Sustainability

We will continue to be a contributor to the sustainable
development of the startup ecosystem.

Global Brain believes that
addressing ESG issues is important.

Not only for the investment performance of the fund, but also for portfolio companies to continue to grow and increase their corporate value after an exit event. We have a policy to support ESG issues of portfolio companies.

Background and Purpose

Global Brain (GB) is a venture capital firm driven by the mission to “bring unimaginable innovation into society,” aiming to address social challenges and achieve a sustainable economy and society through investing in leading Japanese and overseas startups and supporting them in achieving business growth.

At GB, we believe that integrating sustainability and ESG (Environmental, Social, and Governance) factors into our investment process from the perspective of fulfilling our fiduciary duty contributes to securing superior risk-adjusted returns and enhancing fund performance over the medium to long term. Furthermore, we are convinced that this integration is essential for strengthening the competitiveness of our portfolio startups, creating sustainable corporate value, and ultimately contributing to the sustainability and advancement of society as a whole. We also recognize that when startups proactively address ESG from an early phase, it leads to sustainable growth, value enhancement, and continued success even beyond exit.

This Responsible Investment Policy (Policy) outlines our approach to responsible investment, including the integration of sustainability and ESG factors into the investment process.

Scope

This Policy applies as a general rule to the investment activities of all funds managed by GB as General Partner (GP).

Points to note:

  • We strive to conduct our activities with full consideration of the specific characteristics of private companies—our primary investment target—while respecting the diversity of industries, regions, and startups.
  • In principle, we conduct ESG interviews for all deals, both pre- and post-investment. However, there are cases where ESG monitoring cannot be performed in the event of unavoidable circumstances and at the discretion of venture capitalists and decision-makers.
  • The monitoring method is subject to change depending on the specific circumstances of each startup.

Our Foundational Approach to Sustainability and ESG

We formulated and disclosed our ESG Policy back in 2021 and officially became a signatory to the Principles for Responsible Investment (PRI) in December 2024.

Our approach to responsible investment emphasizes consistency with international guidelines and initiatives. Specifically, we focus on considering the following ESG factors shown below as examples during the investment process (if applicable):

  • E (Environment): Consideration for climate change, waste pollution, and biodiversity; and compliance with environmental laws and regulations
  • S (Social): Establishment of good relationships with employees, business partners, and local communities
  • G (Governance): Assurance of independence and transparency of the Board of Directors; prevention of bribery and corruption

Our Investment Approach

During the pre-investment due diligence phase, we explain this Policy to potential portfolio startups and conduct brief interviews to understand their ESG initiatives. This interview is carried out using our proprietary questionnaire developed based on the frameworks such as the Ten Principles of the UN Global Compact. We also strictly refrain from investing in startups involved in the manufacture or trade of weapons and munitions, those engaged in forced or child labor, etc.

The ESG interview results are included in the materials submitted to the Investment Committee. Investment decisions are made based on a holistic assessment, integrated with standard business due diligence, legal due diligence, etc.

For post-investment monitoring, we conduct annual ESG surveys to raise awareness of sustainability and ESG among our portfolio startups. The results are utilized not only for monitoring from a responsible investment perspective but also for enhancing our support for startups.

Governance of the Responsible Investment Policy at GB

Our President & CEO has the ultimate responsibility for this Policy, and the entire firm is committed to responsible investment and related initiatives, with the ESG team playing a central role.

Reporting

We place great emphasis on communicating our commitment to responsible investment across Japanese and overseas private markets and the broader financial sector. As part of these efforts, we disclose a summary of the results of our ESG surveys conducted with startups on our owned media, GB Universe.

Revision and Abolition

The ESG team reviews this Policy on an annual basis and handles its revision and disclosure as needed upon obtaining approval from the President & CEO.