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.