Climate Action
At Future Energy Ventures, we believe that investing in innovative climate technology solutions is key to creating a sustainable future. Our quantitative impact approach helps us identify companies that are intentional in addressing global emissions at scale. Furthermore, in our internal operations, we’re committed to leading by example through our ESG best practices, our internal carbon fee and contribution, and our strong focus on diversity and inclusion. By partnering with industry leaders and initiatives, we aim to not only shape the future of energy and sustainable cities but also foster a resilient and inclusive ecosystem to have a meaningful positive impact on the climate.
Disclaimer: Future Energy Ventures GmbH (“FEV”) acts solely as an investment advisor to the AIFM regarding Future Energy Ventures Fund I, SCA SICAV-RAIF (the “Fund”), and as an investment advisor to E.ON SE, and does not make investment decisions, only investment advice.
Quantitative Impact Approach
Preventing climate change and driving the energy transition forward is at the core of the solutions we look for. We take a stepwise and quantitative approach to assessing Decarbonization impact of companies, and we look for companies whose impact is intentional, scalable and substantial in scope. In companies which the Fund invests in, we monitor realized impact performance over time. We do this because the remaining carbon budget to limit global warming to 1.5 degrees is only 275 GtCO2e[1] and global annual emissions are around 40 GtCO2e, meaning, if we continue with business as usual, our budget will be used up in less than 7 years. At FEV, we believe investing in early-stage climate tech companies can be an efficient way of making a significant dent in global greenhouse gas (GHG) emissions.
[1] With 50% likelihood (Global Carbon Budget report 2023 by the Global Carbon Project: https://essd.copernicus.org/articles/15/5301/2023/)
ESG for the Fund
Sustainable business practices are not only necessary and important for achieving climate targets and preserving our planet in the long term, but they are also the driving force behind attractive returns for fund investors and managers. Sustainable business practices are no longer just a competitive advantage, it is a license to operate. Companies that integrate the environmental, social and governance aspects of their operations into the management of the company are better positioned in the eyes of investors, customers and talent. Management should keep an eye on and track good governance metrics, environmental footprint, healthy team and management diversity, employee turnover, relevant policies and more.
Before the Fund makes an investment, FEV, as advisor to the AIFM, supports in conducting ESG due diligence, and implementing clauses in the term sheet and final contracts dedicated to limiting the emissions intensity, maximizing the positive climate impact of the Fund’s investees, and ensuring diverse teams and an inclusive environment. Post investment, we monitor the companies’ ESG performance, and support them in achieving their ESG ambitions. The key lies in progress, not perfection, and in focusing on the material topics – the topics which can make a difference for the business (for better or for worse).
ESG at Future Energy Ventures
At FEV, ESG is an integral part of corporate governance and day-to-day business. We are measuring our own GHG emissions and have introduced goals to reduce our footprint year by year. We placed an internal carbon fee on our Scope 1, 2 and business travel (scope 3) of $100/ton. For our remaining scope 3, our internal fee is $10/ton. Instead of offsetting via carbon credits, we have made contributions equal to the internal fee to the Milkywire Climate Transformation Fund (“Milkywire CTF”). The Milkywire CTF’s overall goal is to maximize long-term CO2 reduction or removal per dollar spent.
We are committed to maintaining an inclusive and diverse workplace, and have a comprehensive policy on Diversity, Equity and Inclusion (DEI) which is an important working document for us.
SFDR
The aim of the European Union Sustainable Finance Disclosure Regulation (SFDR) is to improve transparency, prevent greenwashing, and create a common language among financial market participants for sustainable investments. The Fund is classified as an Article 9 (“dark green”) fund, and as such is committed to making sustainable investments with no significant adverse impact.
For the Fund, the sustainable investment objective is to mitigate climate change by reducing greenhouse gas emissions. In addition, the Fund takes into account potential adverse impacts, including other environmental aspects as well as social aspects and corporate governance.
Ecosystem
Our goal is to expand and support the ecosystem we are part of, and to jointly develop best practice guidelines for greater impact. Together with equally committed parties, we organize LP/GP events such as SuperClimate and startup/VC events such as The Drip before The Drop. In this way, we aim to accelerate the flow of capital towards climate solutions and lower the barriers to funding for climate-friendly founders.
We also want to drive the change we want to see in our industry. As part of the Project Frame Content Working Group we have been working with other leading climate investors since August 2023 to develop methods for measuring the impact of climate tech startups. Future Energy Ventures is also co-lead of the Germany Chapter of ImpactVC, a community dedicated to accelerating impact in VC.
Finally, we are active in the broader ESG and impact ecosystem, through the Venture Climate Alliance, VentureESG, mentorships in Female Founders Office Hours, Leaders for Climate Action, Climate Mosaic and many other initiatives.
. 
.
