A group of venture capital firms have formed a global alliance designed to help firms and their portfolio companies fight climate change and identify ways to reach net-zero emissions by 2050 or sooner.
San Francisco-based Venture Climate Alliance comprises 23 venture capital firms from across the U.S. and Europe, said an April 25 news release. Among other things, VCA member firms will pledge to inventory their direct Scope 1, 2 and 3 carbon footprints and to achieve net zero or negative emissions for their own firm’s operations by 2030 or sooner. Members will also encourage and help their portfolio companies set their own targets to achieve net-zero alignment by 2050 or sooner.
Scope 1 and 2 are emissions that come from entities that are owned or controlled by a company or are produced indirectly by the energy it purchases for use. Scope 3 emissions are also indirect, for example, emissions from a company in a firm’s supply chain, according to energy firm the National Grid, an energy firm operating in the U.K. and U.S.