A group of over 23 venture capitalists from across Europe and the US came together this week to lead start-ups and their early-stage investors towards net zero in a bid to decarbonize the global economy and venture capital industry.
The Venture Climate Alliance (VCA) is made up of both generalists and climate-focused companies, and its members manage combined assets of $62.3 billion, according to Crunchbase figures.
First, participating VCs commit to inventorying their Scope 1-3 emissions and in return to achieve either net-zero emissions or negative emissions for their own operations (e.g. office energy use and employee commuting) by 2030 or sooner .
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VCA members will also encourage their portfolio startups to align with net-zero targets by 2050 or sooner, and support founders in setting the right goals for their companies. For climate-focused companies, this could include supporting existing efforts. For non-climate-focused companies, this could mean access to additional resources such as specific tools and methodologies.
Once startups have set their net-zero transition goals, the VCA offers further support as needed, e.g. B. supporting reaction mechanisms to climate-related risks or adapting to regulatory developments.
Alliance members will share annual updates on both their own progress and the progress of their portfolio companies.
“Our goal is to bridge the gap between what’s happening in the public markets, where hundreds of companies have made bold forward-looking net-zero commitments, and early-stage innovations that have the potential to disrupt legacy industries through a combination of better products, more efficient processes and lower costs,” said Alexandra Harbour, Founder and Chair of the VCA and Director at Prelude Ventures – one of the founding members of the Alliance.
“By leveraging the collective expertise of the best venture capitalists from both sides of the Atlantic, the VCA has the potential to significantly influence the funding decisions that are shaping the future of climate startups and technologies,” added Danijel Višević, founding partner of the VCA member World Fund, added .
The Venture Capital Alliance has 10 founding members: Prelude Ventures, Capricorn Investment Group, DCVC, Energy Impact Partners, Galvanize Climate Solutions, S2G Ventures, Union Square Ventures, Tiger Global, World Fund and 2150.
The following companies are also participating: Obvious Ventures, Congruent Ventures, Valo Ventures, Clean Energy Ventures, Fifth Wall, Overture Ventures, Blackhorn Ventures, Spring Lane Capital, Azolla Ventures, Systemiq Capital, The Westly Group, Innovation Endeavors and ReGen Ventures.
The VCA is also an official partner of the Glasgow Financial Alliance for Net Zero (GFANZ) and the UN Climate Change High-Level Champions as part of their Race to Zero campaign.
Alliance membership is open to any VC who agrees to commit to their commitments.