German-speaking corporate venturing units have been among the investors introducing a sustainability clause for their portfolio companies.
The new financing contracts would require startups backed by Helvetia Venture Fund, the corporate venturing unit of the eponymous Switzerland-based insurer, Redstone, a corporate venture capital-as-a-service provider, media group Dieter von Holtzbrinck’s ventures unit, DvH Ventures, and Tengelmann Ventures, which invests on behalf of the Germany-based consumer goods company, to actively support climate action in their business activities.
In cooperation with the Leaders for Climate Action initiative, portfolio companies would have to measure their carbon dioxide (CO2) output and implement emission reduction strategies. Alexander Samwer who set up Picus Capital after cofounding Germany’s legendary Rocket Internet incubator, in a translation provided by Clean Energy Wire said: “Startups get a lot of attention and are seen as beacons due to their innovative strength. We want to use this attention to endorse a more sustainable economy.”
The participating venture capital firms, which also includes a couple of corporate spinouts, Acton Capital (ex-Burda) and HV Holtzbrinck Ventures (ex-Holtzbrinck), have raised more than €5bn and backed hundreds of companies.
As Germany is Europe’s largest economy the pressures on the next generation are to be welcomed but perhaps more significant would be closer attention to what the corporate parents are committing to reducing their carbon footprint in the way Microsoft has just done to invest €1bn to offset its carbon emissions since launch.
