What if every startup that searches for growth capital would be encouraged to take their environmental impact into account from day one? Together with leading VCs, we made that happen.
Together with our members from the Venture Capital industry, we came up with the idea to integrate our Green Pledge into something that we called “The Sustainability Clause”. A clause that becomes a standard for every term sheet & SHA of leading venture capital firms and that commits all VC-funded companies towards more climate protection.
A sustainable orientation from the very beginning will have a decisive influence on our common chance to get the climate crisis under control.
Martin Weber, Partner at Holtzbrinck
The clause will be integrated into both term sheets and shareholder agreements. As a result, companies will commit themselves to measuring their CO₂ emissions and working on reduction measures. These include, for example, the adjustment of travel guidelines or the switch to a green electricity provider. In addition, offsetting emissions by investing the equivalent amount in a climate protection project will be part of the budget planning.
In December 2019, the first agreements with the implemented sustainability clause were signed. Awareness of the issue regarding climate protection and CO₂ emissions is essential if continuous economic activity is to go hand in hand with sustainability.