NORRSKEN VC
IMPACT REPORT 2022
1
FOREWORD
In 2022, amidst challenges like war, inflation, energy crises, and rising interest rates, the impact
sector emerged as a resilient force, particularly in addressing the climate crisis.
WELCOME TO OUR
2022 IMPACT REPORT
WHERE WE:
↳
Share our Article 9 impact methodology and every tool we’ve
developed. Here’s how we put founders first, but still comply with
one of the strongest tailwinds of our time: EU’s Sustainable Finance
Disclosure Regulation and the EU Taxonomy.
↳
Spotlight some of the rockstar businesses and impactful trends
that we’ve backed in 2022.
↳
Share our portfolio results. Is our investment strategy working?
A new generation of impact companies stepped forward, actively working on innovative
solutions such as decarbonising homes, electrifying transportation, and driving net-zero
decisions. Despite the turbulence, these companies thrived by seizing significant business
opportunities, benefiting from long-term demand, demonstrating resilience to market
fluctuations, and attracting top talent, customers, and capital.
This is a moment of hope, where impact investments can showcase their worth as an asset
class and explore the correlation between impact and financial performance.
Also in 2022, the European Union introduced regulations on impact investing. While these
regulations required us to embrace further rigorous due diligence, we wholeheartedly welcomed
them. We view these regulations as a positive stride towards directing meaningful capital to
initiatives that generate meaningful impact.
To support the impact investing movement that we both passionately believe in and have been
long-term proponents of, we are proud to share our comprehensive impact investment
methodology with fellow venture capitalists and funds. Our goal is to demonstrate that it is
indeed possible to comply with these new regulations while being founder-friendly! We may not
have all the answers, but we are dedicated to open sourcing the knowledge we have mustered
for others to use as a compass as they navigate the “impact, plus profit” landscape.
We hope you enjoy reading our report and encourage you to reach out with comments,
questions or opportunities to collaborate and drive the impact movement forward.
_______
Team Norrsken VC
2
IN 2022: A BRIEF SNAPSHOT OF THE REPORT
9
12
new investments (8 in 2021)
6
follow-on investments (10)
SDGs invested across (11)
80%
2835
182%
39%
0%
jobs created within our
portfolio (1762)
of 2022 impact targets
reached by our portfolio (72%)
of long-term impact targets
reached by our portfolio
companies (11%)
1.7Bn EUR
41%
capital to impact; amount of
funds raised across our portfolio
increase in women in
leadership positions (37%)
30%
2021 figures within brackets for comparison
of our portfolio companies
have at least one female
board member
gender pay gap across
Norrsken VC firm, with
equal salary bands across
all roles
of founding teams have at
least 1 female founder (31%)
2021 data provided
3
CONTENTS
01
STEPPING UP OUR IMPACT AMBITION WITH NEW REGULATION
5
article 9 fund with founder friendly approach
02
13
IMPACT REGULATIONS - IN BRIEF
simplifying the complex
03
17
OUR IMPACT TOOLS AND METHODS
open source = more action
04
25
IMPACT ACHIEVED DURING 2022
our portfolio results
05
OUR ESG FOOTPRINT
33
managing and mitigating sustainability risks
06
ANNEX
I.
39
Principal Adverse Impact Statement
4
STEPPING UP OUR
IMPACT AMBITION
WITH NEW REGULATION
5
WE WANT TO DRIVE MORE CAPITAL TO IMPACT,
TO ENABLE THE NEXT IMPACT UNICORN
Ultimately, we want to drive more capital to impact. Both by helping to direct more capital to high impact
companies, and through our own direct investments to help enable the next Impact Unicorn: a company
with a $1b valuation and the ability to positively impact one billion lives.
WE ARE AN ARTICLE 9*
VC FUND WITH FOUNDER
FRIENDLY APPROACH.
WE INVEST IN STARTUPS
THAT SOLVE SOME OF
THE WORLD’S GREATEST
CHALLENGES.
* Read on to learn what this is
We’re excited to see how engagement for impact has risen during the six years we’ve been in business.
This is reflected in the number of impact companies raising capital, new impact funds coming onto the
market and in the fact that both generalist investors and institutional capital now actively look to invest in
impact.
To ensure that all this engagement results in true impact, we need standards to define and measure it.
Therefore, we welcome EU’s new regulations: the Sustainable Finance Disclosure Regulation and
Taxonomy Regulation.
For us, there was never a question. We’ve chosen to align with the regulation’s most ambitious category:
Article 9*. This means that 100% of our investments aim to bring positive impact on the people and
planet. We are convinced that this regulatory shift is needed to catalyse real change and open up new
pockets of impact capital. So we jumped in, head first, and learnt to swim.
Now, we won’t pretend that being an Article 9 fund in the early stage investment space has been easy.
But we’ve done our best to embrace the framework, translate it so that it works for early stage
companies without compromising on compliance or quality, and help our portfolio companies to get
there. Maybe by sharing this, we can lower the bar for someone else as well.
It might not be perfect, but it’s a start. And that’s what we need: less perfection, but all hands on deck.
What does this make us? We are a founder friendly Article 9 fund.
6
IMPACT THROUGH DIRECT INVESTMENTS:
HOW WE DEFINE IMPACT
WE WANT TO SOLVE SOME
OF THE WORLD’S
GREATEST CHALLENGES
BY INVESTING IN NEXT
GENERATION BUSINESS
MODELS
AND TRANSFORMATIVE
SOLUTIONS THAT ARE
TRULY NET POSITIVE
We invest across all 17 SDGs but seek to invest in
companies that share our ambition of wanting to
challenge and disrupt status quo to solve the biggest
challenges of our time. Unless solved, these will
continue to inflict harm on our people and planet.
And in line with SFDR Article 9, each investment we
make must contribute towards an environmental or
social objective.
Next generation businesses establish a 1:1
relationship between impact & return. If the business
grows, impact should grow too. And to achieve
business success, operations must be sustainable.
Fullstop. In line with SFDR Article 9, good
governance is key.
Next generation businesses establish a 1:1
relationship between impact & return. If the business
grows, impact should grow too. And to achieve
business success, operations must be sustainable.
Fullstop. In line with SFDR Article 9, good
governance is key.
… ENABLING IMPACT UNICORNS
7
MORE CAPITAL TO IMPACT:
THE RIPPLE EFFECT WE HOPE TO CREATE
MORE ENTREPRENEURS AND TALENTS
SOLVING GLOBAL CHALLENGES
INSPIRE MORE IMPACT VCS AND GENERALIST
FUNDS’ INTEREST IN IMPACT
$4.3TR MORE CAPITAL FROM LPS INVESTED ANNUALLY
IN IMPACT TO CLOSE THE ANNUAL SDG FUNDING GAP*
* UN Conference on Trade and Development (UNCTAD) and the International Monetary Fund (IMF), taking into account tightening of global financing
conditions. Excluding this, the OECD in 2020 reported an annual SDG financing gap in developing countries of $3.9tr.
