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.

Who’s Doing Good?

10 June 2019 - 23 June 2019

THE GIVERS

Li Ka-shing donates HK$118 million to Shantou University. Every undergraduate attending Shantou University in China will have their tuition paid for thanks to Hong Kong’s richest man. Li Ka-shing established the university in 1981 to aid the development of his hometown of Shantou. His donation of HK$118 million (approximately US$15 million) will grant a full scholarship to every student enrolled in the university for the next four years. The donation will be administered through his eponymous foundation, which he founded in 1980. The Hong Kong billionaire has exhibited great dedication to philanthropy, having donated over HK$20 billion (approximately US$2.5 billion) to schools, hospitals, and universities in 27 countries and regions. Li has stated that he plans to bequeath a third of his wealth to philanthropy and charitable causes.

Indian billionaire Azim Premji’s retirement casts spotlight on private philanthropy in India. Azim Premji announced last week that he will retire from his position as executive chairman and managing director of Wipro. As India’s second-richest person with an estimated net worth of US$22.4 billion, Premji has grown to be an inspiring philanthropist, committing over half of his wealth to philanthropy. Premji was the first Indian to sign The Giving Pledge and has donated US$21 billion to date. While ultra-high-net-worth individuals in India are giving less than they did five years ago, according to Dasra and Bain’s 2019 India Philanthropy Report, Premji is a notable exception. His retirement casts a spotlight on private philanthropy in India and the opportunity for more business leaders and philanthropists to invest their wealth in the social sector.

Japan’s Rugby World Cup mascots call on fans to help disadvantaged children in Asia. ChildFund and World Rugby are partnering for the 2019 Rugby World Cup, which will be hosted by Japan this fall. As part of their Impact Beyond legacy program, the Rugby World Cup’s two mascots will be ambassadors to ChildFund Pass It Back, a sport-for-development organization. Pass It Back has benefited more than 10,000 disadvantaged children across Asia–over half being girls and young women–by integrating life skills curricula with tag rugby. With a pledge of a record £1.5 million (US$1.9 million), the global rugby community and commercial partners for the 2019 Rugby World Cup will enable over 25,000 disadvantaged youth from across Asia to participate in the Pass It Back program.

THE THINKERS

Japan’s social investment funds connect social enterprises to private capital. As interest in social ventures increases among investors, third-party organizations in Japan are stepping in to connect social enterprises with private capital. This includes Kamakura Investment Management, which works to facilitate a cross-sector ecosystem by connecting companies it invests in to social ventures it supports. Kamakura’s flagship mutual fund, Yui 2101, which initially received skepticism from people in the industry, now boasts assets under management of US$340 million from more than 19,000 investors. Another key player working to foster a cross-sector ecosystem is the Japan Social Impact Investment Foundation (SIIF), which invested in Japan’s first health-care social impact bond.

Global Impact Investing Network (GIIN) releases its 2019 Annual Impact Investor Survey. In its ninth iteration, GIIN’s Annual Impact Investor Survey provides data on and insights into the increasing scale and maturity of the global impact investing industry. The report draws on responses from 266 leading impact investing organizations from around the world who collectively manage US$239 billion. The report also includes Asia-specific findings. South Asia is reported to be the second-fastest-growing region of interest among four-year repeat respondents, with 40 percent of all respondents planning to increase their allocations to it. For the array of actors entering Asia’s nascent impact investing industry, this report offers a snapshot of impact investing activity from global counterparts.

THE NONPROFITS

Cambodian nonprofit wins Australian award for film addressing domestic violence. Siem Reap-based nonprofit This Life Cambodia won the “Best Social Media Campaign of the Year” at the Not-For-Profit Technology Awards in Australia. The nonprofit leveraged the power of social media to run its End Violence Together campaign for 16 days in November and December 2018. The campaign included a two-minute film depicting “a world in which women and children weren’t wearing helmets to protect themselves from road accidents, but wore them inside their homes to protect themselves from domestic violence.” According to The Phnom Penh Post, the video went viral and was viewed more than a million times. This Life Cambodia is also a finalist for the global Grassroots Justice Prize.

