ESG Policy

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Our full ESG policy is below and can also be downloaded here.

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Objective and Scope

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This policy (henceforth “the Policy”) outlines Speedinvest GmbH and its subsidiaries ("Speedinvest") commitment to integrate Sustainability Dimensions across all aspects of our company, the investment process, and the portfolio management.

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As Speedinvest continues to expand, we anticipate that these dimensions will evolve and mature alongside our growth.

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ESG at Speedinvest: Why do we care?

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In the face of multiple global issues—ranging from climate change, resource depletion, and pollution to gender inequality, inadequate access to healthcare and financial services, and growing corruption—it is clear that the world is at a critical juncture. At Speedinvest, we believe that the path to a brighter future is paved by those who dare to innovate. Businesses have the power to shape the world. Whether it is developing sustainable technologies, fostering inclusive economic growth, or promoting diverse hiring practices, building a business is one of the most effective ways to drive the change we need. 

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Europe continues to be a global leader in spearheading many of these changes, but expanding into emerging markets, we also recognize the impactful strides being made across other regions. Rooted in Europe, we are committed to fostering positive change on a global scale.

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Speedinvest is not an impact fund. We do, however, believe that VCs are inherently impactful if they invest in organizations that:

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• Strive for diversity at all hierarchy levels
• Stay on top of regulatory developments
• Establish accountability and transparency in internal processes 
• Consider the ethical and environmental implications of products and operations

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We believe such organizations are more resilient, grow more sustainably, attract and retain top talent, have improved access to capital, build stronger consumer relationships, and eventually outperform their competitors. Poorly managing and mitigating risks in these areas, conversely, can result in significant losses in portfolio value, whether through operational setbacks or damage to reputation.

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We believe that instilling these values in our founders, although very early in their journeys, will not only generate positive returns for our investors but also drive essential societal change. Given our substantial portfolio, this impact is multiplied by repeat founders and future industry leaders who will further spread these values.

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Speedinvest Sustainability Dimensions

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The areas described in the following, the Speedinvest Sustainability Dimensions (SDs), are the fields we want to see our portfolio companies to excel in.

SD1: Strive for diversity at all hierarchy levels and create a culture of trust and collaboration

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A strong DEI strategy is a powerful driver of long-term success for growing companies. Hiring individuals from diverse backgrounds at all levels brings a wide range of perspectives that foster innovation and enrich organizational culture. However, hiring diverse talent and providing equal opportunities is only part of the equation. It’s crucial to build a culture of trust and collaboration, supported by clear accountability mechanisms that help identify and address issues early. Only by creating such an environment can you ensure that employees feel valued and supported, which is essential for retaining top talent.

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SD2: Staying on top of regulatory developments: From Data protection across ESG compliance to AI regulation

Staying ahead of regulatory changes is crucial for maintaining both innovation and compliance, particularly in heavily regulated industries like healthcare and fintech. For startups navigating complex rules on product approvals or market entry, the ability to adapt quickly to new regulations can mean the difference between success and setbacks. Ensuring adherence to environmental regulations, competition laws, and product safety standards is absolutely essential. A key focus for today’s founders should be the evolving regulation around artificial intelligence. Companies must proactively engage with emerging frameworks, such as the EU’s AI Act and other guidelines/ best practices for responsible AI development and use.

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SD3: Consider the environmental and social implications of products and operations

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We are dedicated to fostering responsible growth by supporting companies that uphold high environmental and social standards across their operations and supply chains. As part of our investment philosophy, we collaborate closely with our portfolio companies to mitigate adverse impacts, validate sustainability claims, and ensure responsible business practices across the following key areas, as relevant, on an ongoing basis:

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• Assessing and mitigating significant adverse environmental and social impacts, including health and safety in the use of hardware.
• Supply chain accountability and ESG Risks, with a focus on environmental impacts, human rights, and labor practices throughout the supply chain.
• Validation of sustainability claims, ensuring the credibility and accuracy of environmental and social claims made by the company.

