two people walking in a field full with solar panel system

Responsible investing and environmental, social and governance policy

The Responsible Investing and Environmental, Social and Governance Policy for Elevator Ventures

VC firms are uniquely positioned to boost Environmental, Social and Governance (“ESG”) integration with their investee companies and to adopt best practices to comply with ESG-related data requests, given the advisory role that is customary with early-stage investors.

By engaging in early-stage investments, Elevator Ventures wants to encourage and work with our portfolio companies to integrate sustainability right from start, grow with the right practices in place and perhaps lead the charge by example.

Concretely, Elevator Ventures supports its portfolio companies in their thinking about a suitable ESG approach as well as incorporating processes to track and report on ESG metrics.

This document (“the ESG and RI Policy”) sets out Elevator Ventures’ approach to investing responsibly and to the management of ESG issues within our investment activities. We want to outline the principles and values Elevator Ventures upholds in order to accomplish its ESG goals. Our policy serves a variety of purposes, such as:

providing a framework for discussions with internal and external stakeholders on Elevator Ventures’ position on ESG issues.
outlining how we approach our fiduciary responsibilities to beneficiaries and clients.
demonstrating Elevator Ventures’ responsible investment approach to regulators, clients, and other stakeholders.

What responsible investing means for us

As one of the first responsible bankers, Friedrich Wilhelm Raiffeisen showed that a sustainably managed circulation of money can create value and be meaningful for everyone involved. Social and responsible thinking and actions formed the basis of this strategy. The Raiffeisen values – social solidarity, self-help, and sustainability – have therefore always been the guiding principles for doing business at Raiffeisen and are a basis for our activities at Elevator Ventures.

While a plethora of frameworks and definitions of Responsible Investing exist, only some are fit for purpose for the venture capital industry and working with early-stage technology startups. We employ the definition developed by UNPRI on Responsible Investing which is defined as:

“Responsible investment involves considering environmental, social and governance (ESG) issues when making investment decisions and influencing companies or assets (known as active ownership or stewardship). It complements traditional financial analysis and portfolio construction techniques.”

PR Association

Responsible investors can have different objectives. Some focus exclusively on financial returns and consider ESG issues that could impact these. Elevator Ventures aims to generate financial returns and to achieve positive outcomes for people and the planet while avoiding negative ones.

ESG issues that investors can consider when investing responsibly

Enviromental

Climate change
Circular economy
Biodiversity
Deforestation

Social

Human rights
Decent work
Diversity, equity and inclusion

Governance

Board structure
Executive remuneration
Tax fairness
Responsible political engagement

Embedding ESG into our investment process

Throughout the investment phases of screening, pre-investment decision, post-investment, and exit, Elevator Ventures assures responsible practices.

Screening. Performing pre-screening duties through exclusion list: (i) international standards: any company or corporation which is listed on an EU, UK, USA or UN sanctions list or breaches any UN conventions and declarations on human rights; (ii) illegal products, activities or materials deemed illegal under host country or regulation; (iii) weapons: any company or organization involved in all weapons production or munition; (iv) pornography; (v) gambling or casinos; (vi) tobacco and other addictive substances.
Pre-investment Due Diligence. Conducting verification approach for the potential portfolio companies through ESG questionnaire and ensuring that they are aligned with the regulatory framework.
Post-investment. Monitoring the progress of impacts through action plans and reporting templates.
Exit. Conducting a responsible exit plan through sanctions list and know-your-business scans, as well as exit templates.

UN Principles for Responsible Investments (UNPRI)

Elevator Ventures is a signatory to UNPRI. The principles aim to promote ESG aspects in its investment and portfolio management processes. Elevator Ventures has joined this movement to make a positive contribution to people and the planet. We are committed to aligning our business with – and achieving – ambitious targets that contribute to global and national sustainability goals.

In short, this means that Elevator Ventures is committed to the following six principles:

Principle 1

We will incorporate ESG issues into investment analysis and decision-making processes.

Principle 2

We will be active owners and incorporate ESG issues into our ownership policies and practices.

Principle 3

We will seek appropriate disclosure on ESG issues by the entities in which we invest.

Principle 4

We will promote acceptance and implementation of the principles within the investment industry.

Principle 5

We will work together to enhance our effectiveness in implementing the principles.

Principle 6

We will each report on our activities and progress towards implementing the principles.

Elevator Ventures Newsletter

Fintech and Beyond Banking in DACH and CEE