THE BUSINESSES

Korea’s Amorepacific signs MOU with TerraCycle to recycle empty bottles. Recycling efforts will soon get a boost with an agreement signed between Amorepacific Corporate and global environment company TerraCycle. A memorandum of understanding signed between the two parties in June includes objectives to recycle at least 100 tons of empty plastic bottles annually for three years and to increase the usage of recycled empty bottles for Amorepacific products. Amorepacific is a leading Korean beauty company and has collected 1,736 tons of empty cosmetic bottles over the last 15 years. The company has been running its Greencycle campaign to recycle these empty cosmetic bottles or upcycle them into creative artworks. The company is also currently studying different recycling opportunities to mitigate environmental harm caused by used cosmetic bottles.

Collaboration among stakeholders key to achieving development goals. In the lead-up to the G-20 Osaka Summit, Japan has outlined action plans for achieving the SDGs through regional revitalization, women empowerment, and Society 5.0–a program based on human-centered society, leveraging data, and new technologies. Business leaders have also been vocalizing their support. The Keidanren, also known as the Japan Business Foundation, has updated its Charter of Corporate Behavior to support efforts for achieving the SDGs. The integration of SDG principles and environmental, social, and governance (ESG) factors into business strategies and investments is promising, but the article highlights the need for more collaboration at the global level to achieve the SDGs. At the first SDG Summit in New York this September, the international community will need to discuss progress made and a collaborative way forward.

THE INNOVATORS

Asian banks curb lending to coal plants after pressure from investment funds. Asian banks are stopping loans to coal plants as investors increasingly adopt environmentally conscious investment principles. The latest move came from Japanese bank Mitsubishi UFJ Financial Group in May and banks across Asia, such as DBS and Oversea-Chinese Banking Corporation in Singapore, have also announced similar measures. This is in line with a surge in global investments based on ESG factors, which have reached US$30.7 trillion as of 2018–a 34 percent increase in just two years–according to the Global Sustainable Investment Alliance. George Iguchi of Nissay Asset Management stated, “These three factors [environment, social, and governance] are good indicators of what vision each company has for its business. Businesses with a good vision can generate better returns [that are] sustainable.”

UOB Venture Management expands its impact investing initiative. UOB Venture Management will be launching a new impact fund in the second half this year. Named the Asia Impact Investment Fund (AIIF II), it will continue the Fund’s focus on investment in education, healthcare, and agriculture as well as extend into new areas like clean energy and affordable housing. Deals for the Fund will be assessed based on a company’s ability to scale its business and the company’s impact on low-income communities. UOB Venture Management started the first series of the Fund in 2015 and has invested in nine companies across China, Indonesia, and Myanmar. These companies have strived to improve the lives of low-income communities by including them as consumers, suppliers, or distributors.

Who’s Doing Good?

27 May 2019 - 9 June 2019

THE GIVERS

Donations by Chinese philanthropists up by 50 percent in 2018. According to the China Philanthropy List, released annually by the China Philanthropy Times, the volume of donations by Chinese philanthropists and enterprises hit a record high of ¥27.63 billion (approximately US$4 billion) in 2018. China Daily reported that this is a 50 percent increase from the previous year. Donations were made by 744 philanthropic enterprises and 274 philanthropists, with donations from individual philanthropists totaling ¥9.53 billion (approximately US$1.4 billion). Although the majority of charitable giving in China comes from private corporations, the country’s philanthropy boom has encouraged more wealthy donors to participate. The recent increase in charitable giving by individual philanthropists has also been highlighted in the Hurun Report’s Hurun China Philanthropy List 2019.

