Next-generation Asian business leaders strive for more than just profits, seeking to carve out their own identity away from their parents’ legacy | Business and Economic Developments in Asia

Second and third-generation family businesses in Asia are increasingly looking towards greener and more sustainable investments. Abe Lim, a 27-year-old Malaysian, clashed with her father over a focus on profit and decided to leave the family business to follow her ideals of socially and environmentally conscious investing. After a failed marketplace for used furniture, she founded Purpose Plastic, a company that recycles discarded plastic into various products. Lim recently ran for local elections in Malaysia and is a member of the Malaysian United Democratic Alliance, advocating for policies to combat climate change.
Komal Sahu, a member of the Asian Venture Philanthropy Network, explained that younger generations are reshaping the perceptions among business owners of the need for companies to make a positive social impact. While the younger generations are advocating for environmentally and socially conscious investing, Sahu notes that the shift is not always met with resistance from the previous generation. Marianna Lopez Vargas, a 32-year-old heir to a Manila-based climate change research centre, explained that her family’s businesses divested completely from coal and transitioned to clean and renewable energy due to concerns about climate change. She emphasized that it is a necessary transition to renewables done in a just, equitable, and inclusive manner.
Fernando Scodro, a 35-year-old Brazilian based in Singapore, convinced his family to explore socially conscious investing and successfully implemented the investment strategy of the family office Grupo Baoba in Rio de Janeiro. As the younger generation of family businesses continues to push for socially conscious investment, effective communication and a deep understanding of generational differences and perspectives are key to persuading the older generation to adopt new ways of thinking.

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