The below disclosures have been made in response to California Assembly Bill No. 1305 (AB 1305). AB 1305 requires an entity that makes claims regarding the achievement of net zero emissions or other, similar claims to disclose on the entity’s website information documenting how, if at all, a claim was determined to be accurate or actually accomplished, how interim progress toward that goal is being measured, and whether there is independent third-party verification of the company data and claims listed.

I. Venture Climate Alliance

Galvanize Climate Solutions LLC (“Galvanize”) is a member of the Venture Climate Alliance (VCA). The VCA is a group created by venture capital firms that aims to define, facilitate, and realize net zero-aligned pathways for early-stage investments. In joining the VCA, Galvanize committed to: inventory its direct Scope 1-3 carbon footprint and to reach net zero or negative emissions for its own firm’s operations by 2030 or sooner. The VCA is expected to establish best practice methodologies and disclosure guidance with respect to venture capital portfolio company targets to achieve net zero alignment and firm reporting, but has not yet done so. Commitments with respect to portfolio companies will be limited to Ponderosa and Innovation & Expansion.

Galvanize has engaged an enterprise climate platform to estimate its carbon footprint since inception, which enables tracking progress towards our goal of net zero operational emissions by 2030 as defined by the VCA.

As of December 2023, Galvanize had not conducted third-party verifications of such emissions accounting.

Galvanize disclosed its carbon footprint in the Galvanize Impact Framework, dated September 2023 (the “Impact Framework”). Specifically, Galvanize disclosed 1,449 tons of CO2e (see Glossary below) of operational emissions and 17,888 tons of CO2e of total financed emissions, in each case from August 2023 through December 2022.

More information pertaining to Galvanize’s carbon footprint and the calculation thereof can be found in the Impact Framework available at https://galvanizeclimate.com/wp-content/uploads/2023/10/galvanize-impact-framework.pdf (see page 24).

As of December 2023, Galvanize had not conducted a third-party verification of its carbon footprint.

II. General statements for each investment strategy

A. Innovation & Expansion

1. Strategy

Galvanize’s Innovation & Expansion strategy (I&E) aims to invest in and scale vital climate solutions driving timely decarbonization.

Galvanize estimates each company’s total addressable climate impact (TACI), planned impact, and realized impact (see Glossary below). More information on the TACI and planned impact calculations can be found in the Impact Framework available at https://galvanizeclimate.com/wp-content/uploads/2023/10/galvanize-impact-framework.pdf (see pages 9, 10, 12, 28, 29 and 32).

As of December 2023, Galvanize had not conducted a third-party verification of its TACI, planned impact, or realized impact estimates.

2. I&E Portfolio Company Emissions Abatement

Additionally, Galvanize disclosed Innovation & Expansion estimated portfolio company emissions abatement in the Impact Framework. Specifically, Galvanize disclosed ~4.9 million metric tons of CO2e abatement enabled in 2022 by 2022 Innovation & Expansion portfolio companies. More information pertaining to Galvanize’s calculation of portfolio company emissions abatement can be found in the Impact Framework available at https://galvanizeclimate.com/wp-content/uploads/2023/10/galvanize-impact-framework.pdf (see pages 9, 12 and 29).

As of December 2023, Galvanize had not conducted a third-party verification of portfolio company emissions abatement.

3. I&E Portfolio Company TACI

Galvanize further disclosed Innovation & Expansion portfolio company TACI (defined in the Glossary below), which is an evaluation of how large of a climate transition challenge the company is taking on. Specifically, Galvanize disclosed that, in 2022, Innovation & Expansion portfolio companies tackled challenges with TACI ranging from 200 million to 9,800 million metric tons (MMT) of CO2e emissions. In addition, Galvanize disclosed that Innovation & Expansion expects that these companies could enable the cumulative reduction, removal, or avoidance of 490 MMT of CO2 emissions by 2030. More information pertaining to Galvanize’s calculation of these statistics and TACI can be found in the Impact Framework available at https://galvanizeclimate.com/wp-content/uploads/2023/10/galvanize-impact-framework.pdf (see pages 10, 12, 28, and 32).

As of December 2023, Galvanize had not conducted a third-party verification of TACI.

