Future Planet Capital (Ventures) Limited.

A Commitment to Responsible Investing and ESG

Future Planet Capital (FPC) is a signatory to the UN Principles for Responsible Investment (the “Principles”). These cover six high-level principles which FPC is fully incorporating into its investment processes and decisions:

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

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

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

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

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

vi. We will each report on our activities and progress towards implementing the Principles (as of 2025 – in line with mandatory reporting timelines issued by the UN PRI).

ESG (Environmental, Social and Governance) is at the core of embodying the Principles. At Future Planet Capital, we use the term ‘ESG’ to describe a comprehensive set of environmental, social and governance matters affecting both our fund and our portfolio.

A distinction should be made between the nature of ESG, a set of criteria and standards that characterises, and accounts for, the environmental, social and governance implications of businesses’ processes and practices, and Impact Investing, a concentrated and coordinated investing strategy designed consciously to produce positive impact, whilst achieving a financial return.

As an impact-led investor, creating positive outcomes for people and planet, we put ESG concerns at the core of our operations.

What ESG means for us

While a plethora of frameworks and definitions of ESG exist, most are not fit for use in venture capital and for working with early-stage technology startups. We are hence following a definition of ESG developed with and by VentureESG which defines ESG across seven issue areas linked to E, S and G respectively.

Environmental:

  1. Emissions: Future Planet Capital is committed to considering the environmental impact from Scope 1 (emissions directly caused by the company), Scope 2 (emissions indirectly caused by the company) and Scope 3 (emissions caused by upstream and downstream activities). FPC target measuring, but more importantly, reducing the impact across all scopes, at both fund and portfolio level. This exercise is conducted in conjunction with our chosen ESG provider, Plan A.

Social:

2. DEI: Future Planet Capital is committed to integrating diverse and inclusive practices across all areas of the business, including, but not limited to, the diversity of the fund and founding teams and following inclusive hiring practices.

3. Team and working environment: Future Planet Capital is committed to building a strong culture and being a conscientious employer.

4. Responsible product design: Future Planet Capital is committed to designing and building products with consideration of the ethical and human implications on the end-user and society.

Governance:

5. Legal and regulatory: Future Planet Capital is committed to being aligned to the latest laws, regulations and compliance standards. The oversight of these issues is ensured by the founding team and Board of Directors.

6. Governance: Future Planet Capital is committed to having appropriate governance structures in place. FPC operates under the guidance of a robust board, advisory board and investment governance board, maintaining high ethical standards). FPC has a whistle-blower policy.

7. Data privacy and security: Future Planet Capital is committed to instilling a strong culture of trust, responsibility and best practice around data.

 

How we operationalize ESG in the investment process

Applying ESG principles is not only based on a comprehensive set of considerations specific to us as an investor and the startups we invest in; we also think through how ESG applies to the entire investment process from sourcing and screening to due diligence and portfolio management and exit.

o   Exclusion List:

There are certain business models and sectors we do not invest in which include companies engaged in the production or trade:

  • of products or services deemed illegal under host country laws or regulations or international conventions and agreements.

  • produce tobacco (and other addictive substances), weapons/munition/materials for bad actors, sex work, pornography, gambling or casinos, as well as companies where more than five percent of total sales come from the distribution of these products.

  • produce fossil fuels, including unconventional extraction of fossil fuels, such as oil sands and deep-sea drilling in particularly sensitive areas.

o   Sourcing:

We are committed to ensuring accessibility and diversity as core principles in the sourcing and pipeline management of our deals. Concretely, we have put in place two mechanisms and steps to make our funnel easier to access and to counteract any lack of diversity that early in the investment process:

  • Our application process: Future Planet Capital seeks diverse entrepreneurs from its sourcing pools that embody its values, actively engaging with university ecosystems to encourage diversity in dealflow. FPC is a signatory to the Investing in Women Code and is listed on the Investing in Women Hub.

  • Usage of accessible language: On our website as well as in all (written) communication, we are careful to use accessible language.

o   Investment due diligence:

In the process of screening and conducting due diligence on potential investment targets, ESG considerations (across the above seven sub-categories) play an important role. We are keen to understand the attitude of the founders, their approach to building their companies and any consideration of adverse impacts they might foresee early in the process and have our investment decisions influenced by these factors. The information we collect will be duly documented in our investment memos and play an important role in our investment process. Additionally, we will also leverage our network of expert advisors and sector-specific consultants, where appropriate.

o   Post-investment portfolio support

Once we have committed to invest in a company, ESG considerations will further guide our portfolio management with a focus on both risk mitigation and value creation. We continue our comprehensive approach to ESG across the seven core areas supporting our portfolio companies actively in their journey. We engage our ESG provider, Plan A, to provide educational webinar sessions with portfolio companies to cover basic principles and discuss materiality, given company stage. There is the option for our portfolio to then engage with the service provider.

On-boarding and Reporting: modelled on and harmonised with the due diligence checklist, our on-boarding process for every new portfolio company includes a discussion surrounding ESG priorities for the company based on stage / sector / region (from both a risk and strategic value perspective). As part of FPC’s provision of ongoing portfolio support, regular monitoring sessions conducted, at a minimum every 12 months, will address material ESG progress and issues.

o   Follow-on funding:

We believe that making ESG part of our financial decision making is key, so receiving follow-on funding at our fund is not only based on commercial milestones, but also on wider ESG and impact targets. Decisions will be taken on a case-by-case and the portfolio company will be involved along the process.

o   Exit:

In the case of exiting (via sale, M&A or IPO) we will consider possible ESG factors, too. Advising founders on the right time to exit and the right partners to work with are important.

How we operationalize ESG in our VC firm

ESG does not only apply to how we invest and help our portfolio companies flourish and grow but it is also part and parcel of how we internally manage our fund. We aim at applying the same ESG considerations and the same standards we measure our portfolio with to ourselves; being in a strong position when it comes to ESG ourselves not only makes our demands to portfolio companies more believable, it also strengthens our (economic and structural) position as a VC firm.

ESG responsibility: while every member of our (investment) team is concerned with and thinks along lines of ESG when making decisions and supporting portfolio companies, we have assigned the overall responsibility for ESG to an internal ESG Steering Committee. Our approach to ESG will be discussed regularly in our partner meetings.

Hiring and working environment: we are committed to hiring a diverse team and providing an inclusive working environment.

Good governance: all our decision making in both the advisory board and the investment committee is committed to good governance principles.

Our Commitment to Net-Zero

Our firm commits to work towards achieving net zero or negative emissions by 2030. We have conducted a GHG inventory of our Scope 1-3 emissions (e.g., office energy consumption, employee commuting, business travel) using best practice accounting standards employed by leading ESG consultant Plan A (TÜV Certified). Our firm will begin efforts to reduce our emissions to the extent practicable, and by 2030 or earlier, our firm will begin purchasing, on an annual basis, high integrity carbon removals equivalent to or greater than the amount of our firm's remaining Scope 1-3 emissions (ex. financed emissions) provided such credits are reasonably available.