In the dynamic venture capital (VC) space, success is measured not just in monetary returns, but also the sustainable growth and resilience of invested startups. Here, Environmental, Social, and Governance (ESG) factors influence long-term value creation. As VCs explore strategic approaches, Fuller Academy collaborated with Malaysia Venture Capital Management Berhad (MAVCAP) to provide a comprehensive VC ESG Toolkit.
The ESG Landscape in Venture Capital
ESG isn’t just a buzzword; it enables risk mitigation, reputation protection and regulatory compliance. ESG factors stand shoulder to shoulder with market opportunities, business models, teams, and products. Venture capitalists recognize that understanding a startup’s strengths and weaknesses in ESG adoption is crucial for strategic decision-making.
The VC ESG Toolkit, co-developed with Fuller Academy, exemplifies MAVCAP’s commitment to informed investments. This toolkit provides exclusive access, empowering venture capitalists with screening, analysis, and decision-making tools.
Let’s explore the contents of the toolkit below,
Screening & Analysis: ESG Readiness Profiling and Exposure
– Startup ESG Readiness Profiling: Assess a startup’s preparedness for ESG integration.
– Startup ESG Issues Exposure: Identify potential ESG challenges and vulnerabilities.
Decision Making: Health Check and Recommendations
– Startup Health Check: Evaluate the overall health of a startup concerning ESG.
– Recommendations: Receive actionable insights for strategic ESG improvements.
Guide: Simplified ESG Disclosure Guide (SEDG) for SMEs in Supply Chains
The Simplified ESG Disclosure Guide (SEDG) for SMEs in Supply Chains created by Capital Markets Malaysia offers practical and structured guidance on ESG disclosures. Aligned with global frameworks and local reporting requirements, the SEDG covers the most commonly required disclosures for portraying a company’s ESG standing.
About the Guide:
The SEDG acts as a compass for Malaysian SMEs in supply chains, offering a simple and standardized way to track and report ESG disclosures. Covering 15 topics and 35 disclosures, the guide supports SMEs in their adoption of sustainability.
Objectives:
– Assist SMEs in adopting ESG for competitiveness and relevance.
– Facilitate stakeholders in requesting and understanding ESG disclosures.
– Provide standard-setters with a basis for policy support.
SEDG Adopter Program
To encourage the adoption of the SEDG, MAVCAP joined the early adopter program, inviting stakeholders within the ecosystem. Early adopters, including large companies, SMEs, financial institutions, government agencies, and chambers of commerce, gain access to in-person training, workshops, and updates on SEDG developments.
What's Included:
The guide references prominent standards and frameworks, including Bursa Malaysia’s Listing Requirements, FTSE4Good, GRI, IFRS S1 and S2, TCFD, and CDP.
ESG Pillars Covered:
Understanding ESG isn’t just a choice; it’s a strategic imperative. The collaboration between Fuller Academy and MAVCAP, embodied in the VC ESG Toolkit, reflects a commitment to driving sustainable and informed investments. As venture capitalists navigate the path of responsible investing, these tools provide a compass, ensuring that every investment contributes not just to financial success but to a resilient and sustainable future.
You can also view the Simplified ESG Disclosure Guide (SEDG) for SMEs in Supply Chains from here.
