ESG Investments at Polaris and Initiatives by Investees
Amid growing interest in corporate responsibility in the area of sustainability, it is widely recognized that incorporating environmental, social, and governance (ESG) issues into investment management operations is important for enhancing corporate value over the medium-to-long term. Polaris considers ESG to be an investment opportunity and invests with ESG as a theme.
We will incorporate environmental, social, and governance matters into our investment and monitoring processes, engage in constructive dialog from the perspective of sustainability, and aim to promote ESG investment from a long-term perspective.
ESG Due Diligence in Investments
When conducting due diligence on portfolio companies, Polaris reviews ESG-related issues through a checklist and fully examines and considers them. If we judge that the company has difficulty improving because it does not meet ESG standards, we will refrain from investing in it. If the problem can be improved, we will improve it with proactive support and regular monitoring after investment.
We ask portfolio companies to actively engage in activities in line with our ESG policies and work together to address ESG issues.
■Specific Cases of Due Diligence and Monitoring
|Main Items for Evaluation
|Corporate Governance Responsibility
ESG Investing Cases at Polaris
Case 1: Sogo Medical
|Time of investment
|Going Private / MBO
As "a frontier company in the healthcare industry that supports the future of society and medical care (Vision 2030)”, we will reform the working style of physicians, reorganize hospitals, address uneven distribution and shortages of medical staff resources, etc. By tackling the issues facing society head on and advancing solutions that support the entire community, we aim to achieve a Japanese-style healthcare system that integrates pharmaceuticals.
■ESG Initiatives at Sogo Medical
In recognition of our efforts to promote employment of people with disabilities and create a work environment where each person can work energetically, we received the "Award for Excellence in Employing People with Disabilities" at the 2023 Employment Promotion Convention for People with Disabilities held by the Japan Organization for Employment of the Elderly, Persons with Disabilities and Job Seekers (Fukuoka Branch).
Case 2: HITOWA Holdings
|Time of investment
|Owner Business Succession / Secondary Buyout
Based on a corporate philosophy of "creating new value supporting families and lifestyles, and continuing to provide 'excitement and satisfaction'," the company provides several services that were previously handled at home, such as house cleaning, childcare, and nursing care.
By revitalizing the working generation, the company creates a system for sustainable societal development.
■ESG Initiatives at HITOWA Holdings
We have defined the following six materiality issues and are working together as a group.
- 1. Helping people live their own way
- 2. Coexisting with local communities
- 3. Creating a desirable work environment
- 4. Staff development to support sustainable corporate activities
- 5. Promoting corporate activities that do not place a burden on the global environment
- 6. Sustainable enhancement of corporate value and strengthening of management infrastructure