The Project:
An APAC-based Energy Tech VC was developing an Impact Framework to integrate sustainability and ESG considerations in its investment process. We guided the VC in designing a tailored framework that enabled it to meet ESG regulatory obligations in jurisdictions relevant to its business as well as in jurisdictions relevant to its target investors.
The VC invests in promising start-ups building decarbonization solutions who have or would be willing to set up robust ESG systems within their organization. We provided guidance on developing appropriate impact due diligence frameworks, designing ESG systems that portfolio companies can implement, and developing robust ESG governance structures within the VC. The guiding rules of thumb we used in the design were to ensure that:
- the frameworks were implementable, i.e. the frameworks and systems were commensurate with the size and stage that the VC and its portfolio
companies were at; and - the VC was empowered to reach its impact objectives.
