Responsible Investing

Jade Road’s Responsible Investment Statement

 

Jade Road is committed to a responsible investment approach which is executed through its Investment Manager, Harmony Capital (the “Investment Manager”). The Company sees the integration of Environmental, Social and Governance (“ESG”) Principles as an integral part of its investment process and throughout the lifecycle of any particular investment.

Jade Road sees ESG factors as the interaction of its investments with their surrounding environment, their employees and wider communities, as well as the governance structures that are put in place.

Jade Road recognises that ESG factors are not static and encompass a wide range of considerations. Examples include:

 

ENVIRONMENT SOCIAL GOVERNANCE
Climate Change Community Engagement  Board Composition 
Waste and Recycling  Management Employee Relations  Executive Remuneration 
Supply Chain Management Health and Safety  Anti-Bribery and Corruption 
Carbon Emissions Human Rights Shareholder Rights
Energy Usage Gender and Diversity Audit Committee Structures

 

Jade Road believes that incorporating ESG considerations in its investment activities is an expression of the Company’s fiduciary duty to its shareholders to preserve and enhance the value of the assets with which it has been entrusted.

The Company also believes that incorporating ESG considerations in its investment activities is an effective risk management tool. It also helps Jade Road to identify exciting new opportunities and generate greater value for its shareholders - strong ESG policies ensure that companies favour long-term value creation for their employees, shareholders and the wider community and preserve the overall health of the business.

 

Framework and Implementation

 

Jade Road is committed to strictly adhering to its ESG Investment Policy available here.

 

Jade Road’s Board - Governing body with oversight of Jade Road’s ESG Policy implementation.
     
Jade Road’s Investment Committee (IC) - Responsibility for ensuring adherence to the ESG Policy across all new investments as approved by the IC.
     
Investment Manager’s Investment Team - Ensures the implementation of the ESG Policy through appropriate new deal sourcing and direct interactions with the investee companies.
The team undertakes a thorough ESG-focused Due Diligence Questionnaire, which is presented to the IC when proposing a potential new investment.
The Investment Team is supported by an ESG Team who provides appropriate expertise and guidance.

 

Engagement and Measurement

 

 

In 2019, Jade Road’s Investment Manager became a signatory of the United Nations’ Principles for Responsible Investment (UN PRI), aligning its investment management policies to the UN PRI principles. The Principles provide a framework for actions the investment community can undertake to incorporate ESG issues into their investment decision making.

In 2021 and each year going forward, Jade Road’s Investment Manager has committed to publicly report on its responsible asset management activities in relation to Jade Road.

 

Exclusion List

 

When screening potential investment opportunities, Jade Road formally utilises a strict Exclusion List:

  • Forced or child labour
  • Activities or materials deemed illegal under host country laws or regulations or international conventions and agreements, or subject to international phase-outs or bans, such as:
    • Ozone depleting substances and other specific, highly toxic and hazardous pharmaceuticals, pesticides/herbicides or chemicals;
    • Wildlife or products regulated under the Convention on International Trade in Endangered Species or Wild Fauna and Flora (CITES); or
  • Unsustainable fishing methods
  • Cross-border trade in waste and waste products
  • Destruction of High Conservation Value areas
  • Radioactive materials and unbounded asbestos fibres
  • Construction of new and extension of any existing coal-fired thermal power plants
  • Pornography and/or prostitution
  • Racist media
  • In the event that any of these following products form a substantial part (more than 10%) of a project’s primary financed business activities:
    • Alcoholic Beverages
    • Tobacco
    • Weapons and munitions; or
    • Gambling, casinos and equivalent enterprises