Hace Tackles Child Labor with AI-powered ESG Rating, Secures £450K Pre-Seed Funding

Manchester-based Hace is making waves in the responsible investing space with its innovative Child Labour Index, an AI-powered specialized ESG rating. The company recently secured £450K in pre-seed funding, led by Manchester Angels, with participation from prominent investors like GC Angels, Ada Ventures, and Found Capital. This funding fuels Hace’s mission to empower investors with data-driven insights to address the critical issue of child labor within their portfolios.

Shining a Light on Child Labor Risk

Child labor remains a significant ethical and financial concern for investors globally. Estimates by the International Labour Organization (ILO) suggest that 160 million children are still involved in child labor, highlighting the ongoing need for effective solutions.

Hace addresses this challenge through its flagship product, the Child Labour Index. This unique AI-powered tool goes beyond traditional ESG ratings by offering a comprehensive assessment of companies and portfolios on their child labor performance. The index analyzes companies across three key dimensions:

  • Company disclosure: This assesses the transparency and comprehensiveness of companies’ reporting on child labor practices within their operations and supply chains.
  • Public perception: The index analyzes public sentiment and media coverage surrounding companies’ child labor practices, providing valuable insights into potential reputational risks.
  • Supply chain: Recognizing the complexities of global supply chains, Hace’s technology delves deeper, analyzing companies’ efforts to identify and mitigate child labor risks within their supplier networks.

Empowering Investors for Positive Change

The Child Labour Index serves as a critical tool for various stakeholders in the investment ecosystem, including:

  • Asset managers and wealth managers: By integrating the Child Labour Index into their investment decision-making, these professionals can proactively identify and address child labor risks within their portfolios, aligning their investments with ethical considerations.
  • Institutional investors: Large investors like pension funds and sovereign wealth funds can utilize the index to manage their ethical investment mandates and ensure their portfolios are aligned with responsible investment principles.
  • Investment and asset consultants: These advisory firms can leverage the Child Labour Index to provide their clients with comprehensive insights into child labor risks associated with various investment options.

Beyond Ratings, Fostering Engagement

Hace goes beyond simply providing a rating. The company’s Stewardship Toolkit empowers investors to engage effectively with companies identified as having high child labor risk. This toolkit provides resources and guidance to facilitate constructive dialogue with companies, encouraging them to implement positive changes in their labor practices.

Looking Ahead: Growth and Impact

The £450K pre-seed funding empowers Hace to:

  • Complete the development of its Child Labour Index platform.
  • Expand its data collection and analysis capabilities.
  • Build partnerships with key players in the investment and responsible investing communities.

With its innovative approach and commitment to tackling the complex issue of child labor, Hace is poised to become a leading force in the responsible investment landscape. As the company scales its operations and expands its reach, it has the potential to empower investors to make informed decisions and drive positive change on a global scale.

Hace Funding Highlights:

Funding Amount£450K
Funding RoundPre-Seed
Lead InvestorManchester Angels
Other InvestorsGC Angels, Ada Ventures, Found Capital, Angel Investors
Funding PurposeComplete Child Labour Index platform development, expand data capabilities, build industry partnerships
Company FocusAI-powered Child Labour Index, ESG rating
Target MarketAsset managers, asset owners, investment consultants, banks, insurers, and other professional services
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