[Herald Interview] Rethinking emissions as investing opportunities

Asia's Tech News Daily

[Herald Interview] Rethinking emissions as investing opportunities
Envisioning Partners Managing Partner Je Hyun-joo speaks during an interview with The Korea Herald in Seoul. (Park Hyun-koo/The Korea Herald)The world has been witnessing deadly catastrophic events like wildfires and heat waves over the past couple of years, and climate change is considered a major culprit behind them.

Such extreme weather events show no signs of abating despite decreased greenhouse gas emissions due to COVID-19 pandemic since last year, which signals that climate change is a problem of the present, not a problem of the future.

Addressing the urgency of the matter, Je Hyun-joo, managing partner at impact investment firm Envisioning Partners, created a 66.7 billion won ($56.4 million) vehicle in September to target climate-focused companies at home and abroad.

The seasoned impact investor said market opportunities that emissions give are immense with a broader eye.

“From a climate tech investor’s perspective, large carbon emissions translate into a high market potential,” Je, 44, told The Korea Herald during an interview at its headquarters in Seoul.

Envisioning’s new climate-related technology fund defines its targets as early-stage startups with solutions for clean energy, industrial processes, circular economy and carbontech, as well as sustainable foods.

In particular, Je stressed sustainable food technology’s role in reducing gas emissions, given that cattle are a major source of methane emissions – equivalent to gigatons of carbon dioxide each year. The same is true for manufacturing, transportation and buildings, as well as electricity, quoting “How to Avoid a Climate Disaster” by Bill Gates.

In this regard, the concept of climate technology can be applied universally across industries, way beyond renewable energy sectors.

“Every business activity emits carbon, so that’s why we need to look at a business through the lens of climate change,” Je said.

This will be in line with past investments she led in plant-based meat producer Unlimeat, cell-cultured crustacean producer Shiok Meats, flow battery manufacturer H2, carbon-neutral jet fuel developer Dimensional Energy and plastic upcycling technology company Novoloop.

And a diverse background of Envisioning’s investment professionals — not necessarily limited to finance — is a plus.

“We felt confident that this urgency opens the door to a tremendous opportunity in the market within 10 years. This was behind our decision last year to create our first fund that is 100-percent dedicated to climate technology,” she said.

Je was formerly a consultant and an investment banker, with the academic background of industrial design at Korea Institute of Science and Technology.

Her career experiences span from managing an Asia buyout fund at private equity firm The Carlyle Group to corporate finance at Credit Suisse‘s investment banking division and management consulting at McKinsey & Co. Seoul office.

In early 2010s, Je quit her decadelong career and dedicated herself to the context of social economy, establishing a community-based cooperative RollingDice and authoring books, including one on digital nomads.

Pondering over social values that resonated with that stage of her life, Je returned to the investment field, assuming the lead role in impact investing for venture capital house Yellowdog.

Starting 2017, Yellowdog invested a combined 68 billion won in 29 companies as of March. These bets were meant to pursue a financial return on its early-stage venture investment from companies aiming to solve social problems. Je has been portrayed as an impact investing trailblazer in a startup ecosystem in Korea, where the concept of impact investing was alien. In August, Yellowdog‘s assets, including the impact investment vehicles, were transferred to Envisioning.

The COVID-19 outbreak last year was a turning point to the seasoned investor. Reflecting on priorities in Je’s impact investment domains — solutions that address social issues such as climate change, health care, quality education solutions and workplace improvement — Je‘s latest vehicle is the first of its kind to dedicate itself solely to climate-related technology.

The veteran impact investor said the key to climate technology investing was whether an investor is adept at measuring the amount of emissions a certain business activity is responsible for, and at understanding the technology deeply enough to test a solution’s carbon reduction outcome. On top of them, patience is needed considering the long way climate technology firms still have to go to commercialize their solutions.

“Given the vast scope of climate tech, we spent our resources building more deal pipelines and sharpening our strategy as an early-stage VC,” she said. “An early-stage climate tech fund should have a dedicated resource and an expertise to understand the startups’ deep technology.”

Envisioning’s latest fundraising was announced within just a month of its foundation.

This level of attention is a testament to Korean enterprises‘ growing commitment to cope with the impending greenhouse gas crisis and to achieve a sustainability-driven goal, coupled with the country’s net-zero pledge in 2020.

Its strategic backers came from diverse industrial backgrounds, ranging from petrochemicals, construction, energy, natural gas distribution, e-commerce, composite materials and waste management.

Taking part in the fundraising were companies including Hanwha Solutions, GS Holdings, IS Dongseo, Musinsa, Yesco Holdings, Hankuk Carbon and Insun ENT. The vehicle eyes the final closing later this year.

“Our fund backers comprise investors who sympathize with our sustainability goals for future generations, as well as companies which seek to align their climate actions with their strategic goals and their aim for new business development,” Je said.

In the meantime, the recent attention to climate-themed investing in countries including the US, Je added, is a harbinger to various exit opportunities that the early-stage investor searches for, combined with irreversible changes in climate being made.