Disney in India makes donation to aid Cyclone Fani relief efforts. Disney in India has donated ₹20 million (approximately US$300,000) to aid Cyclone Fani relief efforts. The money will be donated to Save the Children in India to support disaster response and provide resources for affected communities in the Indian state of Odisha. A Disney India representative said this donation will support families affected by Cyclone Fani by providing them with critical shelter. The country manager of Disney and Star India Sanjay Gupta stated, “Our hearts go out to those affected by this severe cyclonic storm Fani. The families and communities impacted by this devastating calamity need our support as they begin to rebuild.” Disney and Star India had also supported disaster response efforts in August 2018, aiding those affected by the Kerala floods.

THE THINKERS

Philanthropy in Singapore goes mainstream. Singapore is one of the top givers among its regional counterparts, and The Business Times article highlights the transformation of the country’s philanthropy landscape over the past few years. Citing CAPS’ Doing Good Index 2018, the article underscores Singapore’s position in the “Doing Well” cluster, leading in the index alongside Japan and Taiwan. Singapore’s favorable tax deduction policies and relatively simple registration process are among several factors which have helped boost the country’s performance in the index. But in the face of persistent social and environmental challenges, philanthropy needs to take a more solutions-focused approach to giving. While the upward trend is promising, philanthropy in Singapore still has room to improve.

Harvard course helps next-generation philanthropists do good. A course titled, “Impact Investing for the Next Generation,” convenes heirs to some of the world’s greatest family fortunes. The course, run jointly by Harvard and the University of Zurich in collaboration with the World Economic Forum, has been equipping next-generation philanthropists to be more impactful since 2015. For some of Asia’s wealthiest millennials, inculcating a culture of impact investing is a formidable challenge. Despite holding one-third of global wealth, Asia only contributes a small portion of its total wealth to impact investing. However, notable alumni, such as Hyundai heir Kyungsun Chung who co-founded Root Impact, have worked to promote a culture of impact investing in Asia since taking the course.

THE NONPROFITS

Myanmar nonprofit to give 10,000 bikes to students in need. Following the collapse of bike-sharing companies ofo and oBike in Singapore and Malaysia, many bikes have been left unused in scrapyards or warehouses. Lesswalk, a Myanmar nonprofit, bought 10,000 bikes from the failed bike-sharing companies to give to students in need. The total cost of buying, shipping, and refurbishing the bikes is between US$350,000 and US$400,000, but half is expected to be paid by sponsors. More than 3,000 bikes have already been shipped to Myanmar to be given to students, and the rest is expected to arrive by the end of June. Lesswalk founder Mike Than Tun Win stated, “This movement is not about buying a new bicycle, which is actually a very straightforward process. It solves a waste problem and gets new bikes for needy children at a cheaper price.”

THE BUSINESSES

Singapore’s Temasek sets up Asia-focused private equity fund for impact investing. Temasek Holdings, a Singaporean investment company, has established ABC World Asia under its philanthropic arm Temasek Trust. Headquartered in Singapore, ABC World Asia is a private equity fund dedicated to impact investing, primarily in South Asia, South-east Asia, and China. Chief executive officer of ABC World Asia David Heng highlighted the opportunities for impact investing in Asia, where the industry is still nascent. Heng stated, “The complex social and environmental challenges in our region present the potential for investors to achieve substantial impact.” The new impact investment fund will allow Temasek Trust to move beyond traditional grant-making to fulfill its mission of “ensuring sustainable funding for the long-term well-being and security of communities.”

Korea’s Hyundai Oilbank promotes culture of philanthropy. Korean petroleum and refinery company Hyundai Oilbank is aiming to promote a philanthropic culture among its staff. Through its 1% Nanum Foundation, more than 95 percent of the firm’s employees donate a portion or one percent of their monthly salary to charitable work. The foundation had raised about ₩11.2 billion (approximately US$9.5 million) in the last seven years to support its expanding number of charitable projects. One of the noteworthy projects, the “1% Nanum Lunch Room,” equips senior welfare centers across Korea with an annual meal plan of ₩50 million (approximately US$45,000). Other initiatives include providing heating oil for low-income families during the winter season and building schools and libraries in Vietnam and Nepal.