8
NEW REGULATIONS HELP DRIVE CAPITAL
TO TRUE IMPACT…
IMPACT INVESTING IS BEING REGULATED
FOR THE FIRST TIME
EU has launched game-changing regulation to drive more capital to true impact. It targets Financial
Market Participants* and regulates how we communicate around impact and sustainability. This is to
create one common language and thereby improved transparency and reduced greenwashing, ensuring
that - you guessed it - more capital is used for impact!
Sustainable Finance Disclosure
Regulation (SFDR)
Taxonomy Regulation
(TR)
A regulation aiming to improve transparency,
prevent greenwashing and create a common
language among Financial Market Participants
around sustainable investing.
A classification of economic activities that
should be considered “environmentally or
socially sustainable”
SENDING POWERFUL MESSAGES ACROSS
THE ECOSYSTEM
↳
To investors of all sizes, stages and scopes, from GPs to LPs, that any claims of making
‘sustainable investments’ need to be fully substantiated. More transparency will bring more
comparability between investors, and make it clear which investors are really considering impact
and sustainability in their investment strategy.
↳
To entrepreneurs and talents: improved transparency among investors brings more visibility on
where the capital is flowing - and so far it’s moving towards impact! Worldwide over $1 trillion in
AUM were allocated to impact investing, 55% of which coming from Europe**. This is still just a
fraction of total AUM available, so there is still capital to be moved. This is where you’ll find the
biggest opportunities to both have an impact and make high financial returns.
At Norrsken VC, we believe that this will drive more capital to
the impact space and incentivise the creation of more innovative
impact startups. So, we’re excited, and working hard to meet
the requirements ourselves.
* Financial Market Participants include those that do business in the financial market, regardless of fund size, stage, investment or geographical scope. I.e. investment firms,
pension funds, asset managers, insurance companies, banks, venture capital funds, credit institutions offering portfolio management, or financial advisors. You get it, everyone.
** GIIN Sizing the Impact Investing Market 2022
9
…AND WE ARE ALREADY
SEEING EFFECTS
Quarterly Number of Fund Launches
IMPACT FUNDS* ON THE RISE
↳
↳
In 2022, over half of all new fund launches (+55%) had an Article 8 or 9 classification*.
In terms of allocated asset value, combined Article 8 & 9 fund assets accounted for a total of EUR
4.6 trillion by the end of the year.
CREATING A FUNDING OPPORTUNITY
FOR IMPACT COMPANIES
↳
↳
Quarterly Breakdown of Fund Launches
Being an Article 8 or 9 fund acts as highly credible sustainability classification for impact
investors and companies.
More impact-dedicated funding is being driven towards these funds and companies, offering all
ecosystem players a way to guarantee their impact objectives and foster trust.
However, more research is yet to be done on how this impacts the VC
ecosystem specifically, as current research doesn’t distinguish between
different fund types. As mandatory reporting kicks off in 2023, we’ll have
more data and more insights into how capital is moving.
* SFDR Article 8 and Article 9 Funds: Q1 2023 in Review (Morningstar)
10
SO, WITH ALL THE ADVANTAGES, WHY HAVEN’T ALL
IMPACT FUNDS SIGNED UP FOR ARTICLE 9?
BY DESIGN, VC FUNDS STRUGGLE TO
COMPLY WITH NEW EU REGULATION
↳
↳
VCs invests early, often before companies have built out teams, reporting capabilities or
governance structures.
VC invest in minority stakes, with limited influence.
As a result, even the most committed investor struggles to comply. Either they lack information
rights, or companies are so early in their impact journey that they simply don’t have anything to
report yet.
↳
Regulations are difficult to understand! They are still under review, and guidance is found in
lengthy, indigestible policy texts which most of us are unaccustomed to. We resort to spending
resources and time on legal or regulatory advice, just to make sense of it.
MANY VC FUNDS BELIEVE THAT BEING
ARTICLE 9 WILL MAKE THEM LESS
ATTRACTIVE AS INVESTORS
Many funds are worried that bringing Article 9 demands to founders will put them off, and make them
less attractive in competitive funding rounds. We can debunk that: some of the most competitive deals
we have won have not been despite our impact demands, but because we take impact seriously. More
and more founders appreciate the tool boxes and recognise that if they are labelled as sustainable
investments, it unlocks new pools of capital for them.
AS A RESULT, MANY FUNDS ARE RATHER
CHOOSING TO DOWNGRADE FROM
ARTICLE 9 TO ARTICLE 8*
This is likely prompted by uncertainty around how the regulation will unfold, but it could also lead to
scaled down sustainability ambitions. In 2022, over 300 former Article 9 products downgraded
themselves from Article 9 to Article 8 (from 1080 to 891), a reduction equivalent to €175 Billion or 40% of
total Article 9 capital. This comes at the same time as IPCC’s latest report points to an urgent need to
dramatically increase climate finance for both mitigation and adaptation.
This regulatory shift is needed and we simply cannot afford a setback. We need more capital flowing
towards impact, not less.
* ESG Funds Hit by ‘Staggering’ Inflows Head for Issuance Freeze (Bloomberg)
11
WE’RE SHARING OUR BLUEPRINT
- LET’S COLLABORATE
WE BELIEVE IN RADICAL TRANSPARENCY
AND AN OPEN SOURCE APPROACH. SO
WE’RE RELEASING OUR IMPACT AND
SFDR TOOLBOX AND WILL CONTINUE TO
SHARE EVERYTHING WE HAVE.
We’ve spent thousands of hours and worked with brilliant people to translate SFDR it into a framework
that works for us and our portfolio companies. By no means are we done; we have a bunch of work left
for 2023 and years to come. But in the next few chapters, we’ll share some of what we’ve learnt, and how
far we’ve come. We hope that by sharing this, it may help someone along the way and create real value
for the impact industry.
1212
IMPACT REGULATIONS
IN BRIEF
13
WHAT’S THE SUSTAINABLE FINANCE DISCLOSURE
REGULATION (SFDR) AND HOW DOES IT WORK?
WHAT IS IT
SFDR aims to improve transparency, prevent greenwashing and
create a common language among Financial Market Participants
around sustainable investing. The idea is that every investor needs
to disclose to what extent they consider sustainability in their
investment decisions, and then report accordingly.
HOW IT WORKS FOR INVESTORS
Each fund needs to disclose whether they are an Article 6, 8, or 9
fund:
↳
↳
Investors can no longer claim
sustainable investments unless
they can prove it.
↳
Norrsken VC
An Article 6 (grey) fund makes no claim of promoting
sustainability in their investment strategy
An Article 8 (light green) fund promotes environmental and
social characteristics
An Article 9 (dark green) fund has sustainable investment as
its core investment objective
This applies to both future and existing funds. Each fund
subsequently needs to make reporting available in a number of
formats, to a number of stakeholders:
↳
↳
↳
on a website or equivalent platform (website disclosures)
to prospective investors, when raising capital (pre-contractual
disclosure)
to existing investors, annual reporting on the Fund’s
performance against its commitment (periodic disclosure),
including a Principle Adverse Impacts Statement,
HOW IT WORKS FOR INVESTEES
SFDR provides an opportunity for companies to qualify as a
‘sustainable investment’ and unlock funding from a growing group
of Article 8 and 9 funds. If you are fundraising, you’ll greatly
increase your chances if you can already at pitch-stage show:
↳
↳
↳
Measurable evidence of your impact contribution, to either
an environmental or social objective
Evidence that your business doesn’t have any adverse
impacts. Be aware of your carbon footprint, and any
unintended social or environmental effects (check the
Principal Adverse Impacts (PAI) indicators)
Evidence of good governance, to demonstrate that you are
running your business in a responsible way.
