ESG Framework

ESG Framework

Environmental, Social, and Governance principles are embedded in our strategy and investment process. We look beyond just ESG risk and actively assist portfolio companies to achieve ESG positive outcomes.

Prior to making any investment, detailed ESG Due Diligence is performed. After investment, we work closely with portfolio companies to improve their ESG profile while creating positive impact.

Further details of our responsible investment approach can be found in our ESG Framework.

ESG Embedded in Investment
and Portfolio Management

ESG Framework
  • Due Diligence

      • Prohibited Investment Activities List (PIAL)
      • Laws and regulations
      • Safeguards
      • Governance risks
      • Corrective Action Plan (CAP)
  • Categorization

      • C: Low risk
      • B: Medium risk
      • A: High-risk
  • Investment Process

      • IC Materials
      • Term Sheet
      • Legal Documents
  • Portfolio Management

      • Monitoring
      • Improvement
      • Annual ESG and Impact Report

Due Diligence

    • Prohibited Investment Activities List (PIAL)
    • Laws and regulations
    • Safeguards
    • Governance risks
    • Corrective Action Plan (CAP)

Categorization

    • C: Low risk
    • B: Medium risk
    • A: High-risk

Investment Process

    • IC Materials
    • Term Sheet
    • Legal Documents

Portfolio Management

    • Monitoring
    • Improvement
    • Annual ESG and Impact Report

Northstar Impact Initiatives

We are committed to having a positive impact on the communities where we do business. The Northstar Impact
Committee was created to carry out this mission. Our impact initiatives are focused on three areas:

Time & Skills
Volunteering

Northstar employees regularly give of their time to a long list of community causes, including some of the foundations listed above.

Financial Resources
Philanthropy

The Northstar Foundation makes regular financial contributions to a number of organisations, including the Peace Generation Foundation, Red Nose Foundation, Yayasan Karya Salemba Empat, Yayasan Mata Air, Yayasan Cinta Anak Bangsa, Universitas Paramadina, and National University of Singapore.

Impact Investing

The Northstar Foundation has made investments in a number of businesses that are seeking to make significant impacts on the social and economic development of remote communities in Indonesia. In addition, Northstar contributes its expertise by actively consulting with the management of these businesses to further their impact. Northstar’s impact investments include (1) Jati Lintang, a sustainable teak plantation in Central Java, (2) Electric Vine Industries, a micro-utility bringing sustainable energy access to un-electrified Indonesians, (3) Du’Anyam, a social enterprise that produces and distributes wicker crafts to economically empower and improve the health of women in rural Indonesia, and (4) Indobamboo, a sustainable wood products manufacturing company in Indonesia.

Annual ESG & Impact Report