A group of 23 venture capital firms, the Venture Climate Alliance (VCA), was formally established last week to promote aggressive climate action that will end corporate carbon emissions.
Energy Impact Partners, Prelude Ventures, Capricorn Investment Group, DCVC, Tiger Global, Galvanise Climate Solutions, S2G Ventures, Union Square Ventures, World Fund, 2150, and other well-known climate impact-focused VC companies are among the members of the Venture Climate Alliance. The enterprises involved in the cooperation have $62.3 billion in assets in total.
The project intends to assist early-stage climate tech businesses that reduce emissions from Scopes 1, 2, and 3 while scaling sustainably at a rate that will help corporations achieve net zero emissions.
The VCA adheres to four promises to fulfill its mission: commit, recruit, help, and track. Before committing to the VCA, a VC must conduct an internal inventory of its Scope 1-3 emissions for greenhouse gas emissions and commit to achieving net zero or negative emissions by 2030. For gathering, analyzing, and reporting data on climate impact, the VC must adhere to a set of standard best practices.
The VC’s second phase is to give its portfolio of hired companies the resources and assistance they need to achieve net zero by 2050 or before. Once a portfolio company sets a net zero target, the VCA will help it accomplish this. It intends to carry out its responsibilities as an adviser and shareholder and offer assistance in handling various external repercussions, such as changes in policy.
VCA and its portfolio’s progress towards net-zero will also be monitored and shared. VCA clarifies that “detailed company-by-company emissions data” may not always be available and that a third party will assess the firm’s progress toward its objective.