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Seraphim launches ESG Monitoring tool for Space sector

Written by: seraphimvc

We are delighted to announce the launch of our new ESG Investment monitoring tool which will enhance the# SeraphimSpace Investment Trusts ESG credentials by ensuring all of the Trusts existing and future portfolio company investments not only limit any negative impacts from their operations but also support next-generation ESG-related processes and practice to help space-tech companies reach net-zero before Government targets.

The tool now also helps to identify gaps where #SeraphimSpace can assist portfolio companies in developing new enhanced processes to reach their ESG objectives in their own operations and throughout their value and supply chains and marks a new significant milestone for the #Space sector in tackling the climate crisis.

Please see the full press release below:

Seraphim Space launches new ESG investment monitoring tool

Seraphim Space Manager LLP (‘Seraphim Space’), the investment manager of Seraphim Space Investment Trust (‘SSIT’ or the ‘Company’), the world’s first listed SpaceTech investment company, has launched a new proprietary tool to enhance the analysis of climate, sustainability, and social impact risks for the space technology sector and provide improved sustainable-led practices.

Seraphim Space has developed a new advanced process in partnership with the Environmental, Social and Governance (‘ESG’) experts Sancroft to review prospective SSIT portfolio companies’ exposure to climate, sustainability and social impact risk as part of its investment criteria and further work with each company to reach net zero and achieve the UN’s Sustainable Development Goals at a quicker speed. It is also launching training for SSIT portfolio companies on key ESG themes in the coming month.

SpaceTech can play a key role in the urgent global endeavour to help combat and mitigate climate change and enable a sustainable future.  Recognising these seismic changes, a flourishing ecosystem of privately funded SpaceTech companies is emerging. These companies are addressing some of the biggest challenges faced by both humanity and business, such as climate change, sustainability, connectivity and security. Whether it is providing a more accurate weather forecast to mitigate and address the negative human effects of climate change, using satellite technology that can see through clouds to detect illegal deforestation in the Amazon or helping provide accessible internet connection to developing nations by facilitating a sustainable and resilient satellite infrastructure above the Earth’s atmosphere, SSIT’s portfolio companies already play a vital role in promoting sustainability and addressing the UN’s Sustainable Development Goals. 

Since launching its first SpaceTech Fund in 2016, Seraphim Space has been at the forefront of promoting and implementing sustainable solutions across the SpaceTech sector, being one of the first movers in the industry that ensured all of the fund’s investments supported the UN’s SDGs and other relevant criteria.

The new ESG framework will enhance SSIT’s already stringent ESG considerations to ensure that all investments not only limit any negative impacts from their operations but also support next generation ESG-related processes and practices that can be realised, championed and implemented to help new and existing portfolio companies, as well as the overall space sector, reach net-zero before Government targets.

Under the new innovative Responsible Investment Policy, each prospective portfolio company is taken through a rigorous due diligence process and reviewed against a series of mitigation strategies to understand any potential ESG risks and advise on how these can be monitored effectively and reduced immediately or over time. The tool now also helps to identify gaps where Seraphim Space can assist portfolio companies in developing new enhanced processes to reach their ESG objectives in their own operations and throughout their value and supply chains.

The innovative tool will also help Seraphim Space to identify companies with the greatest potential business sustainability by incorporating the following three criteria: 

1. Climate action: Working to minimise each portfolio companies’ environmental impact and implement advanced net-zero solutions through strategic analysis of how the company can reduce emissions. 

2. Promoting diversity and inclusion: Generate a policy framework that helps increase inclusion and diversity in each company’s workplace through the policy of continued investment in the best talent, regardless of background, and commitment to continuous professional development.

3. Good governance: Implementing and maintaining suitable internal processes, procedures and standards supported by training to ensure the maintenance of suitably high standards of conduct and sufficient expertise in the deployment of companies’ policies.

The policy framework will ensure all SSIT’s investments are aligned and mapped against the UN’s Sustainable Development Goals (SDG’s) and fundamentally support their delivery and commitment to the targets of each of the 17 goals. 

Mark Boggett, Chief Executive Officer, Seraphim Space Manager LLP, said: “This announcement marks another significant milestone for Seraphim Space. Our industry-leading Responsible Investment Policy is fully embedded into our investment process and will act as a rigorous due diligence process before the completion of every investment and set a new global framework for the SpaceTech industry to follow. Ensuring that all SpaceTech companies are addressing and advancing the UN’s Sustainable Development Goals to reach targets at a quicker speed provides both transparency and confidence for our current and future investors as well as for our clients and other stakeholders. Furthermore, it reinforces how Seraphim Space Investment Trust’s portfolio is playing a fundamental role in providing solutions to a lot of the planets most pressing Environmental, Social and Governance problems.”

Trisha Taneja, Global Head of ESG Advisory at Deutsche Bank, said: “Space technology has a vital role to play in enabling a sustainable future, and SSIT’s portfolio companies address a range of sustainability challenges. As the manager of the world’s first listed SpaceTech investment company, Seraphim Space has a powerful opportunity to lead on ESG in the SpaceTech community, both in the investments it makes and the best practices it encourages in its portfolio companies. This new Responsible Investment Policy demonstrates the focus that Seraphim Space places on this important topic.”