1. About the Policy

1.1. Launchbay VC recognizes the importance of Environmental, Social, and Governance (ESG) factors in conducting business. As a responsible and sustainable company, we are committed to integrating ESG considerations into our investment decisions, operations, and practices.

1.2. Our commitment to responsible investing is outlined in this ESG policy, but we strongly believe in collaboration and will use a network-based approach to continually improve our ESG position. Therefore, this policy should be viewed as an all-encompassing, evolving document that is inclusive of all stakeholders. Our general ESG commitment is outlined here, but it may be refined through dynamic and collaborative processes as the policy evolves.

1.3. As we make changes to the policy, we will take into consideration the principle of proportionality, which means that we will consider the size, nature, and scale of our activities, types of funds, and stages of our portfolio companies. Additionally, we will engage with our portfolio companies on a case-by-case basis, taking into account their individual situations, as well as our legal, regulatory, and tax requirements.

1.4. This policy will inform our ESG efforts moving forward. This includes, but is not limited to reporting, disclosures (both material and non-material), business practices, policies, procedures, investments, board activities, stakeholder engagement, and investor relations.

1.5. Nothing in this policy shall be taken or understood to limit or reduce our current committees, both legally and ethically.

2. Scope

The scope of our ESG policy includes our organization, the funds we manage, and our partners with whom we collaborate. We are dedicated to encouraging our portfolio companies to align with our ESG policy and uphold our ESG values. Moreover, we aim to collaborate with partners and market participants who adhere to ESG values or can relate to them.

3. ESG Values

Our goal at Launchbay VC is to foster sustainable practices across our organization, funds, and portfolio companies. In pursuit of this objective, we are pleased to endorse the following ESG values, which will provide a framework for us to achieve fully responsible investing and business practices.
The United Nations' Sustainable Development Goals serve as the foundation for our ESG strategy, which is currently centered on the following objectives:

3.1. Environmental:

• Minimize environmental impact and encourage environmental consciousness.
• Promote the responsible use of resources (e.g., water, energy, natural resources; increase the use of remote meetings and conferences to minimize travel).
• Encourage innovation, promote economic growth, and enhance the global competitiveness of investee companies.

3.2. Social:

• Promote respect for internationally recognized human rights.
• Promote diversity and equal opportunities. We guarantee productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
• Respect the rights of employees and contractors to decent working conditions, including minimum wages, working hours, health, and safety.
• Depending on the legal documents of the respective fund, investments are not made in companies engaged in certain business practices or sectors, including illegal economic activities, tobacco, distilled alcohol, weapons and ammunition, casinos, or similar enterprises. In addition, electronic data programs or solutions that (i) refer to the aforementioned activities, internet gambling and online casinos, or pornography; or (ii) enable illegal entry into data networks or the downloading of data, are excluded.
• Portfolio companies are encouraged to consider their material social issues and respect basic labor rights in their business activities.

3.3. Governance:

• Promote high standards of business ethics, based on the principles of honesty, fairness, leadership, integrity, compassion, respect, responsibility, loyalty, law-abiding, transparency, and environmental concerns.
• Provide timely information to limited partners on ESG matters and work to foster transparency regarding their activities.
• Create awareness of future regulations in the markets we operate in.

4. Implementing our values

To ensure our commitment to ESG values, we have integrated them into every stage of our investment and value creation process, including pre-investment and post-investment phases. We aim to guide our portfolio companies towards sustainable growth from the outset and encourage them to comply with our ESG policy and values. As part of our due diligence and portfolio monitoring process, we have implemented several ESG evaluation processes, which include the following activities:

4.1. Pre-Investment

During the pre-investment phase, we prioritize our ESG values by integrating them into our due diligence process. Our detailed questionnaire for potential portfolio companies includes ESG-related questions and exclusion criteria. This enables us to identify and evaluate potential ESG-related opportunities and issues before making any investment decisions.

Also we place a strong emphasis on social equity, and prioritize our support for companies founded by women and people of colour and start-ups led by founders with an immigrant and diverse background. Where possible, all first meetings with such founders are with a Partner.

As part of our due diligence process, we also assess the potential negative impact of the investment on sustainability factors, including environmental, social, and employee concerns, respect for human rights, and the fight against corruption and bribery. This is done using a pre-defined set of indicators evaluated at the level of our portfolio companies.

In addition, we negotiate an investment agreement with a side letter that requires the portfolio company to inform us on an ad hoc basis if any ESG-related issues arise. We also conduct an onboarding session with each portfolio company to discuss and explain how they can integrate ESG considerations into their operations.

4.2. Post-Investment

During the post-investment phase, we also evaluate the negative impact of our investment decisions on sustainability factors, using the same set of indicators as in the pre-investment phase. This ongoing assessment takes place semi-annually, at the level of our portfolio companies.

We have developed a Diversity, Equity and Inclusion (DEI) strategy that focuses on relevant issues both internally and externally. We’re promoting equal opportunity on the one hand, and equity and inclusion on the other. Our aim is to ensure that talented individuals from all backgrounds have equal access to career and capital opportunities.

Through this process, we actively encourage our portfolio companies to consider the impact of their ESG practices, and to evolve their businesses accordingly.

4.3. Exclusions
Our funds are not permitted to invest in restricted sectors, such as pornography and prostitution, gambling, casinos, racist and anti-democratic media, or weapons and ammunition.

5. Internal ESG Management

Launchbay VC is dedicated to encouraging a supportive and inclusive culture amongst the whole workforce. It is within our best interest to promote diversity and eliminate discrimination in the workplace.

Our aim is to ensure that all employees and job applicants are given equal opportunity and that our organization is representative of all sections of society. Each employee will be respected and valued and able to give their best as a result.

Our commitment is to provide equality and fairness to all in our employment and not provide less favorable facilities or treatment on the grounds of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, ethnic origin, color, nationality, national origin, religion or belief, or sex and sexual orientation. We are opposed to all forms of unlawful and unfair discrimination.

We uphold the right to fair and equitable employment opportunities, including equal pay, and conduct an annual analysis of equal pay as well as tracking promotions and attrition.

At Launchbay VC, our internal policies, such as the Equity and Diversity Policy, Harassment & Violence Policy, and Health and Safety Policy, are in place to ensure a secure and safe work environment throughout the company.

6. Roles and Responsibilities

Our team consists of experienced professionals who are committed to and collectively responsible for our adherence to this ESG policy in all relevant investment decisions and monitoring procedures. Where additional expertise is needed, the team will employ external resources.