British Business Bank, BVCA and VentureESG launch VC data harmonisation project to remove barriers to investment in British venture capital
- British Business Bank, VentureESG and BVCA will convene large institutional LPs with venture capital portfolios in the UK throughout 2025 to agree ESG reporting requirements.
- The new project will take lessons from the successful Invest Europe/VentureESG harmonisation project.
The British Business Bank, VentureESG and the British Private Equity and Venture Capital Association (BVCA) have announced the development of a public VC ESG reporting template to harmonise engagements between GPs and venture capital backing LPs. The project which launched at the BVCA’s annual sustainability conference, will co-create a reporting template specific for venture capital and proportionate for scaling companies.
The resulting template aims to reduce the administrative burden on funds and portfolio companies through increased convergence in investor reporting requirements, while creating a harmonised dataset of VC ESG data in the UK. The project will learn from, and coordinate with the Invest Europe/VentureESG harmonisation project which released the third edition of its template in November 2024 with the support of the largest continental European LPs, including the European Investment Fund (EIF) and KfW Capital.
Private capital is leaning into sustainability
Sustainability is central to a growing share of fund strategies within the private capital industry, as institutional investors seek sustainability-related opportunities such as climate solutions and responsible innovation. New analysis from the BVCA shows that at least £83bn was raised by funds managed by BVCA members aligned to Sustainable Finance Disclosure Regulation (SFDR) Articles 8 or 9 or equivalent over the past 4 years.
VC-backed businesses in the UK are leading comparative countries in their reporting. A report from ESG_VC and the BVCA, found that 26% of UK start-ups measure their carbon footprint compared to 23% in Europe and only 8% in the US, while 16% of UK companies analysed have adopted a net zero policy or programme versus 13% in Europe, and 7% in the US.
Unlocking Pension Investment for UK Venture and Growth Equity
In May 2025, 17 of the UK’s largest pension schemes signed the Mansion House Accord, a voluntary agreement by signatories to invest a portion of their defined contribution (DC) default funds into private markets, including venture capital and growth equity. This opportunity brings an expectation of ESG integration. Existing frameworks have evolved in different asset classes. This project will shape expectations of ESG integration and reporting that meet the needs of LPs and help prepare GPs' for the opportunities the Mansion House Accord could bring.
Comments from:
VentureESG, CEO, Dr Johannes Lenhard said:
“The success of the Invest Europe template and the harmonisation process we supported last year is enormous; the ESG reporting burden among almost all startups in Europe has decreased year over year - which frees up time to do the real work. That is what we want to achieve in the UK with this new project.”
BVCA, Chief Executive, Michael Moore said:
“Channelling more investment into venture and growth equity will be vital to build the exciting and innovative companies of the future that will help drive economic growth.
“This new data harmonisation project will help LPs and GPs to come to a consensus on reporting requirements, ensuring that investors get the information they need and small firms and managers are not unduly burdened with disproportionate reporting requirements.”
British Business Bank, Director Sustainability, Hannah Gilbert said:
“We are pleased to support this initiative to frame LP and GP engagements around ESG integration practices that are material and proportionate, grounded in harmonised reporting and forward-looking to strategic opportunities for long-term value creation”.
Notes to Editors:
For further information, please contact:
BVCA Press Office
Email: [email protected]
Background:
About VentureESG
VentureESG is a London-based non-profit organisation working with 500+ VC funds and 110+ LPs globally on the integration of responsible investing and ESG into the industry’s foundations. We produce fit-for-purpose tools and resources, run 100+ peer-to-peer events annually and train funds and LPs on best practice.
About the British Private Equity & Venture Capital Association
The British Private Equity and Venture Capital Association (BVCA) is the industry body and public policy advocate for the private equity (PE) and venture capital (VC) (private capital) industry in the UK. With a membership of over 600 firms, the BVCA represents UK-based private capital, as well as the wider ecosystem of professional advisers and investors. The private equity and venture capital industry has a vital role to play in driving national and regional growth. Currently almost 13,000 companies, employing more than 2.5 million people, are backed by private equity and venture capital investment in the UK.
About the British Business Bank
The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive sustainable growth and prosperity across the UK and to enable the transition to a net zero economy, by improving access to finance for smaller businesses. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.
The British Business Bank’s core programmes support over £17.4bn of finance to almost 64,000 smaller businesses.
As well as increasing the supply and diversity of finance for UK smaller businesses through its programmes, the Bank works to raise awareness of finance options available to smaller businesses. The British Business Bank Finance Hub provides independent and impartial information to businesses about finance options, featuring short films, expert guides, checklists and articles from finance providers to help make their application a success.
The British Business Bank is also responsible for administering the government’s three Coronavirus loan schemes and its Future Fund, together responsible for delivering £80.4bn in finance to 1.67m businesses. These schemes are now closed to new applications.
British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at www.british-business-bank.co.uk.
