OneVentures (1V) is committed to embedding environmental, social, and governance (ESG) principles throughout our organisation and investment practices. We recognise our responsibility to operate sustainably and to make investment decisions that positively impact our funds’ returns, the environment, and society.

In our own operations, we strive to minimise our environmental footprint, foster an inclusive and diverse workplace, and maintain the highest standards of corporate governance. This commitment extends to our investment approach, where we believe that by investing in companies which operate with and adopt high standards of ESG practices, we can achieve the following benefits:

Sustainable growth: By investing in companies that care about sustainability and ethics, we support their resilience, adaptability, and consistent growth.

Risk management: Incorporating ESG factors into our investment decisions enables us to evaluate and reduce risks more effectively. Companies that proactively tackle environmental and social issues are often better prepared to handle regulatory changes, reputational risks, and unforeseen operational disruptions.

Stakeholder relationships: Companies that prioritise responsible practices tend to build stronger relationships with their employees, customers, suppliers, and local communities. This not only improves their brand reputation but also leads to higher employee satisfaction, customer loyalty, and community support.

Alignment with global goals: Our commitment to responsible investment aligns with international initiatives such as the UN Principles for Responsible Investment to which we are a signatory, and the United Nations Sustainable Development Goals (SDGs). By investing in companies that contribute to these goals, we play an important role in advancing progress on critical global issues.

Market competitiveness: As responsible investment practices become more widespread, companies that excel in ESG performance are likely to attract more investor interest and capital. By identifying and backing such companies, we position ourselves and our portfolio for enhanced competitiveness in the evolving investment landscape.

Long-term value creation: Responsible investment goes beyond short-term financial gains. It focuses on generating sustainable, long-term value for both our investors and society at large. By nurturing the success of companies that prioritise ESG considerations, we contribute to a fairer and more prosperous future.

For us, ESG principles and responsible investment aren’t just strategies – they’re core principles that guide our decisions and shape our impact on the world. We are committed to driving positive change, supporting innovative solutions, and contributing to a more sustainable and inclusive global economy.

This Policy serves two main purposes:

1. To outline the framework for environmental, social, and governance (ESG) practices at 1V, ensuring that we integrate sustainable and responsible practices into our day-to-day operations and corporate culture.
2. To outline guidelines for responsible investment across our funds, ensuring that we adequately consider ESG risks and opportunities as part of our investment process and decision-making.

This comprehensive approach aims to create value not only for our portfolio companies, employees, and investors but also for the environment, society, and the broader economy.

A fundamental principle of our ESG and responsible investment policy is to avoid harm through both our operational and investment activities. Beyond this commitment to “do no harm”, 1V strives to create positive impact across all aspects of our business.

Our commitment to stakeholders extends beyond delivering superior financial returns. We aim to advance sustainable practices, drive meaningful change in both our portfolio companies and the broader venture capital ecosystem, and contribute to a more sustainable and inclusive global economy.

All of 1V’s business operations, investments, and financing shall be structured to meet the requirements of this Policy.

This policy is applicable to 1V’s operating business, current investee companies and all investments considered by the 1V Funds when presented for approval to each relevant funds’ Investment Committee.

Environmental

1. Climate change: We understand the significance and urgency of acting on climate change and support the goals of the Paris agreement. We incorporate climate change–related risks and opportunities into our assessment of expected asset class risks and returns, including physical risk, transition risk, and alignment with the Paris Agreement goals.
2. Carbon footprint: We are committed to measuring, reducing, and offsetting our carbon footprint to achieve carbon neutrality and eventually become carbon negative.
3. Sustainable operations: We strive to create more sustainable office environments, reduce waste, and promote responsible resource use throughout our operations.
4. Environmental impact analysis: Through our ESG materiality assessment process, we identify and weight environmental factors material to each potential investment using the SASB Materiality Finder and SICS industry classification, then assess performance via the ESG_VC framework. Key factors include carbon emissions, air pollution, circular economy, and responsible procurement.

