CAPS Spotlight: Who’s Doing Good

23 June 2021 – 06 July 2021

With total donations valued at US$102.4 billion, India’s Jamsetji Tata—founder of the Tata Group—tops the 2021 EdelGive Hurun Philanthropists of the Century list. This is the first time EdelGive Foundation and Hurun Research Institute have spotlighted top philanthropists spanning a century. The 50 most generous individuals come from five economies, including three from China and two from India. Continue reading on the Hurun website →

Corporates and the social sector continue to support relief efforts as Asia experiences a resurgence of Covid-19. In India, Standard Chartered BankGoogle India and Vedanta Resources have pledged support towards relief efforts. Vinamilk, a Vietnamese dairy company, is supporting the domestic and regional fight against Covid-19. Korean, Taiwanese and Japanese companies operating in Vietnam are contributing to the government’s vaccine fund. In Taiwan, the Buddhist Compassion Relief Tzu Chi Foundation becomes the third organization to win approval to procure vaccines, following Foxconn and Taiwan Semiconductor Manufacturing Co. (TSMC).

CAPS explains how Asian business leaders are championing public-private partnerships for social good. As the world comes to grips with the social and economic repercussions of Covid-19, the need and potential for multi-stakeholder collaborations are becoming more evident. CAPS’ Senior Researchers Annelotte Walsh and Wilson Lau discuss how a deeply rooted desire to do good can drive business leaders to partner with government for social good. Continue reading on the WINGS website →

Zhang Yiming, founder of TikTok owner ByteDance, gives ¥500 million (US$77.3 million) to education. Zhang’s donation will be transferred to an education fund in his hometown of Longyan city. The funds will be used for teacher training, ed-tech infrastructure and the construction of dormitories, reports Bloomberg. This donation is in line with the recent trend we have reported of Chinese tech billionaires giving big. Continue reading in Bloomberg →

HKEX Foundation launches HK$10 million (approximately US$1.3 million) HKEX Impact Funding Scheme to support community projects run by local NGOs. The scheme will be implemented in partnership with the Hong Kong Council of Social Service (HKCSS) and focus on four thematic areas: financial literacy, diversity and inclusion, poverty relief, and environmental sustainability. Applications close on 11 August. Continue reading on the HKEX website → 

Indian companies unveil ambitious plans to push clean energy. Mukesh Ambani of Reliance Industries pledges INR750 billion (US$10.1 billion) over three years to clean energy investment. Last year Reliance set itself the target of becoming a net-zero carbon company by 2035. Gautam Adani of Adani Group plans to turn his business carbon negative, aiding the government’s goal to expand the country’s renewable capacity nearly fivefold and meet its 2030 climate commitments.

Singapore-based EcoWorth Tech wins at the 2021 SAFE STEPS Disaster Tech (D-Tech) Awards. The winner in the for-profit category, Eco-Worth is the creator of the Carbon Fibre Aerogel (CFA) sponge. The sponge is made from low-cost natural materials and can be used to clean organic materials from wastewater. The awards, by Prudence Foundation and partners, recognize the essential role that technology plays in protecting and saving lives before, during and after natural disasters. Continue reading on the Safe Steps website  

Have a story to share? Contact us at research@caps.org.

Public-Private Partnerships for Social Good

Rethinking PPPs

There is a growing trend in Asia of governments and the private sector coming together to address social needs, and our latest study spotlights these “public-private partnerships for social good.” With 88% of top business leaders in Asia believing such partnerships will become even more common over the next five years, it is more important than ever to understand what they are and how they work.

We conducted an in-depth analysis of 20 notable PPPs for social good spanning 11 Asian economies and 9 sectors to find out. Our report showcases why this trend is taking root, what best-in-class PPPs for social good look like, and how they maximize impact.

Read on to learn more about the 6 strategies that enable public-private partnerships for social good to achieve greater impact, how they can prepare for sustainability, and how they can navigate risks.

Read the press release hereand download the full report below.

 

Sustainable Investment – Impact in Asia

UNDP & Asia Asset Management

This book explores the advances in sustainable investment in Asia, tracing its evolution from philanthropy to impact investing and ESG (environmental, social and governance) investing. The United Nation’s Sustainable Development Goals (SDGs) are noted as a key driver of developments in this field.

