Environmental, Social, & Corporate Governance Policy
Updated as July 2023
Safar Partners is a seed- to growth-stage venture fund investing primarily in technology companies out of MIT, Harvard, and the University of Rochester. We seek to deliver superior, responsible performance by selecting diversified investments across three industry sectors: cleantech/advanced materials, life sciences/medical devices, and AI/IT/robotics. With access to the most promising technologies developed by the brightest minds, we are often one of the first investors in our portfolio companies, helping them grow and achieve technological and financial success.
Tackling the biggest challenges the world is facing today, including climate change and global health, requires vision and global reach. An ever-growing need for new technologies in sustainable energy, clean water, food management, and global health makes solutions in these fields not only impactful, but also economically attractive. Safar Partners was founded to invest in the most promising innovations in the cleantech and material science, artificial intelligence and information technology, and life science areas.
Safar Partners is committed to integrating environmental, social, and corporate governance (ESG) considerations into its investment process and portfolio. Safar Partners strives to create investment portfolios which generate responsible, long-term and superior performance. Safar Partners’ governance structures ensure consistent consideration of ESG policies across the firm. Safar Partners’ investment philosophy, along with the increased emphasis that our investors are placing on ESG considerations, has led Safar Partners to intregrate ESG principles both in its investment decision making and internal culture.
UN Principles for Resposible Investment
In 2020, Safar Partners signed the United Nations Principles for Responsible Investment (UN PRI) in order to further substantiate and formalize its commitment to ESG principles. As a signatory, Safar Partners has committed to the UN PRI’s six principles.
- We incoporate ESG criteria into investment analysis and decision-making processes.
- We are active owners and incorporate ESG criteria into our ownership and practices.
- We seek appropriate disclosure on ESG highlights and issues by the entities in which we invest.
- We promote acceptance and implmentation of the UN PRI within the investment industry.
- We work together to enhance our effectiveness in implementing the UN PRI.
- We report on our activities and progress towards implementing the UN PRI.
Monitoring, Reporting, and Transparency
Safar Partners actively monitors the ESG processes of all our portfolio companies. Safar Partners includes several standard ESG metrics at the portfolio company level such as gender equality, carbon emissions, and waste management and measures and reports on the contribution of each portfolio company to the relevant United Nations Sustainable Development Goals.
SAFAR FOCUS AREAS
United Nations Sustainable Development Goals (UN SDGs)
Sustainable businesses can be developed in all of Safar Partners’ chosen sectors (cleantech/advanced materials, life sciences/medical devices, and AI/IT/robotics). Safar Partners has selected ten UN SDGs in order to guide and focus our investment priorities throughout the portfolio. Our primary goal is to invest over 90% of our investment dollars in technology companies that are tackling challenges in at least two or three of the following UN SDGs:
|Good Health and Well-being: Ensure healthy lives and promote well-being for all at all ages.|
|Gender Equality: Achieve gender equality and empower all women and girls|
|Clean Water and Sanitation: Ensure availability and sustainable management of water and sanitation for all.|
|Affordable and Clean Energy: Ensure access to affordable, reliable, sustainable, and modern energy for all.|
|Industry, Innovation, and Infrastructure: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.|
|Sustainable Cities and Communities: Make cities and human settlements inclusive, safe, resilient, and sustainable.|
|Responsible Consumption and Production: Ensure sustainable consumption and production patterns.|
|Climate Action: Take urgent actions to combat climate change and its impacts.|
|Life below Water: Conserve and sustainably use the oceans, seas, and marine resources for sustainable development.|
|Life on Land: Protect, restore, and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, halt and reverse land degradation, and halt biodiversity loss.|
SAFAR OPERATIONAL ACTIVITIES
As a key aspect of Safar Partners’ operations, ESG is managed through an interdisciplinary working group. This group is led by Safar Partners’ Chief Financial Officer, Sahba Vaziri, and focuses on consistently reinforcing and improving Safar Partners’ ESG practices.
The investment team at Safar Partners has a responsibility towards ESG and is fully committed to considering ESG factors during the investment process. The investment team ensures to (1) undertake a consistent approach to ESG considerations during the due diligence phase on each potential investment and (2) identify and address potential ESG issues within the portfolio company.
Diversity, Equity, and Inclusion
At Safar Partners, we believe that a diverse and gender balanced team adds value. This is why we have committed to gender equality, both within Safar Partners’ team and within our portfolio companies. Safar Partners has set and already achieved a target for women to comprise 50% of our investment professionals. Additionally, 40% of Safar Partners’ portfolio company founders or leaders are women. Safar Partners’ commits to ensuring that our culture, workplaces, and human resource policy provide a safe and rewarding work environment for all employees on a daily basis. To that end, we continue to ensure that published job offers are gender and race neutral, ensure non-discriminatory recruitment, and implement measures to retain diverse talent.
Restricted Areas of Investment
Safar Partners has a list of restricted areas of investment which include, but are not limited to, operation of a gambling business or establishment, production or distribution of ammunition or weapons of any kind, and businesses that could support human trafficking or forced labor in adults or children. Safar Partners also excludes investments in companies having their principally registered office or conducting a major part of their business in countries that are “Not Cooperating” in tax or anti-money laundering related matters.
Safar Partners publishes an annual sustainability report which covers our initiatives and progress towards our goals for ESG and the targeted UN SDGs.