Approach

Strategy & Policy

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01

Investment Strategy

At Sylvan, our investment strategy is focusing on the growth buyout of mid-market companies aligned to UN SDGs.

We believe that achieving upper quartile financial returns while creating meaningful impact in a challenging environment is possible if highly capable investors support both business and ESG/impact (“ESGI”).

Investment Strategy
 

We focus on companies
with ESGI potential and intentions

For Sylvan, ESG means going beyond simple regulations and trends that some companies follow.
It is a value that all corporations must reflect for the sustainable development of mankind.

However, unlike larger corporations that have the capabilities to deal with the rapidly changing environments, many SMEs in Southeast Asia, which make up our target portfolio, struggle to implement meaningful ESG operations due to a lack of knowledge and capabilities.

Therefore, we focus on companies with ‘ESGI potential and intentions’, who can create greater impact through ESGI transformation with our support. We are also highly involved with the business and operations of portfolio companies that show growth and impact potential, contributing to the realization of the potential.

Kyungsun Chung’s Bloomberg Interview
 
01
Commercial Value
Commercial
Value
02
Growth Support
Growth
Support
03
Sustainability Value
Sustainability
Value

02

Investment Theme

Our aim as a socially responsible fund is investing in organizations that make a positive social and environmental impact.
Our investment approach is industry-agnostic but we focus on our three key investment themes – Climate and Environmental Action, Inclusive Growth, and Innovation for Sustainable Life.

Climate & Environmental Action

Climate & Environmental Action

One of mankind’s biggest challenges in today’s world is the climate and environmental crisis. Solutions for positive environmental impact are key to our investment strategy. The Sylvan group is especially keen on finding and investing solutions for climate mitigation and climate adaptation.

Key Industries

Alternative Energy, Energy Efficiency Technology, Waste & Recycling Management, Water Management

Inclusive Growth

Inclusive Growth

Climate change, extremism, and international instability are exacerbating the condition of society and deepening inequality. The Sylvan Group focuses on investments for creating decent and inclusive economy, and improving wellness to ensure that all human beings can live with dignity.

Key Industries

Healthcare, Education, Inclusive Finance, Smart Infra

Innovation for Sustainable Life

Innovation for Sustainable Life

Changing societal and business environments prompts demand for sustainable products. The Sylvan Group identifies key drivers and issues considering industry and region, and invests in innovative and alternative technologies contributing to the development of sustainable value chain.

Key Industries

Digital Connectivity Solution, Agritech, Foodtech, Biotechnology & Life Science

03

Sylvan’s ESG Material Issue

Our guarantee to investors and stakeholders is The Sylvan Group’s dedication to responsible investment.
We only work with other organizations that are equally dedicated to making a positive social and environmental impact for sustainable growth. We stringently assess every potential investment opportunity with a robust due diligence procedure to avoid investing in or financing companies that cause significant environmental or social harm while ensuring attractive commercial returns.

Environment

Environment

  • GHG Emissions
  • Product Carbon Footprint
  • Climate Change Vulnerability
  • Water Stress
  • Pollution and Waste Management
  • Biodiversity & Land Use
  • Materials Sourcing & Efficiency
  • Environmental Opportunities (Renewable Energy, Clean Tech, and etc.)
Social

Social

  • Human Rights
  • Human Capital Development
  • Health & Safety
  • Supply Chain Management
  • Community Relations
  • Customer Welfare
  • Product Safety & Quality
  • Privacy & Data Security
  • Responsible Investment
  • Social Opportunities(Access to Healthcare, Access to Finance, and etc.)
Governance

Governance

  • Business Ethics
  • Corporate Governance & Leadership
  • Risk Management
  • Accounting

04

Sustainable Investing policy

Our investment philosophy is based on UN SDGs and PRI, pursuing environmental and social characteristics in investments.
Find Sylvan’s sustainable investment policy in the link below.

ESGI Governance

ESGI Governance

We aim to maintain strong ESG and Impact governance across all stages of the investment lifecycle, from investment screening to due diligence, ownership, and exit. We hold our own business to these principles and have established the ESGI Committee and Sylvan Sustainability Lab to oversee the investment process, along with external advisory experts.

ESGI committee

ESGI committee

Our committee of ESGI experts oversees the investment process to ensure adherence to the principles of responsible investing. Committee members include the ESGI commissioner, head of investment group, ESGI director, plus MDs with official roles at Sylvan. They establish the investment strategy and actionable directions to ensure the ESGI principles and practices are effectively carried out by the project managers. The committee members are the decision makers regarding ESG matters. They perform ESGI policy annual updates, execute Sylvan’s internal ESG operations, monitor progress and implement ESGI investment.

Sylvan Sustainability Lab

Sylvan Sustainability Lab

When it comes to ESGI investment and management, the Sylvan Sustainability Lab is a key part of our process. A specialist team of ESG consultants works closely with the ESGI Committee as advisors and executor of ESGI-related matters of Sylvan. Team roles in the sustainability lab include:

  • ESGI due diligence
  • Portfolio company ESGI monitoring & management
  • Internal/external ESGI communication
  • Internal/external ESGI education & training