The book also looks at the critical role of government and private sector players in facilitating and financing sustainable investments. Successful examples of sustainable investment across Asia include Japan’s private sector investment innovations, the burgeoning Green Bonds market in Asia, blended social finance in China, impact investing in Sri Lanka, and regional developments in Southeast and South Asia. Read it here.

CAPS Spotlight: Who’s Doing Good

9 June 2021 - 22 June 2021

Hong Kong companies offer HK$130 million (approximately US$16.7 million) worth of incentives to encourage Covid-19 vaccinations. New World Development is partnering with local NGOs to offer a HK$1,000 allowance to 500 underprivileged individuals. Other Hong Kong companies, including Sino Group, Hang Lung Properties, The Airport Authority Hong Kong, are offering lucky draw and discount prizes, ranging from shopping coupons to a HK$10 million (approximately US$1.3 million) apartment.

In the latest Philanthropy Impact magazine, CAPS explains how blended finance can pave the way to achieving the SDGs. Asia faces a significant financing shortfall in meeting the Sustainable Development Goals by 2030, especially in the wake of the pandemic. CAPS’ Director of Research Mehvesh Mumtaz Ahmed describes how blended finance, which uses catalytic capital from government or philanthropists to attract private capital, can help. She also showcases different blended finance strategies from across Asia. Continue reading on page 26 of Philanthropy Impact 

Companies are partnering with nonprofits and government to boost Covid relief in India. Microsoft, Hitachi, and Honeywell are working with various charities to manufacture and provide essential equipment to Indian hospitals. The foundations of Vodafone and NASSCOM are partnering with Childline India Foundation to launch a helpline for children in distress.

Additionally, Dasra launched the campaign #BacktheFrontline to raise US$10 million for over 100 NGO first responders as the country shifts from relief to rebuilding. Some of US philanthropist Mackenzie Scott’s recent bequest of US$2.7 billion is going to Indian nonprofits working in pandemic relief, such as GiveIndia, The/Nudge Foundation and Mann Deshi.

With private sector support, Covid-19 vaccination rates gain pace in Japan and Taiwan. Rakuten is preparing a nationwide vaccination rollout, collaborating with industry, academia and government to establish additional vaccination centers and administer over 30,000 daily doses. Japan’s largest companies, including Toyota Motor, Softbank and Nomura, are setting up employee inoculation facilities. In Taiwan, Taiwan Semiconductor Manufacturing Co. will purchase 5 million vaccine doses on behalf of the government. This follows recent news of Foxconn’s pledge to purchase 5 million Pfizer-BioNTech vaccines.

Korea will introduce ESG guidelines by the end of this year. The Korean Government plans to establish infrastructure and incentives to help companies embed environmental, social and governance (ESG) values in corporate strategies. It is also considering a revision of the stewardship code towards responsible investing, which would affect Korea’s National Pension Fund, currently the world’s third largest. These developments will help Korea keep pace with other Asian economies. Continue reading in The Korean Times 

Kakao’s founder Kim Beom-su (Brian) establishes new eponymous foundation. We reported in February 2021 about Kim’s pledge to donate more than half his wealth. He recently sold ₩500 billion (approximately US$440 million) worth of company shares, part of which will be put towards the newly formed Brian Impact Foundation. The foundation will support social impact projects’ research and development, and businesses developing artificial intelligence and other future-leading tech. Continue reading in The Korea Herald 

Have a story to share? Contact us at research@caps.org.

CAPS Spotlight: Who’s Doing Good

13 May 2021 - 25 May 2021

Foreign donations continue to pour into India, but regulatory hurdles remain. Japan’s NTT pledged US$3 million; Thermo Fisher Scientific pledged US$10 million; and Silicon Valley tech leaders have organized relief, including Ethereum’s Co-Founder Vitalik Buterin who donated over US$1 billion in cryptocurrencies to the India Covid Crypto Relief Fund. The New York Times underscored ongoing concerns that India’s strict regulations on foreign funding are inhibiting donations at a time of dire need. Even crypto donations such as Buterin’s are facing legal hurdles under current FCRA regulations. While international support is critical, India Development Review’s Co-Founder and CEO Smarinita Shetty highlights how media attention on India’s lack of oxygen has skewed donor priorities, noting that humanitarian relief is still the need of the hour.