Social

1. Workplace culture: We aim to foster a diverse, inclusive, and supportive workplace that prioritises employee wellbeing and professional growth.
2. Community engagement: We are dedicated to actively engaging with and contributing to our local communities through volunteering and charitable initiatives.
3. Human rights: We respect the human rights of those affected by our Fund’s investment activities and seek to confirm that our Funds do not invest in companies that utilise child or forced labour or maintain discriminatory policies. We incorporate human rights–related risks and opportunities into our assessment of expected asset class risks and returns, guided by the UN Guiding Principles on Business and Human Rights (UNGPs).
4. Labour standards: We remain committed to compliance with applicable international and local HR laws in the countries in which our Funds invest and portfolio companies operate, including supporting competitive wages and benefits, providing safe workplaces, and respecting employee rights.
5. Social impact analysis: We consider social issues such as parental policy, diversity, inclusion, staff wellbeing, and community engagement when assessing potential investments.

Governance

1. ESG integration: We are committed to incorporating ESG considerations into all levels of decision-making, from board oversight to investment strategies.
2. Responsible investment: We integrate ESG factors into our investment processes through materiality-weighted due diligence using SASB industry classifications, portfolio-level ESG_VC assessments, and ongoing monitoring to create long-term sustainable value.
3. Transparent reporting: We commit to comprehensive and transparent reporting of our ESG performance to all stakeholders, providing regular and timely information on ESG issues.
4. Active ownership: We will be active in our Funds’ ownership of portfolio companies to ensure they incorporate ESG issue management through their internal policies and practices.
5. Governance analysis: We consider governance issues such as board oversight, fair and equal pay, data governance & cyber security, and corporate policy when assessing potential investments.
6. Non-political stance: We are committed to ensuring that our resources and efforts are dedicated solely to the advancement of entrepreneurial endeavours and the success of our portfolio companies, providing a neutral and inclusive environment where diverse perspectives can thrive.

Stewardship

1. Stakeholder engagement: We actively engage with and educate our employees, investors, and portfolio companies on our ESG journey and targets.
2. Industry leadership: We seek to become a leader in building a sustainable business in our own internal operations and promote acceptance and implementation of responsible investment principles in the venture capital and broader investment industry.
3. Partnerships: We are dedicated to collaborating with industry peers, stakeholders, and experts to advance sustainable business practices and share knowledge.
4. Continuous improvement: We commit to continuous improvement by regularly reviewing and enhancing our ESG practices and performance, fostering a culture of sustainability across our organisation and investment ecosystem.
5. UN SDG alignment: We consider the alignment and opportunity to meet UN Sustainable Development Goals in our investment decisions and operations.
6. ESG factor prioritisation: We systematically prioritise ESG factors for stewardship based on:
   • Materiality to long-term value creation in venture capital and growth equity
   • Sector-specific considerations (healthcare technology)
   • Portfolio company stage (early-stage, late-stage)
   • Severity of potential stakeholder impact
   • Our ability to influence positive change
7. Engagement target selection: We focus stewardship efforts on portfolio companies where:
   • We hold board seats or significant ownership positions (>5-20%)
   • ESG risks could materially impact returns
   • ESG_VC scores fall below 60% or show declining trends
   • Significant stakeholder concerns have been raised
8. Stewardship escalation: We employ progressive escalation when initial engagement fails to achieve progress within agreed timeframes, including formal board resolutions, conditioning of follow-on funding, and exploring exit options as a last resort.
9. Conflicts of interest management: We maintain protocols for identifying, disclosing, and managing conflicts of interest in stewardship activities, including documentation requirements and recusal procedures.

1V has a proud heritage of investing in truly innovative healthcare and technology companies tackling global problems. Below are some examples of 1V’s stewardship of our portfolio companies, ensuring ESG considerations are sufficiently managed, risks minimised, and opportunities acted upon.

