to bring promising early-stage discovery to development in sub-Saharan Africa and South Asia.” Gates Ag One will work to not only accelerate agricultural research and development, but also make early-stage discoveries more accessible and affordable to smallholder farmers. 

THE BUSINESSES

SK Chairman Chey Tae-won advocates social value measurement model in Davos. Mr. Chey has advocated corporate social value creation since 2013, when he first proposed the concept at the World Economic Forum in Davos. “It is not an option but an obligation to change the goals and systems of corporate management from the interests of shareholders to those of stakeholders,” Chairman Chey said. At this year’s forum, he discussed SK’s developments in this area including the Group’s social value measurement model, which has been used to measure social value created by social enterprises since 2014 and by SK affiliates since 2018. In addition, SK Group has joined forces with the OECD, World Bank, the world’s four biggest accounting firms, and other companies to form the nonprofit Value Balancing Alliance and develop a standardized measurement model that can be accepted internationally. 

Top Indian companies’ CSR arms join forces to combat climate change. The philanthropic arms of leading Indian corporates announced a new partnership to combat climate change: the India Climate Collaborative (ICC). ICC will work to “strengthen the climate community locally, build a climate narrative, and drive solutions that will ensure both the natural world and people thrive.” The collaborative includes industry leaders such as the Tatas, Mahindras, Godrejs and Premjis. Vodyah Shah, Rohini Nilekani, and Harmendra Kothari are also part of the 40-member collective. Tata Trusts Chairman Ratan Tata had this to say about the ICC, “Our collective leadership through the ICC will indicate to the world that Indian philanthropy is ready to be a leader in climate action.”

THE INNOVATORS

Malaysia urged to make social enterprise scheme simpler. Thomson Reuters Foundation reports on the 22 social enterprises in Malaysia who received accreditation this month through a new government-backed scheme. The accreditation officially recognizes social enterprises and offers tax deductions and access to grants. Entrepreneurs expressed hope that accreditation will help raise awareness among the public and businesses. However, some said the registration process was too cumbersome. Analysts warn that regulations can sometimes have the unintended consequence of hindering the growth of social enterprises. This article urges Malaysia to make its new social enterprise registration simpler and to offer greater financial incentives to boost the growing sector.

IN OTHER NEWS…

Local Red Cross under fire over China coronavirus donations remaining in warehouse. Aljazeera reports on recent allegations against the Wuhan Red Cross and Hubei provincial Red Cross over their distribution of donations. A report from Hubei’s Red Cross revealed that only 200,000 of 2 million masks donated from across China had been delivered to hospitals. It was also revealed that hospitals designated to treat coronavirus-infected patients were receiving fewer supplies than others. A Red Cross official explained their decision, stating that the masks were “KN95” standard rather than the “N95” standard required for frontline medical workers. Wuhan Red Cross is also being questioned about the ¥390 million (US$56 million) cash donations it received, of which only 13% has been spent on supplies. According to the article, Hubei Red Cross later apologized on its official Weibo account, saying it was “deeply regretful” about what had happened. Some hospitals are now only accepting direct donations and bypassing intermediaries.

Business for Good

Maximizing the Value of Social Enterprises in Asia

Asia is home to one-third of the world’s wealth and also to two-thirds of the world’s poor. The confluence of unprecedented wealth and unmet needs gives it both the mandate for and ability to leverage the power of social enterprises.

Our action-oriented study explores how. We identify gaps and quantify needs in funding, mentorship, talent and government support. But we also highlight how enablers—including incubators, accelerators, universities—can continue to support social enterprises. We suggest ways for social entrepreneurs and investors to align expectations in the hope of increasing deal flow and investment into the sector. And we outline how governments can strategize to better support social enterprise ecosystem.

We do this by not only drawing upon a global literature review, but listening to what Asian social enterprises themselves say. We surveyed 584 social enterprises from 6 economies: Hong Kong, Indonesia, Japan, Republic of Korea, Pakistan and Thailand, and profiled China and India. We also interviewed 140 social enterprise founders, incubators, accelerators, investors and government officials in depth. This original data not only informs our insights, it forms a unique repository of evidence in this space. Our data makes it easier to see Asia’s social enterprises as they really are.

As many families and companies are thinking about or starting to invest in social business as well as in incubators and ecosystem organizations, our findings are particularly timely and relevant. The 6 economies we gathered data from have more than 1.2 million social enterprises, and attract at least US$100 million of direct and indirect government spending per year. These economies are understudied, have growing social enterprise sectors with enormous potential, and—most importantly—are diverse enough for our insights to be generalizable to other regions in Asia.

Who’s Doing Good?

