Venture Capital Firm Genesia Ventures Signs PRI
Signing the PRI and establishing an ESG Investment Policy will Strengthen ESG-conscious Investment and Support Activities.
Genesia Ventures is pleased to announce that it has signed the Principles for Responsible Investment (PRI) on December 21, 2021. In line with the PRI, Genesia Ventures has formulated an ESG investment policy and aims to realize its vision of “a society that brings prosperity and opportunity to all” by supporting portfolio companies to continuously develop their corporate value in the long-term and working with them to resolve social issues.
Background of PRI Signatory
In the past, we have always been working to become a global platform that creates sustainable industries, co-creating with various stakeholders to realize the ideal world and future. As a venture capital firm with these values and mindset at its core, we strongly identified with the philosophy and principles of PRI, and it was only natural to commit to responsible ESG-oriented investment. We made the business decision to sign the PRI in order to reaffirm our aspirations, incorporate ESG elements into concrete actions and procedures, and to assert that ESG is a key management issue for us.
The Principles for Responsible Investment (PRI) started as an initiative proposed to the financial industry in 2006 by Kofi Annan, the then UN Secretary-General. It was aimed to raise awareness of ESG issues among institutional investors. Since then, the number of signatories to the PRI had been increasing steadily, as the importance of a long-term approach was reaffirmed against the short-term investment trends that led to the Lehman Shock. As of 28 December, 2021, 101 institutions in Japan and 4,666 institutions worldwide have signed the PRI. In Japan, many asset owners and management institutions have signed the agreement, including the world’s largest institutional investor, Government Pension Investment Fund (GPIF).
ESG Investment Policy
1. We will consider factors relating to ESG at each stage of the investment process, including analysis, evaluation, decision-making, investing, and when providing support post-investment.
2. We will follow environmental compliance rules and consider risks associated with climate change (caused by greenhouse gas emissions, etc.), maintenance of ecosystems and biodiversity, management and recycling of industrial waste and hazardous substances, our impact on air, soil, and water pollution, and the impact of noise, vibration, and odor pollution on living environments.
3. We will comply with laws and regulations regarding working conditions and occupational health and safety, provide a safe working environment that respects human rights and diversity, and strive to build positive relationships with our employees and business partners.
4. We will strive to protect personal information, follow information security measures, conduct quality control, and adhere to product compliance rules.
5. We will strive to comply with corporate ethics and employee compliance rules, prevent bribery and corruption, establish a fraud risk management system, ensure management transparency, eliminate antisocial forces, and implement anti money laundering rules.
6. We will identify significant ESG risks and opportunities, work to mitigate risks and create new business opportunities through daily active engagement with management of startups, and encourage companies to proactively address ESG issues through the appropriate exercise of our voting rights.
7. We will continue to monitor changes through shared understanding and engagement with management of startups regarding important ESG issues, implement measures, propose improvements, and provide timely information to fund investors.
8. We will work to understand the positions and thought processes of stakeholders, including management of startups, employees, customers, business partners, creditors, shareholders, government agencies, and local communities, with respect to potential conflicts of interest that may arise, and make our utmost efforts to ensure that their interests are aligned.
9. We will provide opportunities for our executives and employees, as well as those of the portfolio companies, to learn about ESG issues via study sessions, and conduct educational activities to spread and promote the understanding of ESG issues in the industry.
Message from Masafumi Kawai, Partner/Chief ESG Officer, Genesia Ventures, Inc.
With the recent rise in awareness of climate change risks, the accelerating momentum towards the realization of a decarbonized society, increasing attention towards human rights issues in supply chains, and the change in consumer consciousness due to COVID-19, ESG considerations are now essential for all business owners and investors. It has become an essential and irreversible trend. In the face of such major generational changes, we believe that proactive support for ESG compliance is an essential element for the long-term value enhancement of startup companies in the future. While providing support to entrepreneurs, we would also like to meet the expectations of fund investors at a high level by becoming a more mature investment company with a sincere commitment to ESG management ourselves. The PRI signatory and the formulation of ESG investment policies are just the beginning for us. We will continue to focus on how we can firmly integrate ESG principles into our investment strategies and daily support activities, and how we can integrate them into effective initiatives that lead to the growth of startup companies. We will continue to make concrete improvements.
About Genesia Ventures, Inc.
Genesia Ventures is a venture capital firm that invests in and supports seed and early-stage startups with the vision of “creating a society that brings prosperity and opportunity to all.” Genesia Ventures was coined by combining the word “Genesis,” which means “origin” or “creation,” with the word “Asia.” It expresses our desire to be a venture capital that plays a role in supporting creations in Asia. With offices in Tokyo, Jakarta, and Ho Chi Minh City, we aim to build a platform that supports the creation of sustainable, large-scale industries across Asia, together with stakeholders that include startups, corporations, investors, governments, municipalities, and non-profit organizations.