The Ritz-Carlton staff and guests raise funds for children with cleft conditions. International hotel chain The Ritz-Carlton raised close to US$450,000 for charities under the Smile Asia alliance. In May, over 10,000 staff and guests of The Ritz-Carlton hotels and resorts across Asia Pacific participated in the sales of over 14,600 cakes. The money raised will go to Smile Asia–a global alliance of independent charities working across Asia–which deploys medical volunteers to provide corrective and reconstructive surgeries for children living in remote areas. This annual fundraising initiative is part of the Smile Asia Week started by The Ritz-Carlton in 2014, and it has garnered great support over the years. In addition to this initiative, staff from the hotel chain can volunteer in medical missions across Asia Pacific.

THE INNOVATORS

China’s new model of blockchain-driven philanthropy. Stanford Social Innovation Review covers the rise of blockchain-driven philanthropy in China, and its role in ensuring transparency and accountability in the social sector. Blockchain enables donors to monitor the entire movement of their money and the platform, monitored by the public, ensures a trustworthy framework. Pioneers in blockchain-driven philanthropy in China include the charity platform of Alibaba’s fintech arm, Ant Love. Since adopting blockchain technology in March 2017, Ant Love has enabled 190 million Chinese individuals to donate US$50.5 million to 799 blockchain-supported projects. The decentralized, autonomous platform is breaking ground in the philanthropic sector as it encourages collaboration and employs community resources to address social challenges. While more oversight is still needed to monitor the people involved and the data that are recorded to the platform, China’s blockchain-driven philanthropy has significantly helped expand the sector’s role in Chinese society.

Indonesia leads by mainstreaming the SDGs in country’s development agenda. Indonesia’s integration of the Sustainable Development Goals (SDGs) into national policies offers lessons for the rest of Asia. The Indonesian government has showcased its commitment to the SDGs by linking them to midterm national plans, aligning national budgets and tax policies with crucial SDGs. Indonesia recently implemented two financial programs in efforts to bridge the gap in financing the SDGs: SDG Indonesia One and Islamic Finance. Employing these two finance programs will help diversify funding sources by tapping into an array of investors. Additionally, the Indonesian government also recognizes the importance of decentralizing the implementation of SDGs across all levels of government and collaborating with key stakeholders to achieve the SDGs by 2030.

Who’s Doing Good?

1 April 2019 - 7 April 2019

THE GIVERS

Korean celebrities give generously to Gangwon wildfire victims. On Friday, President Moon Jae-in declared a state of national disaster over the wildfire that affected the counties of Goseong, Inje, and Sokcho and the cities of Gangneung and Donghae. In the following days, the President designated these areas as a special disaster zone, which funneled in state money to help victims and support recovery, and a number of public figures made donations to support the affected communities. The largest donor was singer IU with a ₩100 million (approximately US$90,000) donation to ChildFund Korea, an international welfare service organization’s Korean arm. Coming from a range of celebrities, including K-pop idols and athletes, donations to victims in Gangwon Province have totaled US$330,000 as of Saturday and have complemented government efforts to respond to the disaster.

Tata Trusts awards 361 scholarships to students of Jammu and Kashmir. A new scholarship program, launched this year by the Tata Trusts, has selected 350 applicants for a two-year scholarship to pursue degree and diploma courses in education. A spokesperson for the Tata Trusts stated, “The Trusts had conducted an exercise to find out which states would benefit the most through support in promoting teaching as a career. Jammu and Kashmir emerged as one of the top choices.” In addition, 11 fine arts students of the University of Kashmir have been selected for the Tata Trusts Students’ Biennale National Award. The Tata Trusts has been supporting higher education since 1892 with the founding of the J.N. Tata Endowment for the Higher Education of Indians, which was featured in CAPS’ report, “Giving Back to the Future: Scholarships for Higher Education.” This new annual scholarship underscores the Tata Trusts’ continued commitment to supporting higher education.