25 November 2019 - 9 December 2019

THE GIVERS

Forbes announces Asia’s 2019 Heroes of Philanthropy. In its 13th iteration this year, the list honors Asia’s leading philanthropists who are helping solve some of the region’s most pressing challenges through donations and their personal involvement. The unranked list features 30 individuals including Azim Premji from India, Jack Ma from China, and Theodore Rachmat from Indonesia. Broadly, 6 individuals from China, 4 from India, 3 each from Indonesia, Singapore and Australia, and 2 each from Hong Kong, Japan, Korea and Thailand are featured. Korean singer and actress Lee Ji-eun, 26, known by her stage name IU, is the youngest honoree on the list.

Seal of Love Charitable Foundation donates HK$40 million (approximately US$5 million) to Hong Kong University of Science and Technology (HKUST). The gift, channeled into the “Seal of Love Foundation Innovation Service Fund,” is aimed at empowering HKUST students to solve real-world problems through innovation and technology. The fund’s first donation is to the pre-existing Student Innovation for Global Health (SIGHT) project, which has been devising creative and affordable solutions to global health issues since 2014. Inventions by SIGHT include a mobile electronic health record system for slums and rural areas in Cambodia and Ghana. The Seal of Love Charitable Foundation was established in 2010 by Lawrence Chan, the heir to Chan Chak-Fu, a pioneer in the global hotel industry.

THE THINKERS

Asia home to the majority of people fleeing ‘climate chaos,’ Oxfam study finds. The study examines the number of people displaced within their home countries by climate-fueled disasters between 2008 and 2018. While the study looks at the impact of ‘climate chaos’ globally, it offers timely insight into displacement finding that 80% of all people forced from their homes by weather disasters over the last decade were in Asia. The report also finds that people are three times more likely to be displaced by environmental disasters (such as cyclones, floods, or fires) than by conflicts. Large populations in some Asian countries, such as the Philippines and Sri Lanka, live in areas threatened by cyclones or flooding. For example, this past May, Cyclone Fani alone led to the displacement of 3.5 million people in Bangladesh and India.

THE NONPROFITS

Piramal Foundation and Gates Foundation join hands in tribal health collaborative. The partnership leverages support from the Gates Foundation and other stakeholders including the Indian government to achieve SDG 3, “ensure healthy lives and promoting well-being for all at all ages.” India’s tribal communities are home to more than 150 million people and have poorer health standards than the national average. For instance, the average maternal mortality rate in India is 130 per 100,000 births while it can be as high as 230 deaths per 100,000 in tribal communities. The goal of the partnership is to build a high-performing and sustainable health ecosystem to address the needs of these marginalized populations. Speaking at the occasion, Bill Gates, co-chair of the Bill & Melinda Gates Foundation said, “Given the complexity and magnitude of the problem, we believe that partnerships with like-minded, values-based organizations such as Bill & Melinda Gates Foundation, that seek to complement the Government’s efforts, will provide the much needed impetus.”

THE INNOVATORS

Hong Kong millennials are investing family wealth sustainably, but the learning curve can be steep. Young heirs of family wealth want their money to do more than just generate returns—they want to make a difference. But doing so has not been straightforward. According to Michael Au, the managing director of District Capital, “One of the hurdles is the lack of advisers who understand the contemporary impact investing dialogue from an Asia perspective.” On the other hand, Ronnie Mak, the managing director of RS Group, states that they have been able to build and manage a fully sustainable portfolio and achieve a net annual return of 5 percent over the last 10 years. The old-guard is viewing these experiences with caution, according to Au, since they continue to believe that generating returns and doing good are mutually exclusive. CAPS’ newest report, “Business for Good: Maximizing the Value of Social Enterprises in Asia” challenges this perception. Viewing social enterprises as a critical vehicle for doing good, it offers actionable strategies to investors and philanthropists to maximize their impact.

World Bank’s catastrophe bonds provide US$225 million cover to the Philippines for dealing with natural disasters. Two tranches of the catastrophe-linked bond (CAT bond), the first of its kind, were released last week. The bond will provide immediate liquidity and insurance cover to the Philippines for three years. Issued by the International Bank for Reconstruction and Development, up to US$150 million will be channeled towards tropical cyclone-related losses while the remaining US$75 million will cover losses from earthquakes. The bond transfers risks related to natural disasters from developing countries to capital markets. According to Mara K. Warwick, World Bank Country Director for Brunei, Malaysia, Philippines, and Thailand, the CAT bond “demonstrates the Philippines’ capability to develop innovative financial solutions to mitigate impacts of extreme climate and weather-related events as well as major earthquakes.”

