Adding Value: 13 Best Practice Examples of ESG Portfolio Support from our Member Funds

While in buyout funds, the practice of ESG value-add and stewardship post-investment has become common practice over the last years, VC has been lagging behind. We have many reasons to believe that this lack of activity is a missed financial opportunity.

As with ESG integration in due diligence, funds in our community and membership have started to experiment also with where, when, and for whom value-add activities make sense in VC. These examples from thirteen funds, across geographies, fund sizes, and sector focus, show the large variety of approaches.

2150

Peter Hirsch, Head of Sustainability

2150 works closely with our portfolio to bring in best practices on ESG, focusing on opportunities to increase competitiveness and address risks. Our approach prioritises efforts that reflect companies’ maturity while identifying the specific ESG needs of a company.

We shape our ESG engagement around both regulation and international standards. As an Article 9 fund under SFDR, we ensure all companies meet Minimum Safeguards and draw from the Principal Adverse Impact indicators to assess performance. For climate-related ESG matters specifically, 2150 builds from the framework of the Venture Climate Alliance, where we are a founding member, which sets out best practices for companies.

Our approach fits into three areas of ESG engagement:

1. ESG Onboarding and Establishing Governance

We provide onboarding sessions for all portfolio companies that cover the ESG commitments companies endorsed through terms sheets and legal agreements, and identify a lead point of engagement. Following these sessions, 2150 asks companies to adopt i) an ESG Policy, ii) a Supplier Code of Conduct, and iii) a Diversity & Inclusion Policy. We provide templates for all such policies as guidance.

2. Managing Climate Performance

We support all companies to onboard best climate practices from an early stage. These include measuring all Scope 1–3 GHG emissions, supported through an initial year’s subscription to Normative — an emissions measurement and management support tool. Companies also establish an early climate strategy to discuss climate risks and opportunities. 2150, as a fund, runs a climate risk assessment of the portfolio annually, with results shared with portfolio companies.

3. Continuous Engagement and Assessment

Our approach includes continuous engagement to support companies’ ESG growth and maintain a vision of risks and opportunities. We regularly assess ESG performance, with results shown in our annual Impact Report. On a more bespoke basis, 2150 works with companies on specific regulatory needs related to ESG factors, as well as new or growing risks that may be identified.

2150 has a dedicated Sustainability Team that organises and oversees much of this work. The Sustainability Team coordinates ESG efforts internally so all team members — and particularly those seated on boards — are championing the specific ESG efforts prioritised for each company. Such an approach ensures that ESG is integrated into our common engagement with portfolio companies.

Antler

Rosalind Bazany, Partner, Head of ESG and Impact

At Antler, we believe that ESG principles are not just peripheral considerations but fundamental to the ethos of constructing successful, sustainable businesses. From the outset, we embed sustainability into our processes, instilling awareness and intent among founders during residencies. Our strategy encourages continuous learning, empowering founders to weave sustainability into their operations in ways that bring value to their businesses and stakeholders.

To support this vision, we have developed two resources for post-investment founder support: the Antler Sustainability Health Check and the Antler Sustainability Toolkit. The Health Check acts as a comprehensive annual tool for monitoring and benchmarking, designed to evaluate and guide ESG integration of our portfolio companies through their growth journey. Tailored to meet the specific challenges and opportunities from pre-seed to Series B, this approach ensures both relevance and impact. The feedback and categorization system (‘green,’ ‘amber,’ ‘red’) derived from this assessment offers targeted support, encouraging continual progress and pinpointing areas for improvement. For companies beyond Series B, we advocate using a data platform for tracking sustainability metrics, recommending Novata and Upright. In 2023, a 59% response rate from qualifying companies demonstrated their commitment to sustainability, but also revealed significant opportunities for ongoing support and development, as detailed in our latest ESG and impact report. Our rationale for developing our own monitoring tool rather than adopting off-the-shelf software is threefold:

1. To maintain ownership of the process, ensuring alignment with our pre-investment practices such as residency workshops and due diligence.
2. To use the system as a means for continuous learning and awareness-building among founders in an actionable and relatable manner.
3. To help us identify which companies need additional support, and inform our own engagement strategy, focusing on what founders view as impactful change.

