Value context and insight. lkm@koreatimes.co.kr
IMM Holdings' ESG values promote sustainable investment practices
IMM Holdings employees pose after volunteering at a social welfare center in Songpa District, Seoul, Sept. 26. Courtesy of IMM Hope Foundation
By Lee Kyung-min
IMM Holdings is strengthening its environmental, social and governance (ESG) values while setting investment priorities, in a committed effort to promote green, healthy and sustainable industry practices, the private equity fund said Wednesday.
Its investment philosophy is detail- and goal-oriented, as evidenced by its ESG checklist for investment review. The purpose of the checklist is to assess the ESG performance of potential investment targets.
Regarding environmental responsibility, the private equity fund requires investment target companies to maintain clear strategies to comply with domestic and global environmental regulations.
Specifically, a target company’s ability to properly manage and dispose of hazardous waste in accordance with environmental standards is a key consideration. Also important are whether the firms have established policies, visions and teams dedicated to making a positive environmental impact.
Also on the checklist are how effectively the target companies have adopted and implemented clean and renewable energy practices, as well as the strength of their environmental policies relative to industry peers.
For social responsibility, IMM Holdings values whether the investment target’s core business contributes to meaningful social value creation.
It is critical that target companies are not involved in the production or sales of illegal products and not engaged in any form of child abuse or child labor.
The private equity fund also ensures that the investment targets have no connection to industries related to gambling or pornography and that they do not have business with countries subject to global sanctions, including North Korea and Iran.
Lastly, the governance responsibility component concerns anticorruption, transparency, political neutrality and tax compliance.
The private equity fund considers if the investment targets have effective systems and internal controls to prevent corruption, bribery and other forms of misconduct.
It also ensures transparency in financial reporting through clear disclosure policies and sound accounting practices.
Another key consideration is whether investment target companies operate free from political or religious influence at all organizational levels and whether they maintain the necessary structures and policies to respond appropriately to any tax-related issues.
Meanwhile, IMM Hope Foundation, the private equity’s social goodwill arm, plans to provide 150 million won ($104,900) in sponsorships over three years to nurture young scientists amid the rise of artificial intelligence (AI).
The goal is to discover the next generation of workers in the AI field, who will lead the advancement of science in Korea.
Unlike traditional awards, which often target established scholars, the fund will focus on scientists in their 30s and early 40s to foster a social atmosphere that inspires them to pursue prestigious global recognition such as the Nobel Prize.