UNDP and Government of India launch accelerator to champion innovative approaches to development challenges. The India chapter of “Accelerator Labs,” a new UNDP initiative, will be part of a global network of 60 labs where innovative and homegrown solutions to global challenges such as climate change and inequality will be tested and scaled. The labs will employ real-time data and experimentation to quicken progress towards meeting the SDGs by 2030. The Government of India’s Atal Innovation Mission, part of a national effort to harness the potential of entrepreneurship, serves as the lab’s key partner in the country. At the launch, Mr. R. Ramanan, Mission Director of the Atal Innovation Mission said, “We remain committed to finding local solutions that can be scaled up not only in India, but also across the Accelerator Lab network.” The launch also featured #DateForDevelopment, a matchmaking activity aimed at fostering collaboration and knowledge sharing. Policymakers, impact investors, experts from civil society, scientists, and members of the private sector interacted in the activity to iterate over proposed innovations.

Social stock exchange in the works in India. A 15-member working group, constituted under the Securities and Exchange Board of India (Sebi), is likely to present a blueprint for a stock exchange for the social sector this month. According to Vineet Rai, co-founder of Avishkaar, a pioneering social enterprise, the social stock exchange will help potential donors find and fund credible organizations that are doing good. As these efforts proceed apace some concerns have also arisen. Former Sebi chairman, UK Sinha, opines that robust impact measurement will be a critical ingredient in the exchange’s success, and yet there are few metrics that combine social impact and financial success and can serve as an effective basis for qualification on the exchange. Despite these hurdles, however, Sinha agrees that the social stock exchange is a step in the right direction.

IN OTHER NEWS…

China’s star healthcare crowdfunding portal, Waterdrop, mired in scandal. The South China Morning Post (SCMP) reports that an undercover media report has shed light on a series of lapses and wrongdoings on the part of Waterdrop and its staff. SCMP reports that Waterdrop staff asked hospital patients to initiate crowdfunding projects and exaggerate their stories to garner sympathy. Waterdrop’s model incentivizes project creations according to one staff member who said he would lose his job if he did not meet the target of 35 projects initiated per month. The report also states that the financial situations of targeted families was not being verified and patients were not required to submit proof of how they were using the donated money. According to SCMP, verification and supervision are the most frequently raised issues about crowdfunding platforms in China. Shen Peng, 32, founder of Waterdrop, has vowed to transfer ownership of the platform to an NGO if he cannot manage it better in the future. Waterdrop had raised CNY1 billion (approximately US$145 million) in June this year.

Environment for NGOs likely to become grim under Sri Lanka’s new president. In an interview for the The Diplomat, Taylor Dibbert, an adjunct fellow at the Pacific Forum, opines: “I wouldn’t be surprised to see NGOs throughout the country–particularly in the heavily militarized north and east–getting visits from security personnel. Offices may be raided.” Gotabaya Rajapaksa was sworn in as the island nation’s eighth president earlier this month.

Who’s Doing Good?

30 September 2019 - 13 October 2019

THE GIVERS

Beauty brand Clé de Peau Beauté pledges US$8.7 million to UNICEF. The beauty brand–a division of Japan’s Shiseido–made the announcement on International Day of the Girl (October 11). The US$8.7 million donation is the “world’s largest contribution” to UNICEF’s Gender Equality Program, according to the announcement. It will aid UNICEF’s work in Bangladesh, Kyrgyzstan, Niger, and other countries. The donation will go towards girls’ education, particularly STEM (science, technology, engineering, and math) fields. The beauty brand has also pledged a percentage of sales from Clé de Peau’s The Serum product to UNICEF’s girls’ empowerment programs. Clé de Peau Beauté’s chief brand officer noted that this partnership with UNICEF aligns with the brand’s corporate vision for social value creation.

Hong Kong’s richest man Li Ka-shing will donate US$128 million to support local business. The Li Ka-shing Foundation announced a HK$1 billion (US$128 million) fund to support local small and medium sized businesses. The foundation said it made the donation as Hong Kong’s economy faces unprecedented challenges amidst a slowing global economy. The announcement follows recent government relief measures set forth for smaller companies impacted by the US-China trade war and the city’s protests. According to the foundation, its fund will complement these government measures. Regarding the donation Li stated, “I hope the HK$1 billion from the foundation can play a leading role. I encourage different sectors to give their opinions, work together and pool our wisdom.”