Exclusions

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We prioritize investing in companies that genuinely care about ESG issues, as outlined in our Speedinvest Sustainability Dimensions. At the same time, we stay clear of industries with significant ESG risks, particularly those with negative environmental impacts, such as:

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• Fossil fuel-based energy production
• Energy-intensive or high CO2-emitting industries

As well as sectors that pose substantial risks to human rights, labor conditions, and societal well-being, including:

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• Tobacco
• Adult entertainment
• Weapons 
• Gambling
• Exploitative labor practices (child labor and forced labor)
• Companies involved in human rights abuses

For a more detailed list, please see our Sustainability-related disclosures pursuant to Regulation (EU) 2019/2088 (“SFDR”)

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Implementation

To ensure effective oversight and risk management, ESG risks are embedded in Speedinvest's overall risk management framework. GRC as the independent Risk Management Function, part of Speedinvest's second line of defense, is responsible for the monitoring, escalation, and coordination of sustainability-related risks across the investment and operational lifecycle. 

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To ensure our Policy is effectively integrated into daily operations, implementation measures are designed to help the Speedinvest staff, in particular the Investment Managers, internalize and apply the Speedinvest Sustainability Dimensions (SDs) in their roles. Both regular training for employees as well as a resource library are maintained. 

Investment Process

ESG factors are integrated into our investment activities, helping our portfolio companies build sustainable, responsible, and resilient businesses. Prior to any investment, Speedinvest conducts a sector-specific and risk-type-based ESG review to identify material environmental, social, governance, and reputational risks. This includes physical and transition climate risks, biodiversity impacts, potential for greenwashing, and compliance-related concerns. The assessment follows the risk typology recommended by the FMA and ensures that ESG considerations are proportional to the nature and scale of the investment, enabling early identification of systemic and sector-linked exposures:

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1. Sector-Specific Review: Before making an investment, we conduct a sector-specific review to identify ESG risks that are typically material in the relevant industry. This helps us anticipate environmental, social, and governance issues that are likely to arise in the sector and assess their potential impact on early-stage companies operating in that space.
2. Identification of Critical ESG Issues: Based on the sector review and company-specific context, we assess which ESG issues are most likely to be material for the business. These are prioritised in proportion to their potential impact and likelihood, documented in the IC memo, and monitored through post-investment engagement.
3. Presentation to the Investment Committee (IC): Identified ESG issues are presented to the Investment Committee as part of the overall risk profile of each potential investment. To ensure these issues receive adequate attention, we have appointed a dedicated ESG member of the IC who ensures they are thoroughly considered.

ESG DD with Founders: Post-investment, a broader set of ESG-related questions is discussed with the company’s founder(s). This discussion aims to further elaborate on the issues presented to the IC and may involve identifying additional ESG concerns. The agreed actions are then revisited at a later stage (see “Portfolio Management”)

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Investment Side Letters

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In the course of Speedinvest’s initial investment transactions, binding side letters are often entered into with portfolio companies, which typically include ESG-related undertakings that each company agrees to comply with. These provisions typically require the portfolio company to measure the carbon footprint of its business activities, implement an ESG policy within a specified timeframe, and regularly provide Speedinvest with ESG-related information and documentation, such as GHG emissions, FTEs, and payroll data.

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These side letter requirements reflect Speedinvest's strong commitment to fostering a culture of ESG compliance and generating awareness of the importance of ESG within its portfolio companies. Through these measures, Speedinvest aims to ensure that its investments not only generate financial returns but also contribute positively to environmental and social outcomes.

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Portfolio Management

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At Speedinvest, we firmly believe our greatest value and responsibility is in actively managing our portfolio to help companies build sustainable and successful organizations. We provide hands-on support by sharing best practices, offering access to carefully curated content and resources, and connecting founders with one another to foster collaboration. Additionally, we match them with top ESG experts to ensure they have the guidance needed to integrate sustainability into their business strategies.

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Onboarding Meeting

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Immediately after the investment transaction is completed, we conduct a comprehensive onboarding meeting with our startups. During this session, we:

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• Discuss identified ESG risks and opportunities that surfaced during the pre-investment and Due Diligence phase.
• Provide essential ESG resources via our ESG Handbook for Founders (currently in development).
• Offer access to a curated list of both generalist and specialized ESG advisors through our dedicated portal.
• Onboard the portfolio company to our ESG service by apiday which will be a central part for their ESG roadmap and reporting

Portfolio Company Survey & Reporting

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Speedinvest is required to report and publish select ESG data as part of our funds’ sustainability commitments. For these purposes and to track the development of portfolio companies, an annual survey is conducted.

