Swire Pacific takes venture capital path in green push

Swire Pacific, one of Hong Kong's largest conglomerates known for its conservative approach to business, has stepped into the risky world of venture capital to locate companies that can help it become more environmentally friendly.

By the end of next year, the aviation-to-property conglomerate aimed to double to six the number of technology companies it was investing in to help its businesses cut waste, emissions and energy use, head of sustainable development Philippe Lacamp told the South China Morning Post.

Although the investments were relatively small, at less than US$10 million in each company for minority stakes typically smaller than 15 per cent, Lacamp said the move had made the group more forward-thinking in its sustainable development business strategy.

"It allowed for a narrative to demonstrate the fact that we don't just talk about sustainability, we are making investment in the sector because we think it is important … and we want to be ahead of regulatory requirements," he said.

The conglomerate is looking for technologies that can help reduce the environmental impact of its portfolio of businesses, many of which are "asset-heavy" and "resource-hungry".

Last year, Swire bought a 9.3 per cent stake in British-based Green Biologics, which develops technologies to use plant waste to make renewable biobutanol - an intermediate chemical used in the production of products ranging from paints and plastics to personal-care products.