Azim Premji Foundation highlights the Wipro founder’s unwavering support and patience. With a strong belief that education is the fundamental non-violent way to bring about lasting social change, Azim Premji chose education to be a primary beneficiary of his philanthropic initiatives. Out of Premji’s initial dream of starting a liberal arts school in 1997 grew a philanthropic effort of around 2,000 people working in 50 districts across six Indian states and a university dedicated to education and development domains. CEO of the Azim Premji Foundation, Dileep Ranjekar, lauds the Wipro founder’s continued support for the foundation’s work, stating that Azim Premji’s ability to appreciate and accept the inordinately long cycle time for social and educational change has enabled the foundation to work towards its long-term vision of social and educational change across the nation.

THE THINKERS

China’s philanthropy to unlock great potential. China’s philanthropy sector has quadrupled over the last decade, and private wealth has been a critical contributor to this growth. Donations from private companies and corporate foundations have dominated philanthropic giving, followed by affluent individuals and other types of organizations such as government agencies and public institutions. A recent report, published by AVPN and the Rockefeller Foundation, pointed out that the overwhelming share of corporate giving and individual donations in China has been largely stimulated by a rising awareness of social responsibility, favorable corporate tax incentives, and the country’s Charity Law passed in March 2016. While the report cautioned some barriers in China’s philanthropy ecosystem, such as a limited number of intermediaries able to help in sophisticated areas of philanthropy and a lack of data transparency, it expressed optimism as Chinese philanthropy burgeons alongside cutting-edge technology and a thriving digital sector, both of which are sparking a greater public interest in charity.

THE NONPROFITS

Pakistani nonprofit’s CEO named on Forbes 30 under 30 Asia list of social entrepreneurs. The 28-year-old CEO of Seed Out, Zain Ashraf Mughal, secured a spot on the prestigious list of Asia’s top social entrepreneurs. Seed Out, a nonprofit crowdfunding platform that works to eradicate poverty through interest-free micro-financing, has raised over 600 entrepreneurs in four Pakistani cities and put at least 1,600 children into schools. According to the World Bank in Pakistan, 90% of the workforce is highly entrepreneurial but it is estimated that 80% of them cannot apply for a traditional loan. Through Seed Out, donors can support social entrepreneurs through donating or lending to projects listed on the nonprofit’s website, ultimately providing social entrepreneurs the tools, training, and support to bring about innovative solutions to social and environmental issues.

THE BUSINESSES

Citi Foundation and United Nations Development Programme host second Asia Pacific Youth Co:Lab Summit. On April 4th, the United Nations Development Programme and Citi Foundation collaborated with the Ministry of Science and Technology and the Viet Nam Volunteer Center to host the second Asia Pacific Youth Co:Lab Summit in Hanoi. The project is the largest youth-led social entrepreneurship movement driving the implementation of the Sustainable Development Goals. The event brings together over 500 delegates, including hundreds of youth, partners, and government officials from 20 countries, to exchange ideas and experiences and to influence policy initiatives on youth entrepreneurship and social innovation. The initiative has benefitted over 2,500 young social entrepreneurs and has helped launch or improve nearly 500 social enterprises.

THE INNOVATORS

Fourteen young Indian social entrepreneurs make the Forbes 30 under 30 Asia list of social entrepreneurs. While the Forbes Billionaire List 2019 featured Indian business leaders including Mukesh Ambani and Azim Premji, a new cohort of young Indian leaders are being featured for their social-driven initiatives. Forbes Asia has released its annual Forbes 30 Under 30 Asia list, highlighting 300 outstanding individuals from 23 countries and territories in the Asia Pacific region. Fourteen young Indian social entrepreneurs were featured on the Forbes 30 under 30 Asia list of social entrepreneurs for their work, which ranges from collecting unused clothes to making sustainable construction bricks out of plastic waste. These young social entrepreneurs are tackling pressing social and environmental issues facing their communities and are a growing cohort of leaders in the burgeoning social entrepreneurship space.

