How funds prioritize impact and ESG — and what startups must show

What funds actually ask for

• Standard ESG questionnaire at signing or post‑IC (e.g., France Invest template adapted from Invest Europe; kept concise for portfolio companies).
• VC‑proportionate due diligence per PRI VC DDQ (policies, material risks, governance, roadmap, KPI tracking fit for scale).
• Comparable metrics aligned to the EDCI core set (GHG, net‑zero, renewables, safety, hiring, diversity, engagement) to reduce bespoke data chases.

The goal is consistent screening and monitoring with benchmarks that LPs and GPs share across portfolios.

Founder‑ready checklist

• One‑pager impact thesis (problem, solution, outcomes, beneficiaries) + 12‑month KPI plan linked to business drivers.
• Policies and controls that a VC expects at scale (data security, anti‑harassment, supplier code, climate policy if material).
• EDCI‑aligned KPIs and evidence folder: emissions method, injuries, hiring, DEI, engagement, renewables, net‑zero intent.

Keep it lean: 10–15 proofs max, with links back to the product and growth plan.

Why this improves funding odds

Screening time compresses when GPs can tick standardized cells; fewer follow‑ups means fewer cycles to IC.

A small set of comparable KPIs lets the GP position the company in EDCI/portfolio benchmarks and justify reserves and follow‑on.

VC‑fit controls reduce “red flag” risk at exit and support premium narratives (governance, talent, safety, climate readiness).

Video: What is impact investing? (BCG)

Looking to turn this into a fundraise‑ready pack? See the offer page: Investor‑grade ESG for fundraising.

Mini math: time saved vs. effort

If each bespoke data request costs \( t \) hours, and standardization removes \( n \) requests, time saved is \( T = n \times t \).

With a standardized pack, founders trade a one‑off setup for faster diligence loops and cleaner follow‑on updates. As you need to deal with several Due Diligence processes, automating the ESG proof is a returning advantage!