Our Investment

ESG/PRI

In 2014, J-STAR become a signatory to the United Nations-supported Principles for Responsible Investment ("PRI"), to express our commitment towards incorporating Environment, Social, and Governance ("ESG") in our business activities. We believe that ESG issues have the potential to impact both our own activities, as well as those of our investee companies. J-STAR supports small to mid-sized Japanese companies not only through capital solutions, but also through our investment & monitoring process. Prior to signing the PRI, J-STAR's investment activities already incorporated ESG-related aspects of our business. By becoming a PRI signatory, we wish to demonstrate our commitment to responsible investment to all our stakeholders and to further strengthen our fiduciary duty towards investors, investee companies and their management and employees.

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The PRI are investment principles launched in 2006 by Kofi Annan, then Secretary-General of the United Nations, and other major global institutional investors. As international recognition of responsible investment and ESG is increasing, we consider signing PRI to be a way of enhancing our responsible investment activities. We also recognize that this is an expectation of our investors, which include major global financial institutions. We believe that the identification and management of ESG related aspects of our investee companies creates the opportunity to improve company performance allowing us to maximize mid-term / long-term investment returns.

(Appendix) The six Principles of PRI are as follows.

(Source: http://www.unpri.org/about-pri/the-six-principles/)

  • Principle 1: We will incorporate ESG issues into investment analysis.
  • Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
  • Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  • Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
  • Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
  • Principle 6: We will each report on our activities and progress towards implementing the Principles.