Lasting Impact through Responsible Business
As part of our commitment to lasting impact, Advantas Capital strives to be a good corporate citizen and to integrate ESG factors into our investment process.
Guidelines For Responsible Investment
Advantas Capital and its investment units follow an impact-driven investment process that by includes environmental, social and corporate governance (ESG) factors.
Advantas Capital believes that these ESG practices lead to the best investment outcomes while still considering the company’s impacts on the environment and society. The firm takes its commitment to responsibility very seriously and continually monitors the overall results of every investment to ensure we are taking all of our stakeholders needs into account. By following these values, we create long-term sustainability for our investors, businesses and communities where we invest in.
Advantas Capital takes the following considerations into account when making investments in startup companies either directly or through syndicates:
- Consider environmental, safety, public health and social issues associated with selected companies when evaluating whether to invest in that particular entity, as well as during the ongoing investment period.
- Be transparent and available to relevant stakeholders either directly or through portfolio company representative, whichever is most appropriate.
- Respect the human rights of those affected by our investment activities and seek to confirm that our investments do not filter to companies that promote, support or directly utilize child labor or forced labor or maintain discriminatory practices.
- Proactively provide information to limited partners on the matters addressed herein, and strive to foster transparency about our activities.
- Encourage our portfolio companies to advance these same principles in a way which is consistent with their fiduciary duties.
When making a majority direct investment in a Start-Up or Pre-IPO company, Advantas Capital undertakes the following additional activities:
- Seek to grow and improve the companies in which we invest through long-term sustainability initiatives, while also considering stakeholders on environmental and social sustainability issues. We work through appropriate governance structures (e.g. board of directors) within portfolio companies with respect to environmental, safety, public health and social issues, with the goal of improving performance and minimizing adverse impacts in these areas.
- Seek to use governance structures that provide appropriate level of oversight in the areas of audit, risk management and potential conflicts of interest and to implement compensation and other polices that align the interests of our funds and management.
- Remain committed to compliance with applicable national, state and local laws in countries in which we invest; support the payment of competitive wages and benefits to employees, provide a safe and healthy workplace in the conformance with national and local law; and, consistent with applicable law, respect the rights of employees to decide whether or not to join a union and engage in collective bargaining.
While the consideration of ESG factors has traditionally fallen under the purview of majority equity investors with a greater ability to influence outcomes, we believe that as a minority investor, we also have an obligation to take into account ESG factors. In evaluating our minority investments in public companies, we take into account the following:
- Examine the impact a company has on society and the environment during the diligence process. Where applicable, take into consideration not only the specific products or services a company provides, but also the manner in which it does business and conducts itself in the broader world.
- Seek to comprehend and consider ESG factors from a company-specific and sector-wide perspective.
- Encourage companies, where appropriate, to adopt responsible practices and promote transparency.
- Treat the responsibility of acting as a shareholder seriously and continue to diligence holdings throughout the period of ownership.
- Engage companies via proxy voting, corporate actions and board seats, where applicable.
- In certain funds, utilize a negative screen to avoid investing in companies having more than 10% of their revenue in oil, gaming, munitions, alcohol, tobacco, and adult entertainment.
Our Own Responsible Business Practices
We care about the environment
Advantas Capital’s headquarters in Rolling Hills, CA consists of flexible office space where co-working and use of energy-saving resources helps to promote the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) program. Our teams have the option to work from home and utilize the latest video conferencing technologies. Advantas Capital continues its commitment to reducing its own footprint and engages with suppliers to reduce waste and promote environmental and social sustainability (ESS) practices.
We support our communities
Advantas Capital supports a wide array of nonprofits in communities around the world with our time, knowledge and resources through our signature initiative – Advantas Capital Community Outreach program.
We promote a fair and diverse workplace
Advantas Capital believes that diversity builds stronger teams, and it is committed to hiring individuals from all backgrounds who can provide unique perspectives. Advantas Capital develops relationships with universities, leadership development organizations, and business associations across the country to ensure we reach a wide audience in recruiting and we promote a diverse and fair workplace.