The Antler Sustainability Toolkit, now open source as of late 2023 and attracting around 250 sessions monthly, complements our hands-on approach across Antler offices. Through step-by-step guidance, case studies, and insights into investor expectations, the toolkit provides founders with the knowledge and tools needed to embed sustainability into their core business strategies.

The Head of ESG and Impact at Antler is responsible for leading the overall strategy design and implementation of Antler’s sustainability proposition. Antler believes that the entire firm can support the implementation of responsible investment and provides training and support to ensure understanding of how this can be put into practice. Training provided to all employees includes video modules and presentations conducted on an annual basis on topics such as 1) The fundamentals of ESG and impact 2) ESG and impact investment integration 3) Founder ESG and impact resources 4) Understanding and mitigating unconscious bias 5) Impact company evaluation 6) Responsible AI, and 7) Climate risk in startups. We recently launched a new L&D program called Antler Sustainability Heroes that aims to develop a deeper understanding of sustainability across the Antler workforce worldwide.

Our initiatives reflect a nuanced understanding of the ESG landscape’s complexity and its evolution. Recognizing the need for adaptability as new challenges and insights arise, we emphasize the importance of collaboration within our founder community and beyond. By sharing knowledge and best practices, we collectively navigate ESG intricacies, tailoring our strategies to current needs while anticipating future demands. This collaborative spirit underpins our involvement with the VentureESG group, reinforcing our commitment to driving sustainable innovation and growth.

blisce/

Clara Cohade, Climate & Impact Specialist

As investors, blisce/ is convinced that enabling businesses to protect and focus on their mission by aligning stakeholders around a clearly articulated long-term impact is a critical driver of performance, which is why we integrate ESG across our operations including the investment process, portfolio support, and fund management; and work with our portfolio founders on their long-term intended impact.

We have a team focussed exclusively on supporting portfolio companies on climate and impact matters. Fund-related compliance and regulations are managed by our Finance & Operations team, so that the Portfolio Impact team can dedicate more time to support our founders.

Post-investment, our dedicated Portfolio Impact team rolls out tailored ESG & Impact strategy roadmaps for companies based on their maturity stage, as defined by our proprietary blisce/ Company Lifecycle Framework. This support typically follows three key steps:

1. Mission Planning by defining a measurable impact mission, leveraging frameworks like the reversed theory of change model. We work with founders to clarify long-term intended impact goals, set 5–10 year medium-term objectives, and define 1–2 year key initiatives and KPIs to achieve the mission.
2. Progress Measurement across priority stakeholders. Once the mission is set, we help companies apply this framework to core stakeholder groups and identify needed initiatives and resource investments to reinforce both mission and business objectives.
3. Monitoring impact objectives in line with strategy and effectively communicating progress internally and externally.

Our hands-on support ensures companies can protect and deliver on their purpose by aligning all stakeholders around a clearly articulated long-term impact strategy. This integrated approach is a critical driver of performance.

Cusp Capital

Dr. Carolin Althoff, General Partner, Investor & Head of ESG

We at Cusp Capital view ESG (proper ESG processes within a firm) as a financial opportunity and therefore, seek founders’ ESG awareness in early-stage conversations. Post-investment, our dedicated ESG experts offer tailored guidance to founders as they embark on their ESG journey. We follow a structured approach:

1. In an Introductory ESG Workshop, founders are sensitized to the importance of ESG, the tools available to support them, and Cusp Capital’s clear expectations (based on Cusp Capital’s ESG Framework) that are designed to ensure that (i) material ESG risks and opportunities are being addressed, and (ii) that material ESG topics and corresponding measures are being implemented and monitored.
2. In Strategy Sessions, we support defining a clear ESG roadmap aligned with the company’s broader business strategies.
3. Through Regulatory Sessions, we navigate the complex compliance landscape, advising on evolving rules while identifying proactive engagement opportunities.
4. Materiality Sessions focus on identifying, measuring and monitoring the most material ESG metrics to prioritize high-impact actions.
5. Tool Introduction and Reporting Sessions assist in developing effective ESG reporting frameworks and leveraging tools to streamline data and communicate ESG performance accurately.
6. Governance Sessions establish proper ESG governance structures with defined roles and responsibilities, integrating ESG into decision-making processes.