Vaxxas

Portfolio company

Vaxxas is a next-generation vaccine delivery platform that elicits a robust immune system activation through their proprietary High Density Micro-array patch (HD-MAP) technology. The HD-MAP aims to provide an optimised, differentiated needle-free vaccine delivery solution that safely and cost effectively amplifies vaccine efficacy, removes the need for cold storage and can provide for self-administration.

Pre/post investment

1V originated the investment opportunity in Vaxxas through early identification of the ground-breaking R&D at the University of Queensland. Since the initial investment, OneVentures Managing Partner, Dr Paul Kelly, has played a critical role as Chair of the Board. In this capacity he has supported the CEO in the development of major partnerships with global healthcare foundations and investors including the Bill & Melinda Gates Foundation, the World Health Organization and US Department of Health Biomedical Advanced Research and Development Authority. 1V has been instrumental in defining Vaxxas’ pipeline of proprietary vaccinations targeting globally critical infectious viruses and diseases.

ESG opportunity 

Our investment in Vaxxas highlights our focus on going beyond investing in companies that “do no harm”, but actively seeking to partner with and steer those businesses with products that have the potential to be globally relevant game-changing technologies that improve lives. Vaxxas’ HD-MAP technology platform could help provide efficient, cost-effective, needle-free vaccine delivery, including to vulnerable communities and the developing world. This is particularly important for people living in geographies that have cost, cold supply chain and broader healthcare availability challenges.

Backing Vaxxas’ mission to reduce the prevalence of preventable diseases through accessible, efficient vaccine delivery highlights 1V’s commitment to creating positive social and environmental impact and to consider these impacts when making investment decisions. Throughout the investment period, 1V has also provided the role of CFO of Vaxxas, providing significant oversight and ensuring strong governance and reporting practices are in place. A well-structured board of investors oversees the company.

Employment Hero

Portfolio company

Employment Hero is a HR, Payroll and Employee Benefits SaaS platform business, currently supporting ~5000 Small Medium Enterprise (SMEs) businesses with operations in Australia, New Zealand, UK and SE Asia. The company’s mission is to create a better world of work.

Pre/post investment

1V was the first financial investor in Employment Hero, leading the Series A round. 1V has provided significant hands-on strategic and operational support and guided the company through multiple rounds of funding and corporate restructuring. OneVentures Managing Partner Dr Michelle Deaker has been Chair of the Board since the initial investment.

ESG opportunity 

Employment Hero’s product suite provides business critical HR capabilities to small medium enterprises who struggle to understand and maintain adherence to HR regulatory compliance and market changes and provide benefits and ongoing training to employees that is usually cost prohibitive for a small employer. The sector continues to be significantly underserved by software solutions and during this time of great change, dislocation and COVID-related HR management, Employment Hero has shown strong leadership to support these businesses. Employment Hero’s products empower employers to strengthen their Social and Governance capacity to create a fair, informed and compliant working environment for employees. Businesses that fail to strengthen these areas face significant risk, with underpayment of wages and employee awards garnering negative media attention in recent times.

Our approach to responsible investment

This appendix outlines OneVentures’ (1V) specific approach to responsible investment, complementing our broader ESG commitments outlined in the main policy.

1V has a three-dimensional investment philosophy which places responsible investment at the core of our investment process. Our investment philosophy is for our investments to:

1. grow as profitable enterprises,
2. avoid harm to stakeholders, and
3. benefit society through contribution to one or more UN SDGs.

We understand that for many of our investors the positive environmental and social impact of their portfolios is an important consideration in combination with investment performance.

ESG failures can highlight improper governance and impact not only investment value, but also have the potential to cause harm to society and the environment more broadly.

Companies that are unwilling or unable to take ESG issues into consideration may: a. put the company’s reputation at risk; b. put 1V’s reputation at risk; c. cause loss of market opportunities; d. diminish company value; and e. inadvertently affect other companies within 1V’s portfolio.