THE THINKERS

Asia must forge a new breed of partnership to achieve the Sustainable Development Goals. Asia’s greatest challenges today are inextricably linked to business, national growth, and political stability. Addressing these challenges therefore requires greater collaboration, according to The Rockefeller Foundation’s Director of Partnerships and Advocacy in Asia. While the region is already seeing multisector collaboration, this article argues that partnerships must go beyond simply breaking sector silos. To amplify impact, partnerships should design and invest behind solutions at the “nexus of challenges we seek to eradicate.” The article offers examples of The Rockefeller Foundation’s initiatives that aim to achieve multi-issue impact. 

Lessons from India on scaling up market-based solutions. As viable businesses that straddle the commercial and social sectors, market-based solutions (MBSs) have the potential to address poverty at scale. This Stanford Social Innovation Review article notes four common challenges investors and practitioners face and five simple questions they should ask to improve MBSs. The article also offers four recommendations for building stronger MBSs: build innovative and robust business models; invest in sizeable pilots to refine and evolve the business model; understand, address, and leverage ecosystem barrier; and attract experienced business leaders. Together, investors and practitioners can help fortify the nascent sector and build viable businesses that solve complex social problems.

THE BUSINESSES

Human rights in Southeast Asia suppliers become priority in Japan. Japanese companies are putting forth efforts to curb human rights abuses in their supply chains. Ajinomoto, Fuji Oil Holdings, and ANA Holdings are a few companies that are becoming more human rights focused. However, they face a challenge in collecting information on workers’ conditions in developing countries. Companies are therefore partnering with nonprofits to gain insight on actual working conditions. These efforts illustrate how businesses can gather information related to their operations in efforts to resolve human rights-related issues. This comes at a time of increasing recognition that sustainable corporate practices are critical for attracting consumers of the younger generation–one that places great importance on corporate ethics.

Amgen Foundation empowers students to live the life of a scientist. The corporate philanthropy arm of biopharmaceutical company Amgen aims to expose students and teachers to the world of research. The foundation’s Amgen Scholars Program recently held its first Amgen Scholars Asia Symposium in collaboration with the National University of Singapore (NUS). The event brought together more the 60 Amgen Scholars from across Asia, senior executives from Amgen, and speakers from NUS, Kyoto University, Tsinghua University, and the University of Tokyo. The foundation’s other initiative—the Amgen Biotech Experience—has equipped 2,000 students and teachers in Singapore with research-grade lab equipment and teaching materials since its inception in 2017.

THE INNOVATORS

Asian family offices are turning to tech and sustainable investment. The Nikkei Asian Review presents key findings from UBS’ annual report on global family offices. The article highlights changing investment habits among Asia’s ultra-rich families, such as growing private equity investment in technology and real estate. These include investments in healthcare, education, eco-tourism, and shared spaces. This comes amid a period of inter-generational wealth transfer to younger family members. According to UBS, this younger generation is more inclined to invest in companies with a positive impact on the environment and society. The head of UBS’ global family office group in the Asia Pacific notes that 40% of Asian family offices are now engaged in sustainability investing.

Center of gravity of sustainable finance is swinging towards Asia. The demand for green financing is growing in Asia, and banks like Societe Generale are playing a key role. Head of debt capital markets Asia Pacific at Societe Generale, Raj Malhotra, discusses this increased interest. Addressing the region’s complex environmental challenges will require different forms of financing, and bond markets can play a big role, according to Malhotra. He notes positive trends such as the promotion of green finance in Singapore, Hong Kong, and Indonesia. Corporates and banks in the region are also showing interest in other instruments such as green loans. The green and sustainability financing market in Asia is still nascent, but the region’s upward trend is a positive development in impact finance. If this trend continues, Maholtra states that Asia is poised to be at the center of gravity of green and sustainability financing.

Who’s Doing Good?

2 September 2019 - 15 September 2019

THE GIVERS

US$442 million donated via online platforms in China in 2018. According to a recent report by China Philanthropy Research Institute, Chinese donations to online charity platforms increased nearly 27 percent in 2018 to more than ¥3.17 billion (approximately US$442 million). A total of 20 online platforms attracted donations from 8.46 billion internet users. The report also notes a 34.5 percent increase in the number of registered charitable organizations in China putting the total at 5,620. Guangdong ranks first in the country with 748 charitable organizations, followed by Beijing and Zhejiang.

Donations to earthquake-hit towns in Japan rose sharply in 2018. Through the Japanese government’s furusato nozei (hometown tax donation) system, taxpayers can contribute to their hometowns or other municipalities in return for tax cuts. The Japan Times reports that donations to three earthquake-hit towns in Hokkaido have risen sharply, most notably to Atsuma where they grew 5.4 times from the previous year to over ¥1 billion (approximately US$9 million). The Atsuma Municipal Government intends to channel donations towards reconstruction efforts, among others.

