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Munich Venture Partners

PRI reporting framework 2017

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.4. Indicate what norms you have used to develop your investment policy that covers your responsible investment approach.

01.6. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

Munich Venture Partners: ESG Guidelines
Introduction and Mission Statement
MVP is the cleantech venture capital specialist based in Munich. As an independent venture capital organization we have set ourselves a strong goal: To assist today's innovators to become tomorrow's market leaders. Munich Venture Partners concentrates on venture capital for high-tech start-up companies with growth-oriented and profit-generating projects and potential impact on the future of resource efficiency, energy generation and distribution. We aspire to invest in a sustainable and responsible manner by actively managing Environmental, Social and Governance Risks. Hence, the active management of ESG related issues is integrated into our investment strategy. Additionally, we want to promote the integration of ESG management systems externally and on an industry level. The MVP team - senior executives from large international corporations, experienced venture capital professionals and entrepreneurs - has made it its business to identify and develop the potential of startups and growth stage companies. Since our profound industry and investment expertise enable us to appraise technology and market potential, we are also in a position to plan and implement an appropriate growth strategy with our portfolio companies. Here, MVP accompanies founders in a professional manner with sound business and technical expertise through all stages of development - from the initial idea through to a profitable company which is sustainable in the long term.

Munich Venture Partners was founded in 2005 and is headquartered in Munich. It is in part funded by the European Union and its Competitiveness and Innovation Framework Programme (CIP).
We are convinced, that the active management of ESG related issues will have an impact on the financial performance of our portfolio and help growing profitable businesses bringing benefits to our society. Therefore our investment process is guided by a consistent set of principles that not only implement ESG matters in our everyday actions, but also align the interests of a profit driven business with those of our society: 1) MVP incorporates ESG issues into the investment and decision making process 2) MVP proactively drives forward the incorporation of ESG issues in management practices of the portfolio companies 3) MVP will continuously improve transparency and monitoring of ESG issues in the portfolio companies 4) MVP is dedicated to continuously improve the implementation of meaningful ESG principles within the portfolio companies. Therefore MVP will report and monitor the progress of ESG implementation and its effect on portfolio company performance. This will help improving this responsible investing strategy. 5) MVP collaborates to more effectively implement ESG principles within the Venture Capital and Private Equity industry. We have developed a guideline for our investment process and the management of our investments regarding ESG related issues: 1) Company and Business a. The company should not engage in the production or trade of any products illegal by law, international regulations or international conventions and agreements b. The company should not be involved in one of the following industries: i. Alcohol and tobacco ii. Gambling iii. Weapons iv. Pornography v. Genetically Modified Organisms (GMO) or human cloning c. The company should not engage in business that is materially and immitigable harmful to the environment and/or human life through the application of its product or its supply chain 2) Human Rights a. The company must comply with and support the protection of internationally proclaimed human rights b. The company must ensure that it is not complicit in human right abuse 3) Labor a. The company must ensure it does not profit from or directly or indirectly supports the proliferation of forced and compulsory labor b. The company must ensure it does not profit from or directly or indirectly supports the proliferation of child labor c. The company must avoid any discrimination in respect of employment and occupation 4) Environment a. The company must have a precautionary approach regarding environmental challenges b. The company should engage in the development and proliferation of environmentally friendly technologies and products c. The company must not use or engage in the production of fuels or energy that potentially have negative impact on either food supply, biodiversity, and carbon footprint d. The company must handle all chemicals and materials utilized in R&D and production processes in a responsible and safe manner to avoid harmful effects on the environment or human health 5) Anti-Corruption a. The company must actively work against all forms of corruption.
Investing in clean technology and companies generating a benefit for the environment lies at the core of our investment focus. The principals are the underlying guidelines for all our investment activities and are reflected in the decision making of our investment process. Hence, each process step requires the documentation and monitoring of relevant ESG issues. The ESG risk management procedure has been integrated into the relevant investment documents as much as possible. This allows a standardized approach towards the application of the ESG Risk Management procedure.


SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

02.4. Additional information [Optional].


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

MVP’s fund documents cover the issue of potential conflicts of interest in the investment process:

“The Investor Advisory Board shall provide such advice as is requested by the Managing Limited Partner in connection with general policies, investments of the MVP Fund II and conflicts of interest...”

“Consequently, VCs or other value-driven co-investors are preferred over pure financial partners. Strategic investors will be invited to co-invest in financing rounds only if potential conflict of interest between the co-investor and the company can be excluded and if the co-investor is clearly focusing on monetary returns as opposed to leveraging its own business through gaining hold of interesting technologies or solutions in early stages of their development.”

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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