At Norrsken VC, we consider it our value add as investor to help
each of our portfolio companies qualify as a ‘sustainable
investment’. Although we look for the above in our preinvestment due-diligence, we also provide active portfolio support,
tools and policy templates to help everyone meet requirements
over time.
Our value add to portfolio companies
14
WHAT QUALIFIES AS A ‘SUSTAINABLE INVESTMENT’?
According to EU SFDR’s definition, it is an investment into an economic activity that meets below criteria:
SFDR 2019/2088 Article 2.17
1
3
2
MAKES A CONTRIBUTION
DOES NO SIGNIFICANT HARM
PROMOTES GOOD GOVERNANCE
Either i) demonstrate a contribution to an environmental
or social objective, or ii) contribute towards an
economic activity identified within the EU Taxonomy.
Economic activities cannot significantly harm any other
environmental objective (e.g. waste, water, circular
economy, pollution, etc). This is measured in part by the
Principal Adverse Impacts (PAI) indicators below.
The company must promote good governance, in alignment
with OECD and UN frameworks*.
In particular with respect to sound management structures,
employee relations, remuneration of staff and tax compliance.
TO AN ENVIRONMENTAL OBJECTIVE
e.g. energy, renewable energy, raw materials, water and
land, waste production, GHG emissions, biodiversity,
circular economy.
ENVIRONMENTAL
TO A SOCIAL OBJECTIVE
GHG emissions (scope 1, 2, and 3)
Exposure to companies active in the fossil fuel sector
Share of nonrenewable energy consumption & production
Impact on biodiversity
Emissions to water
Hazardous waste and radioactive waste ratio
e.g. tackling inequality or fostering social cohesion,
social integration and labour relations, human capital or
economically or socially disadvantaged communities
SOCIAL
Good governance violations and compliance mechanisms
(UN Global Compact / OECD MNE)
Unadjusted gender pay gap
Board gender diversity
Exposure to controversial weapons
* OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights
Each of these parts needs to be assessed
separately. Regulation currently offers room
for interpretation, and lacks thresholds to
draw the line between what’s ‘sustainable’
and what’s not. Read on to find our
assessment framework and SFDR toolbox.
15
THE EU TAXONOMY IN BRIEF
WHAT IS IT
HOW DOES IT WORK?
The EU Taxonomy provides companies, investors and policymakers with appropriate definitions for which
economic activities can be considered environmentally sustainable, within the following areas:
A company can be ‘eligible’ within the EU Taxonomy, but needs to meet the technical screening criteria
to be ‘aligned’ and considered a ‘sustainable investment’.
ENVIRONMENTAL
Climate change adaptation
SOCIAL
SOCIAL
ELIGIBLE
We map which investments are ‘eligible’
ALIGNED
We help them meet technical screening criteria to become ‘aligned’
No guidance yet
Climate change mitigation
Pollution prevention*
Circular economy*
Biodiversity*
Water*
REPORT
COMMUNICATE
* As of June 2023, new set of criteria for non-climate related environmental objectives approved in principle within the
Taxonomy Environmental Delegated Act, still subject to approval
We report this data in our LP- and impact reporting
We help our companies communicate and draw benefit
16
OUR IMPACT
TOOLS & METHODS
17
PUTTING IT INTO PRACTICE
NOW THAT WE’VE GONE THROUGH REGULATION, THE NEXT FEW SLIDES SHOW HOW WE
ACTUALLY PUT THIS INTO PRACTICE. FEEL FREE TO USE AND SHARE BROADLY.
OUR IMPACT
DEFINITION
OUR IMPACT ASSESSMENT
FRAMEWORK
HOW WE
INTEGRATE SFDR
Here’s where it all starts, because ultimately this is
what we look for. Since we invest across all 17
SDGs, it’s intentionally vague on themes. But it’s not
vague on ambition: the bar is set high for
transformative potential.
This is how we screen for impact. Now, every case is
different. But these are the categories we look out
for, and the types of questions we seek answers to in
both pre- and post-investment analysis.
And here’s how we integrate the SFDR requirements
naturally within our impact assessment framework. This
is an integral part of how we work, and not an add-on.
18
Where it all starts
OUR IMPACT
DEFINITION
OUR NET IMPACT ASSESSMENT
FRAMEWORK
HOW THE SFDR REQUIREMENTS
INTEGRATE NATURALLY
VISION
We want to solve
some of the world’s
greatest challenges
SFDR PART 1
SEVERITY OF
CHALLENGE
By investing in next
generation
business models
Contributing to an
environmental & social
contribution
IMPACT CORE
TO BUSINESS
SFDR PART 3
Good governance
RESPONSIBLE
ESG OPERATIONS
IMPACT POTENTIAL
And transformative
solutions that are
truly net positive
FIRST, OUR DARK GREEN
IMPACT STRATEGY: HOW
IT’S ALL CONNECTED
SFDR PART 2
Do No Significant Harm
IMPACT & ESG
RISKS
Impact Unicorn potential
EVERY INVESTMENT WE MAKE MEETS
OUR IMPACT DEFINITION, IS
ASSESSED USING OUR IMPACT
ASSESSMENT FRAMEWORK, AND
COMPLIES WITH SFDR TO QUALIFY
AS A ‘SUSTAINABLE INVESTMENT’
Sustainable investment
19
How we screen for impact
OUR IMPACT
DEFINITION
OUR NET IMPACT ASSESSMENT
FRAMEWORK
VISION
We want to solve
some of the world’s
greatest challenges
SEVERITY OF
CHALLENGE
By investing in next
generation
business models
And transformative
solutions that are
truly net positive
IMPACT CORE
TO BUSINESS
QUESTIONS WE MIGHT ASK
●
●
●
●
●
●
What is the company’s vision and does it meet our high ambition for transformative potential?
If this company was to succeed and become an Impact Unicorn, what would the world look like?
Is this a globally recognised challenge (e.g. within SDGs or other global framework)?
What’s the severity / scale of this challenge; can this be quantified?
Does it especially harm already vulnerable or underserved populations?
Would this qualify as having a social or environmental objective under SFDR?
FRAMEWORK
ALIGNMENT
SDG: _____
Other: _____
● Is impact core to business, i.e. it cannot be turned off and have a direct correlation with returns?
● Is it possible to measure and track impact over time?
RESPONSIBLE
ESG OPERATIONS
●
●
Does the company or industry cause negative externalities that need to be mitigated?
Does the company operate responsibly today or with evidenced commitment to do so, with regards to ESG and sustainability?