THE NONPROFITS

BRAC, one of the world’s largest charities, charts new path. Founded in 1972, BRAC has grown into one of the world’s largest non-governmental organizations (NGO) with 100,000 full-time staff. According to the The Economist, BRAC lent money to almost 8 million people and educated more than 1 million children across Bangladesh and ten other countries in 2018 alone. NGO Advisor has ranked BRAC as the world’s best charity for the past four years.  However, there are challenges ahead. As Bangladesh’s annual GDP continues to grow and government spending on public services continues to increase, large charities are having to think about where else they can contribute. In response, BRAC is venturing into new directions and shifting to income-generating activities to subsidize its philanthropic activities. The Economist notes that, by charting this new path, BRAC can serve as a model for other charities to follow.  

THE BUSINESSES

Japanese companies lead world in disclosing climate risks. According to the Financial Times, more than 60 Japanese companies threw their support behind the Task Force on Climate-related Financial Disclosures (TCFD) in May, surpassing companies in the US and the UK. Nearly 200 Japanese companies back TCFD measures now. This has been applauded by investors and lenders as a valuable opportunity for obtaining consistent information about companies’ climate risks. The country has also seen a sharp increase in ESG investing. The Global Sustainable Investment Alliance reported that Japan’s ESG investing assets quadrupled from US$474 billion to US$2 trillion from 2016-18. 

China’s Xiamen Airlines vows to support United Nations Sustainable Development Goals. At a recent industry expo, Chairman of Xiamen Airlines (XiamenAir) Zhao Dong confirmed the airline’s commitment to the Sustainable Development Goals (SDGs). In 2017 XiamenAir was the first airline to sign a cooperation agreement with the United Nations  to formally support the SDGs. Since then the airline has adopted a range of measures including providing passengers with sustainable tissues and bamboo cups, and offering digital news services instead of printed newspapers. According to Zhao, XiamenAir has also achieved a 14.8 percent drop in fuel consumption per ton-kilometer, exceeding the global average of fuel efficiency improvement. At the event, the airline committed to continuing its support for sustainable development in the aviation industry. 

Global Reporting Initiative Regional Hub officially opens in Singapore. Global Reporting Initiative (GRI) is an independent international organization that helps businesses, governments, and other organizations understand and communicate their sustainability standards. The organization officially launched its GRI Regional Hub in Singapore earlier this month, adding to six other hubs around the world. The Singapore hub will support ASEAN companies by helping them “identify, manage, and report their most material environmental, social, and governance (ESG) impacts.” The Hub will be headed by Michele Lemmens, a business executive from Tata Consultancy Services.

THE VOLUNTEERS

With the help of 12,000 volunteers, No Food Waste redistributes surplus food to the needy in India. The food-recovery startup, No Food Waste (NFW), was founded in 2014 to redistribute surplus food to the needy in Tamil Nadu. With the support of a network of 12,000 volunteers, NFW now serves an average of 900 people per day. The organization collects surplus food from banquets at social functions, corporate canteens, and hotels. After being notified of a food pick-up, a city-specific NFW coordinator gets their team of volunteers together to collect and distribute the food. Recently, the startup has been working to incorporate more sustainable measures by banning single-use disposable containers and shifting to serving food on plantain leaves. The food-recovery startup has received a number of awards recognizing its work.

THE INNOVATORS

Singapore-based IIX and Korean government agency commit US$1.2 million to accelerate high-impact enterprises in Asia. Impact Investment Exchange (IIX), a global organization that provides funding and support to social enterprises, has announced a new partnership with the Korea International Cooperation Agency (KOICA). IIX and KOICA will jointly contribute US$1.2 million over five years to support 18 social enterprises across South and Southeast Asia. Through its Acceleration and Customized Technical Services (ACTS) program, IIX will select the social enterprises and offer them capacity building and technical assistance to ensure they are investment-ready. The enterprises will also gain access to mentors and over 1,000 accredited investors from around the world. This joint initiative aims to impact the lives of 8 million people.

UNDP and 500 Startups launch accelerator for social enterprises in Indonesia. The United Nations Development Programme (UNDP) and 500 Startups have launched ImpactAim Indonesia, a social accelerator that aims to boost social entrepreneurship in the country. The accelerator will support eight to ten startups that are serving the Sustainable Development Goals (SDGs) through a 10-week program in Jakarta. These startups will receive guidance on impact measurement and gain access to prospective impact investors from around the world. According to the article, ImpactAim hopes to amplify social impact through three main objectives: “growing impact ventures, assessing their contribution to the SDGs, and connecting them to networks and funding opportunities.”

