Responsible Investment Policy
Northzone has always grounded its success in sound business practices, responsible scaling, and strong investment decisions. We embed these principles throughout our investment process—from sourcing and screening to due diligence, portfolio management, and liquidity events—ensuring lasting value creation. We approach these areas with precision and analysis, continuously enhancing both our topical understanding and the returns on our funds.
Following a thorough materiality analysis in 2023, we expanded our ESG policy into a more comprehensive Responsible Investment Policy. Building on that foundation, this document outlines the key aspects of our approach and how we integrate responsible investment and impact considerations across the investment lifecycle and within our firm’s operations, knowing they are essential for long-term success.
A full version of the policy is available internally and to our stakeholders.
Definitions
We define Responsible Investment as “The integration of impact and ESG considerations into investment processes and ownership practices with the belief that these factors can have an impact on financial performance” (UNPRI).
ESG is process driven—it focuses on the how—the internal principles, processes and practices that dictate the way in which an organisation operates, or behaves. Impact is outcomes driven—it focuses on the what—the social or environmental outcomes of an organisation’s operations or behaviour (VentureESG).
We define any external efforts, as an example, our carbon offsetting program and philanthropic donations, as part of our Corporate Social Responsibility (CSR).
Supporting Frameworks
UNPRI: Although not a signatory, Northzone strives to operate in accordance with the UN Principles of Responsible Investing.
SFDR: SFDR: Northzone is not currently subject to the European Union Sustainable Finance Disclosure Regulation 2019/2088 (“SFDR”). However, although not bound, we voluntarily align our practices with those of an Article 8 fund. This commitment reflects our dedication to contributing to the evolution of global best practices.
Invest Europe: As of 2025, we have adopted the Invest Europe framework in the hope of reducing the reporting burden for early-stage companies and harmonizing cross-investor reporting.
SDGs & IMP: To assess impact in the investment processes, we use the frameworks of the UN Sustainable Development Goals and the Impact Management Project as the basis for our own evaluation.
How we operationalise ESG in the investment process
The most important impact we can have as a venture capital fund is on our investment selection. Over the years, we have carefully designed a process where responsible investing and impact considerations start during our sourcing process and continue through portfolio value-added services and reporting.
Sourcing
We are committed to accessibility and diversity as core principles in the sourcing and pipeline management of our deals. To ensure an inclusive and broad-reaching sourcing process, we take the following steps:
Negative Screening (Exclusion list)
We are acutely aware of the responsibility that comes with our investment selection and its potential consequences on the environment and society. As such, we refrain from investing in sectors or activities deemed to have a considerable negative impact.
We do not invest in or engage with the following restricted activities:
We will also exclude companies who/whose:
Positive Screening
We value companies that integrate positive impact into their business models, regardless of sector. At the time of investment and annually, we assess alignment with the UN Sustainable Development Goals (SDGs). This alignment doesn’t mean a company must define itself as impact-driven, but rather that its mission and operations have the potential to contribute to a better society.
Within ESG, we promote a “progress over perfection” mindset — committing to companies that show clear intent to continuously improve their practices and performance over time.
Sustainability Due diligence
As part of our pre-investment process, we assess ESG risks and the net impact. This includes sector- and company-specific ESG materiality (using materiality maps developed together with Apiday), founder attitudes toward responsible scaling, and potential externalities that may impact long-term business viability.
Sustainability Clause
We aim to include a Sustainability Clause in the final deal documents for all rounds we lead, drawing on best practices from Leaders for Climate Action (LFCA) and VentureESG. This clause is intended as a value-alignment exercise, recognizing that responsible business practices evolve based on a company’s industry, stage, and growth trajectory. At a high level, this clause includes a commitment to:
Post-Investment Portfolio Support
After committing to an investment, we actively support companies in their responsible scaling efforts—helping them integrate good governance and sustainability into their growth strategies. While our shareholders agreement outlines specific agreements, we don’t impose a one-size-fits-all structure. Instead, we tailor our support to each company’s unique needs and timeline, encouraging them to continuously improve their practices as they scale.
How we operationalise ESG in our firm
While ESG and impact considerations guide our investments and portfolio support, they are equally integral to how we manage our firm. We hold ourselves to the same ESG standards we expect from our portfolio companies, ensuring alignment in both principles and practice.
International collaboration
Venture investing is a partnership game. We continuously collaborate with LPs, founders, other VCs, and experts worldwide to advance best practices, particularly in ESG and impact. We believe international cooperation and open dialogue are essential to driving meaningful progress. These are some of the collaborations that we actively promote:
For more information, please contact our Sustainability Lead, Sanna Blomkvist (sanna@northzone.com). This Policy was last approved in April 2025 by the Sustainability Lead and reviewed by all Partners.