Venture capital firm validated 90% ESG compliance across its portfolio using 60+ global standards
25 Jul 2022
1 min read
A venture capital firm was interested in a third-party report to validate their compliance with ESG investing standards
Context
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
- 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