Assessing ESG risks in the investment process is therefore consistent with 1V’s objectives as long-term investment managers, and our fiduciary duties and responsibilities to 1V investors. We actively engage with our portfolio companies on a range of commercial, strategic and ESG related matters and encourage them to advance these same principles in a way that is consistent with their fiduciary duties.

ESG integration in strategic asset allocation

Our responsible investment approach directly influences our strategic asset allocation process. We incorporate ESG factors, climate change–related risks and opportunities, human rights–related risks and opportunities, and other systematic sustainability issues into our assessment of expected asset class risks and returns across all of our AUM subject to strategic asset allocation. This integration is consistent with our obligations as a UNPRI signatory under PRI Principle 1.

Climate change-related risks and opportunities

We assess climate change–related risks and opportunities as part of our investment strategy by evaluating exposure to physical risk (e.g. extreme weather events, supply chain disruption), exposure to transition risk (e.g. regulatory changes, carbon pricing, shifts in market demand), and alignment with the goals of the Paris Agreement. For venture capital and growth equity investments, we consider how climate-related factors may affect the viability and scalability of business models, particularly in sectors with high exposure to energy transition, resource scarcity, or changing consumer expectations. Climate risk assessments inform both our sector allocation decisions and our evaluation of individual investment opportunities.

Human rights–-related risks and opportunities

We incorporate human rights–related risks and opportunities into our asset class assessment, guided by the UN Guiding Principles on Business and Human Rights (UNGPs) and the International Bill of Human Rights. This includes evaluating risks related to labour practices in supply chains, data privacy and digital rights (particularly relevant for our technology investments), access and affordability of products and services (particularly relevant for our healthcare investments), and the potential for adverse human rights impacts in the jurisdictions where portfolio companies operate.

Other systematic sustainability issues

We also incorporate risks and opportunities related to other systematic sustainability issues that may affect expected asset class risks and returns. These include biodiversity loss and ecosystem degradation, water scarcity and pollution, just transition considerations (ensuring that the shift to a low-carbon economy does not disproportionately affect vulnerable communities or workers), and responsible use of artificial intelligence and emerging technologies. The specific systematic issues considered are reviewed annually to ensure they reflect evolving scientific understanding, regulatory developments, and stakeholder expectations.

Implementation

These ESG factors are integrated into our strategic asset allocation through sector-level risk assessments that consider ESG exposure across healthcare and technology sub-sectors, incorporation of ESG risk premiums into our return expectations for different investment themes, regular review of portfolio-level ESG exposure to identify concentration risks, and alignment of our investment themes with long-term sustainability trends and opportunities. The outcomes of this analysis are documented and presented to the Investment Committee as part of our regular strategic asset allocation review process.

Screening

1V’s investment process is structured to align with the values of our investors, including in the interest of their financial assets.

Positive screens

1V’s philosophy is that our healthcare and technology-based investments must have a positive societal and economic impact.

As an asset owner, 1V has utilised the United Nations Sustainable Development Goals (UN SDGs) as a framework for aligning the purpose of our investments to attainment of global development goals.

As part of our investment management and reporting processes we will:

• Select investment opportunities which support achievement of the UN SDGs,
• Map our portfolio investments in terms of their alignment with UN SDGs,
• Specifically reporting to our investors how each investment contributes to the attainment of UN SDG’s,
• Use of the UN SDG framework to report on our responsible investment outcomes

Negative screens

1V shall not invest directly in the following sectors:

• Gambling businesses,
• Pornography,
• Alcohol manufacture or distribution (other than for a healthcare related purpose),
• Tobacco manufacture or distribution, or
• Controversial weapons and weapons banned by UN convention (for example Nuclear, Biological, Chemical, APMs, Cluster Munitions, Laser Blinding and Undetectable Fragments).

