Environmental, Social and Governance (ESG)

We believe the distinct asset class of university spinouts has the ability not only to generate attractive investment returns but also positive returns for broader society. In fact our group’s core purpose is to ‘evolve great ideas into world changing businesses that will have a positive impact on the world’.

Our thesis is that ‘deeptech’ offers the world possibly the only solution to some of the greater problems facing us over the coming years…climate change, food and water security, health, longevity and mobility for example. And the events of the 2020 has not only accelerated various trends, but resulted in increased interest for the types of businesses we back and build.

Therefore our approach naturally considers environmental, social and governance (ESG) factors and their impact.

As a result there is natural alignment to ESG within the portfolio, and we’ve mapped our portfolio against the UN’s 17 Sustainable development goals:

There is concentration within the portfolio around four or five of the SDGs, for example:

Businesses that are having a huge impact on people’s lives such as Congenica, enabling clinicians to diagnose ‘rare diseases’ in weeks rather than years; and the likes of Mogrify who are revolutionising cell therapies and Phoremost, whose drug discovery platform will deliver significant patient outcomes across multiple diseases.

In clean energy, there are businesses such as Bramble whose fuel cells are powering us towards net zero, and Oxford PV and Yasa, that have produced world record producing solar cell and the world’s most powerful electrical engine for its size.

Transformational businesses seeking to increase manufacturing and operational productivity such as Cambridge GaN Devices who are designing much higher power efficiency for high power applications such as electric vehicles inverters, and Oxford Flow who manufacture innovative pressure control equipment to reduce wastage.

Agri-tech businesses such as MoA whose ambition is to discover the next generation of sustainable herbicides. AI and big data businesses such as Geospock will allow ‘Smart Cities’ to function. Oxford PV have developed the world’s most efficient solar cells that will power smart cities.

FTSE Russell

FTSE Russell

FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that IP Group Plc, Parkwalk’s parent company, has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.