ACCELERATING IMPACT
Environmental, Social and Governance Policy
R3i Capital is committed to integrating environmental, social, and governance (ESG) considerations into our investment decisions and operations. Responsible and sustainable investment practices are essential for long-term value creation, risk management, and positive societal impact. This policy outlines our approach to ESG and how we aim to align our investments with the IMP Framework and IRIS+ metrics.
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We believe that startups driven by financial success while embracing a comprehensive and sustainable approach across their value chain possess the capacity to not only revolutionize industries but also positively influence the world through their ESG Product impact. Being financial investors, we acknowledge the far-reaching consequences our choices carry. Consequently, we have meticulously devised a framework that seamlessly incorporates ESG considerations into every facet of our operational approach. We intend to ensure transparency in our endeavors, fostering an environment of collaboration within the community.
Investment Strategy and Alignment
R3i align our investment strategy with the IMP Framework's five dimensions (What Matters, Who Matters, How Much Matters, Contribution Matters, and Risk and Return) and use IRIS+ metrics to measure and report our impact. Our goal is to invest in ventures that contribute to positive outcomes across ESG criteria while seeking financial returns.
ESG Integration
in Due Diligence
During the due diligence process, we will assess potential portfolio companies using ESG criteria relevant to their industry and operations. This will involve evaluating the ESG Product Impact of the underlying technologies using IMP and Iris5, and examination of the company’s theory of change milestones. Companies that align with our ESG objectives will be given preference in our investment decisions.
As part of every due diligence, we assess the “Impact Score” of the startup along the 17 SDGs of the United Nations. The startup is given a scoring between -2 (very negative impact) and +2 (very positive impact) where applicable, addressing both the current and the expected SDG development
in the future. We exclude any potential investment with a negative aggregate score or with a single SDG-rating equal to -2 (“red flag”).
Accelerating impact via our Portfolio Companies
Monitoring and Reporting:
We will continuously monitor the ESG performance of our portfolio companies using IMP and track their progress using IRIS5+ metrics. Regular reporting on ESG metrics and impact will be shared with our stakeholders, including investors and limited partners.
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Engagement and Collaboration:
We actively engage with our portfolio companies via our Planet43 and R3i Women programs to encourage responsible practices, transparency, and alignment with ESG standards. We will collaborate with industry peers, organizations, and experts to stay informed about best practices and evolving ESG trends. We actively support the Atlas Climate Tech Coalition, TBLI Group, Leaders for Climate Action, and Partners of PFAN.
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Diversity and Inclusion:
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R3i has adapted the Gender Smart Curriculum for Entrepreneurs for our Accelerator programs, and Venture Capitalists designed by US Aid and 2X Global.
As Signatories to Beyond the Billion, we pledge to maximise female founders at the top of our funnel, to provide feedback when we do not invest, and to invest in female founders where there is a fit with portfolio, our returns profile, and our mandate.
We are the organizing partners of She Loves Tech in Western Europe, Southern Europe, Nordics, Japan, and Korea, and Community Partners in the US, Canada, Australia, New Zealand, and Taiwan. We regularly host events through our R3iWomen and GoogleIamRemarkable programs to encourage more female founders in our startup community to learn the art of self-promotion and support female founders in getting access to capital.
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We are committed
to promoting diversity
We are committed to promoting diversity and inclusion within our own team, our procurement partners, and the companies we invest in. We will seek opportunities to support diverse founders and management teams and prioritize companies that demonstrate inclusive practices.