Domestic and international donors step in to aid Nepal as it battles a resurgence of Covid-19. The Chaudhary Foundation, affiliated with the Chaudhary Group, has pledged over US$1.5 million to help combat the second wave. The Foundation is also setting up an ICU ward and oxygen plant in the country’s largest government hospital, as well as importing and distributing oxygen concentrators. Gorkha Brewery joined hands with Singapore’s Lotus Life Foundation, MiRXES Pvt Ltd and Temasek Foundation to provide emergency medical supplies, including ventilators and oximeters, worth over रू200 million (approximately US$1.7 million). Temasek Foundation has also supplied 10,000 Covid-19 test kits.

HSBC commits US$100 million towards the Climate Solutions Partnership Initiative, half of which will fund projects in the Asia-Pacific region. In partnership with the World Resources Institute and WWF, the five-year initiative will focus on three areas: energy transition, habitat restoration and conservation, and carbon-cutting technologies. The initiative is part of HSBC’s climate strategy for a transition to net-zero emissions by 2050 or sooner. Continue reading in Philanthropy News Digest →

Colin Huang, Founder of Pinduoduo, tops the Hurun China Philanthropy List 2020. The billionaire gave US$1.85 billion in donations last year, according to the Hurun Research Institute. The second-most generous business leader on the list was Midea Group’s Founder He Xiangjian, who gave US$970 million last year. Continue reading in South China Morning Post →

SK Group’s building subsidiary rebrands to “SK Ecoplant” as part of efforts to enhance ESG management. The company plans to invest ₩3 trillion (US$2.67 billion) by 2023 towards its vision of growing from a conventional construction business into a leading environmental enterprise. The company will focus on expanding its use of eco-friendly building materials, embracing green technology, and transitioning towards a circular economy. Continue reading in The Korea Herald →

The Development Bank of Japan will increase ESG funding to ¥5.5 trillion (US$50.4 billion) over the next five years. The funding will support developments in hydrogen-based energy, electric vehicles and other emissions-cutting technology. It will also back companies adapting their business models to changes brought about by the coronavirus pandemic. Continue reading in Nikkei Asia →

Governance failings impede Asian companies ESG efforts, according to latest Corporate Governance Watch Report. The 10th biennial report, “Future Promise,” by the Asian Corporate Governance Association (ACGA) and CLSA provides an analysis of corporate governance in 12 markets. Despite recent progress on ESG (environmental, social and governance) standards in Asia, the report finds that the link between corporate governance and ESG policies lacks clarity, limiting meaningful sustainability efforts. While environmental issues remain high on the agenda for Asian governments, this report offers recommendations for improving corporate governance factors across the region. Continue reading in Reuters →

Have a story to share? Contact us at research@caps.org.

CAPS Spotlight: Who’s Doing Good

26 May 2021 - 8 June 2021

Wang Xing, Founder of Meituan, gives big. Wang recently donated over US$2 billion worth of shares in the food-delivery giant to his philanthropic foundation. Meituan said the funds will go towards education and scientific research. Wang’s donation is in line with the recent trend of Chinese tech billionaires substantially increasing their philanthropic giving. Continue reading in The Wall Street Journal →

Companies in Asia set up Covid-19 inoculation programs for employees and their families. In India, companies including HCLBajaj Auto and Samsung India have launched employee vaccination campaigns. Japanese companies are also stepping up and inoculating employees, which will help the government double the number of daily vaccinations to 1 million. Companies in Southeast Asia rolled out similar initiatives in the second quarter of this year.

Terry Gou, Founder of Foxconn, pledges US$228 million to purchase 5 million Pfizer-BioNTech vaccines as Taiwan sees a spike in Covid-19 infections. The donation is expected to also cover the cost of transportation, cold chain logistics and storage, distribution, and administration. Continue reading in Taiwan News 

92% of youth-led enterprises in the Asia Pacific negatively impacted by Covid-19, according to Youth Co:Lab. The organization—co-created by UNDP and Citi Foundation—recently launched their report, “How Young Entrepreneurs in Asia-Pacific Responded to COVID-19.” It discloses how lockdowns, shrinking demand, supply chain disruptions and a credit crunch challenged these enterprises. They responded by pivoting business strategy, launching new products and services, and transforming business models. The report also showcases over 40 innovative youth-led solutions aiding the region’s Covid-19 recovery.

Japan’s impact investing market has potential to grow to ¥2.64 trillion (approximately US$24 billion). The Global Steering Group for Impact Investment (GSG-NAB) Japan recently launched their report, “The Current State and Challenges of Impact Investing in Japan.” It highlights trends in impact investing—including growing interest from corporates and the issuance of Japan’s first sustainability-linked bond—and forecasts market size. This is encouraging news as there is much room for growth; according to CAPS’ study Business for Good, only 9% of social enterprises in Japan receive private investment.

Asian philanthropists pool US$1.5 million to contribute 600,000 doses towards COVAX global Covid-19 vaccine target. Singapore-based Asia Philanthropy Circle raised this funding from 10 philanthropists and philanthropic organizations. Their pooled donation will be matched by a public charity through Gavi, the Vaccine Alliance, bringing total funding to US$3 million. Continue reading on Asia Philanthropy Circle’s website 

Have a story to share? Contact us at research@caps.org.

DECODED

Asia's social sector takes on Covid-19

Our DECODED series unpacks, explains and crystallizes issues critical for social investment in Asia. DECODED draws upon CAPS’ expertise in research, and access to an extensive network of sector experts and philanthropists in 18 Asian economies. This enables us to identify emerging trends in the region. Through DECODED, we translate these concepts into bite-sized, easy-to-understand insights.

This inaugural DECODED synthesizes how the social sector across Asia has risen to the occasion in responding to Covid-19, and what comes next. We end with recommendations for philanthropists, corporates and policymakers who want to invest in helping Asia’s social sectors thrive.

CAPS Spotlight: Who’s Doing Good

02 March 2021 - 15 March 2021

In the latest for South China Morning Post, CAPS explains how China achieved its poverty alleviation goal by seasoning its ‘stone soup’ strategy. On February 25th, Xi Jinping announced that his signature campaign to eliminate absolute poverty was a success. CAPS’ Chief Executive Ruth Shapiro and Deputy Director of Advisory Services Angel Lin give insight into the four strategies—a focused campaign, aligned incentives, tracking poverty, and mobilizing resources—that helped China achieve this audacious goal. Continue reading in the South China Morning Post →

Family philanthropy in India has tripled since 2019, according to latest India Philanthropy Report. While other sources of private funding—foreign, corporate, and retail—remained stagnant, funding from individual philanthropists grew to approximately INR 12,000 crore (approximately US$1.7 billion) in FY2020. This accounts for almost two-thirds of the increase in funding during the pandemic. This rise in individual giving is welcome, as foreign funding saw its share of overall funding fall to 25% and corporate funding is set to decline. Continue reading in the Business World →

Singapore’s Temasek Holdings commits US$500 million to impact investing specialist LeapFrog Investments. This allocation by Temasek, the US$214 billion Singapore state-backed investment company, is the largest single commitment to a specialist impact investment manager, according to the Global Impact Investing Network (GIIN). Temasek hopes its commitment will encourage other large institutional investors to move into impact investing. Continue reading in the Financial Times →

Newly published report estimates 1 million social enterprises across South East Asia. The State of Social Enterprise in South East Asia, launched earlier this month by the British Council, collates research on social enterprises from Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. The report examines social enterprises’ activities, size and reach, as well as available government and financial support. CAPS also estimated there to be at least 1.2 million social enterprises in the six economies covered in Business for Good: Maximizing the Value of Social Enterprises in Asia. Continue reading in Pioneers Post →

Have a story to share? Contact us at research@caps.org.

2021: Reflections and Outlook

13 January 2021

We welcome 2021 with hope, not only for successful vaccination programs, but also for a year of recovery and rebuilding.

The social sector—nonprofits, social enterprises, and private and corporate philanthropists—were critical partners as economies across Asia tried to contain the fallout from a multi-faceted crisis in 2020. In addition to the pandemic, Asia was hit with some of the worst natural disasters to date and saw waves of civil unrest from Hong Kong to Thailand to India. We summarize this response below. In a forthcoming paper, we will explore the impact Covid-19 had on social delivery organizations and how they responded. Meanwhile, we wanted to bring you a summary of the unprecedented corporate response to meet the urgent needs of society that the pandemic precipitated.

