We developed a framework to help TNB Aura manage the negative and positive impact of its portfolio
TNB Aura is a thesis-led venture capital firm that invests in technology-focused high-growth companies. The firm’s mission is to transform the lives of The Next Billion, by investing in companies that add value to the economies of Southeast Asia by expanding access to basic goods and services.
TNB Aura partners with their investees to institute governance practices that enable further growth. As a part of these efforts, TNB Aura wanted to be better equipped to help companies build in-house capacity on material sustainability topics. The fund manager engaged Steward Redqueen to develop a streamlined approach and framework to address ESG risks and measure impact across their portfolio, and to pass these systems and knowledge on to their investees.
The project kicked off with a series of working sessions to develop TNB Aura’s ESG risk management framework. We began by sharing insights on the best practices in sustainable investing. Next, we jointly defined the fund manager’s ESG policy. After the working sessions we moved into implementation, guiding TNB Aura in piloting and integrating the newly developed processes across the investment cycle, from screening and due diligence of potential investees to helping portfolio companies meet TNB Aura’s ESG standards.
The next phase of our engagement focused on building a theory of change to help TNB Aura measure the impact of their portfolio companies. Through multiple working sessions, we shared industry knowledge behind impact measurement and management, selected relevant input, output and outcome metrics and developed the final impact framework. We then worked with TNB Aura to communicate the results through an Impact Brief. To do so we collected impact data on all 2022 portfolio companies and conducted interviews with three portfolio companies to offer more in-depth insights into their developmental contributions.
We continue to work with TNB Aura’s portfolio companies, building their capacity through workshops, and guiding them in the development of their long-term sustainability strategy.
TNB Aura applies their tailored framework to ensure that appropriate structures exist at each investee company to prevent unintended environmental and social harms, and to measure impact across their portfolio. TNB Aura’s efforts to apply the framework and in provide investees with capacity building workshops are part of the firm’s ambition to be the best ‘second cheque’ in the region, so that their investees have the tools to grow sustainably.