While investment funds are forced by regulation to take an interest in ESG criteria when they want to support a startup, corporate ventures (CVCs) still take little interest. In the age of global warming, however, these issues have become essential if a company is to remain competitive and attractive. They are also at the heart of the EDF Group's "raison d'être", which is why EDF Pulse Ventures is one of the first CVCs to launch its ESG approach.
ESG criteria are extra-financial criteria that investors and stakeholders are increasingly taking into account in their investment decisions. They encompass environmental responsibility (energy consumption, pollution, waste management, etc.), social criteria (diversity, health, safety, etc.) and governance (transparency, structure, remuneration, etc.). According to a study by PwC[1], more than 2/3 of investors attach great importance to ESG in their investment strategy to create value. EDF Pulse Ventures, as a corporate venture committed to the energy transition, is initiating the movement within CVCs and launching an ESG approach in line with the Group's strategy.
EDF Pulse Ventures incorporates the 4 key challenges of the EDF Group's ESG strategy
ESG issues are at the heart of the EDF Group's "raison d'être": “Building a CO₂-neutral energy future, reconciling preservation of the planet, well-being and development, through electricity and innovative solutions and services”.
The Group has therefore set itself quantified targets around 4 major ESG challenges: carbon & climate neutrality (SDGs 7,11,13), preserving the planet's resources (SDGs 6,15), well-being and solidarity (SDGs 5,8), responsible development (SDGs 9,12).
In line with the EDF Group's global strategy and its investment thesis, EDF Pulse Ventures has chosen to launch an ESG approach within its start-up portfolio, following the Group's 4 major challenges.
EDF Pulse Ventures chooses 8 ESG criteria
In collaboration with the startups in its portfolio, EDF Pulse Ventures has associated 2 indicators with each of the Group's 4 major ESG challenges:
1. Carbon & climate neutrality: measurement of carbon footprint and environmental initiatives
2. Preservation of the planet's resources: preservation of natural resources and use of recycled materials
3. Well-being and solidarity: diversity and job creation
4. Responsible development: access to capital and training
Each year, the startups in the portfolio report their results on these criteria and are actively supported by EDF Pulse Ventures, with a view to continuous improvement. This is the first step towards expanding the ESG approach, by monitoring and developing the objectives over time.
Launching an ESG approach within EDF Pulse Ventures seemed an obvious choice, given the "raison d'être" of our Group. With these criteria, we want to help our start-ups progress and support them in creating real financial and extra-financial value. According to Universum's CSR Index 2023, 39% of young talent would decline a job offer if the company did not commit to CSR issues, 12% more than last year: progress on these issues is therefore essential for a start-up to remain attractive, competitive and successful.
Key figures for the EDF Pulse Ventures portfolio in 2024
The initial results of the ESG survey of startups in the EDF Pulse Ventures portfolio point to two main areas of progress for the coming year:
1. Measuring their carbon footprint
Only 45% of the startups in the portfolio had carried out a carbon assessment at the beginning of 2024. To help companies make progress in this area, EDF Pulse Ventures has put them in touch with Urbanomy and Persefoni to help them draw up a carbon footprint with a decarbonisation strategy.
2. Diversity
The companies in the EDF Pulse Ventures portfolio are keen to make progress on gender diversity: on average, 28% of their employees are women (compared with an average of 33% in startups in France in 2023[2]), and 23% in top management (compared with an average of 25% for C-level positions and 12.5% for the position of CEO). The challenges in this area in the startup ecosystem are crucial to improving performance and competitiveness. To support them, EDF Pulse Ventures has proposed a dedicated workshop at its next annual EDF Pulse Startup Club event.
Among the strong points, awareness of the need to preserve natural resources (73%) and the use of recycling (65%) are among the highest scores. EDF Pulse Ventures provides the startups in its portfolio with its network of "Fresqueurs du climat", as well as environmental training courses (MOOCs) to help them understand the challenges of climate change. In total, 284 permanent jobs have been created in 2023 within the startups in the EDF Pulse Ventures portfolio.
[1] 2023 edition of Global Private Equity Responsible Investment Survey, PwC
[2] France Digitale, « L’emploi dans les startups en France en 2023 », June 2023