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The 2023 ESG Report was instrumental in raising awareness of sustainability and responsible investment in the venture capital ecosystem, and in making it more visible and comparable. The 2025 ESG Report builds on this by tracking these developments and focusing more closely on key sustainability issues in the VC sector.
As a public investor and market developer, KfW Capital recognises that its responsibilities extend beyond simply providing capital. This second ESG report aims to highlight developments in the European venture capital ecosystem, encouraging informed discussion about sustainability and responsible investment.
Focusing on the overarching theme of 'Responsibility Makes a Difference', the report highlights three key areas for the sustainable development of the VC ecosystem: diversity, net zero, and value creation. The report addresses the persistent gender gap in the VC ecosystem, the challenges on the path to net zero, and how sustainability can be embedded in early-stage companies to contribute to long-term value creation.
Data serves as the foundation for making developments in the VC ecosystem visible and comparable. To this end, the results of the annual Environmental, Social and Governance (ESG) data collection from portfolio funds and their portfolio companies are analysed. Compared to the first ESG report in 2023, the expanded dataset enables us to contextualise ESG practices over time, gain a more informed understanding of trends, and identify initial correlations between ESG activities and business success. Case studies, practical insights and perspectives from the portfolio demonstrate where responsible practices are already having an impact and where further action is required.
The report also examines the overall development of the venture capital ecosystem. Alongside its financing activities, KfW Capital establishes standards for responsible investment, develops expertise through Venture Education, and fosters dialogue and networking within the market. This helps to ensure that responsibility in venture capital is visible and continues to evolve in practice.
Here you can find the KfW Capital ESG report 2025.