Global impact investment market rises to US$502 billion. The Global Impact Investing Network (GIIN) conducted a comprehensive study analyzing the size and make-up of the impact investing market and launched their landmark report, “Sizing the Impact Investment Market.” GIIN reports that the global impact investment market is sized to be currently worth at least US$502 billion, which is more than double the US$228 billion reported by GIIN last year in its “2018 Annual Impact Investor Survey.” According to the report, the majority of impact investors are based in developed markets such as the US, Canada, and Europe, and a smaller fraction of investors are based in Asia with 2% of investors in East Asia, 2% in Southeast Asia, and 3% in South Asia. While the impact investment market has grown rapidly over the past decade, there is still a need for trillions of dollars to achieve the Sustainable Development Goals, leaving significant room for the nascent impact investment sector to grow.

Villgro leads the way in supporting social enterprises through public-private partnerships. As India’s oldest and one of the world’s largest social enterprise incubators, Villgro has impacted over 19 million lives through its support for early-stage and innovation-based social enterprises. Since its founding in 2001, Villgro has been an exemplar of social enterprise incubation with its focus on deep sectoral expertise, high-touch mentoring, and public-private partnerships. Villgro has collaborated with the private sector, including Accenture and Rabobank, as well as with local and international governments to expand INVEST, one of the world’s largest social innovation programs. The incubator’s diverse partnerships serve as models for other intermediaries looking to bolster the social entrepreneurship ecosystem in their communities.

Who’s Doing Good?

25 March 2019 - 31 March 2019

THE GIVERS

Singaporean government to match donations given to registered charities. From April to March next year, donations to Institutions of a Public Character (IPCs), certified charities in Singapore, will be matched dollar for dollar through the new SG$200 million (approximately US$147.5 million) Bicentennial Community Fund. Each IPC will be entitled to up to SG$400,000 (approximately US$295,000), and the fund will be administered by the National Volunteer and Philanthropy Centre with support from the Ministry of Culture, Community and Youth. “Through the Bicentennial Community Fund, we hope to further encourage all Singaporeans to continue the philanthropic and community self-help spirit of our forefathers, 200 years on and 200 years forward,” said Grace Fu, Minister for Culture, Community and Youth.

THE THINKERS

Asian philanthropists have the potential to fuel the new model of philanthropy. As the Doing Good Index 2018 highlights, Asian philanthropists have the capacity to contribute US$500 billion in charitable giving. With recent economic growth comes the potential for a new era of charitable giving focused on seemingly intractable issues, and China is leading the way as it harnesses the highest number of millionaires engaged in environmental, social, and governance-related investing. As collaboration is strengthening with the development of consortiums and alliances, and a new generation of globally minded and mission-driven rich is taking the helm of the exponential growth in capital, Asia is positioned to fuel a new model of philanthropy that can make the biggest bets in bridging the US2.5 trillion funding gap needed to achieve the 2030 Sustainable Development Goals.

THE NONPROFITS

Hong Kong nonprofit helps residents with disabilities fight prejudice and break into the workforce. In Hong Kong, the poverty rate among people with disabilities in the city is more than twice the level of the general population. CareER, a local nonprofit dedicated to helping students and graduates with disabilities find jobs, is working to break down the barriers facing disabled jobseekers. After a few years working in human resources for multinational companies, Walter Tsui Yu-hang founded CareER in 2013 to help graduates with disabilities find suitable jobs instead of the low-skill work they are usually offered. CareER now has more than 450 members with disabilities and has worked with over 100 employers to create more than 200 jobs. In efforts to keep growing its impact, CarER launched a two-year career development program last week, sponsored by the Hong Kong Jockey Club Charities Trust, which provides occupational skill training, consultation services, and leadership development.