IMPACT POTENTIAL
●
●
●
What type and magnitude of change will the company generate? (e.g. scale / depth / durability / speed / innovation)
How ‘important’ is this change for the people or planet experiencing it?
Do they bring clear additionality, i.e. if they don’t do this, will the intended outcome happen anyway?
IMPACT & ESG
RISKS
●
●
●
Assess all ESG risks from the analysis and company’s ability to mitigate them?
Are there any adverse impact risks from the business? If the business was to fall in the wrong hands, could it be used wrongfully?
Does the company meet SFDR’s requirements of Do No Significant Harm with no harmful adverse impacts identified through the PAI indicators?
NET IMPACT
ASSESSMENT
WHAT IS THE NET IMPACT OF THIS INVESTMENT?
And what’s needed to keep the risks from materialising? Reflect thoughtfully about the upside potential alongside the downside risks would you consider this a high impact case and why? And how do we handle any risks?
20
OUR IMPACT
DEFINITION
OUR NET IMPACT ASSESSMENT
FRAMEWORK
SCORE
VISION
We want to solve
some of the world’s
greatest challenges
SEVERITY OF
CHALLENGE
By investing in next
generation
business models
AN EXAMPLE FROM OUR PORTFOLIO: 1KOMMA5°
1K5°’s vision is a world where all buildings are fully decarbonised, taking 28% of climate-related GHG emissions out of the equation in
one fell swoop. 1K5° aims to become a one-stop-shop for decarbonising buildings with regards to climate-neutral power generation,
heat and mobility. For a future where our buildings contribute to solving the climate crisis instead of advancing it.
Decarbonising buildings requires effortless, affordable, available and fast adoption of climate technology (such as solar, storage,
heat pumps & charging). However, the “last mile” of installation for these solutions is one of the key bottlenecks as the already
scarce workbench (specialised sales, service and electrician companies) struggle with the simultaneous electrification of
mobility and heat, phase-out of fossil fuels and nuclear in the electricity market, certification requirements, new software layers
and operational complexity. In short; we have the technology, but we do not have the hands to install it.
FRAMEWORK
ALIGNMENT
SDG: 7, 11, 13
Other: _____
IMPACT CORE
TO BUSINESS
Impact is core to 1K5°’s business model. As they grow their business, impact will grow proportionately and measurably. 28% of all climate-related GHG
emissions come from our buildings; one of the largest levers we can pull to mitigate further climate damages hits close to our homes. With every building
1K5° helps to decarbonise, we are reducing one of the largest pieces of the carbon-emission pie.
RESPONSIBLE
ESG OPERATIONS
1K5 is committed to assure a transparent and traceable value proposition to all their users and stakeholders; by standardizing underlying processes, they
not only assure the highest level of quality control and assurance - they also advance industry standards that others players can be held accountable to.
IMPACT POTENTIAL
And transformative
solutions that are
truly net positive
OUR ANALYSIS
IMPACT & ESG
RISKS
NET IMPACT
ASSESSMENT
1K5°’s goal is to decarbonise 500K buildings per year by 2030; saving over 250 megatons of CO2 until 2030 and over 1,000 megatons in cumulated
lifetime impact until 2040. They can play a huge role in accelerating the household transition to green energy. Their cumulative target effort would
account for 7% of all global building-related GHG emissions, or 2% of total global GHG emissions!
Summary of assessment: Risks inherent to the renewable energy and installation-heavy industries are relevant to 1K5 as well, but these are being
actively mitigated as they scale through responsible business operations. Key considerations include responsible supply chain management, ecological
impacts, and health & safety. Decarbonising homes is less intrusive to the natural environment than larger infrastructural projects. Energy generated by
panels over the lifetime far outweigh the energy production cost, resulting in net GHG reduction. Small amounts of waste, which can be mitigated with
appropriate waste management and recycling.
1K5 brings unique Impact Unicorn potential, solving one of the biggest challenges of our time, with a scalable
and affordable solution that enables every household to join our race to net zero. Risks are important but not
material, and will be addressed by meeting EU Taxonomy criteria.
Outstanding
✓ Good
? Questionmark
Intentionally not numerical. This isn’t about generating a numerical average,
but rather about driving fruitful discussion in the Investment Committee.
21
HOW WE MEET SFDR REQUIREMENTS
PRINCIPLES FOR HOW WE WORK
THE SFDR FRAMEWORK
TOOLS AND TEMPLATES
Find all of our investment resources on our website: www.norrsken.vc/impact-investing
Data is key, but so is being founder friendly. We’ve
had to define principles for how we marry the two:
↳
↳
Respect our portfolio companies’ time. If we
ask for anything, we provide support through
templates, advisory support or webinars so that
they’re not left on their own. The true impact
comes when they spend time growing their
business, not reporting to us.
Perfection is not the end goal. There’s a fine
line to be struck when we ask our portfolio
companies for data. We ensure that every piece
of data that we ask for is important, and don’t
optimise for every scenario.
↳
Simplify - to raise awareness and build
capability. In the process of understanding
regulation ourselves, we want to educate our
portfolio as well and provide them with simple,
actionable guidance that truly drive action.
↳
Full transparency. It doesn’t make financial
sense (nor does our planet have the time!) for
everyone to spend the time and money that we
have trying to navigate the same regulation.
We’d rather share what we have and find those
willing to collaborate with us!
SFDR PART 1
Each investment must either
i) demonstrate their contribution to an
environmental or a social objective, or
ii) meet EU Taxonomy criteria for their
economic activity
SFDR PART 3
Each investment must promote good
governance in alignment with OECD and
UN frameworks*
SFDR PART 2
Each investment cannot significantly
harm any other environmental or social
objective (e.g. waste, water, circular
economy, pollution, etc)
Sustainable investment
* OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights
EACH PART NEEDS TO BE
ASSESSED SEPARATELY,
SO WE’VE DEFINED AN
SFDR ASSESSMENT
FRAMEWORK AND A
NUMBER OF TOOLS FOR
EACH PART, ALL
AVAILABLE ON OUR
WEBSITE.
SFDR PART 1
Impact Assessment Framework
Impact Workshop material
(incl. Theory of Change & Impact KPI)
SFDR PART 3
Sustainability policy template
Human Rights & Corruption Due
Diligence Tool
SFDR PART 2
Sustainability questionnaire
Physical climate risk assessment
We support our SFDR compliance efforts with the use of
third party validation through a sustainability data platform
and an esteemed list of legal and regulatory advisors.
