Our Potential Impact
The metrics that investors typically use to evaluate (and help improve) environmental impact often don’t make much sense to us. It is not that they are wrong. It is that they are relevant for established large companies, trying to reduce their existing environmental footprints. We invest in exciting young growth companies whose products are services that have the potential to make a huge difference. We evaluate potential, and then help make it happen.
When we last evaluated our portfolio companies, on aggregate we estimated (if adopted globally) they have the potential to reduce:
- Over 466 million tonnes of carbon dioxide (CO2e) – the annual footprint of 55 million Europeans
- Over 4 million tonnes of acid rain (SO2e) – the annual footprint of 158 million Europeans
- Over 700, 000 tonnes of hazardous waste – the annual output of 5 million Europeans
So, our methodology is to evaluate potential. Actually, it’s our close connection to sustainability that both sets us apart and drives financial returns – because we can see opportunities that others may miss or just undervalue. The sheer scale of potential for sustainability through innovation is in fact huge. There is no compromising of financial returns, this is about commercial opportunity to deliver what is needed. We have supported companies converting softwood to hardwood, making metal in a revolutionary low-energy manner, providing cyber-security to enable smart grids, and many others. It is not exactly what you would call ‘clean-tech’’ or ‘renewables’ – it is what we call ‘sustainability through innovation’.
We are extremely excited about the prospects of our companies. Of course no methodology is perfect, and we are always seeking to refine and improve it. If you wish to learn more, please get in touch.