
Pascal Franke
Dec 8, 2022
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?
š”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
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š” 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:
1ļøā£ Get everyone in a roomāø Gather support for your ESG policy and receive insights from everyone on the team
2ļøā£ Do some soul searchingāø Clarify how you define ESG, how to measure it, and what you want your portfolio to achieveāø Include your overall core values, purpose, and mission
3ļøā£ Map out your processes and start integrating ESGāø Map out all your operations and where to implement ESG in advance instead of using an āāreverse engineeringāā approach
4ļøā£ Ensure the investment team is on boardāø You have to align on the best practice and what you want to achieveāø Include a GP or at least one person from the investment team in the processāø Additionally, host larger internal alignment sessions to talk about the changes needed due to ESG implementations
5ļøā£ Review, iterate and shortenāø The first draft tends to be too long, so go back and give it some structure and try to cut it down
6ļøā£ Consult stakeholders, regularlyāø Review regularly every 6 to 12 months with a wide range of stakeholdersāø Input can come from various directions such as ESG interns, founders from the portfolio, or LPs
7ļøā£ Donāt be afraid to be emotional and boldāø ESG policies are transactional but include many sensitive topics, so making them human is okay
šIf 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!
š If you need help creating an ESG policy or develop an ESG strategy reach out to us
ā”ļøIf 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
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