Brent York

Eye On Asia | How an ESG lens can help Asian philanthropists drive change

Philanthropists today, who want to actively participate in project identification to ensure a truly sustainable impact, need a model for holistic thinking and analysis. The ESG framework is ideal

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Asian philanthropy is witnessing a shift in focus to sustainability and protecting the environment for the next generation. Photo: Shutterstock

Brent York

Published: 3:30pm, 26 Sep 2021

Over the past few decades, the growing body of philanthropists in Asia has primarily been drawn to education, medical support or poverty relief. But changes in decision-makers for families as well as pressing causes has created a shift in focus to sustainability and protecting the environment for the next generation.

This evolution means an increasing interest in understanding what local and regional needs exist, combined with a strengthening desire to improve the application of private wealth in driving meaningful change. This must be delivered by strategic long-term thinking that the environmental, social and corporate governance (ESG) framework can provide.

The urgency couldn’t be higher for Asia – a region particularly vulnerable to the impact of climate change. Adding to this paradigm is a pandemic-fuelled shift in priorities, which has necessitated a more holistic approach to giving and investing.

The area of ESG offers a solution. The framework, so prevalent in the strategic thinking of companies these days, if applied properly, will ensure the effectiveness of philanthropic efforts.

The environment is perhaps the most high-profile of the three factors, not least from the push for net zero carbon emissions by so many institutions. While much-needed grass-root activity can take steps to combat climate change, primary research will provide the help scientists need to better understand the consequences of activity and identify real solutions. Driving knowledge that has a long-term environmental impact is an area where philanthropy has a meaningful role to play.

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A good example of this is a philanthropic foundation that funds research at a local university on how rising seawater temperatures are affecting marine cnidarians such as coral, sea anemone and jellyfish in Hong Kong. This work will help conservationists develop strategies to protect the biosphere over the coming decades.