Daphni

daphni ESG approach

Since daphni’s creation, our motto has been “Build da City. For. Good.” Our raison d’être has been to support projects that change usage in a virtuous way, like Back Market, Swile, Hubcycle, Geev, Underdog. The companies we support are building products or services that can change the way we live.

2023 Annual ESG Report

Who we are & what we do

daphni’s commitment to ESG has been deeply rooted in its values since its inception. Its purpose and status as a mission-driven company, along its B Corp Certification guide and guarantee its dedication to a more sustainable world. This commitment is not just a marketing slogan, but a core principle that drives every aspect of our business as a VC. This daily dynamic, championed by the daphni team and its entire ecosystem (start-ups in our portfolio, investors, etc.), strengthens our legitimacy and our ability to build a clear and ambitious vision for our teams and partners.

Daphni is certified B Corporation!

Since our creation in 2015, we like to say that we invest in founders willing to BUILD DA CITY FOR GOOD. At that time, we were already strongly convinced that entrepreneurs were part of the ones who could tackle some of the century’s biggest issues and have a strong impact on the society, the environment, the next generation and the world as a whole!

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Mission driven company: our purpose and our objectives

As a mission-driven company, daphni’s mission, is set out in its by-laws: “Due to our responsibility to future generations, daphni’s “raison d’être” is to invest in technology that contributes to a better and more sustainable world.” To achieve this mission, daphni pursues social and environmental objectives.

#1

Empower and accompany our portfolio companies in transitioning to a more responsible world.

#2

Actively apply the environmental and social standards that underpin our raison d’être.

#3

Communicate and share our ethical, social and environmental values with our stakeholders and communities.

These three objectives are achieved through the implementation of tangible actions within our communities and towards our stakeholders, while strengthening our responsible investment practices. Our aim is to generate a positive and significant impact on society, communities and the environment in the exercise of our activities. daphni has developed ESG commitments that are consistent with these objectives and the company’s strategy.

ESG embedded into our investment process

daphni’s investment policy takes into account ESG criteria throughout the entire lifecycle of our investment process, from dealflow origination to portfolio monitoring, covering all our investment opportunities. This holistic approach underlines our commitment to responsible and sustainable investment practices.

Sourcing

  • Pursuing our investment strategy and on the lookout for deals that fulfill our motto: build da city for good
  • Exclusion policy for specific sectors that have a major impact on climate change, such as fossil fuels, or that are not aligned with daphni values. 
  • ESG tags used to qualify our deal flow. In addition, we reject opportunities that do not meet the criteria of daphniness (whether for ESG reasons or do not correspond to our philosophy).
  • Each of daphni’s investments starts with an assessment of both financial and non-financial criteria, including positive environmental, social, and governance impacts.

Pre-Closing

  • Impact measurement based on the 17 UN Sustainable Development Goals through a proprietary impact methodology. We also measure:  Intentionality, Additionality and Measurability of each project that reflect qualitative and quantitative perspectives
    • If the score is <0, the deal is dropped
    • Each scoring is reviewed by our Head of ESG
  • Sustainability clause systematically added to the company shareholders agreement
  • Diversity and Inclusion clause systematically added to the company shareholders agreement

Sourcing

  • Robust support and strong commitment to help startups to implement the best practices on ESG and Impact:
    • Carbon footprint
    • Trusted providers made available with perks
    • Bilateral dialogues on ESG and Impact
    • Connection with experts in our community on ESG/Impact/CSR.
    • Idea generation on CSR policy
    • Regular meetups between our team and founders
    • Onboarding Lunch with the team, including ESG
    • Webinars on ESG
  • Active participation in the Board of Directors and systematic voting in person or by delegation for each resolution

Each investment opportunity is subject to thorough due diligence, including ESG, legal, and HR aspects, as well as other relevant factors. This due diligence helps us to assess the impact of the investment opportunity on the Sustainable Development Goals (SDGs) and to identify any potential red flags.

Support to different initiatives

In addition to these initiatives and pledges, Daphni is a member of various communities and working groups: B Corp, France Invest Sustainability Commission and climate working group, France Digitale, Initiative Climat International, Venture ESG, and ImpactVC.