In addition to our ESG expert support, we assist portfolio companies in achieving their ESG goals through our various portfolio support functions. For example, our Communications expert helps align communication strategies with ESG considerations, finance experts offer guidance when it comes to ESG reporting and carbon accounting, and our HR expert assists in diversifying talent acquisition processes for inclusive hiring.

Moreover, we foster an ESG community, connecting portfolio companies with ESG leaders to inspire and learn from transformative journeys.

Throughout, our hands-on support equips founders to turn ESG from a challenge into an opportunity — not just talking the talk, but walking the walk on their path to sustainable growth.

daphni

Damien Didier, Head of Sustainability

At daphni, our commitment to ESG extends well beyond the investment decision. Post-investment, we actively engage with our portfolio companies to empower and accompany them in transitioning to a more responsible world. We recognize that many early-stage companies may have minimal, to no existing ESG practices, which is acceptable as long as the founders are aligned with our ESG intentions and we are attentive to their future implementation.

We structure our ongoing support through two key clauses in the shareholder agreement, focusing on climate and diversity & inclusion. These clauses serve as a foundation for continuous discussions about sustainability throughout a company’s tenure in our portfolio. Our approach is tailored to each company’s unique needs and challenges.

Our post-investment support typically begins with one-on-one discussions to understand each company’s specific ESG aspirations and challenges. If necessary, we can then assist in conducting comprehensive CSR/ESG audits to provide a clear picture of their ESG maturity. We leverage our portfolio-wide data to provide benchmark analyses, allowing companies to understand their relative position and learn from peers. Tailored workshops are organized to assist with implementation of ESG strategies and outline specific next steps for each company.

Our annual end-of-year ESG campaign involves collecting key ESG KPIs; our portfolio companies have appreciated how the reported data is valued and operationalized, underscoring the strategic importance of sustainability in both management and future fundraising efforts, beyond just reporting to our LPs.

Our goal is to embed a continuous improvement approach within each portfolio company, aiming for year-on-year enhancement in ESG performance based on materiality. By transforming ESG reporting from a perceived burden into a strategic opportunity, we’re fostering a culture of sustainability that aligns with our mission to invest in technology contributing to a better and more sustainable world.

HTGF

Dr. Adrian Fuchs & Claudia Raber, ESG team

Besides taking ESG criteria into account in the DD process, the HTGF in its current fund IV uses its position as an early investor to work towards a more sustainable portfolio.

As a shareholder, HTGF has two options to do so: (I) With clauses in term sheets and investment agreements and (II) with a qualitative commitment in the form of support and workshops. For the first, the HTGF uses binding components in the investment agreements so that the portfolio companies provide HTGF with an annual ESG reporting, measure their scope 1 and 2 emissions and work on reducing their overall CO2 footprint. Due to the early stage of the start-ups and the amount of investments per year (~40), we have refrained from individual components and KPIs in our contracts.

For the second, the HTGF supports its portfolio companies in establishing ESG awareness and developing specific areas of action. For this purpose, the HTGF has composed the following offering for its portfolio companies:

Some of these offerings are compulsory (onboarding and reporting) some are on a voluntary basis (webinars and deep dives).

By giving our portfolio these different options, we hope to find a topic that fits the needs of each of our portfolio companies. The ones that are getting started with the topic of ESG & Impact and the ones that might already be more advanced. Thereby, we hope to create long-lasting success stories not only in financial matters but also in supporting resilient enterprises which are contributing to a more sustainable future.

