Affinity has in place Operating Guidelines on Integrating ESG Issues in Investment Processes.
Integrating ESG into our portfolio companies can create sustainable long-term value. Each portfolio company is different and unique, as are the ESG initiatives that we partnered with each portfolio company to create value, illustrated through the case studies below.
Sido Muncul is Indonesia’s largest, most established, integrated herbal products brand owner and manufacturer, listed on the IDX (Indonesia Stock Exchange) since 2013. Sido Muncul’s vision is to be a pharmaceutical, traditional medicine, health food and beverage, and herbal ingredients company which benefits the community and environment.
Since Affinity’s investment in 2018, and through our representation on Sido Muncul’s board, we partnered with the Company to formalize its ESG approach into five key pillars: (i) Environmental preservation (ii) Inclusive business (iii) Employee welfare (iv) Product integrity and (v) Sustainable sourcing.
A key ESG agenda is community relations and the development of farmer networks.
Since Affinity’s investment, Sido has been added to all four IDX ESG indices, and the share price has been re-rated upwards.
In recognition of our efforts, Affinity was awarded the AVCJ ESG Responsible Investment Award in 2022 for our ESG value creation work done in partnership with Sido Muncul. An article written by the AVCJ on this topic can be found here.
JobKorea is Korea’s largest online recruitment platform operator. Through Affinity’s control investment ownership of JobKorea, Affinity worked closely with management to address the ESG risks and opportunities through three key ESG initiatives:
Affinity continues to work closely with JobKorea on the above ESG value creation opportunities.
Trimco is a global supplier of sustainable brand identity products. It provides trims, packaging and care labels for international fashion and sports brands. Trimco’s technology-enabled labels provide the fashion and apparel industry an essential solution to the issue of supply chain traceability and transparency, connecting brand owners to consumers, and driving positive change throughout the supply chain.
Since Affinity’s control ownership investment in Trimco, we have helped develop Trimco’s ESG Playbook and built a suite of strategic ESG capabilities, making sustainability a core pillar of the business. This includes:
In recognition of our efforts, Affinity was awarded the HKVCA ESG Award of Excellence in 2021 for our ESG value creation work with Trimco. Affinity has since accomplished a successful exit of our investment in Trimco, with ESG framework an important part its value proposition. Click here for the full case study.
In 2022, Affinity sold Trimco to Brookfield Asset Management. As part of the exit, Brookfield observed that Trimco’s main product, the care and content label, contains essential compliance information which supports brand owners in supply chain traceability and transparency, an important theme in ESG.
Towngas Smart Energy is China’s leading natural gas distributor. Affinity invested in Towngas to support its evolution into an integrated clean energy provider and accelerate the roll-out of distributed solar photovoltaics, in line with China’s commitment to be Net Zero by 2060.
Affinity continues to support Towngas Smart Energy’s transition into an integrated clean energy provider, through active involvement and close collaboration with management.
SSG.com is the e-commerce platform of Korea’s #1 hypermarket and #2 department store chains. As part of ongoing efforts to institutionalize its ESG program, Affinity has partnered with management in 2021 to assemble a dedicated ESG working team and establish an ESG committee at the board level, to ensure oversight of its ESG program. In terms of environmental initiatives, SSG.com has implemented the following:
Further, SSG.com holds promotions and events to support more ethical and local consumption habits:
Affinity continues to work in close collaboration with SSG.com on eco-friendly initiatives.
More information on the ESG activities of our portfolio companies is linked here: Trimco, Towngas Smart Energy, Sido Muncul.