Sustainability Investing Takes off in Southeast Asia
By Suvir Varma, Alex Boulton and Usman Akhtar
Private equity and venture investors in Southeast Asia are betting on something new — sustainability. Bain research shows a significant increase in capital flowing to companies that contribute to environmental and social progress.
Just 10 years ago, most large investors in Southeast Asia targeted primary industries such as oil and gas, mining and agricultural commodities. Today, investors are piling into renewable energy projects, financial platforms that provide access to capital for microbusinesses, and for-profit hospital networks that offer underserved populations better access to health care.
In developing countries, the range of potential sustainability investments is arguably broader than in developed countries. Based on a definition adapted to developing countries, sustainability investing in Southeast Asia has rapidly gone mainstream.
Photo courtesy of Sudipto Sarkar.