"Around ESG investment, we will focus on three major investment areas: first, advanced manufacturing, including carbon neutrality, new energy, smart cars and intelligent manufacturing; The second is medical care and great health, including the research and development of innovative drugs and medical devices, intelligent medical care and digital medical care. Because the iterative development of medical and health technology helps to improve people's health; Third, a new generation of information technology, including big data, enterprise services, artificial intelligence, blockchain, etc. " Tian Lixin said. Detong Capital will focus on carbon emission reduction and intelligence of ESG investment in advanced manufacturing. Carbon emission reduction includes energy, wind power, photovoltaic and so on. And intelligent manufacturing includes intelligent processing, robots, industrial internet, intelligent perception, new materials and so on.
In his view, the superposition of carbon reduction and intelligence has also spawned many emerging industries, such as smart cars such as electric cars and hydrogen-powered cars.
At the ESG Investment Sub-forum of the 2022 Qingdao Global Venture Capital Conference, many partners of venture capital institutions also talked about a series of new changes brought by ESG in investment decision-making, investment risk management and post-investment management of their own projects.
"202 1, we put ESG evaluation system into practice in the process of project investment decision for the first time. At that time, we planned to invest in a green energy enterprise, and through big data analysis, many building campus communities realized the maximum low-carbon and environmental protection. So we thought that this enterprise would play a very good role in promoting social development, and finally made an investment decision. Now it has received better investment results. " He pointed out. This will encourage them to invest in future projects and apply ESG evaluation system more widely.
Zhang Nianbing, managing director of Everbright Holdings, said frankly that ESG does have a high degree of fit with the investment strategy of venture capital institutions. Because it provides another perspective for venture capital institutions to judge the future growth prospects of enterprises and the sustainability of business development. An obvious example is that by examining whether the upstream suppliers of enterprises meet ESG standards, we can roughly judge whether investment enterprises can practice social responsibility well.
"In fact, social benefits and economic benefits are often the same. Therefore, we will find that many enterprises that create high social benefits can often obtain good economic benefits. " He pointed out. Therefore, he believes that venture capital institutions can strengthen the comprehensive integration of their investment strategies and ESG from three aspects: first, judge the investment value of enterprises from the perspective of ESG; Second, for the invested enterprises, venture capital institutions should strive to supervise and guide them to have better performance in ESG, including influencing upstream and downstream industrial chain partners to practice ESG concepts and promoting the industrial chain to create higher social benefits; Third, venture capital institutions also need to strictly implement the ESG concept in their own management, including low-carbon office space and scientific and transparent investment decision-making structure.
Thomas lee, a partner of Hongtai Fund, pointed out that the practice of ESG concept by venture capital institutions is not only to apply it to the evaluation of project investment decisions, but also to help investment enterprises better practice ESG concept. For example, in the field of innovative drug research and development and biotechnology, many start-ups are initiated and established by scientists and returned researchers. They have a strong ability in the field of technology research and development, but at the same time they are inexperienced in corporate governance and the establishment of modern enterprise management structure. At this time, venture capital institutions should help them improve the corporate governance structure, so that many scientific research achievements can be better developed and applied under the framework of modern corporate governance.
In view of the application prospect of ESG concept in venture capital institutions' risk control, Sun Yahao bluntly said that ESG may bring a strange effect. Because they found that the discussion of the potential benefits of equity investment may be 20% and 30% different, but in terms of risk control, it is 0 and 1 different-if venture capital institutions do not fully evaluate the risk control of the project, once the enterprise has operational problems, venture capital institutions may lose all their money.
"Therefore, when we incorporate the ESG evaluation system into the logic of investment risk control, we will comprehensively evaluate the financial data and ESG information of enterprises horizontally. On the one hand, it helps us identify outstanding enterprises with more sustainable development, and on the other hand, it helps us avoid some enterprises that have moral hazard for short-term performance. " He pointed out.
"Especially in the research and development of integrated circuits and semiconductors, the development of enterprises will always encounter obstacles, and the research and development process of integrated circuits is particularly long. Therefore, entrepreneurs need enough patience and broad mind. On the one hand, they need to push enterprises to overcome various difficulties; on the other hand, they need to do a good job in caring for employees, assume corporate social responsibilities, form stronger talent cohesion and corporate culture, and help enterprises go better. In fact, this is also a key factor for the sustainable development of many large world enterprises that actively practice ESG concepts. " He pointed out.
The data shows that there are about 160 domestic venture capital fund products related to ESG, with a scale of about 60 billion yuan. However, the venture capital industry generally believes that the scale of domestic ESG-related venture capital fund products will soon exceed the 100 billion mark, driven by the national double carbon strategy and other policies.
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