Clean Energy Ventures Management, LLC
Clean Energy Ventures is a venture capital firm headquartered in Boston, Massachusetts primarily focusing on early-stage clean energy companies in the United States. It joined the Net Zero Asset Managers Initiative on 11 December 2020 and its initial target disclosure was published on 1 May 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
100% of total AUM (USD $0.1 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio decarbonisation reference baseline
We cannot yet provide an aggregated figure for the baseline carbon intensity for all assets to be managed in line with net zero by 2050.
Target(s):
Portfolio coverage target
100% of target portfolio companies that have raised a Series C financing or 30% of the target portfolio companies (whichever is greater) committed to achieving NZC emissions by 2050 and demonstrating alignment through their ambition, targets, emission performance, disclosure, strategy and capital allocation.
Engagement threshold target
These companies shall also be engaged to submit an application to SBTi’s PE/VC target setting program. It is important to note that the SBTi’s guidance states that it is only applied to firms investing in latter stage companies. CEV is going above and beyond this guidance by applying it to the early-stage companies CEV invests in.
Allocation to climate solutions target
100% of the portfolio to be invested in companies offering solutions that significantly reduce GHG emissions compared to the baseline technology.
Portfolio coverage target
100% of Fund I and Fund II companies commit to reach net zero by 2050. The emissions reductions will need to be supported by respective LCAs and SBTI reporting.
Portfolio decarbonisation reference target
A fundamental investment criteria of companies that CEV invests in is that they have the potential to reduce 2.5 Gigatonnes of CO2eq emissions by 2050 (cumulatively) from the baseline. These reductions come from impact throughout the portfolio company’s customers and partners’ supply chains and though they may not be captured in standard Scope 1, 2 and 3 emissions assessments, they can be tracked and measured.
GHG scopes included:
Our early-stage investments focus on technologies that reduce emissions for their customers or across the value chain in their target industries and therefore cover Scope 3 emissions. Due to the early nature of the start-ups as pre-revenue or early revenue companies, current Scope 1 & 2 emissions are de minimis and being tracked to a limited degree. Notwithstanding this, we are initiating a quarterly reporting process for key emissions metrics that are specific to each company, which will then also be compiled and reported on a portfolio basis.
Over time, we anticipate all companies will be tracking Scope 1, 2 and 3, though many of our companies may be acquired by other companies or be publicly listed at that time. We are assessing how to continue to get rights to the impact of our companies after liquidity events. Scope 3 emissions reductions in our analysis cover how customers plan to use the innovation in their supply chain compared to the existing solution. All of CEV’s investments are in companies that enable significant Scope 3 reductions compared to baseline solutions.
Methodology:
Own/other methodology
Scenario(s):
The IPCC 1.5C Pathways and the resulting emissions gap highlighted in the UNEP Gap Report.
Additional information
Proportion of AUM committed:
100%
Policy on coal and other fossil fuel investments:
CEV’s investment mandate is that it will not invest in the production, processing, transportation, distribution and use of fossil fuels. Additionally, each company we invest in must have the potential to mitigate or reduce GHG emissions by 2.5 Gt by 2050 cumulatively. CEV does not and cannot invest in the fossil fuel industry or in technologies supporting the fossil fuel industry.