China Environment Fund: Doing Well by Doing Good
Posted: 28 Feb 2012
Date Written: July 22, 2011
In early 2010, Cleantech investment pioneer Tsing Capital was planning for the China Environment Fund IV and considering how to maintain its commitment to social and environmental practices. Tsing Capital embraced its philosophy of "Doing Well by Doing Good" and developed a proprietary system to manage social & environmental functions throughout the investment process. Some of the specific questions examined in the case are: with a more diversified investor base, how could the firm balance the different expectations of investors and continue to achieve "Doing Well by Doing Good"? Despite the increasing importance of social & environmental practices, they also had a cost for the firm and its portfolio companies. How could the firm most effectively motivate its portfolio companies to actively integrate social & environmental practices with their strategies?
Learning Objective: To examine the process of socially responsible investment and discuss the tactics of how a company balances financial, social and environmental returns.
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