Launching Pitango Impact Migration Program with Via Transportation
Chemi Peres & Cecile Blilious
Glossary of terms:
ESG: Environment, Social, Governance
SDG: Sustainable Development Goals
This past May, Pitango VC announced its vision to integrate ESG practices into its mainstream activities. As part of this strategy, and as a first step, we are focusing on our vast portfolio of companies and work closely with them to embed ESG into their core practices through a “migration” process.
Via is the first among our portfolio companies to adopt measurable ESG metrics into its core business.
Impact Migrants
We define “Impact Migrants” as startups that have the potential and a desire to embrace and track their impact, including startups that might not have been created under the UN-SDG narrative. To kick-off the process, we selected an initial group of such Impact Migrants out of our portfolio and began working closely with them.
The “migration” process of portfolio companies consists, among other activities, of identifying and strengthening their ESG metrics, defining their impact mission, integrating ESG & SDG targets within their business performance, and regularly tracking impact in alignment with financial targets, all without losing sight of their primary mission to deliver superior financial returns.
Via kicks things off as the first Impact Migrant
Leading the way for the portfolios’ impact migration is Via, an Israeli startup re-engineering public transit — from a regulated system of rigid routes and schedules to a fully dynamic, on-demand network, Via is a company creating high and measurable social outcomes ingrained in their business activities. Via was born out of its commitment to serve social and environmental needs, which makes the migration evolution of its vision so natural, hence an easy choice as kick-off by our internal Impact Committee.
The process
Via kicked off its process by appointing an ESG Task Force, led by two prominent management figures in the company. Its members are from various departments of the company, to give extra integration into the company’s various processes.
The task force began working collaboratively on reviewing the Environment, Social and Governance (ESG) procedures and their implementation in the company. They created a repository of all ESG relevant information which will be continuously updated and made available for any future purpose. This is especially important for IPO-looking companies which prepares them for an ESG due diligence process.
After that, the team identified the relevant SDG indicators fitting the company’s business and reviewed their implementation on actual projects. We divided the SDGs based on the relevant Social and Environmental pillars and tagged the company’s targets through the social and environmental lens. This process was done using the methodology of the IMP “the 5 Dimensions of Impact”, identifying stakeholders and their expected input, output and finally outcomes.
For the final part of the process, the team is reviewing the outcomes of the Via commercial activities on the company stakeholders and with that, manages the impact implementation of its product.
From that point onwards, we are supporting the company through participation in the Pitango Impact Forum and additional activities which are aimed to support the ongoing operations and periodic ESG reporting.
The team worked with close guidance through the methodology and process with Cecile Blilious, Head of Impact & Sustainability at Pitango.
Mainstreaming impact in VC
Pitango’s philosophy of “Blended Impact-Tech” Venture Capital model is backed by three proven advantages of impact-tech companies:
1) They tap into new market segments and create brand loyalty within their customer base
2) They appeal to young talent and succeed at retaining brilliant employees which also increase their productivity
3) They attract new sources of capital reserved for companies with a clear impact purpose.
All of which have a positive effect on the resilience and financial performance of such companies.
We believe that in the long run, the Venture Capital ecosystem will mainstream impact-tech. With our ESG migration process, we intend to create the blueprint for mainstream funds to scale the adoption of these considerations into the VC investment market. To capitalise on the impact value immediately, we believe it’s imperative to turn to the pool of existing companies. We think that drawing a line between impact and mainstream companies is slowing down our ability to deliver solutions to the world’s biggest problems. Instead, migrating existing companies will give the best and quickest results. We call on our VC colleagues to join us, review their existing portfolio companies and direct them towards making high and measurable impact.
