TOM Group Ltd announced on Monday that it has signed an agreement to make a follow-up investment in MioTech, a Chinese artificial intelligence platform which provides comprehensive ESG solutions.

ESG refers to environmental, social, and governance and is characterized as a responsible, ethical, sustainable investment. Especially after the COVID-19 pandemic, it has become a critical focus among the investment community as an integral part of evaluating a company's business sustainability, corporate image, and ability to create positive value.

"The investment in MioTech is in line with our strategic pivot to focus on technology-centric, data-driven and high growth potential sectors. Not only will our continued investment in MioTech enrich our existing investment portfolio in fintech and advanced data analytics, but it will also allow us to explore possibilities of operational synergy within our group," said Ken Yeung, CEO and executive director of TOM Group.

"The group's decision to make a follow-up investment is a strong vote of confidence for the long-term potential of MioTech, as a leading AI provider in the ever-growing ESG space," Yeung said. The new investment came months after TOM Group invested in MioTech in March this year.

MioTech is an expert in ESG technology, data and analytics in Asia. Its platform provides ESG data, real-time risk monitoring, ESG ratings, indices, as well as research and consulting services to institutional clients.

It mainly uses AI to process massive amounts of unstructured data and combines it with supply chain, shareholding, investments as well as other alternative datasets to form a comprehensive picture of corporates' social responsibility performances.

"MioTech has formed a strong partnership with TOM Group since the beginning of this year," said Jason Tu, CEO and co-founder of MioTech. "With this continued investment, TOM Group's expertise in the region will further strengthen MioTech's market presence."