ESG policy

Our mission

Heliad AG (‘Heliad’) invests in market-leading, fast-growing technology companies with the aim to initiate the next phase of growth. As a listed company with a strong team and strategic partners, Heliad supports companies pre, at and post IPO and act as a gateway to public equity capital markets. An evergreen structure allows Heliad to act independently of usual fund lifecycles.

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With our differentiated structure as a publicly listed investment company, we grant shareholders unique access to pre-IPO markets returns without any restrictions or limitations. We provide access to a restricted asset class to enhance financial wellbeing.

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What ESG means for us

At Heliad, we closely consider environmental, social and governance (‘ESG’) matters with a view on their company- and portfolio-level impact. While a plethora of frameworks and definitions of ESG exist, most do not align with venture capital investments in early-stage technology startups. We have hence adopted a definition of ESG developed by VentureESG, while also following the UN-supported Principles for Responsible Investment (UN PRI) and their recommended framework.

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UN PRI Principles

Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.

Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.

Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.

Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.

Principle 5: We will work together to enhance our effectiveness in implementing the Principles.

Principle 6: We will each report on our activities and progress towards implementing the Principles.

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We view sustainability as ensuring the long-term success of innovative companies. As venture capital drives job creation and innovation, we integrate these solutions to tackle global challenges and deliver environmental benefits.

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The development of responsible investment practices ensures that venture capital backed companies are managed responsibly from the outset. This leads to a positive public perception and a thriving team of employees who work together efficiently and creatively in a diverse and supportive working environment. Our understanding of the term ESG itself, is shaped by the definitions developed by several organizations including VentureESG and International Finance Corporation (IFC) performance standards:

1. Environment
   Considering the environmental impact from Scope 1 (directly caused by the company/venture capital firm, e.g. through facilities) and Scope 2 (indirectly caused, e.g. energy, electricity, waste) to Scope 3 (caused by upstream and downstream activities, e.g. business travel, transportation of the product, customers’ energy usage), targeting to reduce the impact across all scopes (at company and portfolio level).‍
2. Social‍
   
   • DEI: integrating diverse and inclusive practices across all areas of the business (e.g. diversity of the company or the founding teams, inclusive hiring practices).
   • Team and working environment: building a strong culture and being a conscientious employer (e.g. pay gap, parental leave, living wage).
   • Responsible product design: designing and building products with consideration of the ethical and human implications on the end-user and society.
   • Supply chain: working towards an ethical and environmentally resilient supply chain (including a Supplier Code of Conduct embracing the UN’s Global Compact)‍
3. Governance‍
   
   • Legal and regulatory: being on top of and aligned to the latest laws, regulations and compliance standards (e.g. GDPR (and equivalent), UN Guiding Principles of Business and Human Rights, the eight core ILO conventions); the oversight of these issues should be ensured by the founding team and Board of Directors.
   • Governance: having appropriate governance structures in place, according to the company’s stage (e.g. board structure, share structure); writing out a code of conduct (committing the company to high ethical standards); adopting a whistle-blower policy.
   • Data privacy and security: instilling a strong culture of trust, responsibility and best practice (e.g. with internal systems) around data.

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How we operationalize ESG in the investment process

Applying ESG principles is not only based on a comprehensive set of considerations specific to us as an investment company and the startups we invest in. We also consider how ESG applies across our entire investment process, especially during the investment sourcing and screening stages.

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We are dedicated to making accessibility and diversity fundamental to our sourcing and pipeline management. To improve accessibility and encourage diversity at an early stage of the investment process, we have introduced a simple form on our website for founders to submit their pitch documents. Each application is reviewed by at least one, and ideally two, members of our investment team.

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After the initial sourcing stage, ESG continues to play a critical role in our screening and due diligence process. The attitude of the founders and management, their approach to building the companies as well as any potential adverse impacts that can be foreseen early in the process are influential considerations in our investment decision.

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New investments undergo dedicated ESG checks through a screening tool as part of our initial due diligence and review for any warning signs that may also be part of the exclusion list – please refer to the appendix (e.g. non-compliance, ESG risks). The information we collect will be duly documented in our investment memos.

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To further engage with our portfolio companies, we look for active board participation and stewardship activities, accepting board seats whenever possible.

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How we operationalize ESG at a company level

As an investment company that provides access to an otherwise inaccessible asset class for a wide range of investors, thus promoting financial inclusion, ESG not only applies to the way we invest and support our portfolio companies but is also an integral part of our internal governance. We aim to apply the same ESG considerations and standards we hold our portfolio to, to ourselves as well. Our high internal ESG standards ensure the integrity of our demands to portfolio companies and strengthen our (economic and structural) position as a venture capital firm.

• ESG responsibility: while every member of our team takes ESG factors into close consideration during decisions and in their ongoing work with portfolio companies, we have assigned the overall responsibility for ESG to dedicated team members, in addition to the management board. To further reduce our emissions, we have set up policies (i.e. trains over planes, use video conferencing whenever possible).

• Hiring and working environment: we are committed to hiring a diverse team and providing an inclusive working environment. We acknowledge the benefits of workforce diversity and therefore promote equal opportunities regardless of background, gender, disability and ethnicity as well as by providing for a safe and inclusive work environment and culture.

• Good governance: our decision making in the advisory and management board is subject to good governance principles. With regards to governance, we ensure compliance with applicable laws and regulations throughout our businesses and have implemented several compliance and control structures. We regularly review the regulatory status and adhere to the applicable regulation. Moreover, we have implemented strict Know-Your-Customer processes to ensure compliance with the Financial Markets Anti-Money Laundering Act (Geldwäschegesetz). We are committed to act according to high ethical standards to which we hold all our employees accountable.

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ESG leadership

Since 2022, Heliad is a signatory of the UN-supported Principles for Responsible Investment, the world’s leading responsible investment initiative with more than 4,000 signatories and the mission to develop a more sustainable global financial system. Heliad is also a participant of international ESG initiatives and communities including VentureESG, a group of more than 150 VC investment companies across the US, Europe and Israel driving the industry towards more sustainable principles.

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We intend to further contribute to this development by both embodying the ESG principles set out in this policy in our company and helping our portfolio to do the same. We aim to work towards a global ESG ecosystem by sharing and encouraging our practices across the venture capital landscape.

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Appendix

Exclusion List

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