Climate Action
Impact
Future Energy Ventures 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 (41 Gt/y) 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.
Sustainability at FEV
We have been measuring and offsetting our own GHG emissions since 2021, and from 2022 onwards, 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 maximise long-term CO2 reduction or removal per dollar spent.
On the investment side, we include clauses in our term sheets dedicated to limiting the emissions intensity and maximizing the positive climate impact of our investees.
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.
At Future Energy Ventures, our primary investment objective is climate change mitigation in the form of reducing greenhouse gas emissions. In addition, we are concerned with other environmental and social impacts, and the governance of our portfolio companies. Fund II is classified as an Article 9 (“dark green”) fund under SFDR, it is committed to disclosing how its investments contribute to environmental objectives while having no adverse environmental, social, or governance impacts.
