Promoting ESG investments can be more than just selecting projects with existing environmental and social goals. This is especially true in emerging markets, where understanding of ESG compliance can be limited for local businesses.
In Cambodia, an organization has elevated ESG standards so that they create a powerful double win: greater social and economic impact and increased attractiveness to foreign investors.
ID Capital, a part of Cambodia’s Innovation and Development Investors Association (IDI), exemplifies this approach. It fosters an entrepreneurship ecosystem by nurturing projects contributing to regional economic development and empowering local businesses.
“We founded IDI during COVID to support local businesses and individuals impacted by the pandemic. As investors and businesspeople, we felt responsible to back businesses with strong community impact potential,” IDI and ID Capital PLC Chairman Hor SereyVath told GMI POST.
Beyond funding: Building ESG-ready businesses
Since its founding, ID Capital has supported over 90 projects in diverse sectors, like agriculture, education, finance, healthcare, and real estate, contributing to Cambodia’s major investment markets. What sets ID Capital apart is its focus on partnership, not just investment.
“Many homegrown Cambodian businesses lack an international perspective. This limits their potential and makes them less attractive to foreign investors. ID capital steps in as a partner, providing expertise in managing capital and achieving ESG compliance, which is a key factor for attracting overseas investors,” SereyVath said.
Building trust with transparency
ID Capital’s commitment extends beyond its projects. It advocates for responsible investment from its partners, primarily foreign investors, ensuring their funds go towards impactful ventures. To achieve this, they tackle ‘information asymmetry’.
“Many foreign investors have limited or biased information about Cambodia’s investment landscape. We bridge the gap by conducting due diligence and providing consolidated information. This builds trust with our partners, setting us apart in the market.” ServeyVeth said.
By building bridges and fostering responsible investment, ID Capital has proven that ESG is a win-win for both businesses and investors.
