Temasek Rice: Harnessing science and technology to allow people in the region to grow rice sustainably using less natural resources while enhancing our food security (Photo Credit: Temasek

Singapore, 12 May 2021 – Temasek Trust has entered into a strategic collaboration with  SDG Impact, a United Nations Development Programme (UNDP) initiative focused on providing investors and businesses in Asia with clarity, insights and tools to support their contribution to achieving the UN Sustainable Development Goals (SDGs) and generating positive social and sustainability outcomes in Asia.

This collaboration marks an important milestone in Temasek Trust’s journey to establish impact investing, which encompasses the intent to generate positive, measurable social or environmental impact alongside a risk-adjusted return, as an effective lever for sustainability.  This endeavour began in May 2019 with Temasek Trust’s launch of ABC World Asia, a private equity fund dedicated to impact investing in Asia.

Temasek Trust charts a pathway in impact investing with ABC World Asia

ABC World Asia invests in companies that drive positive change by addressing the world’s most pressing challenges. Its investment themes include financial and digital inclusion, better health and education, climate and water solutions, sustainable food and agriculture, and smart and liveable cities.

In 2020, ABC World Asia deployed close to S$100 million into companies across its focused sectors in Asia Pacific. Some examples of ABC World Asia’s portfolio impact include more than one million metric tons of CO2 emissions avoided, approximately 460,000 people and microenterprises provided with access to credit and financial services, and  over 1.5 million smallholder farmers provided with customised farming advice and information. ¹

ABC World Asia’s investments have provided Temasek Trust with important insights into the practical challenges faced by those keen to embark on impact evaluation and management.  In the next phase of its journey, Temasek Trust is committed to playing an active role to contribute towards field building and standard setting efforts, and to share its learnings and perspectives with industry players and stakeholders.

Forging close ties with UNDP SDG Impact to elevate impact investing in Asia

Temasek Trust joined UNDP’s SDG Impact Steering Group in 2019. SDG Impact is UNDP’s flagship initiative to establish global practice standards for SDG-enabling investment and provide investors and businesses with tools that would help them identify areas of need and make targeted investments. The SDG Impact Standards aim to bridge the gap between current industry practices and a more sustainable, resilient and inclusive future.

The decision to deepen its collaboration with UNDP SDG Impact demonstrates Temasek Trust’s commitment towards social and sustainability outcomes in Asia through the impact investing pathway. Temasek Trust will be SDG Impact’s anchor partner in Asia, to support the aims of driving awareness, adoption and application of SDG Impact standards and tools in the region in a way that is useful and relevant to the Asian context.

Ms Cheo Hock Kuan, CEO of Temasek Trust, said, “The potential of impact investing to address social and environmental challenges is substantial, and we want to bring rigour to the process. For this asset class to successfully grow and fulfil the role we know it should, investors need to see a disciplined focus on returns, accompanied equally by a consistent and robust method of measuring impact. We are excited to collaborate with UNDP SDG Impact who brings authority and expertise on investing for SDG achievement.”

Temasek Trust’s collaboration with UNDP SDG Impact will enable the development of SDG Investor Maps that will provide a rich inventory of impact business models and investment opportunity areas that align with the SDGs in ASEAN countries. Temasek Trust will also partner SDG Impact in launching the new UNDP SDG Impact Standards and rolling out training and technical assistance to funds, firms and governments interested in applying the Standards in the ASEAN region.

¹ ABC World: Asia World Report 2020. (2021). Retrieved March 18, 2021, from https://www.abcworld.com.sg/impactreport2020/