ESG & Impact Policies

ESG and Impact Policies

At the core of our values lies environmental sustainability, responsible governance, and inclusive business practices, and as an advisor to the AIFM, we support in incorporating ESG and Impact clauses into the Fund’s term sheets and final contracts in rounds where the Fund is the lead investor, and to the extent possible, in rounds where the Fund is not the lead investor. We seek to ensure that all the portfolio companies of the Fund take meaningful steps toward reducing their environmental footprint, fostering diversity, and adopting best practices in governance and sustainability. Our approach centers on transparency and continuous improvement.

Greenhouse Gas (GHG) Mitigation and Measurement

The portfolio companies of the Fund are required to assess the GHG footprint, as well as mitigation capabilities of their operations and products. This includes evaluating Scope 1, 2, and 3 GHG emissions in alignment with the GHG Protocol, and so-called scope 4 emissions, or avoided emissions, using an agreed upon approach tailored to the respective company. Depending on their stage, resources and priorities, companies are encouraged to implement emission reduction, or emissions intensity reduction initiatives.

Comprehensive ESG Evaluation

In our role as an advisor to the Fund, we take a holistic approach to ESG management. Companies participate in an onboarding workshop to identify blind spots and set priorities, which are tailored to their sector, region, and stage of development. This ensures ESG efforts align with risk mitigation and strategic goals, with additional reporting metrics agreed upon where necessary.

Diversity, Equity, and Inclusion (DEI) Commitment

Companies are encouraged to institute a DEI policy that encourages diverse hiring, equal treatment for all employees, and ensures an inclusive environment. For example, at least one woman or a member of an underrepresented group in the company should be interviewed for any open position, and equal pay and benefits must be guaranteed.

ESG Action Plan and Continuous Improvement

We support the Fund in working with each company to help them develop an ESG action plan with specific goals on ESG and Impact, for example diversity or employee retention initiatives, carbon accounting practices, or better governance. Regular milestone meetings are held as needed based on business changes or new funding rounds.

Transparent Reporting

Transparency is a core element of the Fund’s ESG framework. Companies regularly report on emissions, DEI progress, and other ESG metrics. This ensures accountability and provides a basis for strategic discussions at board meetings and with management teams.