Does ESG actually add any value in VC?

Does ESG actually add any value in VC?

Author: Hugo Rauch September 18, 2025 Duration: 35:46

ESG is under fire. Some say it’s “good for the brand” but not foundational to the strategy. Others call it flat-out fraud.

So I wanted to find out:

Is ESG in venture capital just a PR exercise, or can it actually create value?

To unpack this complex topic, I invited Damien Didier, Head of ESG at Daphni, a French VC firm with over €500M AUM and one of the funds that truly walks the talk.

And I’ll be honest: I used to see ESG as a box-ticking exercise.

But after this conversation, I left convinced that when done right, ESG can improve startup performance, strengthen returns, and unlock real impact.

We covered:

What ESG really means in VC (and why most people get it wrong)

Their framework to assess ESG in early-stage startups

Why asking for too much ESG data too early is a mistake

How ESG ties into margins, exit premiums, and long-term value

…and more!

***

References:

Daphni - https://www.daphni.com/

Damien Didier - https://www.linkedin.com/in/damien-didier/

ESG Toolbox - The ESG Toolbox by daphni

Time4 - A New Fund to Change the Game!

Les Déterminés - https://www.lesdetermines.fr/

Live4Good - https://www.live-for-good.org/

HEC Incubators

Included VC - https://www.included.vc/

***

In this episode, we cover:

(00:00) Introduction

(00:41) ESG in Venture?

(10:24) Is ESG relevant at pre-seed?

(13:14) The S of ESG

(23:04) Implementing ESG

(28:55) The Future of ESG in VC

(31:50) Fire Questions 🔥

***

What’s next?👀

This was the last episode before we launch a new format and brand. Stay tuned! 👋

***

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Spotify - https://shorturl.at/yDTfR



This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit newwavenewsletter.substack.com

Hugo Rauch hosts New Wave, a podcast that lives at the intersection of business ambition and scientific reality. This isn't about distant predictions or abstract science; it's a grounded exploration of the technologies and companies being built right now to address our environmental future. Each episode focuses on the practical journey, dissecting the models, the breakthroughs, and the hard decisions that define the climate tech landscape. You'll hear from founders, researchers, and investors who are actively shaping this space, getting into the specifics of what works, what doesn't, and why. The conversations move beyond hype to examine the tangible mechanics of creating viable solutions, from energy storage and sustainable materials to carbon removal and regenerative agriculture. It’s for anyone who thinks about the climate challenge not just as a crisis, but as a complex and urgent field of innovation. By tuning into this podcast, you gain a clearer understanding of the economic forces and scientific principles driving the next generation of environmental solutions. New Wave connects the dots between the lab, the boardroom, and the impact we need to see in the world, offering a sober yet optimistic look at where substantive progress is truly being made.
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