Giant Leap Becomes First VC Fund in Australia to Link Carbon Reduction to Startup Company Revenue

Giant Leap has set a minimum emissions reduction objective for climate technology investments, making it the first VC fund in Australia. The Melbourne impact investor has set a goal of avoiding 1 kilogramme of carbon emissions for every $1 in income.

Giant Leap Associate Charlie Macdonald said the minimal aim was determined using data from the fund's climate technology investments since 2016. According to the fund, on average, the fund's current climate technology portfolio companies avoid 1kg of carbon dioxide equivalent (CO2-e) for every $1 of revenue generated.

This computation solely takes into account CO2-e emissions that are directly related to the company's product or service, not carbon offsetting or indirect effects.

The portfolio's high-performing climate technology firms are avoiding up to 10kg of CO2-e for $1 of revenue.

Amber Electric, Change Foods, and Goterra are among Giant Leap's Climate Tech startups.

According to Macdonald, if just one of these enterprises succeeds, it helps remove 2,15,000 cars from the road or equivalent to planting 16.5 million trees.

“One of the global challenges with climate change is measuring the impact of the companies tackling the problem,” he said.

“Climate technology startups bringing decarbonisation solutions to market present one of the fastest and most scalable ways to address the climate crisis. As impact investors, it is our responsibility to measure the impact and allocate capital where it can be most effective in addressing the challenge.”

Giant Leap was founded in 2016 and is the first local venture capital fund dedicated to impact startups, with over 20 investments.

Source: startupdaily.