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• After onboarding, the apiday platform becomes the central hub to facilitate a portfolio company’s ESG journey. We offer the platform as a service, providing a holistic view of sustainability efforts and facilitating the planning and tracking of ESG-related activities.
• The platform assists with ESG data management and reporting. It is also where we issue our annual portfolio ESG survey based on LP, regulatory, and Speedinvest’s reporting requirements, tailored to the size of each portfolio company. 
• The results of the survey are for one used to meet the fund’s reporting requirements, but more importantly, also to assess the portfolio’s ESG posture. It therefore serves as a basis for our further engagement with our portfolio companies. 

12-Month Check-In

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• 12 months post-investment, we conduct a check-in with portfolio companies to review their progress on the previously defined path. During this session, we might, on the one hand, discuss advancements on the measures identified during the onboarding and prepare the company for reporting. On the other hand, we will review the results of the annual portfolio ESG survey and adjust their roadmap to address ESG risks and opportunities as identified. 

Board Work/Other Resources

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• As lead investors in seed-stage companies, Speedinvest frequently holds voting or non-voting board seats.
• Our Investment Managers receive regular training and are provided with checklists that they can use to actively fulfill their board mandates, particularly regarding ESG matters. Our founder portal provides relevant information on how to plan and run board meetings from a governance perspective.

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Internal Commitment

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At Speedinvest, we believe that the ESG standards we ask our portfolio companies to uphold must also be reflected in our own internal operations. It is imperative that we lead by example, demonstrating our commitment to environmental stewardship, social responsibility, and robust governance. By adhering to the same ESG Dimensions we advocate for, we ensure consistency, build trust with our stakeholders, and reinforce the integrity of our investment approach.

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1. Environmental

We are committed to reducing our environmental impact by adopting resource-efficient practices, like energy efficiency, water conservation, waste reduction, and sustainable procurement. We remain conscious of the environmental implications of travel, incentivizing employees to use public transport or low-carbon alternatives where possible, while balancing our business needs with sustainability goals.

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2. Diversity, Equity & Inclusion (DEI)

We are dedicated to fostering a diverse, equitable, and inclusive workplace. We actively promote DEI initiatives, encourage diverse leadership, and cultivate a culture that values different perspectives, understanding that this diversity strengthens our organization and drives innovation. We are committed to setting out KPIs in this regard, to which we will hold ourselves accountable. More details can be found in our DEI Strategy (currently being reworked)

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3. Governance

As a licensed Alternative Investment Fund Manager (AIFM), we adhere to stringent governance standards and organizational requirements that ensure our operations are conducted with integrity, transparency, and accountability.

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• Governance Standards: We implement effective decision-making processes, maintain a clear segregation of duties to prevent conflicts of interest, and establish robust internal controls to manage and mitigate risks across our operations.
• Organizational Requirements: Our independent risk management and compliance functions ensure we identify and monitor risks, adhere to all regulatory requirements, and operate within ethical standards. Additionally, we enforce remuneration policies that align with long-term investor interests and promote sound risk management.
• Data Privacy & GDPR: We are fully committed to safeguarding personal data and ensuring compliance with GDPR. We implement stringent data protection policies, provide regular training for employees, and conduct thorough assessments to ensure data is handled securely and lawfully. 
• ICT Security: We uphold rigorous ICT security standards to protect our digital infrastructure and data from potential threats. Our robust cybersecurity framework includes continuous monitoring, regular vulnerability assessments, and incident response protocols to mitigate risks. 

Speedinvest ESG Committee

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The Speedinvest ESG Committee leads the firm’s commitment to embedding the Speedinvest Sustainability Dimensions throughout every aspect of our operations. Composed of representatives from across the organization, the Committee ensures the seamless integration of ESG measures by developing and implementing policies and workflows. Additionally, it actively collaborates with ESG specialists from other firms to stay updated on best practices.

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Members of the Speedinvest ESG Committee are:

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• CIO, General Partner (Chair)
• Head of Governance, Risk & Compliance (Vice-Chair)
• General Counsel, COO
• Head of Finance
• Partner Emerging Markets

Ownership & Review

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The ESG Policy is reviewed at least once a year by the governance, risk, and compliance team, the ESG Committee, and the managing directors to ensure that it is up to date and consistent with the business and risk strategy of Speedinvest.

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