Asset Management 3.0: Supporting Impactful and Sustainable Organizations

As time goes by, the business world is constantly faced with challenges from various directions. One of the challenges that hit today is how to create a business wheel that has an impact and sustainable value. In a business perspective, one of the benchmarks of organizational success is through Asset Management. Asset management is the process of effectively and efficiently managing the assets of an individual, organization, or company to achieve certain goals. With good asset management, it is expected that the value of assets can increase, so as to reduce expenses that are not optimal and increase overall income.

Not only the business world, developments have also occurred in the concept of asset management which is closely related to investment. This is explained in Figure 1 which according to Schroder (2024), long before the implementation of risk management, investments tended to focus only on financial returns known as Asset Management 1.0. After phenomena such as the global crisis, investments that also prioritize risk management are considered by investors to be more profitable (Asset Management 2.0). However, in recent years, there has been a significant shift towards a more holistic approach with Asset Management 3.0. This concept emerged as an innovative approach that combines financial returns with a positive impact on the environment and society as an organizational or corporate asset. It is not only about generating optimal financial returns, but also how impact management occurs within an organization or company.

Then, how can this framework approach support organizations or companies to be more impactful and sustainable?

In general, Asset Management 3.0 integrates good impact principles such as the Environmental, Social, Governance (ESG) framework or Sustainable Development Goals (SDGs) targets. The integration of good impact principles is believed by investors to not only help reduce investment risk, but also increase company value.

On the other hand, Asset Management 3.0 also allows organizations to obtain investments that create positive impact solutions around the world. It is not just about local investment, but about global impact. This shows that sustainability is not just a trend, but also a wise business strategy. This is supported by a survey conducted by PricewaterhouseCoopers (PwC, 2023) that 75% of global investors say the impact on the environment and/or society today and in the future is important to measure and report.

Therefore, the implementation of the Asset Management 3.0 framework opens up great opportunities for organizations to obtain investments through initiatives that contribute to sustainable development. ANGIN Invesment (Angel Investment Network Indonesia) published a report on impact investing in Indonesia in 2020. Based on the report, the total capital spent on impact amounted to USD 267 million (around 4.3 trillion rupiah) coming from various industries.

 Figure 2. Distribution of Investment in Impact in Indonesia (ANGIN, 2020)

The figure presented in Figure 2 shows the amount of investment obtained by building initiatives that contribute to sustainable development. Not only in the social, economic, and health sectors, impact investment has penetrated into other sectors such as the environment, energy, and others. This is a breath of fresh air for sustainability drivers that a support system has now been built in implementing sustainability.

Implement Asset Management 3.0 this way!

One of the strategies to adopt Asset Management 3.0 is with Impact Measurement and Management ( IMM). This is important because IMM allows organizations to define clear impact objectives, develop appropriate metrics, systematically collect and analyze data, and integrate impact considerations into organizational or corporate strategy. Through IMM, the organization or company can know the strategy carried out and investors can evaluate the selected investment will have a positive impact as expected.

As an impact consultant, Maxima Impact Consulting continues to support and facilitate partner organizations or companies to implement Asset Management 3.0 in managing organizational or corporate assets, including measuring and managing the impact of the initiatives undertaken.

Your organization wants to build impact initiatives through Impact Measurement and Management? Consult with Maxima Impact Consulting and find various strategies to create an impactful transformation!