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?

šŸ’”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
ā€

ā€
šŸ’” 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:

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

šŸ“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!

šŸ“ If you need help creating an ESG policy or develop an ESG strategy reach out to us

āž”ļø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

ā€