THE BUSINESSES

Support from Alibaba Foundation empowers United Nations (UN) Women flagship programs. Two major initiatives of UN Women—Making Every Woman and Girl Count and Buy from Women—are receiving significant support from the Alibaba Foundation as part of its five-year, US$5 million commitment to UN Women. The Foundation’s contribution will help expand the Making Every Woman and Girl Count program in Asia, which seeks to bring about a radical shift in how gender statistics are used, created, and promoted at the global, regional, and country level. The Foundation’s contribution will also support the Buy From Women digital platform, which empowers women farmers in Liberia and the Democratic Republic of Congo to access new markets and services and increase production and revenues.

Cancer initiative benefits thousands of women in China. ”Make Up Your Life,” a project launched in South Korea in 2008, has provided free cancer-screenings and examinations for 54,000 women in China. Amorepacific, a South Korean cosmetics company, has invested ¥8 million over the past three years in the initiative, and according to a joint report published by China Women’s Development Foundation, free checkups for breast and cervical cancers for underprivileged women has received a positive social return on investment. Each ¥1 (US$0.15) spent in this project turned out a ¥1.52 worth of impact as the initiative effectively raised awareness of such diseases for women in remote areas where medical resources are scared. With enhanced awareness and access to screening, women can take early action for disease prevention and treatment, leading to enhanced general wellbeing of women and their families.

THE INNOVATORS

Female tech boss launches drive to empower women. Virginia Tan, co-founder of Lean in China, announced the launch of Nvying program for WeChat. Nvying is a short video platform for women to share their personal stories and communicate about their work life. The application is designed based on the needs of young women in China. “We wanted to do this because I think the market lacks quality content—there is a lot of entertainment and gossip, but we wanted to set a professional standard to answer some of the questions,” Tan said. According to Tan, the program will start with female users of the messaging platform, but later grow to include men as well.

China’s first charity store steps into 11th year in style. Chinese nonprofit, Roundabout, works to promote the eco-conscious lifestyle of the 3Rs—reduce, reuse, and recycle—with its free pick-up service over Beijing. In addition to this, the company opened China’s first charity distribution store to raise funds for vulnerable social groups (orphans, children with critical sicknesses or physical challenges, women, elderly, and earthquake victims) and to connect those who want help those in need. “We hope to create a charming place where people feel good and have a pleasant experience when they step inside—whether to buy a gift for a loved one or to find something they need—so they would like to come back,” said Charlotte Beckett, the charity’s volunteer director.

THE VOLUNTEERS

Two Cathay Pacific pilots raise money to buy rice for charity Feeding Hong Kong. Through a crowdfunding campaign, two Australian pilots, Glen Clarke, and Matthew Brockman, raised HK$10,000 (US$1,270) to buy rice for Feeding Hong Kong, a local charity that rescues edible food from producers, manufacturers, distributors, and retailers and redistributes it to other charities. Both Clarke and Brockman moved to Hong Kong four years ago, and after fundraising money for Australian foundations, they decided to give back to a Hong Kong charity this year. Clarke and Brockman were inspired to raise money to buy rice for Feeding Hong Kong after spending time at the charity’s warehouse in Yau Tong and noticing a lack of rice among the non-perishable food donations. While their campaign for Feeding Hong Kong extends till June, the duo is already brainstorming more ways to give back to the Hong Kong community.

THE TRUSTBREAKERS

Man held for forging charity commissioner’s signatures. The detection of crime branch in India has arrested a man for forging signatures and stamp of the charity commissioner and preparing bogus documents related to land in Bil village on the Vadodara city’s outskirts. In the process of selling a piece of land he did not actually own, the accused claimed that the land belonged to a temple trust and that he had bought it from them, producing bogus documents with the charity commissioner’s forged signatures and stamp.

Charity laws being enacted in all provinces across Pakistan. With the visiting delegation of the Financial Action Task Force (FATF) in the country on Wednesday, various Pakistani government officials briefed the FATF on steps taken by Pakistan to curb money-laundering. The officials of the National Counter Terrorism Authority (NACTA) were also present on the occasion, briefing the FATF regarding laws on model charities and that laws on charities were being devised in all provinces.