22
IMPACT & SFDR INTEGRATED THROUGH
THE INVESTMENT PROCESS
SFDR criteria
PART 1
Makes a
contribution
PART 2
Does No
Significant Harm
PART 3
Promotes good
governance
DEAL
SCREENING
Impact screening of the
company and its vision,
against the SDGs and our
Impact Definition
Review against excluded
sectors in Responsible
Investments Policy
DUE
DILIGENCE
DEAL
STRUCTURING
INVESTMENT
MANAGEMENT
EXIT
Impact assessment, using our impact
framework, incl. external validation
Finalise Impact KPIs and set
targets, for approval by
Advisory Committee
Quarterly & annual reporting
against Impact KPIs and
other ESG metrics
Team remuneration linked to
performance against Impact
KPIs:
Impact workshop, to define their
Theory of Change and Impact KPIs
Commitment of quarterly
reporting against Impact KPIs
Impact & ESG risk
assessment, incl. external
validation
Risk & mitigation measures in
side letter to Investment
Agreement
Companies complete
sustainability questionnaire
(incl. PAI indicators)
Commitment to report annually
on ESG risks, mitigations and
incidents occurred
Governance review in ESG
risk assessment
Commitment to adopt
sustainability policy (or
equivalent) and uphold good
governance standards
Portfolio support to upskill on
Impact & ESG
20% carried interest above a
1.25x preferred return subject to
achieving at least 60% of the
impact targets
Risk and vulnerability
assessments to meet SFDR &
EU Taxonomy requirements
Annual ESG and PAI reporting
Portfolio support to identify
and mitigate adverse risks
Annual good governance
monitoring and portfolio support
Annual review of our own
Responsible Investment Policy
23
IMPACT TARGETS ARE LINKED TO
TEAM REMUNERATION
No carried interest paid out to team
unless impact targets achieved to at least 60%
(instead carry is transferred to a
third party foundation/NGO/social enterprise)
20% (maximum) carried
interest paid if impact targets
achieved to at least 80%
120%
25%
100%
20%
80%
15%
60%
10%
40%
5%
20%
0%
0%
IMPACT TARGET ACHIEVEMENT
% CARRIED INTEREST
24
IMPACT ACHIEVED
DURING 2022
25
39 ACTIVE INVESTMENTS GENERATING SIZEABLE,
MEASURABLE IMPACT
SUSTAINABILITY DATA & TRANSPARENCY
ENERGY EFFICIENCY & TRANSFORMATION
20%
9.1M tonnes GHG
746M tonnes CO2
tonnes CO2
GWh
1340 MW
R&D under development
Under development
average reduction in
carbon footprint among
users of platform, as of
Dec 2022.
emissions tracked
by the platform.
rated through the
platform, enabling market
participants to make
better net zero decisions.
compensated for annually
through Ceezer’s platform.
accum. electricity
savings (p.a.) from
energy efficient data
centres, as of Dec 2022.
in solar power
development portfolio to
accelerate the energy
transition, as of Dec 2022.
demonstrate Magnetised
Target Fusion technology to
commercialise by the 2030s.
# GWh made
available to the grid.
136 brand buyers & suppliers
25 cities
29K companies
0.86 megatonnes CO2
R&D under development
Under development
sourcing sustainable materials
through the platform, as of Dec 2022.
gaining impact
intelligence on the
platform, as of Dec 2022.
supply chain participants on the
platform gaining improved transparency
and sustainability data, as of Dec 2022.
reduced by providing a one-stop-shop
for home decarbonising buildings with
regard to climate-neutral power
generation, heat and mobility.
build a carbon-free, safe and
price-competitive fusion reactor.
Cloud Services and Data Centers with minimal
carbon footprint, high data integrity, measured
through enhanced Power Usage Effectiveness.
SUSTAINABLE FOOD SYSTEMS
38K tonnes
of food ‘saved’ which would
otherwise be at risk of being wasted
during 2022 (consolidated).
ELECTRIFICATION
35 tonnes
4 R&D milestones
4.2 tonnes
690 tonnes CO2
439 planes
Under construction
# kWh
of food waste ‘reduced’
compared to traditional
wholesale during 2022.
reached to commercialise
cell grown fish.
of plant-based cheese
sold during 2022.
reduced, by replacing
diesel trucks with
electric vehicles.
prospective electric aircraft
orders, including LOIs and
options, accum. as of Dec 2022.
Installed yearly battery
production capacity (GWh.)
accum. battery capacity
(kWh) connected to
Nortical’s software.
Note: This overview excludes KPIs where the information is deemed commercially sensitive.
26
39 ACTIVE INVESTMENTS GENERATING SIZEABLE,
MEASURABLE IMPACT
RESPONSIBLE CONSUMPTION
HEALTHCARE & WELLBEING
210 patients
243K employees
2M patients cases
222 patients
133K items
10.7M litres
115 tonnes CO2
with rheumatic disease
enrolled in a Randomised
Control Trial to improve
wellbeing.
using software to improve work
well-being, as of Dec 2022.
based on digitised patient
journeys during 2022.
enrolled in clinical study to
advance cancer detection,
accum. as of Dec 2022.
borrowed (rather than
bought) on the
platform during 2022.
of water ‘saved’ through
more sustainable car
washes during 2022.
avoided due to use of zero emission
last mile delivery during 2022.
# therapies
22K lives
3K users
tested in the perfusion model,
to advance solutions to
chronic liver disease.
currently suffering from
chronic health conditions
impacted through download
of Juli app.
getting mental health
support through app.
EDUCATION
SUSTAINABLE FARMING
SUSTAINABLE FINANCE
132K students
147K workers
350M weather forecasts
€ investments
elevating learning with intelligent
textbooks, as of Dec 2022.
trained on human rights, ethical
employment, workplace policies
and more during 2022.
generated (with higher accuracy than traditional
weather forecasts), as of Dec 2022.
enabled for private individuals, and companies
(incl employer benefit programs) to invest in
assets that promote sustainable criteria.
Note: This overview excludes KPIs where the information is deemed commercially sensitive.
27
182% OF THE 2022 TARGET REACHED, TRACKING AT
39% VS LONG TERM TARGETS*
IMPACT ACHIEVED VS. 2022 TARGET
IMPACT ACHIEVED VS. LONG-TERM TARGET
(aggregated)
(aggregated)
150%
100%
100%
50%
50%
0%
182%
Impact achieved vs. target
In 2022, we reached 182% of our annual impact
goals, greatly exceeding our target. This is despite
the ambitious targets that all our portfolio companies
set. We are super proud of them all and their
achievement!
0%
39%
39%
Impact achieved vs. target
On the long-term goals, we are glad to already be
tracking at 39% against our long-term target. We are
still early on in our Fund cycle, and continue to expect
exponential growth in the years to come. It’s safe to say
that the next few years will be exciting!
*All figures are from our first fund: NVC Fund 1. Only 1 investment has been made in 2022 for NVC Fund 2.
Note: Aggregated impact targets above only include companies invested out of Fund II and cross-over investments and are weighted based on invested capital.
While being super proud of our portfolio companies and their
achievement this year, we’re mindful that this will be a bumpy ride.
Setting impact targets is not an exact science. It’s difficult for early
stage companies to predict their impact journey. We’re excited to
continuously learn and improve our methodology, while helping our
portfolio exceed expectations!
28
ALL INVESTMENTS MEET OUR SUSTAINABLE
INVESTMENT OBJECTIVE, AND VAST MAJORITY MADE
WITHIN HIGH IMPACT SECTORS IDENTIFIED BY EU
SFDR
Both Fund 1 and 2 have met their sustainable investment objectives, and all investments have
been reviewed against our SFDR Assessment framework. This takes into account that our Fund
has made investments both before and after SFDR was enforced, with varying degrees of
influence and information rights.
