Responsible Investment Policy

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 fund’s 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.
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 the ESG_VC framework, we consider and report on environmental impacts such as carbon emissions, air pollution, circular economy, and responsible procurement when assessing potential investments.

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.
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, from due diligence to portfolio management, 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.

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 Organisation 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 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-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.

Internal ESG practices informing our investment approach

Our commitment to ESG principles within our own operations informs and strengthens our responsible investment approach. By adhering to high ESG standards internally, we gain practical insights that enhance our ability to evaluate and guide our portfolio companies. This alignment between our internal practices and investment approach ensures consistency and credibility in our ESG efforts.

Delegations, responsibilities and accountability

1V’s investment professionals have delegated responsibility for management of ESG matters as well as collaborations on ESG initiatives and integration into investment decisions. ESG considerations will be addressed throughout the life cycle of the Fund and investment, from fund and mandate establishment, during the due diligence, screening and investment selection process, and through ongoing monitoring and management of the portfolio.

Screening

1V’s investment process is structured to align with the values of our investors including in the interest of their financial assets. To achieve this, 1V undertakes Negative and Positive pre-investment screening:

Negative Screens

1V shall not invest directly in the following sectors:

• Gambling businesses,
• Human rights abuses e.g. pornography and slavery
• Alcohol manufacture or distribution (other than for a healthcare related purpose),
• Tobacco manufacture or distribution,
• Usury finance,
• Physical fossil fuel extraction; or
• Weapons

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.

Our investment process is further structured by the ESG_VC framework, a collaborative effort with other venture capital firms and the Australian Investment Council (AIC). This framework allows us to evaluate and track ESG performance of both investment opportunities and our portfolio. By standardising ESG performance measure and reporting, we provide a consistent, transparent approach that benefits both portfolio companies and investors.

To operationalise the UN SDGs and ESG_VC framework, as part of our investment management and reporting processes we will:

• Actively seek investment opportunities which support achievement of the UN SDGs
• Assess investment opportunities’ ESG performance
• 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 SDGs

Use of the UN SDG framework to report on our responsible investment outcomes

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.

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 standards.

Collaborative engagement

1V recognizes 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.

Reporting

1V will annually assess the progress of our portfolio companies’ ESG performance against the ESG_VC assessment framework.

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 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.