INVESTMENT CRITERIA
INVESTMENT THEME
Sustainable Planet
Clean Energy
Businesses that solve problems caused by fossil fuel-based energy production, storage, and supply systems
Environment-friendly Solution
Businesses that help mitigate and adapt to climate change and reduce environmental pollution
Sustainable Food and Agriculture
Businesses that minimize environmental problems at all stages of food and agriculture including production, consumption and disposal
Sustainable People
Biotech and Healthcare
Businesses that help everyone enjoy a healthy, high-quality life
Education and Caring Solution
Businesses that provide quality care and universal access to education
SMB and High-Quality Jobs
Businesses that promote sustainable growth of small-medium business owners and create high-quality jobs
Sustainable Community
Inclusive Finance and Digitalization
Businesses that provide financial and digital services for the underserved
Affordable Housing
Businesses that provide affordable residence in order to alleviate the housing burden of the underserved
Lifestyle and Content Diversity
Businesses that provide everyone with chance to enjoy a lifestyle and entertainment without discrimination, prejudice, and/or hatred
INVESTMENT PROCESS
Send us an email(investment@hginitiative.com regarding investment opportunities.
You must attach documents introducing your team and business.
These documents should also include your team’s capability and/or potential to solve social and environmental problems.
Our internal review takes about two to four business weeks, and the result will be delivered individually via email.
The type of sustainability investing is internally determined using sustainability analysis frameworks such as Negative Screening, ESG Investment Guideline, 5 Dimensions of Impact, et cetera.
Sustainability internalization programs, external communication content,
ESG importance assessment, or impact KPI tracking provide a foundation for companies to continue their concerns and efforts for sustainability even after recovery.
ESG INVESTMENT
Environmental Management
Companies must respond preemptively to strengthen their environmental responsibilities and encourage the development and spread of environmentally friendly technologies.
Companies should manage environmental risks that may affect management activities in advance to increase management stability. It is necessary to create opportunities by identifying and preparing risk factors due to the use of natural resources in advance, and by forming new markets and securing competitive advantage due to environmental changes.
Companies must identify climate change-related risks and opportunities that may affect their business strategies and financial plans. In order to recognize serious environmental problems caused by climate change and minimize negative effects, risks and opportunities related to climate change should be identified, and new regulations linked to the global market should be considered.
Since the company is responsible for minimizing the negative effects of the ecosystem due to by-products of production activities, it should continue to carry out activities to minimize the generation and emission of environmental pollutants in the production and manufacturing processes.
Companies should minimize waste and wastewater generation from business activities as much as possible, minimize emissions, and deal with them legally. In addition, efforts should be made to fully recognize the harmfulness and risks of harmful chemicals, reduce the use of harmful chemicals, and prevent chemical accidents.
Social Management
The top management should express a firm commitment to socially responsible management and demonstrate leadership to bring out actual practice.
Corporate social responsibility should be incorporated into corporate strategies in order to establish effective governance.
Companies should support and respect the protection of human rights and be careful not to be involved in human rights abuses.
Companies should make efforts to promote employment and retain attractive talent with deep consideration regarding diversity.
In addition, proper compensation should be ensured based on a decent performance management system.
Companies should respect and guarantee the basic rights of workers and provide a safe and healthy working environment for workers of their own and deeply related companies.
Companies must comply with simple manners within capitalism; establish a fair transaction system, promote mutual growth and unrestricted competition, and support the sustainability of their supply chain.
Companies should ensure that consumers are not harmed by unfair business practices by establishing a system that can protect customers from business hazards and provide fair compensation for caused damages.
Companies must establish pertinent systems and procedures to protect their information assets and comply with the Personal Information Protection Act.
Governance
The board of directors and management should create and preserve shareholder value and thus contribute to sustainable growth with the purpose of maximizing long-term corporate value.
Companies should establish goals, strategies, and a corporate culture that pursues sustainability in order to promote sustainable growth, and improve profitability and capital efficiency; these efforts are expected to result in greater long-term corporate value.
The board of directors shall have comprehensive authority over corporate management and shall participate in decision-making and monitoring at the same time.
They also shall protect general shareholders from unfair internal transactions practiced among controlling shareholders.
irectors shall act within fiduciary duty, and shall not divulge any corporate secrets and/or use them for personal benefits.
Companies shall protect the fundamental rights of its shareholders.
Companies must provide detailed information of shareholders' meetings in advance, and allow shareholders to exercise their voting rights with sufficient information and time.
The board of directors and management must put enough interest in constructive communication with shareholders and stakeholders.
The entity shall provide shareholders with the necessary information in a timely and fair manner.