ESG Report 2023

In an era of mounting environmental and social challenges, it is imperative that companies take responsibility and play an active role in shaping a more sustainable future. As a public investor in the venture capital ecosystem, KfW Capital is committed to promoting the development and financing of innovative solutions that promise economic success while taking environmental and social factors into account.

Since 2021, we have incorporated key ESG criteria into our investment process and strategic target system. As we strive to set market standards and further develop the venture capital ecosystem, collecting ESG data is a very important next step for us.

In our ESG report, we are sharing the results of our annual data collection from our portfolio funds and their companies for the first time. This improves data availability and transparency in the VC ecosystem further. By doing so, we are offering VC funds in our portfolio the opportunity for initial benchmarking and fulfilling our role as a public investor by sharing our insights with the market.

Additionally, we transparently report on our own ESG-related measures, progress, and goals, both within our investment process and as an organisation.

Key facts at a glance

67 % of the funds are classified in accordance with Art. 8 or 9 SFDR
The VC funds in the portfolio tend to be classified in accordance with Art. 8 SFDR. This means that environmental and social characteristics are considered when selecting investments.
42 % of the companies have a sustainability officer
24% of the companies have an ESG policy, rising to 56% in the case of companies with a sustainability officer.
100 % of the VC funds have an ESG policy
78% of fund managers work with sustainability initiatives and 51% of fund managers offset their emissions at least partially.
25 % of the companies have an emission reduction target
37% of them have targets compatible with the Paris Climate Agreement.
46 % of the fund managers have at least one female partner
These fund managers also have a higher proportion of female employees (47% / +8 percentage points). In addition, the proportion of women in the C-suite of the portfolio companies of the corresponding VC funds is 12 percentage points higher (28%).
65 % of the companies have at least one independent board member
53% of the companies have at least one female board member.