🔍 Filters
This note outlines the ESG checks that must be completed before all Fund V ICs. While these are required for initial investments, follow-on investments will have separate requirements determined on a case-by-case basis.
1. ESG Information Submission
The deal team must complete the ESG Compliance Checklist prior to bringing a company to IC1.
2. Prohibited and Debarred Activities
Before IC1, the team must confirm that:
- The company does not fall under Blume's Prohibition List (see Annexures tab).
- The company is not listed on the Debarred Firms and Individuals list.
- The company has no operations or business exposure in Myanmar or Afghanistan.
3. Developing Country Requirement
Blume will only invest in companies whose business is considered to be operating in a Developing Country (as defined in Annexure 2). The IC note must explicitly confirm how both the mandatory and secondary conditions are satisfied.
Mandatory Condition: At least 50% of the investment proceeds raised by the Company from Blume must either fund operations in a Developing Country, or create clear developmental benefits for a Developing Country.
Secondary Condition (at least one must be met — each with a 50% threshold):
- ≥50% of employees are based in a Developing Country.
- ≥50% of income is taxable in a Developing Country.
- ≥50% of R&D activities are conducted in a Developing Country.
- ≥50% of business activities create developmental benefits in a Developing Country.
4. SDG Alignment
The IC note must include a one-paragraph summary describing how the investment aligns with relevant UN Sustainable Development Goals (SDGs). Most investments will typically align with SDG 8 (Decent Work & Economic Growth), SDG 9 (Industry & Innovation), and/or SDG 10 (Reduced Inequalities). For guidance, contact sreenidhi@blume.vc.
Hi team,
You might be wondering why we're doing this, or even thinking "why all this effort?" — totally fair.
While this does stem from an LP requirement, at Blume we've always believed in going above and beyond wherever we can. This isn't just a checkbox exercise for us. It's about helping our companies stay ahead of emerging risks, while also positioning them as strong differentiators in their space.
Over the years, through our investments, we've driven impact that many self-proclaimed "impact funds" haven't matched.
So as we continue this journey, this process is really about understanding and showcasing the real impact we've collectively created.
That said, please use this space to share any doubts, questions about the process, or suggestions on how we can make ESG easier and more useful for you. Keeping this discussion open will help address common queries and serve as a shared FAQ for everyone.