East Ventures The team at

East VenturesA venture capital firm that operates in Indonesia The following are some examples of how to get started: Southeast Asia, which recently revealed its East Ventures Sustainability Report 2024. The report showcases the firm’s ongoing commitment to integrating Environmental, Social. Governance (ESG), frameworks across its operations and ecosystem. It highlights the firm’s strides in generating positive societal impacts while ensuring responsible business practices.

East Ventures Has formulated policies that support its investment decision, focusing on sustainable investments. It Integrates ESG and Impact Management principles as a guideline for fostering responsible investment practices and improving corporate governance in its portfolio companies.

In An email interview with e27, East Ventures Partner Melisa Irene explains the firm’s approach to ESG and how it is promoting it to its portfolio companies.

East Ventures’ investment strategy fosters positive impacts and mitigates ESG risks. Through its ‘Doing Good’ approach, the firm evaluates its investments’ potential positive environmental and societal outcomes using a Theory The following are some examples of how to use Change framework. Simultaneously, the ‘Avoiding Harm’ aspect focuses on risk mitigation, incorporating ESG standards into the selection process and ensuring ongoing compliance with regulations and best practices.

Also Read: Former MD of Temasek Lifesciences Accelerator Sang Han joins East Ventures Korea

To To better understand the conversation, you can listen to an edited version of it.

What What challenges are you facing in promoting ESG at work? How Do you have a plan to deal with them?

ESG risks & opportunities covers broad topics such as greenhouse gas emissions diversity & inclusion and business ethics. Each The topic is aligned with various standards and frameworks that outline ESG performance at the highest level for companies. Aligning Prioritisation is important because it takes a lot of effort and resources to meet all these standards.

Our The approach we take is tailored to our portfolio and business. We We use a materiality-driven approach, meaning that we work collaboratively with the companies in our portfolio to determine which ESG issues are most important for each company’s vertical. This It allows us focus on the ESG opportunities and risks that are most critical, instead of addressing all of them indifferently.

MoreoverWe also take into account the maturity of our portfolio companies in implementing ESG. We Don’t demand that we meet all ESG criteria instantly, but ignore the companies’ financial stability. The The bottom line is the company has to comply with ESG regulations. Beyond We develop a compliance plan in collaboration with our portfolio companies. This action plan outlines immediate and long-term improvement. ConsequentlyESG is no longer just a compliance initiative, but an added-value initiative that promotes growth.

What How do you promote sustainability within your portfolio of companies?

Our Investment team and ESG Specialists Our portfolio companies are actively involved in mapping out ESG integration to maximise sustainable growth opportunities and create impact.

For For example, we work closely with our portfolio companies in the agricultural sector to identify detailed ESG risks as well as opportunities for improvement. The project’s outputs include recommendations on aligning with sustainability best practices to minimize biodiversity risk and improvements in Environmental Social management practices

Also Read: East Ventures launches US$30M fund to back Indonesian startups

Following In the project we worked closely with the company in order to develop a better strategy to address ESG risk and improve internal processes.

Let Let’s go back to the basics How Is sustainability good for business?

Sustainability Implementing ESG can help you achieve a long-term objective. ESG factors are increasingly important in influencing global investment and business decisions. This Trends are based on the understanding that sustainability is vital to mitigating risks, fostering opportunities and creating lasting value.

As As a venture capital company, we play a role in shaping the world by supporting innovative companies that bring about positive change. By We aim to add value for our portfolio companies, investors and society as a whole by incorporating ESG factors into our investment strategy.

We We actively look for investment opportunities in companies that align with our ESG obligations. Our Investments are focused on enterprises that tackle local challenges, improve efficiency and effectiveness and make a significant impact. Our Sustainable investment is a way to build portfolios that have a positive impact on the long term.

What What are the aspects you would like to improve in your sustainability journey?

We Our annual Sustainability Report For the past three years. It This helps us to better understand and assess our operations and initiatives in order to achieve our long-term sustainability and ESG goals.

We Recently, we have implemented some of the insights/findings gained to help strategise better our operation. We We believe that when we succeed, we also want to be successful. SoWe are working to develop more initiatives, and to collaborate with relevant stakeholders in order to make a greater impact and promote sustainability.

Also Read: East Ventures, SV Investment launch US$100M fund to bridge SEA, Korea startup ecosystems

What Sustainability is the big topic for this year.

We We are committed to continually improving our sustainability initiatives, and maintaining our principles and commitments. From From an investment perspective, our commitment to ESG will continue to guide the investments we make.

Moreover, we remain committed to creating and supporting this space’s initiatives; for instance, we have again launched the Climate Impact Innovations Challenge You can also find out more about Temasek Foundation Climate-tech solutions can be empowered Indonesia The following are some examples of how to get started: Southeast Asia.

We Also launched was a web-based free emission calculator for businesses in Southeast Asia ECOVISEA.

Image Credit: East Ventures

The Article first published on April 25, 2024

The Postings by other people How East Ventures adopts materiality-driven ESG strategy for its portfolio companies First on e27.

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