At AC Ventures, our transparent approach enables us to showcase our actual footprint on the environment and society at large in Indonesia and ASEAN. In this unique way, we build trust in the community and credibility in our commitment to meaningful change. It’s not just rhetoric, we provide the proof.
AC Ventures uses The Upright Project, a technology company based in Helsinki, Finland that measures ESG and impact according to Northern European standards. The platform covers SFDR PAI indicators, EU taxonomy metrics, and UN SDG metrics for 14,000+ companies. The Upright Project enables smarter decision-making for institutional investors, consumers, and employees, and has 200+ organizations in 15 countries as clients.
The metric that guides our hand is ‘net impact ratio.’ This is a percentage score used to quantify how effectively a group of companies turns resources into positive impact. ACV and our portfolio recently ran baseline assessments across the four key dimensions of ‘environment,’ ‘health,’ ‘society,’ and ‘knowledge.’
Our overall net impact ratio delivered an above-average +37% with our strongest areas being ‘society’ and ‘health.’ To provide useful context, the Nasdaq Small Cap Index (NQUSS) features an average net impact ratio of +29%.
As a forward-thinking investment company, ACV is also committed to diversity and inclusion. Within the firm, 50% of our senior leadership roles are occupied by women. Across our portfolio, this figure comes in at 41%.
To date, our portfolio at AC Ventures has positively impacted over 7.5 million lives and businesses in ASEAN, including the improvement of lives for more than 4 million low and middle-income earners and MSMEs.
61% our portfolio companies are present in second and third-tier cities, creating more than 200,000 jobs in the region.
Additionally, we’ve empowered over 20,000 rural fishermen in some of the most economically vulnerable coastal communities, reflecting our commitment to meaningful change across different areas of society.
Our commitment to progressive sectors vital for green growth and sustainability in Indonesia is unmatched. We invest in these areas to foster ecological balance, enhance food security, and support innovative energy solutions, aligning our portfolio with the global push for a more responsible and resilient future. Our focus areas include:
We actively invest in climate tech because we recognize its crucial role in shaping a sustainable future in Indonesia and beyond. The sectors we are bullish on align with global trends and local needs, promising innovation, growth, and resilience. Our investments reflect a commitment to long-term societal progress and environmental stewardship.
With a key focus on serving Indonesia’s more than 64 million MSMEs, we enhance livelihoods by incorporating these underserved businesses into the formal financial sector and digital economy. Through strategic investments and support, we facilitate access to vital financial services and digital platforms, empowering micro-entrepreneurs to prosper, thereby contributing to the region’s sustainable economic growth.
Indonesia’s MSMEs represent 98% of all businesses in the nation, which contribute more than 61% to the market’s US$1.38 trillion economy. Estimates suggest that more than half of these are, in fact, women-owned. We recognize this as a robust opportunity of at least US$421 billion.
ACV has cultivated a strong, thesis-driven investment philosophy that largely focuses on supporting female tech founders, but also empowering women-owned MSMEs through our portfolio of startups. We believe that diversity is crucial to success and are committed to identifying and investing in women-led startups across Southeast Asia.
Our value creation department assists startups in integrating environmental, social, and governance (ESG) factors into their operations and strategies. By promoting responsible practices and focusing on long-term sustainability, we help our portfolio companies align with investor expectations, reduce risks, and create lasting value.
The ASEAN Business Advisory Council confirmed that it has inducted AC Ventures’ Principal and Head of ESG Lauren Blasco into its Carbon Center of Excellence.
The center aims to promote an understanding of carbon markets for business leaders, market participants, and regulators. It will build from B20 Indonesia legacy initiatives and launch a new ASEAN Alliance on Scaling Carbon Markets, which will champion scaling up voluntary carbon markets and compliance markets in the region.
The Indonesian Chamber of Commerce and Industry recently tapped AC Ventures’ Head of ESG, Lauren Blasco, to join its newly formed ESG task force, an elite group of stakeholders in the nation that was assembled and launched on the sidelines of the recent B20 Summit in Bali in November 2022.
This group of high-profile corporate figures and business leaders has been asked to spend the next 12 months crafting and proposing a sector-agnostic roadmap that will help set the rules for ESG standards and compliance nationwide.