JAKARTA, INDONESIA, October 10 – Indonesia’s leading early-stage venture capital firm, AC Ventures (ACV), took a proactive step towards the future of investment by organizing an exclusive summit at their headquarters in Jakarta. The event, titled “Profit & Purpose: A New Era of ESG and Gender Lens Investing,” was held as a side event during the ASEAN Business & Investment Summit (ABIS) and featured a distinguished lineup of speakers and attendees.
The summit focused on addressing the rising demand from stakeholders and policymakers for investment firms to align their portfolios with emerging ESG (Environmental, Social, and Governance) standards, expected to take hold in ASEAN. ACV, a pioneer in the Indonesian investment sector, brought together major investors like the International Finance Corporation (IFC), Sarona Asset Management, MAVCAP, and Boston Consulting Group (BCG). They also included impactful startups like MAKA Motors, Astro, and Aruna.
The event’s agenda encompassed two vital tracks: ESG-focused capital deployment and gender-equal investing strategies. This division allowed participants to delve into the specifics of each domain and collaborate effectively. In recent times, venture capital firms have faced growing pressure to integrate ESG best practices into their investment strategies. In a market like Indonesia, ESG compliance has typically been an afterthought, but as foreign institutional capital shows increased interest, local firms and startups have recognized the necessity to quantify and report their societal and environmental impacts.
Failure to do so could impact fundraising efforts and valuation. ACV, a forward-thinking investment firm, uses The Upright Project, a Helsinki-based technology company, to measure ESG and impact according to Northern European standards. This platform covers key metrics such as SFDR PAI indicators, EU taxonomy metrics, and UN SDG metrics for over 14,000 companies. ACV’s emphasis on ESG helps them make informed investment decisions and supports portfolio companies in reducing risks and unlocking new avenues for value.
One of the critical metrics ACV relies on is the ‘net impact ratio,’ which quantifies how efficiently a group of companies converts resources into positive impact. ACV and its portfolio recently underwent baseline assessments across the dimensions of ‘environment,’ ‘health,’ ‘society,’ and ‘knowledge.’ The firm’s net impact ratio exceeded the Nasdaq Small Cap Index’s average, indicating its commitment to ESG. ACV’s Principal of ESG, Lauren Blasco, emphasized the importance of tech startups focusing on strong ESG measurement and reporting mechanisms.
Such efforts enhance efficiency, reduce costs, open new revenue streams, and prepare companies for upcoming ESG regulations expected in the ASEAN region. Diversity and inclusion are also at the forefront of ACV’s mission. The company boasts a senior leadership team with 50% women and extends this commitment to its portfolio, where 41% of leadership roles are held by women. ACV recognizes the enormous potential of investing in women-led businesses, especially in Indonesia, where over 64 million MSMEs, with more than half being women-owned, contribute significantly to the local economy.
ACV estimates this as an annual investment opportunity worth over US$421 billion. ACV’s Managing Partner, Helen Wong, highlighted the financial benefits of investing in women-led businesses, emphasizing their innovation, strong financial returns, alignment with consumer values, and their ability to unlock untapped markets. She reiterated that, at ACV, supporting women-led businesses isn’t just a social responsibility but a cornerstone of intelligent investing for the future. This summit convened elite private sector players and promising startups, setting the stage for a new era of investment strategies that prioritize both profit and purpose in ASEAN’s dynamic landscape.
