Our ESG and Impact Side Letter to the Shareholders Agreement  

At the core of our values is a firm commitment to environmental sustainability, responsible governance, and inclusive business practices, and as such we incorporate ESG and Impact clauses into our term sheets and final contracts in rounds we lead, and to the extent possible, in rounds where we are not the lead investor. We seek to ensure that all portfolio companies take meaningful steps toward reducing their environmental footprint, fostering diversity, and adopting best practices in governance and sustainability. Our approach centers on transparency, accountability, and continuous improvement. 

Greenhouse Gas (GHG) Mitigation and Measurement 
We require companies 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 
We take a holistic approach to ESG management. Our 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 
As a condition of closing, companies must institute a DEI policy that encourages diverse hiring, equal treatment for all employees, and ensures an inclusive environment. At least one woman or a member of an underrepresented group in the company must be interviewed for any open position, and equal pay and benefits must be guaranteed. 

ESG Action Plan and Continuous Improvement 
We work 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 our 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.