Who’s Doing Good?

5 August 2019 - 18 August 2019

THE GIVERS

Li Ka-shing donates HK$500 million (approximately US$64 million) to The Hong Kong University of Science and Technology (HKUST). Hong Kong’s richest man and notable philanthropist Li Ka-shing is helping establish the city’s first synthetic biology institute through his most recent donation. Synthetic biology is a cross-disciplinary area of research in which genomes are designed and modified to help resolve challenges in life sciences. Advances in the field can impact key areas of human development such as manufacturing, medicine development, and food production. The need for innovations in such areas is urgent: current and future increases in global population are straining resources and necessitate the development of alternatives. Speaking on the occasion, Li underscored the vision behind his gift, “Just as synthetic chemistry and petroleum was central to the 20th Century, synthetic biology and DNA are the technology engines of this century, bringing disruption to traditional manufacturing and new opportunities in the industrialization of biology.”

Mano Amiga Philippines and She Talks Asia co-founder, Lynn Pinugu, discusses why she gives back to society. Lynn Pinugu traces the roots of her philanthropy to a financial crisis her family went through when she was in university. Her writing skills helped her win a journalism competition, which awarded her with a scholarship that supported her studies. She realized that children who lacked basic education would struggle to access such opportunities. After graduating, Pinugu volunteered in Mexico where she came across Mano Amiga, a network of low-cost schools transforming the lives of underprivileged students. She replicated their model in the Philippines in 2008, impacting over seven hundred lives since. Pinugu further expanded her work and founded She Talks Asia to support women in her country who are confined by traditional gender roles. Through She Talks Asia, Pinugu is offering them a safe space to discuss these issues. She concludes that humility and an eagerness to learn have kept her motivated in this journey.

THE THINKERS

Singapore falls quite behind Malaysia in responsible investing, according to Blooomberg. Singapore edges its regional competitor in several metrics such as efficiency and quality of life. In fact, CAPS’ Doing Good Index 2018 found that Singapore is one of Asia’s three economies doing the most to catalyze private social investment—Malaysia ranked a tier below. But a new Bloomberg report finds that fewer asset managers in Singapore have incorporated environmental, social, and governance (ESG) factors into their investment decisions relative to their Malaysian counterparts. In fact, nearly twice as many asset managers in Malaysia have developed their own ESG scoring models as compared to Singapore. These discrepancies, according to Ben McCarron, founder of sustainable finance analysis firm Asia Research & Engagement, are attributable to Malaysia’s clear regulatory push towards responsible investing. As a global center for Islamic finance, Malaysian investors are also more familiar with the use of social factors to guide their investments. Overall, however, Asia still lags behind financial centers in Europe and the United States when it comes to responsible investing.

The Economist Intelligence Unit profiles the impact investing landscape in Asia, the Middle East, and Africa in new report. Commissioned by Standard Chartered Private Bank, the report aims to create knowledge for high-net-worth individuals (HNWIs) on sustainable finance and its intersection with philanthropy. The goal of the study is to help HNWIs decide how to allocate their portfolios to achieve the best return against their requirements. The report—based on desk research and in-depth interviews of eight experts—focuses on Asia, the Middle East, and Africa as these regions are witnessing the highest growth in either receiving or propelling sustainable finance, impact investing, and philanthropy. One of the report’s five main observations concerns definitions: there are often very subtle differences between terms such as impact investing and sustainable investing. The report recommends HNWIs to set clear parameters and objectives to navigate gray areas in the definitions.  

The path to scale is broken for nonprofits. In an opinion piece published by India Development Review, Dhananjay Rohini argues that the support ecosystem surrounding nonprofits may be failing them in their pursuit of scale. Nonprofits often find themselves solving “inherently harder” problems such as those arising out of market failures or weak institutions. Amid these challenges, nonprofits must also bear the high transactional costs of seeking funding for one project at a time. The successful delivery of projects may improve the chances of future funding, but “donor fatigue” could still be an impediment. This situation is quite contrary to the private sector where multiple mechanisms exist for raising funding and where unremarkable but stable companies often succeed in attracting funding. Among the strategies Rohini lays down to alleviate some of these failings are: donors paying the entire costs of programs, and funding large-scale initiatives instead of individual projects. Non-pecuniary support in payroll management, reporting, and HR can also help nonprofits focus on the core problems they seek to solve.   

