NEW YORK, Jan. 13, 2023 /PRNewswire/ — Hi2 Global is now a signatory of the United Nations (UN) Principles for Responsible Investment (PRI), the world’s leading proponent of responsible investment.
Launched by the UN in 2006 under former Secretary-General Kofi Annan, PRI works to understand the investment implications of environmental, social and governance (ESG) factors, and support its international network of investor signatories in incorporating these factors into their investment and ownership decisions.
The PRI is independent and encourages investors to use responsible investment to enhance returns and better manage risks, but does not operate for its own profit. It is supported by, but not part of, the UN.
The PRI has grown consistently since 2006 with 3,826 signatories representing $121.3 trillion of assets under management (AUM) all over the world as of 2021.
The six Principles for Responsible Investment offer a menu of possible actions for incorporating ESG issues into investment practice, which include incorporating ESG issues into investment analysis and decision-making processes, being active owners and incorporating ESG issues into ownership policies and practices, seeking appropriate disclosure on ESG issues by the entities invested, promoting acceptance and implementation of the Principles within the investment industry, working together to enhance effectiveness in implementing the Principles, and reporting on activities and progress towards implementing the Principles.
In implementing them, a signatory contributes to developing a more sustainable global financial system. Hi2 Global founder and CEO Jerry Wang believes PRI frame could greatly improve transparency in the investment universe and be able to bring fund managers to the same level of commitments to responsibility. Hi2 Global is scheduled to release its first PRI report in 2024.
As a global asset allocation platform, Hi2 Global has been incorporating ESG into investment decision-making process since inception in 2014 in New York. The actively managed Hi2 Venture Fund, an early-stage venture capital fund, is committed to responsible investments by focusing on innovative early-stage companies in emerging sectors including fin-tech, consumer-tech, clean-tech and health-tech in the United States, and emerging markets in Asia, Middle East, Africa, and Latin America.
The first Hi2 Venture Fund launched in 2020 has supported a number of innovation- and tech-driven startups which are committed to generate positive social and environmental impact in emerging markets.
While it has been proven that our portfolio companies have produced plenty of positive outcomes, the following figures would better demonstrate how they are contributing to the welfare of local society – more than 800 jobs have been created in emerging economies including Pakistan, Indonesia, Nigeria, Mexico; women make up 21% of founders and executives while minority founders make up more than 90%; 7 credit-tech startups and 2 digital banks in our portfolio are serving the huge unbanked and immigrant population across emerging markets in Middle East.
Looking forward, Hi2 Global will continue to incorporate ESG issues into investment practice by following the six PRI principles for responsible investment, with a particular focus on innovation-driven startups eyeing on transforming traditional sectors in emerging markets.