The portfolio company sets a near-term (within 5-10 years) 1.5°C-aligned decarbonization target as defined by common frameworks such as **Net Zero Investment Framework (NZIF), Private Markets Decarbonisation Roadmap (PMDR), and the SBTi Corporate Net Zero Standard. A 1.5°C-aligned decarbonization target is a more ambitious target, than the Stage 3: Near term intensity target, in that it is an absolute target and aligned with climate science to reach a net zero trajectory by 2050. Net zero aligned targets means reducing all scope 1, 2, and 3 emissions to zero or a residual level.
Stage four companies meet 2 of 3 criteria of >$100m in revenue (USD); >$500m equity raised (USD); >1000 FTEs
Ensure that you’re already meeting VCA ‘stage 1,’ ‘stage 2,’ and ‘stage 3’ climate practices. Review industry the target-setting frameworks below to select the one best-suited to your business and leverage the framework’s associated guidance.
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VCA Tip: At stage 4, your firm is effectively ‘graduating out’ of the VCA framework and into net zero aligned methodologies designed for later stage PE-backed and public companies. All of the frameworks below have relatively robust public guidance and completion of previous VCA stages puts your firm on track to meet requirements.
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