Kindred

The Kindred team agrees that good environmental, social, and governance (ESG) practices are synonymous with long-term value creation — reducing risk, offering strategic advantages, and resulting in stronger fundamentals. Kindred integrates ESG topics into ongoing conversations around key early-stage business issues, focussing on governance, board operations, and team building for early-stage companies and expanding into a product and technology focus as the company grows.

Kindred takes a selective and personalised approach based on each company’s unique business model, product, team, geography, and growth stage. The goal is to help founders view strong ESG practices as essential for building a robust business, not just investor requirements.

Kindred provides hands-on support through subsidised management training for rising leaders to improve employee engagement, productivity, inclusion, retention, problem-solving, and governance. Kindred also periodically requests diversity data from portfolio companies to identify gaps and provide targeted assistance, such as revamping recruitment processes or improving employer branding.

Additionally, Kindred facilitates workshops led by functional advisors and external experts on topics relevant to early-stage startups, such as inclusive hiring practices. One company adopted a “topgrading” interview method through these workshops, resulting in an exceptionally engaged, gender-diverse engineering team.

Overall, Kindred takes an integrated, personalized approach to embedding ESG best practices within their portfolio companies from the ground up, recognizing the strategic advantages they provide for long-term success.

Lightrock

Mehdi Lichani, Director — Value Creation Impact & Sustainability

At Lightrock, our commitment to ESG extends well beyond the initial investment decision. We believe that integrating Environmental, Social, and Governance considerations into the management of our portfolio companies delivers enhanced value for all stakeholders. Our approach is hands-on and tailored to each company’s unique needs, recognizing that ESG requirements may vary across different regions, markets, and company stages.

Post-investment, we actively collaborate with our portfolio companies to develop and implement action plans aimed at achieving compliance with our ESG standards within reasonable timeframes. These plans are crafted to consider the specific risks, opportunities, size, and resources of each business. In support of our approach, the Lightrock investment teams provide continuous guidance and support, monitoring implementation and progress. They assist portfolio companies in reviewing and updating action plans, considering regulatory and market developments as well as changes in business activities.

We place a strong emphasis on helping our portfolio companies build internal capacity for ESG management. This involves supporting them in designing and implementing their ESG functions, often from the ground up. For instance, we recently assisted a European tech scale-up to understand the scope of their ESG function today and in the future, how it will interact with other functions, and decide where it should sit and who should lead it. In India, most of Lightrock’s growth and late-stage portfolio companies are encouraged to appoint ESG sub-committees on their Boards of Directors, including a Lightrock representative, as well as dedicated ESG officers. Similarly, in Africa, we’ve helped establish ESG committees and even taken on chair roles in some cases.

Lightrock also plays a crucial role in supporting portfolio companies as they develop their first ESG strategies. This support can range from helping assess the business case for ESG and scoping the project, to selecting suitable ESG advisors or providing in-house support through ongoing engagement with ESG leads. In light of upcoming regulations such as CSRD in Europe, we’re working closely with our portfolio companies to develop comprehensive ESG strategies that not only ensure compliance but also create tangible value for the company and its stakeholders.

We actively promote ESG synergies between our portfolio companies, facilitating introductions between ESG leads and encouraging collaboration on ESG initiatives. This cross-pollination of ideas and best practices has led to innovative solutions, such as improved energy usage tracking in supply chains.

To further support our companies, we maintain a curated list of generalist and specialized ESG advisors who can provide additional expertise when needed, whether it’s for developing ESG strategies, calculating CO2 emissions, or navigating AI ethics. We’ve leveraged this network to help portfolio companies across various geographies select the right advisors for their specific needs.

Through these multifaceted efforts, we aim to build lasting ESG capacity within our portfolio companies, enabling them to continuously assess and manage ESG risks, impacts, and opportunities throughout and beyond our investment period. At Lightrock, we believe that this approach not only enhances the resilience and value of our portfolio companies but also contributes to positive environmental and social change on a broader scale.

