LeapFrog Investments, the profit with purpose firm based in United Kingdom, has announced investment from Temasek and support from the European Investment Bank for its strategy to deploy $500 million to address climate change in Africa and emerging Asia.

LeapFrog said in a statement on Thursday that its climate strategy will focus on investments in companies that provide green tools and technologies that tackle this challenge for rising consumers, such as two-wheeler electric vehicles (EVs), rooftop solar providers, and smart farming businesses.

Targeting the energy, mobility, built environment and agricultural sectors, and providing growth equity and distinctive expertise to fast-scaling consumer companies, LeapFrog’s investments will support low-carbon and resilient growth as incomes rise in countries such as India, Indonesia and Kenya.

It is noted that LeapFrog’s climate team has built a robust pipeline of green businesses in Africa and emerging Asia to accelerate this green global transition, with initial investments to be announced in 2024.

Its previous funds have already backed successful climate companies such as Sun King, the largest pay-as-you-go solar financier in Africa.

It is also learnt that in 2021, Temasek committed $500 million to LeapFrog to anchor its future investing activity, and this includes its $100 million commitment to the new climate investing strategy.

The European Investment Bank, which is the lending arm of the European Union, is also a longstanding partner with LeapFrog in emerging market impact investing, and its cornerstone support, currently under appraisal, would represent EIB’s fifth investment with LeapFrog.

Other investors that will support the climate investing strategy will be revealed in due course.

Cited Investor Roadmap for Inclusive Green Growth report – released on Thursday by LeapFrog with partners Temasek and the World Bank’s CGAP think tank, it said South Asia, Southeast Asia, and Africa today represent 25 percent of global climate emissions but could account for as much as 73 percent of emissions by 2050 without urgent action.

“The world has woken up to the opportunity and challenge of delivering a green transition, not only in developed economies but also across emerging economies,” said Dr Andy Kuper, Founder and Chief Executive Officer, LeapFrog Investments.

“The swift and early support of our longstanding partners Temasek and EIB shows that long-term and progressive investors understand the global challenge of tackling climate change holistically,

“Climate has no borders, and so neither should global capital markets, as we work to rapidly scale clean, efficient, affordable climate solutions for the five billion people in the emerging markets of South Asia, Southeast Asia and Africa,” he added.

Meanwhile, Temasek Head of Impact Investing Benoit Valentin said there is huge potential for emerging markets to leapfrog a generation of traditional and incumbent technology with access to clean technology, while improving lives and livelihoods.

“We need to take urgent action, tap on the significant green discount, and seize investible opportunities for a greener and more inclusive future,

“Our partnership with LeapFrog is one of the core pillars of our impact investing strategy and underscores our belief in the potential of impact investing to unlock capital to build a better, more inclusive, and sustainable world where every generation prospers,” he added.

EIB Global Acting Managing Director Markus Berndt, on the other hand, said that as the European Union climate bank, with a global mission supporting the green transition and mobilizing private finance, he is excited about the strategy’s objectives to invest in concrete solutions to local private sector development and a green transition in transport, energy and environment in Asia and Africa.

According to the statement, the climate strategy strengthens LeapFrog’s position as the pioneer of profit with purpose investing in both financial services and healthcare, combining outstanding commercial returns and outsized impact.

It said the group has raised four growth equity funds and two separate accounts spanning dozens of investments in 30 countries to date.

Over the life of LeapFrog, its portfolio companies have generated 24 percent annual revenue growth on average, and today LeapFrog companies reach 492 million people with healthcare, financial tools or climate solutions – over 6 percent of the world’s population.

LeapFrog invests in healthcare, financial services and climate solutions businesses in high-growth global markets.

The firm has raised billions of dollars from global institutional investors, including a recent $500 million commitment by Temasek to LeapFrog and its growth equity funds.

LeapFrog Investments plans to commit over $500M to climate solutions in Asia and Africa