ANNUAL REPORT FY22
Sustainability
Report
Excerpt from Molten Ventures plc
Annual Report FY22
REGISTRATION NUMBER: 09799594
moltenventures.com
SUSTAINABILITY REPORT
Contents
- Our progress in the year
- Our ESG policy in action
- Responsible investment
- Alignment of portfolio to UN SDGs
- Portfolio engagement in ESG
- Case study: Climate tech at Molten Ventures
- SECR and carbon emissions
- TCFD Report
- Social and D&I
- Governance
ESG at Molten in numbers
This year...
44 | We offset |
97 | |
portfolio companies | tCO2e |
mapped to at least | |
one UN SDG |
Sustainability at Molten
Our mission at Molten is to positively contribute to a future which is sustainable, fair and accessible to all. As responsible investors, we are committed to ensuring that the development of best-in-class technology companies takes place alongside a strong grounding in environmental, social and governance ("ESG") practices. Our ESG Policy (available on our website) sets out how we aim to achieve this, actively engaging with companies from deal sourcing and due diligence through to ongoing mapping and monitoring and an annual assessment of
their ESG performance. Not only this, we also recognise the importance of practicing what we preach and so continue to develop our internal ESG strategy to ensure that we are doing our bit. We are dedicated to reducing our Greenhouse Gas (GHG) emissions, promoting Diversity and Inclusion and demonstrating good governance in our own activities and in our interaction with our portfolio companies.
Our ESG responsibility as a VC
Venture capital firms have the unique opportunity to invest in companies pioneering innovative technologies, services and products which can positively impact the development of a fairer, more resilient society. At Molten, we are committed not only to investing in businesses and entrepreneurs who are changing the world in a positive way, but to encourage improvements in their ESG performance throughout the life of the investment. After
The Molten team
comprised of
46%
female personnel
We made
3
new investments in climate tech companies
Compliance training
was completed by
100%
of our employees*
The Molten team
comprised of
15%
personnel from an ethnic minority background
68%
of our Investment Team received ESG training
81%
of portfolio company respondents to Molten's ESG Framework have anti- bribery/anti-corruption policies in place
all, who is better positioned to find ground- breaking, sustainable solutions for our future than forward-thinking VC funds and the innovative businesses they nurture?
- 100% of full-time employees during Q4 of FY22 (excluding those on parental leave).
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ANNUAL REPORT FY22
Our progress in the year
Activities in the year:
September/October 2021
TCFD Workshops based on climate-related financial risks and scenario analysis
Voluntary unconscious bias training completed by 38 employees
April 2021
Submitted our first report to the UN Principles of Responsible Investment
August 2021
Roll out of Molten's Group-wide Diversity, Equality and Inclusion Recruitment Policy to minimise bias in hiring process
May 2021
Offset 260 tonnes of carbon attributed to Molten operations through UK-based peatland restoration projects and reforestation efforts in Brazil
July 2021
Board Diversity & Inclusion
Policy was released
Richard Pelly appointed as Designated Non-Executive Director with responsibility for employee engagement
December 2021
ESG Framework was shared with portfolio companies to collect data and monitor ESG progress across the portfolio
January 2022
Molten hosted Portfolio ESG Event: Carbon emissions, reduction and offsetting
Investment Team ESG Training led by ITPEnergised to improve ESG integration in the investment process
FY22 ESG KPIs
FY22 | ESG KPI | Progress Status |
Environmental | Establish a roadmap to allow us to make | 100% Achieved |
TCFD disclosures in the FY22 cycle | Through careful planning and alignment with our established roadmap, our | |
TCFD FY22 disclosure is included on pages 58-63 | ||
Social | Create and implement a Group-wide | 100% Achieved |
Diversity and Inclusion Policy and a Board | Board D&I Policy adopted in July 2021 | |
D&I Policy | Group D&I & Equal Opportunities Policy adopted in February 2022 | |
Governance | Strategically engage with between 10 and | 100% Achieved |
15 portfolio management teams on their | We have engaged the management teams of 27 portfolio companies through | |
governance arrangements | our ESG Framework as part of the due diligence process, including 18 | |
governance-oriented areas of focus | ||
Holistic | Provide a training programme for the | 100% Achieved |
Investment Team applying our ESG policy to | Our Investment Team training was led by external consultants ITPEnergised in | |
our investment process | January and provided the team with practical guidance on integrating ESG more | |
effectively in our investment process | ||
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SUSTAINABILITY REPORT
FY23 ESG KPIs
The ESG KPI indexes 10% bonus entitlement for all staff and Executive Directors (see further details on page 113).
