Photo: iStock
Investing is a complex process for any business. For Sistema JSFC, it is about building strong, self-sustaining companies that can grow further without our involvement. We strive to invest in assets ethically and responsibly, promoting best practices in financial, management, environmental, social and other aspects of the business.
At the end of 2019, we approved an updated investment statement under which we select companies to invest in, incorporating ESG criteria for the first time. We immediately exclude “toxic” sectors and carry out additional assessment of those that are exposed to higher ESG risks. This investment transformation project was recognised in the 2021 Visionaries. Change Management" award in the “Economics” category.
It is not the aim in itself to buy off-the-shelf green and sustainable companies. Our business model is built on acquiring undervalued assets that have great potential for improvement and value enhancement, including by implementing ESG principles.
During the ownership phase, our task is to support companies and monitor how they go about it. We give them a certain vector of movement, share methodological developments with them and monitor their progress. At the exit stage, we have to ensure the result: create a sustainable management system that will function effectively after we leave.
We had good experience with Detsky Mir, which was sold when the company was just starting to develop its ESG strategy. In the end, the retailer was able to achieve good results in this area already without us.
Cover photo: iStock
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