ESG Materiality Assessment Process

1V conducts ESG materiality analysis at the portfolio company level for all potential private equity investments. This goes beyond using the ESG_VC framework as a pass/fail screening mechanism. Instead, we systematically assess which ESG factors are most relevant to each individual investment based on its industry, business model, geographic location, and stage of development. This approach ensures that our ESG due diligence is proportionate, focused, and aligned with the UNPRI Principle 1 requirements for materiality analysis (PE 3).

Methodology

Our materiality assessment process follows these steps for each potential private equity investment:

• Industry classification: The investment team identifies the target company’s Sustainable Industry Classification System (SICS) industry using the SASB Materiality Finder (now maintained under the ISSB/IFRS Sustainability Disclosure Standards). This classification determines the baseline set of ESG topics considered material by industry.
• Materiality mapping to ESG_VC: The material SASB topics for the identified industry are mapped to the relevant subset of the 56 ESG_VC questions. Questions aligned with material topics are assigned higher weighting. Non-material questions are still scored but carry lower weight in the overall assessment.
• Company-specific adjustments: Beyond the industry-level SASB mapping, the investment team adjusts weightings based on factors specific to the individual company, including its business model (e.g. SaaS vs hardware vs services), geographic location and regulatory context (particularly Australian and New Zealand frameworks), supply chain exposure, and company stage (early-stage vs late-stage).
• Weighted ESG_VC scoring: The potential investment is then scored against the full ESG_VC framework, but with the materiality-weighted approach applied. This produces both an overall ESG_VC score and a materiality-adjusted score that highlights performance on the issues most relevant to the specific company.
• Integration with due diligence: Material ESG factors identified through this process inform deeper investigation during due diligence, including in-depth management interviews, site visits, third-party specialist assessments, and detailed external stakeholder analyses as appropriate. Material ESG findings are documented in the investment memo alongside commercial, accounting, and legal due diligence findings.

Application to investment decisions

The results of the materiality assessment directly inform investment decision-making by identifying which ESG risks and opportunities are most likely to affect the long-term value of the investment. Material ESG factors are used to identify remedial actions for 100-day plans (or equivalent), identify opportunities for value creation, and inform the pricing and structuring of investments. Post-investment, the materiality assessment is reviewed annually and updated as the company’s business model, industry dynamics, or geographic footprint evolves. This ensures that ongoing ESG monitoring and engagement remains focused on the most relevant factors.

Documentation and accountability

Each materiality assessment is documented in a standardised format that includes the SICS industry classification, the SASB material topics identified, the mapping to ESG_VC questions with assigned weightings, company-specific adjustments and rationale, the materiality-adjusted ESG_VC score, and a summary of key material ESG risks and opportunities. This documentation is retained as part of the investment file and is available for review by the Investment Committee, auditors, and for UNPRI reporting purposes.

Stewardship 

As active asset owners who are focused on responsible investment, we will use our stewardship rights at investee companies to engage on each company’s ESG considerations and management processes. Our own ESG commitments and practices inform this engagement, allowing us to provide practical guidance and support to our portfolio companies in their ESG journeys.

Definition: We define stewardship as the use of our investor rights and influence to protect and enhance overall long-term value for clients and beneficiaries, including the common economic, social and environmental assets on which their interests depend.

Engagement

Engaging with investee companies is a vital part of maintaining investment oversight and ensuring that investor views are considered in the governance of companies and assets we manage through our funds on investors’ behalf. We believe that by exercising these ownership rights and maintaining our ‘seat at the table’ we can maximise value for our investors.

Direct engagement

Where relevant and appropriate, we will engage directly with companies, with the aim to:

1. Improve the way a company is managing ESG issues;
2. Encourage companies to improve their performance in any area of material concern; and
3. Encourage the disclosure by companies of material ESG issues adopting relevant analytical tools and

Collaborative engagement

1V recognises that positive engagement on ESG issues with investee companies can take many forms. Therefore, the company aims to participate in collaborative engagement activities to further the discussion and disclosure of material ESG issues and develop practical tools for the reporting of ESG related activities. A collaborative approach acknowledges the opportunity for improvement and that we need buy-in from portfolio company stakeholders to drive and implement any practices and processes with the businesses.

