Notion Capital, a forward-thinking venture capital firm, has integrated ESG principles into its investment strategy, not just as a compliance measure, but as a strategic advantage.

At Notion Capital, the belief is clear: diversity of thought leads to better business outcomes, and companies that embed ESG principles early will have greater access to funding and higher valuations in the long run. Beyond financial considerations, Notion Capital sees ESG as a responsibility: everyone, including investors, plays a role in addressing today’s climate challenges.

How Notion Capital Embeds ESG into Its Investment Approach

As a VC, Notion Capital is actively shaping how ESG is implemented across its portfolio. Rather than treating it as an afterthought, the team ensures that ESG is built into their investment process and startup support framework.

• Providing guidance on ESG best practices – Notion Capital works closely with its portfolio companies to highlight key ESG considerations that should be embedded in their business models.

• Driving its Net Zero 2030 pledge – This ambitious initiative supports portfolio companies in measuring their carbon footprint, identifying reduction strategies, and selecting credible offset providers.

• Using structured ESG data collection – Notion Capital utilizes the ESG_VC template to establish a baseline for ESG reporting. This enables the VC to assess ESG risks and opportunities across its portfolio and share best practices among companies.

Why VCs Should Lead in ESG,
Not Just Climate-Focused Funds

For Notion Capital, ESG is not just about sustainability. It’s about shaping the future of venture capital. The firm strongly believes that VCs, as early-stage investors, are in a unique position to influence startups when it matters most. By adopting ESG principles early, startups can strengthen trust, navigate risks more effectively, and secure long-term advantages in both operational resilience and investor appeal.

Many VCs assume that ESG is only relevant for climate-focused funds. Notion Capital challenges this perspective by demonstrating how ESG considerations can enhance value creation across industries. Better ESG performance can improve access to capital, create operational efficiencies, and mitigate risks.

Challenges in Implementing ESG in Venture Capital

While Notion Capital has made great strides in ESG, the journey hasn’t been without challenges. In the early stages, one of the biggest hurdles was securing stakeholder buy-in. Convincing founders and investors that ESG is not a distraction from growth, but a fundamental driver of success, took time.

"There is always the conflict between building great companies and spending time on ESG, but once you realize the two aren’t mutually exclusive, buy-in becomes much easier."
— Ian Milbourn, General Partner & CFO, Notion Capital

Additionally, balancing ESG priorities with the fast-paced nature of startup building was another challenge. Founders often worry that ESG compliance will be time-consuming. However, once they see that ESG can be embedded into their strategy without slowing them down, their perception shifts.

Key Learnings from Notion Capital’s ESG Strategy

Over time, Notion Capital has refined its ESG approach and identified key takeaways:

• ESG can drive capital access – Notion Capital has observed that companies demonstrating strong ESG commitments are often better positioned to attract funding from institutional investors.

• Diversity & Inclusion awareness has improved – By promoting D&I across its portfolio, Notion Capital has helped startups build stronger, more resilient teams.

• A structured ESG framework is essential – The VC has developed a sustainability framework that enables portfolio companies to map their path to Net Zero, identify potential reduction strategies, and calculate offsetting costs.

Reducing Carbon Footprint:
Notion Capital’s Net Zero Efforts

Notion Capital has committed to becoming Net Zero and has already fully offset its residual emissions from 2023 onwards. The team continues to explore carbon reduction strategies, particularly in high-impact areas like:

• Business travel – A major contributor to emissions in venture capital.

• Events and networking activities – Finding sustainable ways to bring the ecosystem together.

• Office operations – Optimizing energy use and supply chain sustainability.

Supporting Portfolio Companies with ESG Compliance

A key way Notion VC accelerates ESG adoption across its portfolio is through Atlas Metrics. Notion VC provides all its startups with access to the Atlas Metrics platform, and with 1:1 workshops to enable efficient input of various ESG metrics. Further, with 1:1 workshops on Net Zero steps and associated reduction strategies.

The Future of ESG in Venture Capital

Looking ahead, Notion Capital aims to further solidify its role as an ESG leader in venture capital. The focus remains on:

• Promoting best practices across the portfolio – Ensuring that all companies have access to ESG insights and tools.

• Leading by example – Holding itself to the same ESG standards that it expects from startups.

• Encouraging industry-wide adoption – Sharing knowledge with other VCs to encourage a broader shift toward ESG integration.

A Call to Action for VCs

For VCs hesitant to prioritize ESG, Notion Capital has a clear message: ignoring ESG can hamper access to capital and limit long-term returns. Institutional investors are increasingly factoring ESG into their decisions, and startups that embrace ESG early will have a competitive advantage.

ESG is not just a checkbox. It’s a strategic necessity for building resilient, high-growth companies.