While many sustainability frameworks exist, tracking and measuring hundreds of metrics dilutes the attention towards real action and leads to little impact. Mundi Ventures has identified Climate Change and Gender Equality as the most pressing issues that we can make the biggest contribution to solving.
We support our portfolio companies to offer the transition into a resilient lower carbon economy by supporting companies with carbon measurement. We work with startups to increase gender diversity in the senior management in case the founding team lacks such diversity at the time of the investment.
Mundi Ventures firmly believes that great companies can come from anywhere and doing good is not only a responsibility of being a venture capitalist but can result in higher financial return of our investments. In fact, startups are looking at ESG to attract new customers. There have been robust evidence that suggest ESG outperformers also outperform financially over a long-term period.
To achieve our vision, we established an ESG investment policy that is used throughout the investment lifecycle. There are different ways to integrate ESG factors into the investment. Mundi Ventures uses an ESG framework to evaluate both risks and opportunities. This assessment then allows us to work with the founders on mitigating the risks and identifying areas of value creation.
Mundi Ventures uses ESG factors to evaluate ESG negative risks and positive opportunities to properly value and manage such risks. In addition, we seek to find purpose-driven founders who can create positive “impact” in the society.
Mundi Ventures define ESG and Impact as the followings;
Environmental factors: Business operation that can negatively or positively affect Climate change, Resource depletion, Water, food and electronics waste, Water and Soil Pollution, Deforestation, Biodiversity loss in terrestrial and aquatic ecosystems
Social factors: The treatment of employees including their pay; health and safety; labour conditions; human rights; gender, socio economic and racial diversity and inclusion. The management of supply chain and the treatment of all stakeholders including customers and communities
Governance factors: Institutional frameworks for anti bribery and corruption, cyber security and data privacy, board diversity and structure, and code of ethics and compliance.
Impact: Positive impact from business operations towards United Nations 17 Sustainable Development Goals.
The ESG and impact factors listed above are not exhaustive and Mundi Venture will continue to re-visit, refine and add to the list.
Privacy should be a right, not a privilege. Sherpa.ai offers artificial intelligence with privacy protections and a low carbon footprint, resulting in up to 60% CO2 reductions.
Consentio connects fruit and vegetable producers and sellers with customers, tackling the problem of supply chain efficiency, transparency, and food waste, a $1 trillion problem.
Citibox makes last mile delivery easy, efficient and 24/7 available by digitizing mailboxes for customers and logistics partners. It reduces CO2 emissions by 52% for daytime deliveries, and 69% at night.
Betterfly offers a holistic employee benefit platform with health & life insurance, and social giving opportunities for employees. The Chilean company is the first purpose-driven benefits platform that rewards healthy habits with charitable donations and no-cost life insurance coverage that grows every day.
Floods take thousands of lives every year, causing $96B annual damage. With the climate change, flooding is predicted to displace 50 million people by 2100, however majority of homes are not insured for flood risks and current flood prediction models are outdated.
Sleep related breathing disorder affects 1bn people worldwide (23% of adults worldwide), however 85% of them go undiagnosed. This is due to the cumbersome process of diagnosis as it has to be done in sleep clinics. Such disorder can cause diabetes and cardiovascular disease
Aging population is a societal problem universally. People over 75 (2-4% of the population) currently have no access to private insurance in certain LatAm countries. Sending remittances is too costly resulting in people not being able to help their family members in such countries.
Global ESG assets have surpassed $35 trillion in 2020 (Bloomberg), however measuring and understanding which companies are “sustainable” can be a complex, multi-dimensional and cross-border task.