EU TAXONOMY
We are super proud that 58% of the Fund’s investment value derives from environmental
investments operating in high impact activities identified within the EU Taxonomy. 25% are already
aligned and the remaining are well on track.
And we’re moving quickly: just in 2022, we made 9 investments of which 5 operate within scope of
the EU Taxonomy and 4 are already aligned with the EU Taxonomy criteria.
EU Taxonomy aligned economic activities
↳
↳
↳
↳
↳
3.4 - Manufacture of batteries
3.6 - Manufacture of other low carbon technologies
4.1 - Electricity generation using solar photovoltaic technology
8.1 - Data processing, hosting and related activities
8.2 - Data-driven solutions for GHG emissions reductions
29
A NET ZERO VALUE CHAIN GENERALLY COMPRISES THREE STEPS:
LET’S DIVE INTO THE PORTFOLIO. MANY OF OUR INVESTMENTS ARE WORKING
TOWARDS CREATING A NET ZERO VALUE CHAIN AND THIS WAS TRUE FOR
SOME OF OUR 2022 INVESTMENTS AS WELL.
MEASURE
We need to start measuring our emissions, to establish a baseline and
track our progress over time. Because what doesn’t get measured
doesn’t get done.
REDUCE
Reduction is the most important part to get to net-zero, and also where
the lion’s share of our impact portfolio is. This is about actively avoiding
and reducing emissions, improving operational resource efficiency, and
introducing new technology. This includes decarbonisation,
electrification, green energy transition and carbon capture.
OFFSET
But we cannot get all the way to net-zero without offsets. Offsets have
an important role to play in neutralising unavoidable emissions - but
let’s be clear: these should never substitute reduction. To reach the 1.5
degree target, the offsetting industry needs more transparency, quality
and accountability.
30
DEEPDIVE 1: MEASURING OUR FOOTPRINT AS A STARTING POINT FOR REDUCTION AND COMPENSATION
CHALLENGE
SOLUTIONS
To reach the 1.5-degree target, global GHG emissions need to
be cut by 50 percent of current levels by 2030, and to net zero
by 2050. Nearly 200 countries have endorsed the global goal
set out in the Paris Agreement, and more companies are
aligning themselves with this agenda. However, in order to
know whether we are on track to achieve this or not, we need
to get a clear handle of our emissions and how this changes
over time. This boils down to what data we have.
Carbon accounting provides such a structured framework
for organizations to measure, track, and report their
greenhouse gas (GHG) emissions, enabling more informed
decision-making and meaningful action towards achieving
sustainability goals.
Cutting emissions requires us to make well-informed,
forward-looking and sometimes tough decisions. We need
sustainability data to unveil our main contributors to emissions,
help us drive action and tell us if we’re on track.
However, sustainability data is challenging for many reasons:
↳
↳
↳
↳
↳
↳
It’s hard to define appropriate metrics for each industry
and company. There’s no one-size-fits-all approach.
Data often needs to be collected from multiple sources,
rendering comparability and aggregation difficult.
Tracking progress over time is like aiming at multiple
moving targets while still figuring out which target is most
relevant.
Data collection is can be difficult and time-consuming
It’s prone to human error and manipulation, if more
favorable data points are highlighted over others.
Even with high quality data, we may instead find
ourselves with data overload or struggle to turn data into
actionable next steps.
By gathering carbon data, companies and individuals can
gain a holistic understanding of their emissions footprint.
This includes identifying emission sources, assessing their
impact, and setting reduction targets aligned with global
climate goals. Moreover, carbon accounting facilitates the
comparison of emissions data across organizations and
industries, promoting transparency and accountability.
THEMATIC INVESTMENTS MADE DURING 2022
An app that provides practical
guidance for spending sustainably.
In the app, tens of thousands of
users are tracking, reducing, and
offsetting the emissions of things
they buy.
However, carbon accounting on its own won’t drive the
action and behavioural change that our planet needs. We
need solutions that combine high quality data with an
understanding of how organisations and individuals work.
Platforms that enable data collection, aggregation,
reporting and analysis. Solutions that enable crosslearning, and incentivise the mindset shift needed to drive
behavioural change that sticks. And this year, we’ve made
two such investments: in Commons and Altruistiq.
IMPACT KPIs TO BE MEASURED
10%
of companies measured their GHG comprehensively in 2022*
~28%
Number of users
average error rate in company GHG emissions measurements**
As we strive to strike a balance between urgency and
accuracy, we need solutions based on robust and trustworthy
data that help us understand the complexities of emissions and
our environmental impact and help us define tangible actions.
An emissions data management
solution that automates data
measurement and management with
accuracy, granularity and ease.The
platform ingests data at scale,
allowing company-wide emission
measurement across scopes, and
enables data segmentation and
analysis to set SBTI-aligned targets
and model decarbonisation scenarios.
>80%
of companies’ overall climate impact comes from Scope 3
GHGs, which are hardest to accurately measure today***
* Only 10% of Companies Measured Their Greenhouse Gas Emissions Comprehensively in 2022 vs. 9% in 2021 (BCG)
** ^^ (BCG)
*** Making supply-chain decarbonization happen (McKinsey)
$ invested in carbon
compensation through net
zero subscriptions
Tonnes of GHG emissions
tracked by the platform
Accumulated tonnes of GHG
emissions reduced since adoption
of the platform
31
DEEPDIVE 2: OFFSETTING ANY UNAVOIDABLE EMISSIONS THROUGH THE VOLUNTARY CARBON MARKET
CHALLENGE
SOLUTIONS
Many companies have started to pledge net zero ambitions, and
these are critical to reach the 1.5-degree target. However, these
are often challenging and prohibitively expensive, and
companies struggle to eliminate or reduce emissions as quickly
as they’d like. For some industries, some emissions are simply
unavoidable.
Carbon offsetting is essential to tackling climate change. In
a net zero economy, adding carbon dioxide (or any other
greenhouse gas) to the atmosphere will only be allowed if
an equivalent amount of greenhouse gas is removed from it.
To achieve this, offsets will be an important part of the plan,
and these need to include genuine negative emissions.
Therefore, the emission-reduction pathway to 1.5 degree
warming target requires ‘negative emissions’, i.e. removal of
GHG emissions from the atmosphere. Here’s where carbon
credits come in, as one way for companies to address
unavoidable emissions. A voluntary carbon credit represents 1
CO2 equivalent tonne being prevented/removed from the
atmosphere through carbon reduction projects, as supplied by
project developers in e.g. avoided nature loss (incl.
deforestation); nature-based sequestration ( e.g. reforestation),
avoidance or reduction of emissions (e.g. methane from landfills)
and tech-based removal (e.g. carbon capture). As efforts to
decarbonise the global economy ramp up, global demand for
voluntary carbon credits could increase by a factor of 15 by
2030 and 100 by 2050, according to McKinsey*.