Maki.vc

Mona Saurén, Investment Analyst & ESG

Maki.vc views ESG as a long-term value driver and an opportunity for pre-seed and seed-stage companies. Hence, ESG topics are integrated as part of the work with the portfolio companies from investment to exit. The fund has a responsible ESG lead, who drives the effort in establishing best practices and offers theme-specific guidance. Other than this, the Maki.vc team views ESG as an integral part of all interactions with the founders.

Post-investment, we take a hands-on approach to integrating ESG practices within our portfolio companies. The ESG lead drives this effort, establishing best practices that flow through the entire team’s interactions with founders. The ESG onboarding process includes discussing identified risks and opportunities, planning a roadmap, and providing resources on ESG fundamentals.

Early on, we focus on building strong team structures, company cultures, and governance frameworks. As companies mature, we tend to expand our support to more industry/product-specific ESG topics like emissions and impact.

Annually, we conduct an ESG survey across the portfolio to gauge the status of ESG integration and identify gaps to address through tailored action plans shared with each company. Our annual portfolio-level survey highlights ESG gaps, enabling us to target help to companies — in one example, after identifying a lack of gender diversity at one portfolio company, we helped them to overhaul their recruiting processes, which proved effective at improving gender diversity over the following year.

We also offer ad hoc support, leveraging our expertise for projects like impact measurement studies. Additionally, in response to founder demands, we’ve conducted portfolio-wide studies, like benchmarking fair compensation policies.

We also bring together the founders with our network of experts and professionals (called “The Maki House”), where we foster awareness and idea exchange by organising sessions on topics such as attracting talent, scaling teams, implementing ESG, and building sustainable business models.

Throughout, our approach emphasises integrated, systematic ESG capability-building customised to each company’s evolution and needs.

Molten

Grace Savage, ESG Lead

At Molten, we believe that our greatest influence as an investor is to engage with, educate, and upskill our portfolio companies to assist them in realising their own ESG-related commercial opportunities and mitigating against associated risks. By engaging, we aim to bolster the resilience and competitiveness of our portfolio, drive long-term value creation, and ultimately help deliver strong financial returns for our investors.

We engage through a variety of means, some of which are driven out of our annual distribution of the ESG_VC Framework to gather, track, and report longitudinal data from our portfolio across 48 ESG metrics. We use this tool to identify commonalities in ESG risks and opportunities across the portfolio and to inform the support and resources that we can provide to individual portfolio companies which we believe can help improve performance over time.

The type of resources that we disseminate varies by portfolio company and has evolved over time. Our proprietary Molten Sustainability Toolkit features a range of tools, together with curated publicly available content and signposts to VentureESG materials, that cater to the variety of sectors, sizes, and ESG maturity levels within our diversified portfolio. For most of our earlier-stage businesses, we share corporate policy templates, template staff surveys for measurement of key D&I metrics, and access to a job board directory for the hiring of more diverse talent pools.

We strongly believe that when it comes to ESG there is no ‘one size fits all’, and we proactively seek 1:1 engagements with the C-suite within our portfolio, to allow our ESG Lead to provide tailored support that is relevant, material, and able to evolve with the business. Engagements take place either in person or remotely and provide a forum for open dialogue regarding ESG-related challenges portfolio companies may be encountering and specific opportunities or milestones they want to achieve. Our focus tends to be on identifying and realising ESG commercial opportunities, but we are also led by company management on their chosen focus areas.

The outcome of a few of these engagements is explored through case studies in our FY24 Sustainability Report, which we believe demonstrates the value of strong portfolio ESG engagement.

Oxford Science Enterprises

Emily Matthews, Responsible Investment & ESG Manager

As a long-term investor, OSE is committed to supporting our portfolio companies on their sustainability journey. OSE invests in science and technology spinouts from the Oxford cluster, focused on three key sectors: Life Sciences, Health Tech, and Deep Tech. Investing at the pre-seed and seed stage and beyond, we’re the first cheque in and we follow our winners all the way to exit. This model — with many of our investment team members sitting on the boards of portfolio companies — enables OSE to engage and advise portfolio companies on their sustainability strategies right from the start.

