Investment Philosophy

sustainability 3

 

Regenerative Investments in Carbon Neutral Infrastructure and Technologies – “Turning Emissions into Trees”

Elion House focus investments on sustainable high-quality infrastructure projects with proprietary cutting-edge technology and technology innovators that can produce “Regenerative Return on Investments”. Sustainable companies are pro-actively adopting clean technologies into their business models that allow them to decouple their growth from environmental and social impact – in the long run, they will benefit from step changes in operational efficiency; the development of alternative products, services and materials; and the ability to obtain value from unavoidable waste.

As international regulations on carbon emissions are progressively forcing companies to manage their carbon footprint this is incentivising companies to stay ahead of legislation by using cleantech instead of dealing with the costly abandonment from polluting businesses – the associated costs with lagging behind regulation are now seen as too big to risk.

“Natural Capital at Risk” (environmental and social costs of business) globally has been identified at $7.3tn and against a backdrop of increasing natural resource vulnerability fuelled by population growth and intensifying environmental regulation, companies that act now will be the successful companies of the future. We espouse the importance of building sustainable companies in energy and natural resources as the sectors’ potential for “wasted capital and stranded assets” poses a major risk for investors if future carbon regulations render mineral or hydrocarbon reserves of companies unusable or unburnable.

Environmental, Social, Governance investing benefits our stakeholders and communities in the long-term by:

– reduced portfolio operational and regulatory costs;
– reduced portfolio ecological and carbon footprint;
– mitigating natural resource depletion, pollution and environmental destruction, climate change related disasters that cause expensive disruptions to global supply chains.

We take on real risk and back companies we passionately believe in. Our philosophy is based on the following system of principles for practical guidance:

  • Target companies with proven and disruptive technology with the potential to create transformational change in high growth sectors. The technologies must be market-ready, scalable, differentiated, and have defensible features;
  • Target sustainable companies in Asian economies supported by strong fundamentals with social or business activity in the process of rapid growth and industrialization;
  •  Competitively position and realize the optimal value of all portfolio companies and intellectual property – implement a skilled and experienced management team; review road maps, vision and strategy; identify and bridge gaps; create a business plan with the right tools for execution; build a strong advisory board and teams in projects, PR, HR, marketing, finance, and recruiting to speed up market entry;
  • Patience – real progress in building differentiated and defensible technologies take time and we will care less about exploiting low-tech clones and be more engineer driven and entrepreneurial. We will have discipline and refrain from exiting at the first sign of success and focus on building long-term stakeholder value, protecting against prematurely leaving the stage entirely;
  • Beyond financial backing, our management team will extend a collaborative mentoring style in all aspects of the business and value chain including research and development, exploration and discovery, project integration, production, operations, storage, distribution and infrastructure;
  • Sensibly embrace and manage portfolio risk – target companies and assets are diversified across sectors and countries to reduce overall risk in the portfolio.

 

“We live here as in an egg – either we evolve or we decay”  Confucius

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