To achieve this, we need to incentivise the creation of more
high quality carbon projects around the world and improve
transparency and comparability to ensure that capital is
deployed in the most efficient carbon solutions. This will
give credible suppliers more confidence to develop their
projects, and attract more financing from investors and
lenders.
However, concerns about the integrity of the voluntary carbon
market inhibit its growth in several ways. Even with the best
inventions, the lack of standardisation has made comparability
difficult, creating a risk of capital not being deployed effectively
or even getting invested in fraudulent projects. There’s also an
apparent risk of greenwashing, if companies choose to invest in
cheap and poor quality projects rather than cut emissions.
Consequently, suppliers of high quality projects may lack
confidence to scale their projects, and investors may shy away
from investing the needed capital.
We’ve made two investments that are directly advancing
such solutions. BeZero provides a platform for data,
analytics and ratings for all types of voluntary carbon
credits, to enhance transparency and comparability. Their
proprietary data is collected and maintained using satellites,
machine learning and in-house ecologists. Ceezer enables
companies to build portfolios of high quality carbon
projects, improving access to projects, building demand
for projects that also incentivises the build-up of supply.
THEMATIC INVESTMENTS MADE DURING 2022
The world’s largest provider of
ratings-based risk analysis. Its
technology, ratings and research
enable market participants to
make better net zero decisions
and are critical to the development
of the Voluntary Carbon Market.
Builds a SaaS enabled marketplace
to simplify carbon credit transaction
and portfolio management for both
buyers and sellers.
IMPACT KPIs TO BE MEASURED
~160 MtCO2e
equivalent carbon credits issued in 2020**
2.0 GtCO2
demand for carbon credits by 2030***
No of paying users and
trialistis
Number of customers
Tonnes of CO2 compensated for
Tonnes of CO2 rated
$2 billion
value of the voluntary carbon market in 2021****
* How the voluntary carbon market can help address climate change (McKinsey)
** ^^ (McKinsey)
*** A blueprint for scaling voluntary carbon markets to meet the climate challenge (McKinsey)
**** The Voluntary Carbon Market Is Thriving (BCG)
32
OUR
ESG FOOTPRINT
33
UNDERSTANDING OUR SUSTAINABILITY RISKS IS KEY
MANY OF OUR PORTFOLIO COMPANIES
WILL BECOME IMPACT UNICORNS. THIS
MEANS THEY’LL REACH SCALE QUICKLY.
NOW, RAPID SCALE DOESN’T HAVE TO
COME AT THE EXPENSE OF THE PLANET
OR PEOPLE. ALONGSIDE HELPING OUR
PORTFOLIO COMPANIES TO MAXIMISE
THEIR UPSIDE IMPACT POTENTIAL, WE ARE
WORKING ACTIVELY TO HELP THEM
MANAGE DOWNSIDE SUSTAINABILITY
RISKS AND ENSURE THAT THEIR BUSINESS
OPERATIONS ARE RUN RESPONSIBLY.
ENVIRONMENTAL
SOCIAL
e.g. CO2, waste, water,
biodiversity, renewable energy
consumption & more
e.g. job creation, diversity &
inclusion, gender pay gap,
employee engagement
GOVERNANCE
e.g. sustainability policies, ESG
risks mitigation, ESG incidents
occurred
We do this by asking our portfolio companies for data, but also by working actively with them to get to
know their challenges and the risks they face. SFDR’s Principal Adverse Impacts (PAI) indicators have
required us to expand our data collection. In respect of the time our portfolio companies spent on
compiling this information for us, we will use this data responsibly to better target our ESG support.
34
OUR PORTFOLIO’S ENVIRONMENTAL FOOTPRINT
WHAT WE’VE DONE
OUR PORTFOLIO FOOTPRINT IN NUMBERS
2022 has been a year of firsts. The first time that funds are reporting against EU’s Principal Adverse
Impacts (PAI) indicators. The first time that many companies are starting to collect this data. Milestone!
But data is tricky, especially for scope 1, 2 and 3 emissions. We quickly realised that many of our
portfolio companies valued hands-on support to gather this data. We engaged a third party expert to
provide carbon accounting training to all, and offered webinars, FAQ sessions, and direct support to any
companies that requested it. We also provided a CO2 emissions calculator through our sustainability
data platform.
ABSOLUTE
PORTFOLIO CO2
EMISSIONS
Scope 1
weighted by ownership
tCO2e
Scope 2
~ 56
Scope 3
~ 400
~ 1946
tCO2e
tCO2e
WHAT THE DATA TELLS US
We now have a baseline of our portfolio total carbon footprint, as weighted by ownership - yey! It’s
not perfect: our reporting is only as good as our data, and we know that our portfolio companies are still
learning. Also, what it does not tell us is our portfolio’s net effect, since most of our investments drive
significant reductions.
Total footprint
~ 2402 tCO2e
Interestingly, we now have two KPIs to benchmark our footprint against our peers:
↳
↳
Our carbon footprint, reflecting tonnes of CO2e per MEUR invested.
Our GHG intensity, reflecting tonnes of CO2e per MEUR revenue in our portfolio. As many of our
investments are still pre-revenue or with low revenue, the emissions per revenue ratio looks very high. In
our view, this KPI needs to be treated with caution for early stage funds, and will increase in relevance as
our companies mature. To increase its representation this year, we’ve excluded any companies that are
pre-revenue and/or didn’t report CO2 emissions.
Carbon footprint
RELATIVE CO2
RELATED
INDICATORS
ghg intensity
21.39
(tCO2e / mEUR invested)
850
(tCO2e per mEUR revenue)
PRIO FOR NEXT YEAR
Now that many companies have started to track their emissions, we aim to support them to define
reduction plans and improve governance of climate-related issues. Only 20% of our portfolio currently
have targets in line with the Paris declaration. While understandable, given the early stage nature of most
of our companies, we believe this is an area where we can add value.
We’re also eager to better understand the net CO2 effect of our portfolio, weighing CO2 emitted against
CO2 avoided/reduced, to truly understand our impact. To be continued and we’d love to learn from our
peers or experts in the industry!
Board-level
oversight
CLIMATE-RELATED
ISSUE TRACKING
& OVERSIGHT
~ 67%
Governance
Defined accountability
in management
~ 67%
Accountability
Defined CO2 targets &
track results
~ 44%
Monitoring
35
GENDER DIVERSITY IN OUR PORTFOLIO
We know that diversity in all forms is a source for superior returns. That’s why we’re
glad to see a 41% increase in women in leadership positions across our portfolio in
2022, and evidence that we outperform industry averages when it comes to gender
pay gap, representation of female founders in our portfolio and Boards represented
by at least one woman.
# of Women in Leadership Positions in our Portfolio Companies, an
increase of 41% since last year
But we’re not satisfied. The share of female employees within our portfolio is
trending downwards, and despite progress made, women are still greatly
underrepresented as founders, in leadership and Boards. We support our
portfolio in a number of ways, from identifying women to Board seats to
encouraging diverse hiring. But diversity goes beyond just gender, and in 2023,
we’ll provide more targeted support to build D&I capability across the portfolio.