To ensure our engagement efforts are collaborative and supportive, we start by hosting ESG & impact workshops for all new investments. Attended by company management and/or founders, the OSE investment lead(s), the OSE ESG Manager, and, where possible, co-investors — these workshops are intended to facilitate an ongoing dialogue on sustainability. As our companies vary by sector and stage, these sessions can cover a wide range of topics but typically address:

• Impact: the company’s mission, the potential positive and/or negative impacts the company may have, and how this impact can be assessed.
• ESG: the industry-specific sustainability risks or opportunities the company may be exposed to, and a discussion of the company’s existing or future sustainability initiatives.
• Recommendations and guidance: which initiatives should be prioritised considering stage and sector, and how OSE can support the company on its sustainability journey. We also use this as an opportunity to provide insight into sustainability drivers and the evolving ESG regulatory landscape.

Following these sessions, we share key next steps and resources, which may range from recommended suppliers, to policy guidance and examples, to industry-specific sustainability initiatives.

Another way in which we engage with companies is via annual ESG data collection. To ensure data collection is value-additive, we use this as an opportunity to offer support and guide portfolio companies. We base our data collection on the ESG_VC framework, which has received positive feedback from portfolio companies given it is designed for early-stage companies, signposts to resources, and is broadly used by other venture investors. We also use this as a chance to ask companies what their focus areas are, and how OSE can support companies in achieving these goals, which has provided key insights to inform and progress our own ESG strategy. Looking ahead, and in line with feedback, we will be onboarding companies to Novata, an ESG platform, to enable ease of measurement and reporting, guidance, and benchmarking, and use these insights to provide companies with key takeaways and recommendations.

We recognise that each company’s sustainability approach will, and should, vary — so, while there are portfolio-wide focus areas, on topics such as climate and diversity — we aim to approach sustainability as we do any other area in venture building, in a tailored, supportive manner, led by each company’s specific aims.

Pitango

Cecile Blilious, Head of Impact & Sustainability

At Pitango, we believe our responsibility to foster Environmental, Social, and Governance (ESG) excellence extends beyond the initial investment and beyond simple ESG categories. Our structured approach ensures that ESG principles are deeply integrated into the operations of our portfolio companies, driving both sustainable growth and long-term value creation. Where relevant, we also help our companies identify and integrate impact created through their products.

1. We start at the Due Diligence phase: Our journey begins at the due diligence stage, where we screen each company for ESG-related risks and opportunities, and research potential impact that can be created through their products. This analysis is added to the investment memo, considered by Pitango’s investment committee, and carries into the post-investment onboarding and portfolio support.

At the term sheet stage, we incorporate a clause that highlights our mutual commitment to improving ESG performance, focusing mostly on diversity, equity, and inclusion (DEI) and GHG emissions. This foundational step sets the tone for a partnership dedicated to sustainability from the outset. The purpose of this clause is to emphasize our mutual commitment to promoting ESG in the company operations by providing guidance alongside the company’s commitment to create and execute an ESG strategy.

2. ESG Management — guidance and data collection: Upon investment, we guide our companies through the building of an ESG strategy and the purpose of data collection. We also introduce our portfolio companies to ESGGo, a comprehensive ESG management system through which they can upload their data, calculate emissions, and use a dashboard for internal management.

3. Conducting a Materiality Assessment and Gap Analysis: To identify areas for improvement, we develop a detailed gap analysis with the company. This analysis helps pinpoint specific ESG aspects that need attention, allowing us to tailor our support effectively.

4. Setting Key Performance Indicators (KPIs): Based on the gap analysis and the company’s priorities, we work with our portfolio companies to set relevant KPIs. These indicators are crucial for measuring progress and ensuring accountability in their ESG initiatives. However, it is important to recognise that due to the agile nature of start-up companies that need to be flexible with their business models until they find the right product-market fit, KPIs may need to be adapted accordingly. For companies with an impact potential, we guide them through our “impact migration” process.

