Environmental, Social and Governance
Developed ESG standards and ranking for a venture capital firm
25 Jul 2022
A venture capital firm was interested in a third-party report to validate their compliance with ESG investing standards
Our Approach:

Identified 60+ parameters across IFC, World Bank, SASB, and other establishments
  • Categorized the parameters into the three ESG pillars – Environment, Social, and Governance risks
  • Further categorized the parameters into 12 sub-pillars within the three ESG pillars
  • Environmental (Emissions and pollution, environment / ecological impact, resource use, policy)
  • Social (Human rights, Community Health and Safety, Workforce, Product responsibility, Customer welfare)
  • Governance (Management and Board, Corporate Behavior)
Shortlisted parameters for the portfolio companies using:
  • Relevance of parameters within the company’s industry & nature of operations
  • Alignment with the size & scale of the company
Assigned weights and rating scales as per the short-listed parameters:
  • Importance of the ESG parameter in the firm’s overall industry
Assigned scores based on each of the parameters:
  • In-depth conversations with the management teams of the firm
  • One-on-one discussions with the firm’s employees
  • Interviews with the firm’s customers
Praxis value delivered:
  • Developed ESG reporting standard and subsequently ranked the corporate actions and performance of the portfolio companies
  • Supported in rating ESG-compliant corporate actions of each of them
  • Helped measure the impact created on different environmental and social metrics
  • Highlighted best governance practices of the companies 

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