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Jade Invest

PRI reporting framework 2020

You are in Strategy and Governance » Governance and human resources

Governance and human resources

SG 07. RI roles and responsibilities

07.1. Indicate the internal and/or external roles used by your organisation, and indicate for each whether they have oversight and/or implementation responsibilities for responsible investment.

Roles

Select from the below internal roles

          CFO, senior investment team
        

07.2. For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities.

RI oversight is incorporated throughout Jade Invest's organisation, and is not the responsibility of a dedicated ESG team. Identifying and resolving ESG issues require deep understanding of a portfolio company and frequent and close interaction with founders/management. This is why the ultimate responsibility for Detection and Implementation falls under the Project Manager (i.e. the team member assigned for the overall post-investment portfolio management for a given company). However, each member of Jade Invest's investment and portfolio management teams, from investment professionals to back office, has a responsibility to report any suspected, potential or confirmed ESG issues directly to the Portfolio Manager, who in turn must disclose such issues to management without delay.

Jade Invest works closely with portfolio company management teams to define feasible near-term goals as well as the major milestones to be achieved throughout the expected holding period. This is normally done during quarterly board meetings. Our approach emphasizes the importance of building deep commercial understanding within the portfolio company management with respect to ESG. This will include a study on the impact of ESG improvements on the company's addressable market as well as the improved exit potential that may come as a result of a higher overall level of ESG, tax and regulatory compliance, particularly in the case of an overseas strategic trade buyer.

07.3. Indicate the number of dedicated responsible investment staff your organisation has.

1 Number

07.4. Additional information. [Optional]


SG 07 CC. Climate-issues roles and responsibilities (Private)


SG 08. RI in performance management, reward and/or personal development

08.1. Indicate if your organisation’s performance management, reward and/or personal development processes have a responsible investment element.

Board members/Board of trustees

08.1b. RI in personal development and/or training plan

08.2. Describe any activities undertaken during the reporting year to develop and maintain Board members’ skills and knowledge in relation to responsible investment.

Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Operating Officer (COO), Investment Committee

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Other C-level staff or head of department

          CFO, senior investment team
        

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Portfolio managers

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

Investment analysts

08.1a. RI in objectives, appraisal and/or reward

08.1b. RI in personal development and/or training plan

08.3. Provide any additional information on your organisation’s performance management, reward and/or personal development processes in relation to responsible investment.

Jade Invest's performance assessment incorporates all aspects relevant to the long-term success of the firm and its portfolio companies, including RI. Since RI is included in Jade Invest's portfolio management / monitoring (through the "Issues Log"), it becames a natural part of any team member's performance review. In relative terms, the bottle-neck to successful RI implementation in our market is not staff training or identifaction of RI/ESG issues. The key challenge lies in the dialogue with portfolio company management, particularly where certain RI measures may result in a negative short-term impact on profitability. China has been a hyper-growth market for two decades and long-term strategies have until recently been associated with a negative premium to profitability and valuations. Through dialogue, case studies and detailed analysis (e.g. of exit valuation scenarios at different levels of RI implementation), Jade Invest strives to build trust and understanding with portfolio company management teams/founders regarding the significant long-term upside that can be realized through patient and systematic improvement of ESG, tax and regulatory compliance.


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