Simpact Ventures Calculates Carbon Footprint of the Fund and Portfolio Companies
Warsaw, September 12, 2023 – Simpact Ventures, a leading Polish fund investing with the impact investing idea, has conducted a carbon footprint analysis that takes into account both the fund’s activities and all of its portfolio companies in 2022. The total greenhouse gas emissions amounted to 17 tons of CO₂ equivalent for scopes 1, 2, and 3, which include direct and indirect emissions. This result can be likened, for example, to the annual emissions of two average Polish citizens. These calculations were conducted in partnership with the startup Plan Be Eco, which specializes in carbon footprint assessment, providing a solid foundation for the fund’s future environment-conscious initiatives.
Simpact Ventures is an exception in the Polish investment landscape, being one of the few venture capital funds that adopts a “deep green” approach. Their philosophy insists that investments should not only yield financial profits but also have a positive impact on the environment and society. This emphasis on ESG (Environmental, Social, Governance) plays a foundational role in their entire operation. Guided by these principles, Simpact Ventures collaborated with Plan Be Eco, an expert in effective carbon footprint management solutions for businesses.
“We are not just looking for companies that ‘do no harm’ or ‘have no negative impact’, or those that occasionally influence some sector of life or challenge. We value those that drive lasting and positive societal changes through innovative projects and decisive actions. Hence, our collaboration with Plan Be Eco is a crucial step, enabling us not only to measure our carbon footprint but also to develop a CO₂ emission reduction strategy in the upcoming years. It aligns perfectly with our deeply-rooted ‘deep green’ approach and investment philosophy, pointing towards a more sustainable future,” explains Krzysztof Grochowski, Managing Partner of Simpact Ventures.
EU Regulations and New Standards
The global challenges related to achieving sustainable development are becoming more evident. Hence, legislative actions, such as the EU’s SFDR (Sustainable Finance Disclosure Regulation) concerning the disclosure of information related to sustainable development in the financial services sector, are gaining significance. These regulations apply to financial market participants, including investment funds. Regardless of the industry, they become a critical subject for any company aiming to incorporate ESG aspects into their strategies and operations.
“Calculating the carbon footprint is the beginning of the journey to climate neutrality. This process will encompass not just large corporations but also smaller ones, including startups. We are delighted that Simpact Ventures is setting a ‘climate trend’, along with their portfolio companies, by taking this initial step in measuring their carbon footprint. This example illustrates that it’s as essential in business as a well-prepared business model, sales strategy, or pitch deck. Calculating and reporting emissions is becoming our new norm,” says Aga Maciejowska, CEO and Co-founder of Plan Be Eco.
Analysis of CO2 Emissions at Simpact Ventures
The carbon footprint calculation method adopted by Simpact Ventures was based on the guidelines of the internationally accepted GHG (Greenhouse Gas) Protocol and ISO 14064-1 standard. The whole process covered three crucial emission areas, offering a comprehensive view of the carbon footprint. The first is emissions directly produced by the company (e.g., company vehicles). The second results from the usage of electric energy. The third focuses on the influence of surrounding company activities (purchased goods, investments, or employee commuting).
According to calculations conducted by Plan Be Eco, the greenhouse gas emissions from Simpact Ventures and its portfolio companies in 2022 amounted to 17 tons of CO₂ equivalent.
“A significant portion of the greenhouse gas emissions at Simpact Ventures comes from indirect sources, namely the supply chain elements. This includes business trips, employee commuting, purchases, and investments. Therefore, focusing on optimizing these areas is vital for reducing our carbon footprint and aiming for a more sustainable and ecological approach,” says Jacek Ostrowski, Managing Partner of Simpact Ventures.
The carbon footprint of the fund and its portfolio companies will be calculated and published annually, allowing for an evaluation of the effectiveness of the measures taken.