This brings to light Envisioning‘s aim to build stronger foreign deal pipelines, which climate technology startups can take advantage of to tap into Asian markets.

“An accurate understanding of climate tech entrepreneurs’ solutions to a problem, a capability to ask right questions to them to engage in a serious and smart communication, and an access to a new market they envisioned: These are the values we can add to startups as an Asia-based impact VC,” Je said.

Envisioning is co-led by managing partners Je and Kim Yong-hyun, formerly head of The Carlyle Group‘s Seoul unit and Hanwha Asset Management.

By Son Ji-hyoung (consnow@heraldcorp.com)

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


Profit Off the Recruiting Boom With These 3 Zacks #1 Ranked Stocks

The labor market has experienced an unprecedented ride over the past eighteen months. Over 22 million jobs were lost between March and April of 2020 when the country was shutdown ... Read more »

Earnings Estimates Rising for Kulicke and Soffa (KLIC): Will It Gain?

Kulicke and Soffa (KLIC) could be a solid choice for investors given the company’s remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might ... Read more »

3 Reasons Why Vista Outdoor (VSTO) Is a Great Growth Stock

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market’s attention and deliver solid returns. But finding a growth stock ... Read more »

All You Need to Know About Ingredion (INGR) Rating Upgrade to Buy

Ingredion (INGR) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates — one of the ... Read more »

3 Reasons Why QuinStreet (QNST) Is a Great Growth Stock

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market’s attention and deliver solid returns. But finding a growth stock ... Read more »

RKT or TRI: Which Is the Better Value Stock Right Now?

Investors interested in stocks from the Technology Services sector have probably already heard of Rocket Companies (RKT) and Thomson Reuters (TRI). But which of these two stocks presents investors with ... Read more »

3 Chip Stocks to Buy in December

The semiconductor industry has been aggressively expanding its manufacturing capabilities amid the global chip shortage. And because the demand for semiconductors is expected to rise over time, the industry is ... Read more »

EBKDY vs. WBK: Which Stock Is the Better Value Option?

Investors looking for stocks in the Banks – Foreign sector might want to consider either Erste Group Bank AG (EBKDY) or Westpac Banking Corporation (WBK). But which of these two ... Read more »

TTE or ORA: Which Is the Better Value Stock Right Now?

Investors with an interest in Alternative Energy – Other stocks have likely encountered both TotalEnergies SE Sponsored ADR (TTE) and Ormat Technologies (ORA). But which of these two stocks presents ... Read more »

UK house prices remain turbo-charged while sales that support market have fallen

Photograph: Yui Mok/PA Cutting stamp duty and interest rates saved financial system from hardship but widened property wealth gap A buoyant private sector housing market is one of the key ... Read more »

Control of Senate may depend on fate of paid family leave legislation

Christine Schneider | Cultura | Getty Images A proposal for federal paid family leave is at risk of ending up on the chopping block as Washington lawmakers work to finalize ... Read more »

Sadiq Khan fears defeat in crisis talks to stop the Tube going bankrupt

Sadiq Khan on the tube with a face mask on Sadiq Khan is locked in last-ditch talks to prevent London’s transport network going bankrupt, with government officials digging in their ... Read more »

Darktrace and Johnson Matthey ousted from FTSE 100

Tech darling Darktrace will be booted off the UK’s top index three months after it entered the FTSE 100. Chemicals and engineering company Johnson Matthey will also be ousted from ... Read more »

Ex-Tesco boss ‘humbled to get knighthood on behalf of food industry heroes'

Tesco’s former chief executive has said he feels “honoured and humbled” to have received a knighthood on behalf of people in the food industry who “put feeding the country first” ... Read more »

From a Debenhams to a creative hub: closed stores get new lease of community life

Empty department stores are being transformed into places for young entrepreneurs and social projects It was once the launchpad for a national department store chain, now the former Binns site ... Read more »

Dutch energy company Anode Energie insolvent due to high prices

AMSTERDAM (Reuters) -Dutch energy company Anode Energy plans to file for bankruptcy, the company said on Wednesday, the third in the Netherlands this year to become insolvent due to high ... Read more »

Stocks making the biggest moves midday: Vertex Pharmaceuticals, Moderna, Lennar, Salesforce and more

Salesforce signage outside office building in New York.Scott Mlyn | CNBC Check out the companies making headlines in midday trading Wednesday: Allbirds — Allbirds shares sunk more than 13% after ... Read more »

FTSE 100 posts biggest rise in four months as travel shares rally – business live

LIVE – Updated at 17:31 © Photograph: Henry Nicholls/Reuters People walk through the City of London financial district today Rolling coverage of the latest economic and financial news. FTSE 100 ... Read more »

European markets rebound amid hopes Omicron effects could be mild

European markets sprang back into life as comments from the World Health Organisation that the Omicron variant of Covid-19 could be mild gave traders a lift. London stocks bounced higher ... Read more »

Financial watchdog cracks down on bank overdraft fees

Rohit Chopra, director of the Consumer Financial Protection Bureau. Alex Edelman/Bloomberg via Getty Images The Consumer Financial Protection Bureau is cracking down on banks charging fees for customers who overdraw ... Read more »

