Pitango VC is adapting Impact-Practices & ESG for the Venture Capital model – appoints Cecile Blilious as Head of Impact & Sustainability
Pitango, a leading venture capital fund from Israel, is adapting ESG (Environmental, Social, Governance) practices to fit the VC model by implementing impact practices within its investment strategy across all funds. The fund today announced the appointment of Cecile Blilious, pioneer of impact-tech investing in Israel and founder of Impact First Investments, as its Head of Impact & Sustainability. Blilious will lead the adoption of professional, accountable ESG impact practices across all funds and create the blueprint for the VC industry to make tech investments a force for good.
ESG criteria is a set of non-financial standards to evaluate a company’s performance on Environmental, Social and Governance levels. Pitango will also consider the UN Sustainable Development Goals (SDGs) as guidelines towards aligning technology investments with the world’s most pressing challenges. The aim is to apply our understanding that doing well and doing good go hand in hand, and the confidence in our ability to maximize both profits and impact.
While ESG practices have become common in the public markets, and widely adopted by the Private Equity markets, to date, no mainstream venture firm has adopted ESG the same way. By creating this new function, Pitango hopes to showcase to entrepreneurs as well as VCs that driving measurable positive outcomes is a result of combining rigorous screening, management and measurement processes, alongside ESG principles and the UN Sustainable Development Goals (SDGs) as a framework in which technology companies should strive and succeed.
Chemi Peres, Managing General Partner & Co-Founder at Pitango: “We believe that the next step in the VC world is to adopt metrics beyond ESG towards addressing the world’s biggest social and environmental challenges such as Climate Change, social disparity, access to quality healthcare and education to all and many more”. Peres added: “We firmly believe that our approach to ESG and impact, adapted for VCs, will help our portfolio companies become more resilient and successful in general - and during these challenging times in particular - and ultimately create superior financial returns.”
Cecile Blilious, Pitango’s new Head of Impact & Sustainability: “Particularly during these times of distress, when humanity is fighting in a concerted effort against COVID-19, it is more important than ever to work together on making our society and planet a better place. I’m privileged to have the opportunity to shape the way for mainstream VCs to the world of positive impact and join the fantastic Pitango team.”
Rami Kalish, Managing General Partner & Co-Founder at Pitango: “As pioneers of the VC industry, we are proud to pioneer ESG-principles adaptation into VC daily operations. We’ve created an Impact Committee to support implementation across all funds and together with our portfolio companies create high and measurable positive impact on society and our planet. We encourage our fellow VCs to follow our example and create the world we want to live in.”
ESG criteria are a subset of non-financial performance indicators which include sustainable, ethical and corporate governance issues such as managing a company’s carbon footprint and ensuring there are systems in place to ensure accountability. They are factors in investment considerations, used in risk assessment strategies incorporated into both investment decisions and risk management processes. ESG refers to issues such as diversity, carbon footprint, supply chain and communities.
The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030.
Investing while considering the SDGs means recognizing the relevant goal targeted by a company, designing the product and business model to address that target while managing and ultimately measuring the impact the company has made towards achieving that particular goal.