Vidia supported Initiatives and Frameworks

IN SHORT

Vidia is a committed climate impact investor and active member of the wider sustainable finance community. Supporting and engaging with the most important climate initiatives, frameworks and standards, we aim to accelerate the transition to a sustainable, and Paris-aligned global economy.

SUPPORTED INITIATIVES AND FRAMEWORKS

Some of the initiatives and frameworks we support as members or signatories include:

• The UNFCCC’s “Race to Zero” – Our raison d’être. Winning the race to a net-zero GHG emission economy by mid-century, followed by rapidly scaling net-negative emissions (through high-quality carbon removal), represent a key milestone if we want to stabilize the Earth’s climate system at well-below 2C.
• The Investor Agenda represents a holistic framework that encourages investors to speed up their climate-relevant activities in terms of corporate engagement, investment, disclosure and policy advocacy. While this is not a member organization, we signed the 2022 Global Investor Statement to Governments on the Climate Crisis because it clearly advocates for ambitious climate policies.
• In terms of a relevant investment practice, the UN Principles for Responsible Investment (PRI) is a globally recognized and leading membership organization. Long before ESG had entered the mainstream, signatories were required to incorporate ESG issues into investment decision-making and active ownership. The current agenda explicitly includes “Champion Climate Action”. As PRI members, we recently signed a joint letter that called on the European Commission to uphold a high level of ambition with regard to the European Sustainability Reporting Standards (ESRS).
• The Impact Principles, which are now hosted by the Global Impact Investing Network (GIIN), define the cornerstones of a mature and well-designed impact measurement and management (IMM) system. Next to a clearly articulated impact strategy and impact governance, an effective real-world IMM practice is an important characteristic that differentiates (climate) impact investing from conventional ESG investing. Signatories are required to regularly disclose how they are implementing the impact principles.
• The Science-based Targets Initiative (SBTI) offers its signatories a wide range of guidelines and tools to help define Paris-aligned decarbonization targets. The SBTI represents a well-known framework for portfolio companies as well as financial institutions that also recognizes the critical need for bold policy action by governments in order to enable and ensure target achievement.

KEY PRINCIPLES

Most of the initiatives, frameworks and standards we are supporting are aligned with the following key principles:

• Paris-aligned: The initiative pays into a Paris-aligned vision of a global economy that achieves a stabilization of the Earth’s climate system by the end of this century at “well below 2C” and as close as possible to 1.5C. Every tenth of a degree C matters.
• Science-based: The initiative’s basic assumptions, proposed strategies and measures are largely coherent with current scientific findings and a scientific epistemology of critical rationalism.
• Sustainability-consistent: The initiative’s pursuit of the Paris-aligned vision is largely consistent with a concept of a sustainable operating space defined by planetary boundaries and social and just foundations
• Advocacy-supporting: The initiative’s activities are (directly or indirectly) supportive of advocacy for sound, well-designed climate policies and public support programs that unlock opportunities for climate solution success in a net-zero economy.

So what?

Vidia is aware that supporting initiatives, standards and frameworks is only the first step on the way to significant outcomes

For us, putting theory into practice means three things

1. We integrate these principles into our decision-making process, including how we select, manage and exit our portfolio companies.
2. We base our investment decisions on measurable CO2 avoidance targets, which are externally validated. We also monitor and report our progress during the holding period.
3. We are vocal advocates for climate policy action as part of a collective impact effort