ESG is fundamental in how we support portfolio firms, says Rigel Capital’s Justin Patrick

Implementing environmental, social, and governance (ESG) practices has become a non-negotiable prerequisite for any business looking to raise capital in Asia. Embracing ESG principles has become important for investors as it sets them apart in the world of private equity and venture capital.

Early-stage growth investor Rigel Capital, for instance, is known to take a sector-agnostic approach with a strong emphasis on ESG principles. 

“We’re a returns-motivated investor first, but ESG is fundamental in how we evaluate and support our portfolio companies,” said Justin Patrick, Director of Rigel Capital. 

Justin was moderating a panel discussion sponsored by Rigel Capital on sustainable impact at DealStreetAsia’s Indonesia PE-VC Summit 2025 in Jakarta in January.

The session brought together representatives from three of the firm’s portfolio companies: Handhi Kentjono, co-CEO of Manna Agribio; Tika Diagnestya, Director of Sustainability and Impact at Nafas; and Phillipe Micone, CEO of Noovoleum.

The discussion explored how entrepreneurial solutions address environmental challenges while maintaining sustainability and profitability.

Rigel Capital, founded in 2022 by Sebastian Togelang, who is also the founder of the Indonesia-focused VC firm Kejora Capital, has also backed startups such as PT Energy Selalu Baru (ESB), which owns the Indonesian two-wheeler brand Volta.

Justin opened the session by sharing Rigel Capital’s investment philosophy. He highlighted the firm’s practice of evaluating businesses through the ESG lens, aligning with international standards like the ISC and UNPRI principles. This methodology includes rigorous due diligence, ESG compliance support, and preparation for exits via IPOs or M&A events.

Impact Startup Insights

As a champion of ESG-focused ventures, Rigel has backed Manna Agribio, Nafas, and Noovoleum. These startups were invited to showcase the power of sustainable business solutions. The panelists shared the origins and missions of their startups, each addressing unique environmental challenges.

Manna Agribio: Handhi Kentjono described the company’s mission to revolutionize agriculture with organic probiotic fertilizers derived from chicken manure. These biostimulants enhance agricultural yield by 200-300% while reducing greenhouse gas emissions from chemical fertilizers. “We want to alleviate farmers’ plight and bring dignity to the profession by providing sustainable solutions that boost income and productivity,” he emphasized.

Noovoleum: Phillipe Micone explained how Noovoleum tackles waste management by recycling used cooking oil in sustainable aviation fuel and renewable diesel. The startup’s technology empowers communities, particularly women, by incentivizing waste collection and creating secondary income streams. “Our goal is to change the mindset around recycling by demonstrating its profitability and community benefits,” he said.

Nafas: Representing Nafas, Tika Diagnestya highlighted the company’s efforts to combat air pollution through data-driven solutions and real-time monitoring. With over 200 outdoor sensors across Jakarta, Nafas aims to democratize air quality awareness and implement green building solutions. “By 2050, we aim to future-proof buildings against indoor and outdoor pollution,” he stated.

Balancing Certification and Costs in Startup Growth

The panel also delved into the importance of certifications for legal compliance and customer trust. While necessary, excessive spending on certifications can hinder early-stage growth.

Handhi shared that Manna Agribio complies with stringent regulations for organic certifications, emphasizing the authenticity of their products. Phillipe revealed Noovoleum’s strategy of hiring an ESG manager early to secure international certifications, which helped attract major clients like Sinar Mas and Pertamina. Tika acknowledged the challenges of obtaining international standards but stressed the value of partnering with accredited organizations for certifications like green-building standards.

As an investor, Justin also highlighted the value of third-party certifications, stating, “We are not sector specialists, but benchmarking against regulations, best practices, or certifications helps us understand quality and compliance.”

Integrating ESG into Marketing and B2B Strategies

In many cases, ESG principles and certifications have the potential to significantly increase sales volumes, particularly in the B2B market. But how exactly do ESG and certifications integrate into the compliance journey, marketing strategy, and sales pipeline? As businesses align their values with ESG principles, these factors inevitably shape consumer messaging. However, for certain niche products, especially in the B2B realm, ESG and certifications become foundational tools for differentiation and value creation.

Handhi noted how Manna Agribio’s certifications helped elevate the brand beyond traditional organic fertilizers. “In the market, organic has been a bad brand in the past because it is equated with compost. The Organic Indonesia certification mark is invaluable for marketing our product. It helps us differentiate our products from other organic ones, creating premium value in the market.”

Phillipe discussed Noovoleum’s focus on aligning ESG messaging with B2B and B2C partnerships to drive change and inspire others. “A lot of our marketing is built around our internal ESG principles. First, we ensure alignment with our partner’s values. While B2B often prioritizes financial metrics, our aim is to inspire change. We’ve seen businesses not only adopt our values but also begin training their employees on waste management and sustainability.”

Tika highlighted Nafas’ efforts to integrate ESG reporting into their solutions, increasing their appeal to office buildings and large enterprises. “We’re fortunate to partner with an accredited organization for a green-building certification. Our marketing strategy ties this to our indoor pollution solutions for B2B clients, emphasizing how installing our air quality solutions improves their ESG reporting and scores for office buildings.”

Social Impact and Long-Term Goals

The panelists underscored the significance of creating positive social impact. Handhi highlighted Manna Agribio’s support for low-income farmers and SMEs, ensuring equitable employment opportunities. Representing a startup working with organic probiotics, Handhi also shared the company’s approach to social impact:

“As a startup, we may not yet fully align with formal policies on sustainability and equity, but we prioritize balancing gender representation. Of the 33 million farmers in Indonesia, 8 million are women. We ensure a similar ratio among employees who interface with customers. Additionally, 80% of the retailers selling our products are SMEs, and our early focus on B2C allowed us to support low-income farmers.”

Phillipe also shared Noovoleum’s initiatives to engage with schools and women’s associations, aiming to scale these efforts annually. He described their commitment to community engagement and measurable social impact: “From the beginning, we focused on tracking our interactions with women’s associations, schools, and broader communities. For example, we measured how many associations we engaged with, how many joined our ecosystem, and the economic benefits they received.”

Tika emphasized Nafas’ focus on refurbishing components to extend product lifespans and promote gender equity within the company. She also highlighted Nafas’ dual focus on sustainability and social impact. Nafas also shared their commitment to gender equity: “Forty percent of our full-time employees and 50% of our senior management are women. This has significantly enhanced our decision-making processes, enabling us to scale sustainable impacts further.”

Rigel Capital’s Multifaceted Support

At the conclusion of the panel discussion, Justin Patrick from Rigel Capital highlighted how the firm provides more than just funding by adopting a comprehensive approach to supporting startups. He explained that Rigel stands out by bringing multidisciplinary talent into startups, rather than just focusing on money and exits like most VCs. As he put it, “What makes Rigel unique is that we bring a range of multidisciplinary talent into startups.”

Justin also praised the diverse expertise of Rigel’s team, which includes business development, sales, and marketing professionals. This multidisciplinary team brings practical strategies to startups, helping them thrive in their respective industries. 

Rigel Capital also works closely with startups to generate leads, form partnerships, and create business development opportunities. This is especially important in building B2B relationships that often involve compliance and ESG issues. 

Lastly, Justin shared that while exits are always a consideration, Rigel’s primary focus is helping startups grow into sustainable operations. Their goal is to build long-lasting businesses that are appealing to public markets or potential M&A partners. “We aim to build long-lasting businesses,” he concluded.