Germany's and Europe’s leading venture capital firms commit themselves and their portfolio companies to sustainability and make a significant contribution to climate protection. This measure should act as an example for other start-up ecosystems and industries. More than 20 leading venture capital firms have joined forces to develop a sustainability clause, which will commit all newly financed companies to take part in more climate protection initiatives going forward. The partners include European VC heavyweights like Picus Capital, Project A, Northzone, Holtzbrinck Ventures, Global Founders Capital and Cherry Ventures.
Startups get a lot of attention because of their innovative power and are perceived as beacons. We want to use this radiance together for sustainability in business. New structures are created with every startup and we use this opportunity to firmly anchor sustainability from day one’ Alexander Samwer, Founding Partner of Picus Capital.
The Sustainability Clause will be integrated into the future set of rules and regulations between investors and their portfolio companies (i.e. term sheets and shareholder agreements). The clause requires companies to measure their CO2 emissions, to implement reduction measures such as adjusting travel policies (favouring rail to air travel) or to switch to a green electricity provider. In addition, compensation measures, i.e. the financing of climate projects, are to be evaluated using the strictest international certification standards (Gold Standard or similar) and included in budget planning. In addition, the clause also includes the sensitization of employees, partners, suppliers and customers to climate protection.
The first contracts including the Sustainability Clause were concluded in December 2019 for both Earlybird and Holtzbrinck Ventures portfolios. ‘Many new generation entrepreneurs are very sensitive to the CO2 footprint of their companies and want to make a positive contribution to solving the climate crisis within the scope of their economic and technological possibilities. We are reinforcing this momentum through this clause with LFCA helping our portfolio companies implement it,’ explains Fabian Heilemann, Partner at Earlybird and co-leader at LFCA.
Jan Christoph Gras, co-founder of LFCA, considers the digital sector the industry of the future, leading the way towards further commitments to climate protection: ‘If anyone can show that rapid, green transformation is possible, it's the young companies. Our goal is to trigger a domino effect that will reach other industries and especially other startup ecosystems around the world - We need Climate Action, now!
About Leaders for Climate Action:
Leaders for climate action is a community of more than 300 leading digital entrepreneurs in German and Europe. All supporters of the initiative committed on the “Green Pledge” and are actively involved to take climate action on personal and company level. Besides the goal of making the digital industry CO2 neutral, the initiative is calling for the immediate establishment of an efficient CO2 pricing and the transformation towards 100% renewable energy.
Si (
No(