'Hammer blow' to high street as TSB closes 70 branches

© Leon Neal/Getty Images The TSB logo is seen on the exterior of a branch of the high street bank The banking giant said the closures were in response to ... Read more »

Amazon opens more till-free stores in two of London's poshest High Streets

(Getty Images) ONLINE retail giant Amazon continues its march on the capital’s high streets with the opening of two more walk-in, walk-out convenience stores in posh, rich Angel, Islington, and ... Read more »

Swiss banks, gov't partner up to raise $1 billion for development projects

1 / 3Swiss banks, gov’t partner up to raise $1 billion for development projectsFILE PHOTO: FILE PHOTO: The logo of Swiss bank UBS is seen in Zurich By Brenna Hughes ... Read more »

3 Insurance Stocks That Have Outperformed S&P 500 YTD

The insurance industry that suffered in 2020 due to the pandemic has done well so far this year. The industry has gained 9% year to date compared with the Finance ... Read more »

Best Value Stocks to Buy for December 1st

Here are three stocks with buy rank and strong value characteristics for investors to consider today, December 1st: – Zacks The Chemours Company CC: This provider of performance chemicals has a ... Read more »

Pre-Markets Up on Better-than-Expected Private Jobs Addition

A very welcome private-sector monthly jobs report from Automatic Data Processing ADP greets market participants this morning, with a better-than-expected 534K new private-sector jobs reportedly created for the month of November. This is ... Read more »

Honeywell (HON) Merges Quantum Solutions With Cambridge Quantum

Honeywell International Inc. HON yesterday announced that it has combined its Quantum Solutions business with Cambridge Quantum. The business combination was announced in June 2021. The newly created entity, Quantinuum, ... Read more »

ADP Jobs 534K, Better than Expected; Markets Up

Wednesday, December 1, 2021A very welcome private-sector monthly jobs report from Automatic Data Processing ADP greets market participants this morning, with a better-than-expected 534K new private-sector jobs reportedly created for ... Read more »

AstraZeneca, Merck's Lynparza sNDA Gets FDA Priority Tag

AstraZeneca AZN and partner Merck MRK announced that the FDA has accepted their supplemental new drug application (sNDA) seeking expanded use of PARP inhibitor Lynparza in breast cancer. – Zacks The ... Read more »

Orion (ORN) Wins Multiple Deals for Concrete & Marine Units

Orion Group Holdings, Inc. ORN has won several contracts under the Concrete and Marine segments for a combined value of approximately $44 million.Under the Concrete unit, Orion received three contracts ... Read more »

5 Best Sector ETFs of November

November was a volatile month for Wall Street as rounds of upbeat earnings fueled strong optimism while rising inflation, a surge in COVID-19 cases and Fed’s taper talks continued to ... Read more »

New Strong Buy Stocks for December 1st

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today: – Zacks The Chemours Company CC: This provider of performance chemicals has seen the Zacks Consensus ... Read more »

Materials ETF (REMX) Hits New 52-Week High

For investors seeking momentum, VanEck Rare Earth/Strategic Metals ETF REMX is probably on radar. The fund just hit a 52-week high and is up about 124% from its 52-week low ... Read more »

Alitalia successor ITA orders 28 aircraft from Airbus

ITA Airways Chairman Alfredo Altavilla poses with the image of the new livery for the carrier’s jets PARIS (Reuters) – Italy's new ITA Airways has ordered 28 Airbus planes, the ... Read more »

Inflation in Russia nears six-year peak ahead of cenbank meeting

FILE PHOTO: A view shows Russian rouble coins in this illustration picture MOSCOW (Reuters) – Russia's annual inflation accelerated to a near six-year peak of 8.38% in late November, weeks ... Read more »

Reasons to Hold Pentair (PNR) Stock in Your Portfolio Now

Pentair plc PNR has been benefiting from strong demand in its residential focused businesses. Activity in industrial and commercial businesses continues to pick up and demand for pool maintenance remains ... Read more »

Private Payrolls' Growth Surpasses November Expectations

Private payrolls in the U.S. grew by 534,000 in November, beating the 506,000 expectations according to payroll processing company ADP on Wednesday. The data shows businesses were successful at hiring ... Read more »

Ambarella (AMBA) Q3 Earnings and Revenues Beat Estimates

Ambarella AMBA reported third-quarter fiscal 2022 non-GAAP earnings of 57 cents per share, which outpaced the Zacks Consensus Estimate by 16.3%. The reported figure jumped over six-fold from the prior-year ... Read more »

2 Life Sciences Software Stocks to Buy Right Now

Rising investments in various segments of the life science industry, and rapid tech integration, make its long-term growth prospects look bright. So, we believe that the heightened need for tracking ... Read more »

Zscaler (ZS) Earnings & Revenues Surpass Estimates in Q1

Zscaler ZS delivered better-than-anticipated first-quarter fiscal 2022 performance.Zscaler reported non-GAAP earnings of 14 cents per share, which beat the Zacks Consensus Estimate of 12 cents per share. The bottom line ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic