As philanthropic capital grows, Asia’s decade for climate action has come: Milken panellists
Families and foundations should not be discouraged by small amounts of funding, they say
[SINGAPORE] Asia has generally been seen as a passenger in the climate journey. But with more philanthropic capital coming to the table with a focus on the environment, the region can lead and build its own agency in climate action, said panellists at the Milken Asia Summit 2025 on Thursday (Oct 2).
“I do believe that this is Asia’s decade for climate action, and the boldest bet that we can make is on ourselves. We have to trust our ability to lead,” said Jamie Choi, chief executive officer of the Tara Climate Foundation.
“When it comes to Asian solutions, the Western philanthropies will never have the legitimacy and the credibility that will allow the Asian solutions to stick,” she added. “So we need more of us at the table.”
Globally, only about 2 per cent of philanthropic capital goes into climate solutions. Panel moderator Melissa Stevens noted that most of this goes into adaptation and resilience, rather than mitigation.
Stevens, who is executive vice-president at Milken Institute Philanthropy, added that most of the funding also goes to the US, Europe and Canada; less goes to low-income and middle-income countries, which are most impacted by climate change.
That said, families and foundations should not be discouraged by these numbers, said Chavalit Frederick Tsao, chairman of family business Tsao Pao Chee Group.
A NEWSLETTER FOR YOU
Friday, 12.30 pm
ESG Insights
An exclusive weekly report on the latest environmental, social and governance issues.
“Climate is simple. You think it’s very complex. (But) we have all the solutions,” he said.
People get concerned over the small percentages and worry over the need to de-risk their funding, he added. But “you only need a very small (amount) to work with, because to solve (the climate crisis), we need trillions every year, which means that we need to build an asset class that institutional money can (enter)”.
Choi agreed that there is a misconception that people need to provide large sums of money to enter climate philanthropy.
“The quantum of money matters, but what matters more is how you deliver the money. So small quantums can really make a difference,” she said. “So if you are a philanthropist out here who’s wondering, ‘Is climate my cup of tea?’ The answer is yes, it is your cup of tea.
“Please come in small quantums when we collaborate. It makes a huge difference.”
Ng Boon Heong, executive director and CEO of Temasek Foundation, said that when it comes to the climate, the foundation focuses on both tech-based and nature-based solutions.
“What we are observing is, in tech-based solutions, I can get follow-on investments and funding,” he said. “But in nature, it’s not easy to get funding. For a small country like Singapore, there is much less funding as compared to Indonesia.”
Tech-based solutions include businesses that work on novel technology that can, for instance, extend the shelf life of fresh produce or carbon-sequester cement and green hydrogen as fuel.
Nature-based solutions refer to approaches such as forest conservation and management to tap the natural carbon-capture capabilities of trees.
Ng added that Temasek Foundation is conscious of the difference between charity and philanthropy.
“Charity means you give a dollar out, you feed somebody, you do good, right? But in philanthropy, for every dollar, you’re always asking yourself, how many more multiples, how many more dollars you’re bringing into the sector, into the cost, and what kind of leverage that you’re getting.”
And just as how businesses should go beyond returns and focus on impact, foundations “should not just think about impact, but also about business”, he said in response to a question about taking big bets over the next decade.
Copyright SPH Media. All rights reserved.