FY23 | ESG KPI |
Overarching | • Develop and formalise the Company's Corporate Purpose to articulate our core reason for being, in alignment |
with the Group's ESG Policy | |
• Track and report on the metrics used by the Company to evaluate potential investments in alignment with the | |
Company's ESG Policy | |
• Deliver two portfolio engagement events focused on ESG-related risks and opportunities | |
Environmental | • Implement a Climate Strategy which defines the Group's GHG reduction targets, KPIs and roadmap to net zero |
• Engage with the management teams of at least 50% of direct primary investments during the period to establish their | |
Scope 1 and 2 GHG emissions and assist with GHG reduction plans, footprint analysis and offsetting schemes up to a level | |
of £10,000 per portfolio company | |
• Increase accuracy of Scope 3 measurements (upstream and downstream) to report against the SECR and TCFD frameworks | |
• Undertake the Company's first CDP Climate Change disclosure | |
Social | • Develop the Group's D&I Recruitment Policy to track and report on D&I-related metrics through the hiring process |
• Achieve implementation by 80-100% of directly held portfolio companies of a (i) Parental Policy and | |
(ii) Health & Wellbeing Policy | |
• Establish, track and report portfolio progress across a range of core D&I targets | |
Governance | • Develop and publish a Group Human Rights Policy |
• Achieve implementation by 80-100% of directly held portfolio companies of a (i) Cyber Security Policy, | |
(ii) Anti-Bribery and Anti-Corruption Policy, (iii) Whistleblowing Policy, and (iv) Anti-Harassment Policy | |
February 2022
Tied-1st place as a Top VC Performer in ITPEnergised and Orbis Advisory ESG Transparency Index
Internal workshop led by BeEthical exploring the practicalities of establishing a charitable foundation
Group-wide Diversity, Equality and Inclusion (DEI) & Equal Opportunities Policy was released
Became a signatory of the Investing in Women Code
March 2022
Charitable Incorporated Globalisation (CIO), the Esprit Foundation, received acceptance by the Charity Commission
Goal Setting and Personal Development all-staff workshop led by external Wellbeing and Performance expert
Attained the Diversity VC Standard Level 1 certification
Externally-ledDEI-focused session delivered to ESG Working Group covering best practice and next steps in our ESG journey
ESG Committee established by the Board
Looking forward
Responding to the CDP Climate Change questionnaire
First year reporting as a signatory to the Investing in Women Code
First year of charitable activities of the Esprit Foundation
Delivering against FY23 ESG KPIs (see above)
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ANNUAL REPORT FY22
Our ESG policy in action
Our mission is to empower Europe to invent the future. We want that future to be sustainable, fair and accessible to all.
We aim to use our platform in VC to encourage and promote our ESG values and ESG considerations in developing best-in-class technology companies and achieving strong returns for our investors.
External benchmarking
It is important to demonstrate our commitment to ESG and responsible investment through voluntary involvement with external standards and frameworks. We remain at the formative years of our ESG benchmarking process, but hope to establish a baseline from which we can compare and track improvements against in the future.
We are aligned with…
UN Sustainable Development Goals
Ensuring that our entire portfolio is assessed against these goals, and alignment with specific targets and indicators is identified as part of our due diligence process.
We are signatories of…
UN Principles for Responsible Investment
Demonstrating our recognition of the role we play and responsibilities we hold in building a more sustainable financial system.
Investing in Women Code
Highlighting our commitment to female empowerment by improving female entrepreneurs' access to tools, resources and finance.
We currently report against…
The Taskforce for Climate-Related Financial Disclosures ("TCFD")
To improve our understanding and management of the risks and opportunities presented by rising temperatures, climate-related policy and emerging technologies.
Streamlined Energy and Carbon Reporting ("SECR")
Indicating our dedication to reducing our carbon emissions year on year through the implementation of energy efficiency measures.
UN Principles for Responsible Investment
Reflecting our commitment to integrate ESG factors into our investment analysis and decision-making processes.
We plan to report against…
CDP
Which will enable us to disclose our greenhouse gas emissions and other voluntary metrics and become more transparent about our environmental impact.
FUND OF FUNDS IMPACT PANEL
Associate, Mohadeseh Abdullahi joined by Karl Lokko (Blackseed), Ella Goldner (Zinc), and Patrick Newton (Form Ventures) pictured from right to left.
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Molten Ventures plc published this content on 24 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 June 2022 11:10:01 UTC.