How to write a VC fund ESG policy

How to write a VC fund ESG policy

What to consider when writing an ESG policy

How do you write an #ESGpolicy for a #VC fund? What should you consider? And what are some #guidelines that can help you with that?

💡An ESG policy is an integral part of every VC when starting the ESG journey but it should not only include box-ticking on specific metrics


💡 Anna Ott, the VP of People & ESG at HV Capital and Steering Committee member at VentureESG formulated a 7-step guide to facilitate the writing of a meaningful ESG policy integrating metrics and purpose:

1️⃣ Get everyone in a room▸ Gather support for your ESG policy and receive insights from everyone on the team
2️⃣ Do some soul searching▸ Clarify how you define ESG, how to measure it, and what you want your portfolio to achieve▸ Include your overall core values, purpose, and mission
3️⃣ Map out your processes and start integrating ESG▸ Map out all your operations and where to implement ESG in advance instead of using an ‘’reverse engineering’’ approach
4️⃣ Ensure the investment team is on board▸ You have to align on the best practice and what you want to achieve▸ Include a GP or at least one person from the investment team in the process▸ Additionally, host larger internal alignment sessions to talk about the changes needed due to ESG implementations
5️⃣ Review, iterate and shorten▸ The first draft tends to be too long, so go back and give it some structure and try to cut it down
6️⃣ Consult stakeholders, regularly▸ Review regularly every 6 to 12 months with a wide range of stakeholders▸ Input can come from various directions such as ESG interns, founders from the portfolio, or LPs
7️⃣ Don’t be afraid to be emotional and bold▸ ESG policies are transactional but include many sensitive topics, so making them human is okay

📍If you want to take the first step and see how your portfolio is performing on various ESG metrics take a look at: https://app.tekudo.io and let us know if you need any help!

📍 If you need help creating an ESG policy or develop an ESG strategy reach out to us

➡️If you are interested to learn more about how to build an ESG policy and see an ESG policy outline example read the full article here: https://lnkd.in/eKXguJDp