THE NONPROFITS

Founder of nonprofit helping trafficking victims named among 2019 Class of Asia 21 Young Leaders by Asia Society. Ta Ngoc Van is the chief lawyer at Blue Dragon Children’s Foundation, a nonprofit based in Hanoi which rescues Vietnamese women and girls who fall victim to human trafficking. Van is credited with helping 800 trafficking victims and has provided legal representation to nearly a hundred. Human trafficking affects over 40 million women, children, and men and according to the International Labour Organization, citizens of the Asia Pacific region are twice as likely to be at risk as those of a developed country. The Ministry of Public Security in Vietnam reports that about 80% of human trafficking victims end up in China. According to the article, this is in part due to the country’s gender imbalance, which is seen to exacerbate the issue. Van’s fellow honorees are playing their part in alleviating the region’s challenges through journalism, policy advocacy, and technology among others.  

THE BUSINESSES

KKR’s Global Impact Fund exceeds US$1 billion fundraising goal. The global investment firm, which manages assets worth US$148 billion, announced the Global Impact Fund as its first impact-focused fund in 2018. This new fund employs UN Sustainable Development Goals (SDGs) to guide investment decisions. The actual “investment playbook,” concerning the type, duration, and commitment to value-add, however, remains the same. The Global Impact Fund joins the likes of TPG’s US$2 billion Rise Fund, the world’s largest impact investing pool, and similar funds from Bain Capital and Partners Group. Co-head of KKR Global Impact, Ken Mehlman, states that the fund will allow KKR to access investment opportunities that previously had to be let go due to their size; the new fund will prioritize deals worth US$100 million or below. The fund has already deployed two investments: US$32.4 million in Singapore-based energy-saving company Barghest Building Performance, and about US$510 million in Indian environmental management company, Ramky Enviro Engineers. The latter investment is understood to have been funded in part from the Global Impact Fund and KKR’s 2017 Asian Fund III worth US$9.3 billion.

THE INNOVATORS

Korea’s SK Group developing blockchain donation platform. The donation platform will enable direct, low-cost, and peer-to-peer foreign currency donations that will be settled immediately without requiring any input from external or intermediary institutions. Cross-border money transfers are subject to various fees if sent through traditional intermediaries, and blockchain technology has emerged as a promising solution to the problem. This application of the technology, however, is yet to achieve mainstream approval despite its merits. While no firm deadline has been quoted for the project, SK Group has committed that the platform will be open sourced. Interested developers will be able to replicate the platform and alter parameters such as transaction terms. Donations on the platform will be settled in Korean won through the Social Value Coin (SVC), which will be pegged to the won in a 1:1 ratio. Another token, Social Value Power (SVP), will be distributed as reward to donors at the ratio 1:1000 SVCs (or Korean won).

Who’s Doing Good?

24 June 2019 - 7 July 2019

THE GIVERS

Alibaba to contribute US$145 million donation to women’s football. The Chinese women’s national football team will receive ¥1 billion (US$145 million) in donations from Chinese online giant Alibaba. Alipay, the mobile payment platform of Alibaba, will fund the bulk of the initiative. Additional contributions will come from the respective foundations of Alibaba co-founders Jack Ma and Joseph Tsai. The donation will be deployed over the coming decade towards injury prevention and treatment, career development of retired players, technical development, coach education, and youth development. According to this Channel News Asia article, the three parties aim to make football “more sustainable and accessible to girls and women across the nation.” Despite underfunding, the Chinese women’s national team has qualified for seven of the eight Women’s World Cups, including this year’s Cup in France. 

East Asia’s young rich redefine the concept of family legacy. A recent report, Passing the Torch: Bridging mindset gaps between high-net-worth generations in Hong Kong, mainland China, and Singapore, highlights a shift in family business and philanthropy. The study, which was conducted by HSBC and commissioned by The Economist, reveals that high-net-worth individuals are giving their heirs flexibility in taking the family business in a new direction. Increasingly, the younger generation is redefining their family legacies through establishing charitable foundations or engaging in new CSR initiatives under the umbrella of their family business. At the intersection of new wealth and new ideas, the younger generation is redefining family legacy as they strive to create long-term social or environmental impact at the helm of their family business.

THE THINKERS

Muhammad Yunus underscores the power of social enterprises run by women and young people. Ahead of a social business event in Thailand, Nobel laureate Muhammad Yunus talks about the impact of social enterprises, especially those run by women and young people. In conversation with the Thomson Reuters Foundation, he highlighted, “Women and young people perhaps understand these problems better because they are most affected by them.” As social entrepreneurship burgeons across the region, some Asian countries including Thailand, Vietnam, and the Philippines have passed legislation or revised laws to support social business ventures. To aid these developments, Yunus highlights the importance of adapting educational institutions and financial systems to encourage entrepreneurship and social business.

