In uncertain times, Asia has an opportunity to make an impact

IN A polarised political environment, impact investing – which seeks to generate both financial returns and measurable social or environmental benefits – is emerging as a vital strategy in confronting climate change, social inequities and an urgent need for sustainable growth.

Globally, over US$1.5 trillion is estimated to be deployed in impact investments, with the vast majority coming from European and North American investors. More capital is needed, particularly in regions that stand to benefit the most from sustainable investments.

Asia’s impact investing landscape is undergoing a transformation. Just three years ago, East and South-east Asia accounted for only 1.5 per cent of global impact investment assets. Today, that figure has grown to around 7 per cent, based on a recent survey by the Global Impact Investing Network.