Climate Action
At Future Energy Ventures, we believe that investing in innovative climate-tech 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. Beyond investing, we’re committed to leading by example through our ESG best practices, internal carbon fee and contribution, and strong focus on diversity and inclusion. By partnering with industry leaders and initiatives, we’re not just aiming to shape the future of energy and sustainable cities but also fostering a resilient and inclusive ecosystem for meaningful climate impact.
Quantitative Impact Approach
Future Energy Ventures (FEV) follows a stepwise and quantitative approach to assessing the impact of all the potential investments of the Fund. We look for companies whose impact is intentional, scalable and substantial in scope – and we track and report on impact performance over time. We do this because the remaining carbon budget allowing us a chance to limit global warming to 1.5 degrees is a mere 275 GtCO2e. Continuing with business as usual, around 41 GtCO2e per year means we spend our budget in less than 7 years. At FEV, we believe investing in early-stage climate-tech companies can be an efficient way to achieve large scale climate impact through cutting GHG emissions.
ESG for the Fund
Sustainable business practices are no longer a competitive advantage, it is a license to operate. Companies with a good handle on environmental, social and governance aspects of their operations are better positioned in the eyes of investors, customers and talent. Management should be mindful of, and track metrics for good governance, environmental footprint, healthy team and management diversity, employee attrition, relevant policies and much more.
For the Future Energy Ventures Fund, we conduct ESG due diligence prior to investment, include clauses in our term sheets dedicated to limiting the emissions intensity, maximizing the positive climate impact of our investees, and ensuring diverse teams and an inclusive environment, and we monitor and support companies post investment. 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
Internally at Future Energy Ventures, we work on ESG matters in several ways. We have been measuring and offsetting our own GHG emissions since 2021. We managed to reduce our emissions since last year, and are introducing even more ambitious goals going forward. From 2022, we have 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. This fund’s overall goal is to maximize long-term CO2 reduction or removal per dollar spent.
Future Energy Ventures 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 around sustainable investing.
For the Future Energy Ventures Fund, the sustainable investment objective is climate change mitigation in the form of reducing greenhouse gas emissions. In addition, we are concerned with other environmental and social aspects, and the governance of our portfolio companies. By classifying the Fund as an Article 9 (“dark green”) fund under SFDR, we are committed to disclosing how the Fund’s investments contribute to environmental objectives while having no adverse environmental, social, or governance impacts.
Ecosystem
We aim to grow and support the ecosystem we are part of, and to co-develop best practice guidance for impact. Together with equally mission driven peers, co-host LP/GP events like SuperClimate and startup/VC events like The Drip before The Drop. With this, we aim to accelerate capital flows towards climate solutions, and lower the barriers to funding for impactful climate founders.
Moreover, we aim to drive the change we want to see in our industry. As part of the Project Frame Content Working Group since August 2023, we are collaborating with other leading climate investors in developing methodologies for measuring the impact of climate tech startups. Future Energy Ventures is also the Germany Chapter Co-Lead of ImpactVC, a community aimed at accelerating impact within VC.
And 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 other initiatives.
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