ESG

At Serpentine, our vision is to invest for a better future. We want to make a difference for our clients, society and the wider world – while also delivering financial returns. Environmental, social and governance (ESG) considerations have been an integral part of our decision-making process since the very starting point. By putting ESG factors at the heart of our operations and investment process, we believe we can generate better outcomes for our stakeholders. Now, more than ever, we need to work together for a more sustainable future.

We consider the principal adverse impacts (PAI) of its investment decisions on sustainability factors pursuant to Article 4(1)(a) of Regulation (EU) 2019/2088 (SFDR).

Recognizing that venture capital investments target early-stage companies with limited sustainability infrastructure, we apply a proportioned approach tailored to venture dynamics.

1. Adverse Impact Metrics & Monitoring

Because direct ESG data is generally unavailable at early stages, we collect sustainability information exclusively through regular portfolio company investor reporting (e.g., quarterly or annual investor updates and reporting templates):

Category	Primary Metric	Portfolio Management Action
Climate	Scope 1, 2, & 3 GHG Emissions / Carbon Footprint	Monitored via annual investor updates to establish baselines as companies mature.
Social & Governance	Board Gender Diversity & Governance Policies	Tracked through periodic investor reporting; advice provided on inclusive hiring.
Conduct	UN Global Compact / OECD Guidelines Compliance	Screened at entry and monitored via ongoing investor disclosures.

2. Identification & Due Diligence Policies

We apply the following identification and due diligence policies:

Investor Reporting Collection: We rely entirely on periodic investor reporting provided by portfolio companies to track sustainability indicators post-investment.
Pre-Investment Screening: Initial assessment relies on management representations and pitch materials to exclude high-risk activities prior to closing.
Proportionality: We avoid imposing dedicated ESG questionnaires on early-stage teams, instead leveraging existing investor reporting channels to capture relevant metrics over time.

3. Active Ownership & Founder Engagement

As active venture investors, we exercise influence through direct engagement and board-level dialogue:

Board Participation: We use board seats and investor updates to encourage founders to incorporate basic ESG tracking into standard reporting routines.
Support & Scale: We work with founders to expand the scope of their investor reporting as their operations scale and mature.
Escalation: Failure to provide required reporting or severe adverse findings communicated in reports trigger targeted review by our management team.

4. International Standards

Our investment frameworks align with the principles of the UN Global Compact (UNGC), the OECD Guidelines for Multinational Enterprises, and the goals of the Paris Agreement.