A group of more than 23 VCs across Europe and the US joined forces this week to lead startups and their early stage investors to net zero in a bid to decarbonise the global economy and venture capital industry.
The Venture Climate Alliance (VCA) consists of both generalist and climate-focused companies, and its members collectively manage $62.3 billion in assets, according to Crunch base figures.
To begin with, participating VCs pledge to inventory their Scope 1-3 emissions and, in turn, achieve net zero or negative emissions for their own operations (such as office energy use and employee commuting) by 2030 or sooner.
VCA members will also encourage their portfolio startups to align with net zero goals by 2050 or earlier, and will help founders set the right goals for their business. For climate-focused companies, this may include supporting existing efforts. For non-climate-focused companies, this may mean accessing additional resources, such as specific tools and methodologies.
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Once startups have defined their net zero transition goals, the VCA will provide further assistance depending on their needs, such as supporting response mechanisms to climate-related risks or adapting to regulatory developments.
Alliance members will share annual updates on the progress of both their own and their portfolio companies.
“Our goal is to bridge the gap between what is happening in public markets, where hundreds of companies have made bold forward-looking commitments, and early stage innovation, which has the potential to decarbonise aging industries through a combination of better products, more efficient processes and lower costs”, said Alexandra Harbour, founder and president of the VCA and a director at Prelude Ventures, one of the founders of the alliance.
“Drawing on the collective expertise of the best venture capitalists on both sides of the Atlantic, the VCA has the potential to significantly influence the funding decisions that shape the future of climate startups and technologies,” added Danijel Višević, Founding Partner VCA member World Fund. .
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.
Alliance membership is open to any VC who agrees to fulfill its obligations.