Since its establishment, Integral has actively pursued the objectives of making investments that are truly suited to Japan’s culture and making a positive long-term impact on Japan and world’s economy as an investor that is trusted by all stakeholders, and we will continue doing so in the future.
In order to achieve these goals, we at Integral believe that not only should we value the principles of E (environment), S (society), and G (governance) ourselves, but we also have a responsibility to increase awareness of ESG among our many portfolio companies through investment activities.
ESG Investment Process at Integral
In order to live up to our management philosophy of being a “trusted investor,” Integral has conducted investment activities and provided management support with the management teams of our portfolio companies not from the perspective of gaining short-term profit but from the perspective of focusing on long-term growth and business sustainability. Although it is only recently that ESG has gained global traction, “sustainability” and “long-term growth” have been Integral’s core investment philosophy since its founding. Hence, for many years we have been conducting investment activities that resonate with ESG core values. In 2016, we signed the Principles for Responsible Investment (PRI), a global ESG guideline established by the United Nations, and internally formulated ESG regulations. In line with those regulations, we conduct ESG investment activities in each investment project in accordance with the process explained below. Further, we constantly work to improve our ESG investments by extracting ESG activities from all our portfolio companies in a timely manner and sharing that as know-how. At Integral, the ESG Project Office leads the promotion of these ESG investment activities.
- Before Investing
At the early stage of investment consideration, we carry out negative screenings of all potential investment targets by using an ESG checklist that covers a broad range of ESG elements. In the case where a material ESG risk is detected, we conduct ESG due diligence with help from external experts. By doing so, we can identify ESG objectives from the perspective of ensuring sustainable growth of the investment target, and we come up with a strategy to achieve those objectives.
- After Investing
We are actively enhancing our ESG management support, which will lead to an increase in the enterprise value of our portfolio companies. Our aim is to guide our portfolio companies to meet ESG objectives in addition to building a competitive advantage and pursuing new business opportunities through further ESG measures. In order to achieve sustainable growth of our portfolio companies, we believe it is beneficial to track not only financial but also non-financial performance using KPIs and milestones, and we continuously monitor the achievement of those KPIs and milestones.
Examples of initiatives at portfolio companies
- Toyo Engineering Corporation
The mission of the Toyo Engineering Corporation is “Engineering for Sustainable Growth of the Global community.” One of the company’s key strategies is to contribute to the practical realization of carbon neutrality (harmony with the environment and coexisting with the economy) by focusing on the following three areas: (1) clean fuel ammonia and hydrogen business, (2) sustainable aviation fuel (SAF) business, and (3) CO2 value chain business. In order to implement these businesses in society, we established a Sustainable Business Strategy Team to develop businesses that contribute to the realization of carbon neutrality by integrating the company’s abundant technology, knowledge, and experience together with advice from their external partners.
- Sanden Retail Systems Corporation
Sanden Retail Systems promotes the use of green refrigerants (CO2 refrigerants), which do not emit CFCs known to deplete the ozone layer and contribute to global warming, during the manufacturing process of freezer and refrigerator showcases. In 2016, Sanden Retail Systems received the Minister of the Environment Award at the Ozone Layer Protection and Global Warming Prevention Grand Prize for the development and practical application of built-in/separate CO2 refrigerant systems.
Natural Refrigerant (CO2) Showcases
- Primo Japan Inc.
In order to achieve its corporate goal of “Happiness without limitations by gender” through a deeper understanding of LGBTQ+ issues, Primo Japan has removed gender-specific descriptions from its official corporate website and also updated its order slips and customer forms to gender neutral formats. In addition, Primo Japan has established new LGBTQ+ guidelines, introduced LGBTQ+ training for all employees, changed the definition of “spouse” in company systems, and eliminated the requirement for evidence when using the company benefits system. In November 2020, Primo Japan was awarded the “Silver” award in the PRIDE Index 2020, which evaluates companies’ LGBTQ+ initiatives.
Awarded Silver by the Pride
Index 2020 - Direct Marketing MiX, Inc.
Direct Marketing MiX introduced the “kirari system” with the aim of promoting interactions among female employees across different departments of the company. By reflecting the opinions extracted from these gathering, Direct Marketing MiX is endeavoring to provide a working environment that is suitable to female employees in each life stage. In recognition of those efforts, Direct Marketing MiX was awarded second place in the 2021 Best Workplaces for Women in Asia ranking by the Great Place to Work® Institute.
Awarded Second Place in the
2021 Best Workplaces for
Women