Recently, ATM Capital released its "Environmental, Social, and Governance Report" (hereinafter referred to as the "Report"). The Report shares ATM Capital's progress in ESG management and sustainable investing, showcasing the efforts of the ATM Capital team and portfolio towards global sustainable development, as well as outlining the future ESG development path for the fund.
ATM Capital is the first Chinese-backed venture capital firm focused on the Southeast Asian market. We are committed to discovering, assisting, and supporting exceptional entrepreneurs. Starting from Southeast Asia, we aim to create globally leading companies to become the next billion-dollar market cap companies.
Throughout the entire investment lifecycle and daily operations of companies, we conscientiously consider ESG (Environmental, Social, and Corporate Governance) factors. Data reveals that several of ATM Capital's invested companies, such as J&T Express(HK:1519), Y.O.U, and MAKUKU, have made remarkable contributions in the ESG domain.
We aspire to collaborate with funds that share a common vision to practice ESG principles in investments, harness green finance's power to drive industrial transformation, and upgrade and aid the industry and society in achieving long-term sustainable development goals.
The future has come, striding across challenges and uncertainties, and we shall dauntlessly proceed.
Proactively Exploring ESG Governance for Funds
Since its establishment in 2017, ATM Capital has been committed to promoting sustainable economic development. In 2018, we began incorporating ESG (Environmental, Social, and Governance) considerations into our work as one of the factors for investment decisions. Furthermore, in 2022, we established an ESG committee and implemented an ESG assessment framework. We gradually integrated ESG principles into our management and investment systems, exploring a new mission for environmental and social sustainability. We aim to provide guidance and support for driving green and high-quality development in the physical economy of Southeast Asia.
ATM Capital is a fund driven by mission, vision, and values: Our mission is to provide higher quality products and services for the people of Southeast Asia, enhancing their quality of life; our vision is to promote the application of new technologies and renewable energy to increase societal well-being; we believe that real commercial benefits must be based on investments that are environmentally and socially friendly.
As global business development continues to accelerate and Southeast Asian governments continuously encourage foreign investment through various measures, Southeast Asia has become one of the significant "engines" of global economic growth over the past few years.
With "sustainable development" becoming a globally important topic of discussion, countries have announced carbon neutrality plans. While Indonesia, the region's largest economy, has a target of "carbon neutrality by 2060", its heavy reliance on coal in priority areas has cast doubt on its prospects of achieving net zero.
As stated by the Intergovernmental Panel on Climate Change (IPCC), Southeast Asia is one of the most vulnerable regions to be negatively impacted by climate change and urgently needs to build solid prevention strategies. Therefore, A systematic transformation of the economy, industry, and energy structure will be a highly possible solution to achieve carbon emission reduction and neutrality in Southeast Asia. Still, such transformation undoubtedly calls for substantial financial support.
With a broad and deep network in Southeast Asia, ATM Capital aims to invest in startups and provide them with growth capital and human and strategic resources to become category leaders. The ATM investment team comprises professionals from Alibaba, Tencent, Ant Financial, CDH Venture, etc., who have long-term insights into business development and deeply understand the relocations between the human being environment and business growth.
Our investment decisions are based on two core principles:
1. Centered around Southeast Asia: Leveraging its unique position, we are rooted in Southeast Asia to identify new opportunities in rapidly evolving industry landscapes.
2. Investing in Southeast Asia's emerging markets to bridge the digital divide between developed and developing nations.
The ATM Capital fund places special emphasis on four historic growth opportunities in Southeast Asia's new economy: e-commerce and its associated infrastructure (logistics), retail consumption, fintech, and new energy.
ATM Capital ESG Management System
Since its inception, ATM Capital has progressively incorporated ESG management principles into its business development and investment activities. During the early operational stages, the fund utilized a negative screening approach to evaluate invested companies. Through years of practice, the fund has continuously refined and upgraded its ESG management framework and mechanisms.
In 2022, we established a dedicated ESG management team to support fund decisions from an ESG perspective.
The company's sustainable development relies on the top management's attention and all employees' participation. ATM has integrated the vision of sustainable development into its corporate culture and daily operations, establishing a top-down ESG management and execution system.
The investee committee is the highest investment decision-making group. It establishes a sustainable relationship with prospective and existing investee companies and communicates with investee companies as necessary and appropriate. It will consider the ESG results presented by the ESG team and ESG officer and have discussions to make final investment decisions.
The Investment Committee appoints the ESG Compliance Officer, and is responsible for overseeing the overall ESG management. This includes formulating and advancing the company's ESG strategy and policies, monitoring and evaluating ESG performance, and collaborating with internal departments to drive ESG implementation.
The ESG Compliance Officer appoints the ESG Team and is responsible for the specific execution of ESG policies. This involves preliminary identification and assessment of potential investee companies, conducting Environmental and Social Due Diligence (ESDD) in day-to-day operations, supervising and monitoring portfolio companies, maintaining records, and preparing the fund's annual ESG performance report.
The ESG Team is also tasked with collecting and reporting ESG data to ensure the accuracy and reliability of ESG information. They communicate with stakeholders such as investors, media, government, and society, conveying the company's ESG policies and performance while addressing relevant questions and concerns.
In addition to considering the commercial value of projects in investment decisions, ATM Capital also considers the social value of projects, supporting initiatives with a positive social impact. Alongside businesses, the company actively fulfills its corporate citizenship responsibilities.
This year, we tracked the ESG management performance of some of our fund's invested companies in 2022 through surveys and remote interviews. According to the tracking results, the operations of these invested companies do not significantly impact or harm the environment. All companies have established and implemented anti-bribery, anti-corruption, and anti-discrimination management procedures. In addition, our invested companies play an active role in charitable activities.
ATM Capital is dedicated to facilitating the establishment of long-term strategic and operational management systems within invested companies during their regular active periods. Our ESG team maintains close communication and collaboration with these invested companies, introducing ESG concepts into their business operations. We guide these companies in implementing ESG management, discuss ESG risks and countermeasures, and share professional management methods and experiences.
ATM Capital's founder, Qu Tian, stated: " We are committed to promoting socially responsible investment, continuously integrating ESG principles into every aspect of fundraising, management, and divestment, and becoming an integral part of the fund culture. We will also assess the ESG performance of invested companies and assist them in improvement."
Looking ahead, we will continue to enhance our existing ESG management framework and empower invested companies, creating a sustainable development future.