7037
(up by 89% from 2021)
TOTAL PORTFOLIO
EMPLOYMENT IN 2022
Team Percentages of Total Portfolio
Mixed-Gender Founding Teams
All-Female Founding Teams
Women in leadership
positions in companies
we invested in 2022
Q4 2021
All-Male Founding Team
Women recruited/
promoted to leadership
positions in portfolio 2022
(up by 61% from 2021)
Q4 2022
NEW JOBS
CREATED IN 2022
7.5%
50/50
gender split across all
comparable positions
70%
80%
(55% avg. in Europe****)
Portfolio Gender Pay-Gap (Startup Ecosystem Averages)
We’re acutely aware that women
are more likely to invest in
women. That’s why we walk the
talk ourselves and have built our
organisation around equal
opportunities and transparency.
2835
22.5%
The European average for
mixed-gendered founding teams
came out as 18.7%, compared to
Norrsken VC’s 22.5%. For
all-female teams, Norrsken VC’s
7.5% average also superseded the
European 5.2% average***.
AT NORRSKEN VC,
WE WALK THE TALK
50%
gender split in GPs
BOARDS HAVE AT LEAST
ONE WOMAN IN 2022
YES
NOT YET
NO
0%
COMPANIES WITH
D&I POLICIES
COMPANIES WITH
ANTI-DISCRIMINATION &
ANTI-HARASSMENT POLICIES
UK*
Europe**
Norrsken VC
* Is there a gender pay gap in startups? (HROS)
** Women make 23% less than men at Europe’s startups. How do we fix that? (Sifted)
*** European VC female founders dashboard (Pitchbook)
**** 2023 Research and Trends: Turning Intention into Action (ESG_VC))
COMPANIES MONITORING
EMPLOYEE SATISFACTION
30%
gender pay gap, with equal
salary bands across all roles
(32% ‘21, 33% ‘20)
EMPLOYEES IDENTIFY AS
WOMEN IN 2022
36
OUR PORTFOLIO’S GOVERNANCE RESPONSIBILITY
While we invest to generate positive effects for people and planet, we also want to make sure that our portfolio companies define, mitigate
and track potential impact risks. These aspects are an important part of our due diligence and is tracked on an annual basis post investment.
Number of portfolio companies which, as of 31 Dec 2022, have:
OPTIMISING FOR POSITIVE EFFECT
MANAGING ENVIRONMENTAL, SOCIETAL AND GOVERNANCE (ESG) RISKS
Not yet reported*
Not yet reported*
Yes
Ongoing
3
Not yet reported*
Defined
impact KPIs
Reviewed and
identified ESG
risks
Ongoing
Relevant
sustainability
policies in
place
Occurence
of ESG
incidents
during 2022
Yes
No
39
Yes
Yes
We continue to work with the companies that have “ongoing” ESG management efforts. The companies
that have not reported include some of our earliest investments where we have fewer information rights.
↳
↳
Five companies with ESG incidents
during 2022, with the related risks
closely monitored and managed to
ensure a continuous adoption of the
companies’ applicable standards
No incidents regarding governance
* Companies that have not yet reported either belong to the seed/moonshot portfolio, are early investments made from our first fund where we have more limited reporting requirements, or investments where we have limited information rights.
37
AND, THAT’S IT!
MEET OUR COMMITTED
TEAM THAT’S BROUGHT
US THIS FAR.
TOVE
LARSSON
AGATE
FREIMANE
NIKLAS
ADALBERTH
DAVID
FRYKMAN
DENICE
CARBELL
General Partner
General Partner
General Partner
General Partner
CFO
TOVE
LILLIESTIERNA
Thanks for reading our 2022 Impact Report.
Get in touch if you have any questions or
would like to collaborate.
FABIAN
ERICI
BEATA
ENWALL
CHRISTIAN ZU
JEDDELOH
ALEXANDER
DANIELSSON
Senior Investment
Manager
Analyst
Analyst
Investment Director
AGNES
SVENSSON
LUKE
RICHARDSON
Chief Impact Officer
Chief Marketing
Officer
Senior Investment
Manager
REBECCA
PANTZER
Executive Assistant
info@norrsken.vc
38
ANNEX
39
ANNEX I: NORRSKEN VC PRINCIPAL ADVERSE IMPACTS STATEMENT 2022
ENVIRONMENT AND CLIMATE INDICATORS
1
GHG Emissions
ADDITIONAL PAI INDICATORS
Scope 1
56
t CO2e
Scope 2
400
t CO2e
Scope 3
1946
t CO2e
Total
2402
t CO2e
Environ
mental
Investments in companies
without carbon emissions
reduction initiatives
80
%
Social
Lack of a supplier code of
conduct
39
%
2
Carbon footprint
Carbon footprint
21
t CO2e / EUR
million
3
GHG intensity of investee companies
GHG intensity of investee companies (expressed as a weighted average)
850
t CO2e / EUR
million revenue
4
Exposure to companies active in the fossil fuel sector
Share of investments in companies active in the fossil fuel sector
0
%
5
Share of non-renewable energy consumption and production
Share of non-renewable energy consumption and non renewable energy production of investee companies
42
%
6
Energy consumption intensity per high impact climate sector
Energy consumption in GWh per million EUR or revenue of investee companies, per high impact climate sector
(see details in box)
6. Energy consumption intensity per high impact
climate sector (all values in GWh / million EUR revenue)
7
Activities negatively affecting biodiversity-sensitive areas
Share of investments in investee companies with sites/operations located in or near to biodiversity-sensitive
areas where activities of those investee companies negatively affect those areas
0
%
Manufacturing
1.14
8
Emissions to water
Tonnes of emissions to water generated by investee companies per million EUR invested, expressed as a
weighted average
0,17
tonnes
Transporting and storage
0,36
9
Hazardous waste and radioactive waste ratio
Tonnes of hazardous waste and radioactive waste generated by investee companies per million EUR invested,
expressed as a weighted average
0,04
tonnes
SOCIAL INDICATORS
10
Violations of UN Global Compact principles and Organisation for
Economic Cooperation and Development (OECD) Guidelines for
Multinational Enterprises
Share of investments in investee companies that have been involved in violations of the UNGC principles or
OECD Guidelines for Multinational Enterprises
0
%
11
Lack of processes and compliance mechanisms to monitor
compliance with UN Global Compact principles and OECD
Guidelines for Multinational Enterprises
Share of investments in investee companies without policies to monitor compliance with the UNGC principles
or OECD Guidelines for Multinational Enterprises or grievance/complaints handling mechanisms to address
violations of the UNGC principle or OECD Guidelines for Multinational Enterprises
40
%
12
Unadjusted gender pay gap
Average unadjusted gender pay gap of investee companies
7
%
13
Board gender diversity
Average ratio of female to male board members in investee companies, expressed as a percentage of all board
members
25
% female
identifying
14
Exposure to controversial weapons (anti-personnel mines,
cluster munitions, chemical weapons and biological weapons)
Share of investments in investee companies involved in the manufacture of selling of controversial weapons
0
%
40
NORRSKEN VC
IMPACT REPORT 2022
41