5. Continuous Support and Improvement Our support extends throughout the lifecycle of our investment, ensuring continuous improvement in ESG performance. This process includes:

• Designing an ESG/Impact Strategy: Collaborating with companies to craft a strategic plan that aligns with their unique product, business models, and ESG goals, and integrate impact targets where relevant.
• Assisting Implementation: Providing hands-on support to implement the ESG strategies, from policy development to mentoring, conducting externally-led inclusion activities, recruitment assistance, training, and more. This is especially important as the world of regulation and customer demand grows in ESG-related disclosures and commitments. We believe that it is our duty to help companies be prepared for ESG market imperatives and adopt the best business practices that will help them be competitive and thrive.
• Reviewing Progress and Reporting: Regularly reviewing progress and offering guidance to address any challenges. We also support companies in their reporting efforts, ensuring transparency and accountability.

Case studies of portfolio companies implementing ESG and impact in various stages and industries can be found in our inaugural ESG report.

Our commitment to ESG is not just about compliance, but about creating real, positive change and providing tangible business value. Without having strong business outcomes deriving from the integration of ESG/impact there will be no real incentive for companies to adopt ESG. By integrating ESG principles into our investment strategy and actively supporting our portfolio companies, we aim to drive sustainable growth that benefits not only our companies and investors, but also society and the environment.

We look forward to continuing this journey with our partners and seeing the tangible impacts of our efforts in building a more sustainable future.

Revaia

Anaïs Blarel, Sustainability & ESG Manager

We prioritize supporting our portfolio companies in integrating ESG and Impact practices into their operations through an annualized cyclical process that enables progress toward long-term objectives.

Portfolio ESG & Impact Annual Survey: Each year, we administer a comprehensive ESG survey comprising around 80 questions. These questions cover regulatory requirements like SFDR’s Principal Adverse Impacts and other key indicators relevant to the tech industry’s impact assessment. To streamline data collection, we use Apiday, a SaaS tool allowing for the submission of official documents as auditable evidence, ensuring robustness and completeness in our evaluations. Additionally, we conduct Net Environmental Contribution (NEC) analyses to assess environmental impacts comprehensively.

Gap Analysis & Roadmap: After collecting and analyzing survey results, we share findings with portfolio companies through debrief calls conducted by the ESG team with each company’s ESG leads. During these calls, we provide insights and benchmark performance against both our portfolio’s average and industry-wide figures. These benchmarks are crucial for positioning companies within the market and identifying areas for improvement in their ESG strategies. The evaluation process includes a detailed gap analysis against these benchmarks, where we discuss potential causes for discrepancies and collaboratively explore improvement ideas with the company’s ESG lead. This process culminates in an ESG improvement roadmap tailored to the company’s priorities, outlining specific ESG and Impact KPIs as goals that are integrated into the board’s agenda.

Portfolio Support Initiatives: We support our portfolio companies through various initiatives aimed at enhancing their ESG performance and impact. Our ESG and Impact Toolbox, hosted on Notion, serves as a comprehensive resource hub for ESG project managers, offering tailored tools and resources to develop and implement robust strategies covering areas such as carbon footprint, governance, and diversity. Additionally, we conduct Climate Fresk workshops to raise climate awareness and facilitate actionable steps for carbon emission mitigation within portfolio companies. Furthermore, our Impact Measurement Workshops emphasize the significance of quantifying and enhancing positive societal and environmental contributions.

Road to Exit: A more recent focus has been to prepare our portfolio companies for successful exits by aligning their goals and ensuring strict compliance with the requirements of private equity investors and corporate acquirers.

For more information about VentureESG and how we’re working to support Venture Capital funds with implementing ESG across their fund operations and end-to-end investment process, visit our website or drop us an email at hello@ventureesg.com.