We believe that our interests are best aligned with those of our investors and of our portfolio companies when we apply environmental, social and governance considerations in our investment decision-making process. Monitoring of these issues in most of our portfolio companies, post investment, is also part of our day-to-day business, as an early stage investor. We strive to integrate them into the mindset of our entrepreneurs, in order for them to deliver long-term, responsible, sustainable growth. We consider the following five pillars below to help guide our own decision-making and monitoring processes, that provide an ESG framework for our portfolio companies, to ensure they act in a responsible manner.
Environment friendly
Protection of our environment considerations play an important role in our investment decision. Our investments are focused in early and growth stage technology projects, thus our portfolio companies in general aim at improving efficiency in life or at work by leveraging software tools and/or hardware devices. We do not directly invest in labor and resource intensive sectors such as traditional manufacturing and agriculture. We also believe that beyond our portfolio companies’ meeting environmental compliance requirements, there are numerous investment opportunities in resource efficiency and energy management areas, disrupted new emerging technologies. Our investment team is looking for such opportunities.
Social responsibility
The majority of our early stage and growth stage investments are companies that create new employment opportunities through technology. Some of our projects are expected to reshape their respective industries in the long run. Our portfolio companies bring additional social benefits by improving efficiency through innovative business models, such as sharing economy, as well as by disruptive technology such as in big data, robotics, etc. We have also invested in numerous companies that include female founders, and actively encourage our companies to involve more women at the executive level, across all functions of the company.
Business ethics
We apply high standards of business integrity and transparency at all times, within our team and between our portfolio companies, and have an anti-corruption and anti-bribery policy, supported by appropriate levels of compliance monitoring. We hold regular internal training sessions for our employees, as part of the compliance monitoring.
Governance
Our companies hold regular, structured board meetings, with supporting legal documentation, undertaking regular strategic planning, and having a clear focus on the revenue opportunities and operational improvements that will drive shareholder value. In addition to this, we make our best effort so that similar ESG criteria are considered by our companies’ boards, on a periodical basis.
Community engagement
Sinovation Ventures has a strong and ever-growing startup and founders’ community in China, as well as in the U.S. We have and continue to put a lot of effort in building this community, in nurturing it and leveraging it to draw a full range of business benefits (indicatively knowledge sharing, recruitment, public relations, enhanced reputation and brand, etc.) and help our companies build win-win collaborative opportunities.
Project-affected People’s Mechanism
Asian Infrastructure Investment Bank (AllB) has established Project-affected People’s Mechanism (PPM) to provide an opportunity for an independent and impartial review for submissions from Project-affected people who believe they have been or are likely to be adversely affected by the Bank’s failureto implement its Environmental and Social (ESP) in situations when their concerns cannot be addressed satisfactorily through the project-level Grievance Redress Mechanism (GRM) or the processes of the Bank' s management.
For information on the Bank’s PPM, please visit:
https://www.aiib.org/en/policies-strategies/operational-policies/policy-on-the-project-affected-mechanism.html