 

After the initial coronavirus outbreak in China, there was an immediate response from Chinese philanthropists and tech giants. Jack Ma was one of the first movers with a US$14.4 million donation for vaccine development, alongside donations from Alibaba, Baidu, Tencent, Huawei, and ByteDance. The Bill & Melinda Gates Foundation was also an early mover, escalating its contributions as the year went on.

As Covid spread to other countries in early March, donations and support ramped up across the region. Familiar names in philanthropy (Li Ka Shing, Ratan Tata and Azim Premji, to name a few) donated large sums. Some unfamiliar names cropped up, such as Kakao founder Kim Beom-su. And other Asian philanthropists began to send aid to the US and Europe as needs shifted.

When the coronavirus was declared a pandemic in March 2020, CSR quickly took new shape, and some companies set up their own Covid-19 relief funds, including Alibaba (US$144 million), Tencent (US$100 million), Sony (US$100 million), Bajaj Group (US$14 million), and Godrej Group (US$7 million).

A number of ‘Prime Minister Relief Funds’ or similar taskforces were set up—and in turn, companies were encouraged to donate to them. This includes India, Malaysia, Indonesia, Bangladesh, and Pakistan. India’s Ministry of Corporate Affairs announced that the spending of CSR funds towards Covid-19 initiatives would be counted as CSR activity under the Companies Act.

Donations were also channeled to public health research and vaccine development. China Vanke Co donated US$748 million to Tsinghua University to establish the Vanke School of Public Health. Uniqlo’s Tadashi Yanai donated US$93 million to Kyoto University for vaccine research.

Companies also took a “not business as usual” approach by pivoting their production lines or launching new operations to make medical supplies. This includes Japanese companies Sony, Toyota, Suntory, Mitsubishi Motors, Fast Retailing, and Shiseido, as well as Vingroup (Vietnam), Indorama Ventures (Thailand), Reliance (India), and New World Development (Hong Kong). Other companies donated their own F&B products to assuage food insecurity.

Major banks offered financial relief measures. Owners of major malls in the Philippines and Thailand offered rent relief for their tenants. Some companies diverted their advertising budgets for relief efforts or awareness-raising campaigns.

As the pandemic upended education globally, businesses stepped in to help bridge the digital divide. Companies provided digital tools (i.e., mobile phones and software), improved internet access for students, and offered digital literacy training. Mi India donated smartphones to students in under-resourced communities through Teach for India. PLDT teamed up with schools, Microsoft, and Google to make digital solutions more accessible for the education sector in the Philippines. Tencent leveraged their online learning platform to make online teaching accessible for 20 million students within a matter of days.

While these are just a few examples of how corporates rose to the occasion in 2020, it also underscores the need for even greater private social investment this year. But what might 2021 look like?

1.    Despite exacerbated CSR budgets, there will be growing political and social pressure on corporates to give more and do more.

2.    During Covid, many corporates leveraged the reach of and trust in nonprofits to distribute resources to those most in need. We expect this to continue as the social sector is well positioned to help maximize the reach and impact of CSR.

3.    Public-private partnerships (PPPs) will continue to grow in number and importance as economies focus on vaccine distribution and rebuilding. We also expect there to be an uptick in what we call “PPPs for social good” as the pandemic has exacerbated inequities in income, education, and other areas.

With increased corporate support in 2020, we are cautiously optimistic that they will continue to play a more active role alongside government and the social sector. As we monitor these developments, we will keep you apprised through our upcoming newsletters and research reports.

Best wishes for the year ahead!

The CAPS Team

Who’s Doing Good

10 November 2020 - 23 November 2020

THE GIVERS

Azim Premji tops EdelGive Hurun India Philanthropy List 2020. In addition, Premji is also recognized for being one of the world’s leading donors to Covid-19 relief efforts, with a combined donation of Rs1,125 crore (approximately US$152 million) from Wipro, Wipro Enterprises, and the Azim Premji Foundation. Shiv Nadar, founder-chairman of HCL, ranks second, followed by India’s richest man Mukesh Ambani, chairman of Reliance Industries. The list showcases a total of 112 people, whose combined donations increased by 175% to INR12,050 crore (approximately US$1.6 billion) in 2020.