Philanthropy is still the backbone of social action. CAPS Chief Executive Ruth Shapiro’s letter in the Financial Times gives insight into the relationship between philanthropy and impact investing. In a recent study, CAPS found that 59 percent and 66 percent of social enterprises in Hong Kong and Japan respectively report receiving philanthropic or government grants. In fact, many social enterprises in Asia depend on philanthropy and government grants as angel investment. Shapiro’s letter is a prelude to CAPS’ upcoming report on effective social enterprise ecosystems in Japan, Korea, Hong Kong, Indonesia, Pakistan, and Thailand, set to be published this fall.

THE BUSINESSES

Prudence Foundation and AVPN announce winners of inaugural Disaster Tech Innovation Competition. Prudence Foundation, the community investment arm of Prudential in Asia, and AVPN launched the Disaster Tech Innovation Competition earlier this year. The competition aims to “leverage technology solutions for disaster prevention and recovery efforts in the region.” The finalists, comprised of both nonprofit and for-profit social purpose organizations, covered markets including Cambodia, Indonesia, Nepal, Bangladesh, the Philippines, and Taiwan. FieldSight, a mobile platform that supports disaster reconstruction activities, won First Prize. According to FieldSight director Justin Henceroth, the mobile platform was first launched in Nepal following the 2015 earthquakes and has since been implemented at 60,000 sites in 16 markets. The organization received a grant of US$100,000 to help fund the implementation and scaling up of its Disaster Tech solution.

Development impact bond (DIB) boosts education in India. The Quality Education India DIB was launched in September 2018 by the British Asian Trust, the Michael & Susan Dell Foundation, the UBS Optimus Foundation, and Tata Trusts, together with local partners. As the largest development impact bond in the area to date, the bond funds initiatives towards improving literacy and numeracy skills for more than 300,000 children in India. According to a recent evaluation, “40 percent of participating schools met or exceeded their targets for literacy and numeracy outcomes compared with non-participating schools.” The Michael & Susan Dell Foundation country director for India highlighted, “The early signs are that outcome-based funding models, with an incentive attached, have the potential to drive quality in education and attract new forms of capital to sustain it.”

Japan’s Suntory joins rival Coca-Cola to encourage plastic recycling in Vietnam. Reuters reports on a new alliance between Suntory, Coca-Cola, and Nestle–the latest in partnerships among global plastics and consumer goods companies. The Japanese beverage giant, Suntory Holdings, plans to switch out pure petroleum-based plastic bottles for bottles made from recycled or plant-based materials by 2030. However, achieving this goal will be challenging due to a lack of sophisticated recycling systems in Suntory’s Southeast Asian markets, such as Vietnam. The alliance, which also includes the local operations of Tetra Pak and NutiFood, will call on the Vietnamese government to, “plan a system spanning collection and facilities for recycling.” This push comes at a time when Vietnam is among the biggest contributors to plastic waste in the ocean. Earlier this month Vietnamese Prime Minister Nguyen Xuan Phuc stated that he wants Vietnam to phase out single-use plastics by 2025, but companies are pushing for large-scale recycling systems in addition to government restrictions on plastic bottles.

THE INNOVATORS

Sustainable investments make up nearly a fifth of rich Asian investors’ portfolios. According to a survey by Standard Chartered Private Bank, high-net-worth (HNW) investors in Asia have increased their allocation to sustainable investments to almost a fifth of their portfolios. The survey covered 416 HNW individuals residing in China, Hong Kong, Singapore, and India with a minimum of US$1 million in investments. Chinese investors are leading as the survey found “a majority of [Chinese] respondents have already allocated between a quarter to half of their funds to sustainable investments.” The study also revealed that in Asia knowledge of sustainable investing among investors has improved by 20 percent from 2018. The top cited motivation among the HNW investors was to “create a better future,” followed by “doing good while earning a profit.” The growing interest and awareness of sustainable investing among HNW investors is an encouraging trend for the region.

Impact investing in Asia to gain as US$15 trillion set to change hands among world’s wealthiest families. Impact investing in Asia has an opportunity to gain from the US$15.4 trillion intergenerational wealth transfer expected to occur over the next decade, according to global wealth researcher Wealth-X. While only US$1.88 trillion of this total is expected to be transferred in Asia, the transfer of wealth will occur amidst a growing ESG sector and growing interest in impact investing. With the younger generation soon to be at the helm of their families’ wealth, this intergenerational transfer is a fruitful opportunity for impact investing to grow. Wealth-X additionally notes that the US$8.8 trillion expected to change hands in Europe and North America bodes well for Asia. Due to friendlier regulatory environments, wealthy investors are increasingly setting up family office branches in Singapore or Hong Kong.