2. I&E Portfolio Company TACI

Galvanize further disclosed Innovation & Expansion portfolio company TACI (defined in the Glossary below), which is an evaluation of how large of a climate transition challenge the company is taking on. Specifically, Galvanize disclosed that, in 2022, Innovation & Expansion portfolio companies tackled challenges with TACI ranging from 200 million to 9,800 million metric tons (MMT) of CO2e emissions. In addition, Galvanize disclosed that Innovation & Expansion expects that these companies could enable the cumulative reduction, removal, or avoidance of 490 MMT of CO2 emissions by 2030. More information pertaining to Galvanize’s calculation of these statistics and TACI can be found in the Impact Framework available at https://galvanizeclimate.com/wp-content/uploads/2023/10/galvanize-impact-framework.pdf (see pages 10, 12, 28, and 32).

As of December 2023, Galvanize had not conducted a third-party verification of TACI.

B. Ponderosa

1. Strategy

With climate impact as an initial lens, Ponderosa looks for companies in the food and agriculture system with the potential for positive impact in the themes described above–biodiversity, water, human health, and justice. Ponderosa portfolio companies seek to reduce or avoid the negative impacts of conventional food and material production, decrease food waste and its associated emissions, promote regenerative agricultural practices, and/or revitalize natural carbon sinks. When evaluating a company for investment, Ponderosa considers the TACI of each company. More information pertaining to Galvanize’s calculation of TACI can be found in the Impact Framework available at https://galvanizeclimate.com/wp-content/uploads/2023/10/galvanize-impact-framework.pdf (see pages 12, 19, 28, and 32).

As of December 2023, Galvanize had not conducted a third-party verification of portfolio company emissions abatement or TACI.

C. Galvanize Global Equities

1. Strategy

Galvanize Global Equities (GGE) aims to catalyze an acceleration of energy transition (see Glossary below) and climate-aligned behaviors at portfolio companies. GGE utilizes third-party ESG data sources to help measure and monitor a company’s transition risk assessment or alignment, in addition to its own research into a portfolio company’s practices.

As of December 2023, Galvanize had not conducted a third-party verification of portfolio company emissions abatement.
D. Galvanize Real Estate
1. Strategy
Galvanize Real Estate (GRE) aims to invest in and decarbonize real estate. GRE plans to reduce operational emissions of properties that it acquires. Specifically, GRE aims to reduce operational emissions of properties in its portfolio by 100% within three years of ownership. GRE measures quantitative reductions in operational CO2e emissions compared to a baseline, tracked through usage data from utility bills. An independent third-party consultant will provide validation of this data.

Glossary

1. “CO2e” is a metric used to compare the emissions from various greenhouse gases on the basis of their global warming potential by converting amounts of other gases to the equivalent amount of carbon dioxide with the same global warming potential. GRE specifically tracks operational carbon dioxide (CO2), nitrous oxide (N2O) and methane (CH4) greenhouse gas emissions (collectively “CO2-equivalent emissions” or “CO2e emissions”) to calculate the fractional reduction of baseline portfolio emissions, or “fractional decarbonization.” This calculation includes portfolio properties’ emissions from metered fossil fuel burning on-site, emissions from net-metered electricity used on-site, and upstream methane emissions tied to metered natural gas usage. GRE also references CO2e emissions as “operational emissions.”
2. “energy transition” is the energy transition contemplated under the Paris Agreement.
3. “planned impact” is the future year-over-year climate impact that a business can practically deliver, compared to a business-as-usual baseline. It is not a goal or target, but represents Galvanize’s estimate of its expectations for the company’s ability to deliver climate impact.
4. “realized impact” is the estimated actual climate impact of a company, calculated on an annual basis.
5. “total addressable climate impact (TACI)” is the gross estimated tons of CO2e that the company could directly or indirectly reduce, remove or avoid if the company were to capture 100% of the market as it stands today.  For certain companies, which are primarily focused on capturing greenhouse gasses or the adaptation to the effects of climate change where there may not be a corresponding reduction, removal or avoidance of CO2e, we expect to alternatively evaluate TACI as the total impact on the resilience or adaptation metric relevant to the individual company’s solution (e.g., water usage) if the company were to capture 100% of the market as it stands today. TACI calculations specifically assume that a company will capture 100% of the applicable market, which provides an estimate of maximum potential impact.