Forbes Asia releases its 14th annual Heroes of Philanthropy list. While this year’s list is unranked and excludes donations made by companies, it shines a light on 15 individual philanthropists in the Asia-Pacific region. Some of this year’s biggest donors focused on the Covid-19 pandemic: Hong Kong’s Li Ka-Shing gave US$32 million to various aid initiatives and Japan’s Tadashi Yanai gave US$105 million to research and vaccine development. Other philanthropists, like Vietnam’s Pham Nhat Vuong, continued to contribute to causes such as education, alongside contributing to relief efforts.

THE THINKERS

Finding the way forward in post-Covid-19 Asia. Covid-19 has made it clear that governments, donors, and the social sector all have an indispensable role in helping societies build back stronger from the pandemic. CAPS’ Doing Good Index 2020 highlights the strengths and opportunities for 18 economies in Asia to build a more enabling environment for such philanthropy to reach the neediest. In our latest webinar series, CAPS’ Chief Executive Ruth Shapiro and Director of Research Mehvesh Mumtaz Ahmed share country-specific findings on PakistanIndiaKoreaMalaysiaNepal, and Hong Kong.

THE NONPROFITS

Educate Girls among the world’s 100 most inspiring innovations in K12 education. The nonprofit, which works for girls’ education in the remotest villages of India, has announced its selection in HundrED 2021 Global Collection—an annual list that highlights 100 of the most impactful innovations in K12 education from around the world. Educate Girls’ innovation was reviewed by 150 Academy Members consisting of academics, educators, innovators, funders, and leaders from over 50 countries. Since 2007, Educate Girls has enrolled over 750,000 girls in schools, improving learning outcomes for over 1.3 million children. The nonprofit is also well-known for spearheading the world’s first Development Impact Bond in education.

THE BUSINESSES

Interview with Jaime Augusto Zobel de Ayala on how businesses can be a force for good. In conversation with the McKinsey Quarterly, the chairman and CEO of Ayala Corporation discusses macro trends among businesses in Asia and how they’re responding to complex challenges during Covid-19. In the interview, Ayala describes his own learnings and how the Ayala Group responded to the pandemic by prioritizing its employees, upholding its broad ecosystem, and supporting the community at large, especially those most economically vulnerable. The Group also joined forces with other companies to support the government in meeting the immediate needs of communities—underscoring the importance of partnership at a time when both the will and resources required are beyond any one sector’s capacity to provide.

Social bonds strengthen foothold in Asia credit market. Globally, issuance of social bonds shot up more than five times to approximately US$105 billion as of October 2020. Amidst Covid-19, new debt is being increasingly redirected to social and sustainability bonds targeted at supporting rising public health needs and growing economic disparity. This is true in Asia, too, where distribution of social bonds rose 29% this year through June 15 from a year earlier. This augurs well for the region, where Asian governments and institutions have been slow to issue social bonds. Yet, this redirection comes at a cost: green bond issuance in Asia-Pacific in the second quarter of 2020 fell to its lowest level in more than three years.

THE INNOVATORS

The Australian Government and Macquarie Group Foundation support Filipina entrepreneurs. Together with the Macquarie Group Foundation, Australia is committing to an investment program of over P43 million (approximately US$900,000) to aid Filipino women who own small and medium enterprises (SMEs). The Responsive Interventions Supporting Entrepreneurs (RISE) Fund aims to help the Philippines build back better by supporting women-led SMEs. Australian ambassador to the Philippines stressed that Filipino women “will play a central role in the recovery from Covid-19 and should have an equal part in a more resilient, inclusive, and broad-based Philippines.”

ABAC Indonesia, Mandiri Capital join forces to invest in start-ups with social impact. APEC Business Advisory Council (ABAC) Indonesia, the private-sector arm of the Asia-Pacific Economic Cooperation, has partnered with venture capital firm Mandiri Capital to launch a new fund that will invest in startups with social impact. The Indonesia Impact Fund (IIF) will focus on investing in micro, small, and medium enterprises (MSMEs) and start-ups related to five of the United Nations Sustainable Development Goals (SDGs): poverty alleviation, sustainable cities and affordable housing, high-quality and accessible education, increased economic participation for women, and affordable health care. The firm aims to raise US$10 million in assets under management by its first close of funding in the second quarter of 2021.

We’d also like to hear from you. How is your organization responding to Covid-19? Email us your stories at research@caps.org.