Stewardship Framework and Implementation

Stewardship tools and activities 

As active owners, we deploy a comprehensive toolkit to drive ESG improvements which are differentiated by venture capital asset class:

For our equity portfolio:

• Board governance: Active participation through our board representatives, including formal ESG agenda items at quarterly board meetings
• Direct management engagement: Regular dialogue with portfolio company leadership teams on ESG performance and opportunities
• ESG action plans: Development of company-specific ESG roadmaps with clear milestones and KPIs
• Capacity building: Provision of ESG training, resources, and connections to specialist advisors
• Collaborative initiatives: Participation in industry programs like ESG_VC and coordination with co-investors
• Performance monitoring: Quarterly reviews of ESG metrics and annual ESG_VC assessments

For our debt portfolio:

• Sustainability-related covenants in loan documentation
• Margin ratchets (adjusting borrowing costs based on ESG performance)
• Ongoing borrower/sponsor engagement
• Resource sharing and training provision

Esculation procedures 

When portfolio companies fail to make adequate progress on material ESG issues, we follow a structured escalation approach:

1. Initial engagement (0-6 months): Direct dialogue with management, provision of support and resources
2. Formal escalation (6-12 months): Board-level intervention, formal ESG improvement requirements, engagement of external advisors
3. Conditional measures (12-18 months): Link follow-on funding to ESG milestones, require independent ESG audit
4. Exit consideration (18+ months): Evaluate strategic alternatives including secondary sale or refusing follow-on participation

Escalation triggers include:

• Failure to implement agreed ESG actions within specified timeframes
• Material ESG incidents without adequate response
• Persistent non-compliance with ESG reporting requirements
• ESG_VC scores remaining below 40% for consecutive reporting periods

Conflicts of interest in stewardship

We recognise that conflicts may arise in our stewardship activities, including:

• Cross-holdings within our portfolio
• Relationships with limited partners who may have interests in portfolio companies
• Differing ESG priorities among co-investors
• Personal relationships between team members and portfolio company management

Our conflict management protocol requires:

• Disclosure of potential conflicts to the Investment Committee
• Documentation of conflict considerations in investment memos
• Recusal from decision-making where material conflicts exist
• Involvement of independent board members where appropriate
• Transparent reporting of conflict resolutions to relevant stakeholders

Integration and communication 

Stewardship outcomes are systematically integrated into our investment process through:

• Monthly portfolio review meetings including ESG performance updates
• Quarterly Investment Committee reviews of stewardship activities and outcomes
• Integration of stewardship learnings into new investment due diligence
• Annual stewardship effectiveness reviews
• Maintenance of an ESG engagement database tracking all stewardship activities and outcomes

This ensures that stewardship insights directly inform future investment decisions and portfolio management strategies.

Reporting

1V commits to annual reporting to investors on our responsible investment outcomes and ESG issues and to working closely with our portfolio companies to achieve this aim.

We have implemented the ESG_VC framework, a collaborative effort with other venture capital firms and the Australian Investment Council (AIC), to evaluate ESG performance across our portfolio. This united approach provides a more meaningful and efficient way for portfolio companies to report on ESG to multiple investors. We complement the ESG_VC framework with the SASB Materiality Finder (ISSB/IFRS Sustainability Disclosure Standards) to ensure our ESG assessments are weighted according to industry-specific materiality, as detailed in our ESG Materiality Assessment Process.

We have also become a signatory of the United Nations Principles for Responsible Investment (UN PRI) in 2020, reporting publicly on our ESG performance.

These reporting commitments underscore our alignment with global responsible investment principles and our dedication to transparency and accountability.

Available on request

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