NXTP Labs investments and the companies we support and accelerate create a combination of economic, social and environmental impacts, factoring ESG into our investment analysis and work does not only reduce the risks of these investments, but presents opportunities for higher value generation for all parties involved. Our view is that by developing a robust start up ecosystem in Latin America, we are ultimately creating social shared value, further increasing the chances of success of our portfolio companies.
NXTP Labs commits to the following 5 principles:
1) We are committed to incorporating environmental, social and good governance considerations in the companies we choose to invest in and mentor.
To this end we promote ongoing dialogue with our portfolio companies, Limited Partners and other stakeholders on how to best manage ESG issues according to the specific investment. We endeavor to use our best efforts to achieve continuous improvements on this field.
2) We encourage the companies we invest in to be responsible towards their own stakeholders and the environment, as we believe it is in their interest, that of their communities, and in the generation of economic value for their investors. We prefer to invest in businesses where economic impact is aligned with social impact.
Our investment and acceleration model means we are a “hands on” investor, we leverage on our team skills to find ways that enable companies to enhance their business models and the positive impact they have in the communities in which they operate in order to increase value.
3) We measure and report on ESG to our LPs, and stakeholders. We are committed to providing timely, clear and transparent information to all.
At LP level, we work with the LP to understand their ESG standards and requirements, and establish their information reporting requirements and frequency.
At company (investee) level, we determine with each company the most appropriate ESG KPIs, the monitoring and evaluation routine, and translate this information into a tailored scorecard. The scorecard is part of NXTP Labs portfolio management tools. It is used to monitor, track and report progress against agreed KPIs, as well as identifying and addressing risks. The Scorecard has a focus on materiality (only material ESG issues are tracked reported) and practicality, allowing for timely management decisions and avoiding imposing excessive administrative burden into the investees.
4) We apply the same standards and expectations in our organization that we do in the companies we invest and work with. In this sense:
We respect and uphold the rights of all NXTP Labs employees, provide clear and fair terms of employment; healthy and safe working conditions; have a fair remuneration policy; strive for equal opportunities for all employees; encourage employees to progress in their careers; do not tolerate any sexual, physical or mental harassment; do not discriminate on grounds of colour, ethnic origin, gender, age, religion, political or other opinion, disability or sexual orientation.
NXTP Labs is a proactive promoter of gender equality and the advancement of women in the entrepreneurial space, both internally within the organization, and externally by leading WeXchange.
NXTP Labs treats its suppliers and subcontractors with respect. We seek to be honest and fair in our relationships with our suppliers and subcontractors; have a policy not to offer, pay or accept bribes or substantial favours; pay suppliers and subcontractors in accordance with agreed terms.
NXTP Labs seeks to protect and preserve the environment in which we and our portfolio companies operate. We are committed to energy efficiency and emissions reduction; seek to reduce waste, and reduce water usage.
NXTP Labs promotes honest and fair relationships with its investors. We communicate to our investors all matters that are material. We aim to protect investors’ funds, manage risks and ensure that funds are used in accordance with the policy agreed.
5) We do not invest in companies that involve or have the following focus:
• Activities involving child labor, any form of forced labor and / or labor exploitation.
• Have discriminatory practices by gender, age, ethnic origin, colour, marital status, sexual orientation, political opinion, religion.
• Trade of products or activities considered illegal.
• The production and distribution of any business related to pornography and / or prostitution.
• Trafficking of arms and ammunition.
• Gambling, casinos and other similar activities.
• Activities that impinge on land owned by indigenous people.
• Trade of wood and forest products from forests without a proper sustainable management plan.
• Activities that involve animal trade.
• Activities profiting from non renewable energy sources or mining.