AB 1305 Disclosures

Galvanize Climate Solutions LLC is making the below disclosures in order to comply with California Assembly Bill Number 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. In April of 2024, the VCA established best practice methodologies and disclosure guidance with respect to venture capital portfolio company targets to achieve net zero alignment and firm reporting. Commitments with respect to portfolio companies will be limited to Innovation & Expansion (“I+E”). More information can be found on VCA’s website regarding their methodologies and disclosure guidance.

I+E has formalized its commitment to providing our portfolio companies with the guidance and resources needed to align their operations with Net Zero or negative greenhouse (“GHG”) emissions by 2050 or sooner.

I+E’s first iteration of our Net Zero pledge reflects our commitment to transparency and rigor, and our ambition to cultivate and support the next generation of climate-aligned market leaders. We will revisit these commitments at a minimum of once every five years, with a view toward developing leading standards for measurement, targets, and transparency within our industry. Our Commitment:

1. We will measure and reduce our Firm’s operational emissions and neutralize residual emissions by 2030 or sooner. We will measure our Firm’s Scope 1-3 operational emissions using best-practice Greenhouse Gas accounting standards and take steps to reduce and/or neutralize our emissions by 2030 or earlier.
2. We will encourage our portfolio companies to reach Net Zero alignment by 2050 or earlier.  In accordance with the stage-appropriate best practices defined by the VCA Portfolio Alignment Framework, we will encourage and support our portfolio companies to reach Net Zero alignment by 2050 or earlier.
3. We will help our portfolio companies decarbonize. We will provide appropriate assistance to portfolio companies to help them achieve established Net Zero targets through our role as an advisor and shareholder.
4. We will share our progress and our portfolio’s progress. We will report annually on our progress and our portfolio’s progress toward the above goals, with the goal of bringing our full I+E portfolio into alignment with Net Zero by 2050 or earlier.  The first official reporting period under the VCA’s Annual Disclosure Framework will cover the 2024 calendar year.

Galvanize is working with VCA to release additional guidance on two complimentary frameworks (Portfolio Engagement and Climate Solutions) that VCA members can choose to implement based on their investing strategies and goals. Through our ongoing commitment to the VCA and its mission, we acknowledge the outsized role the venture industry can play in accelerating innovation and contributing to a low carbon economy. We aim to play our part in evolving industry best practices and standards for climate impact measurement, disclosure, and engagement, as well as fostering a collective commitment to accelerate the global transition to Net Zero.

Galvanize has engaged an enterprise climate platform to estimate its carbon footprint since inception (2021, 2022, and 2023), which enables tracking progress toward our goal of net zero operational emissions by 2030 as defined by the VCA. As of December 2024, Galvanize conducted third-party verifications of such emissions accounting, however, Galvanize has yet to have the calculation verified by a third party. Galvanize will complete the calculation of our 2024 footprint during the third quarter of 2025.

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 2021 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).

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).

As of December 2024, 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 their 2023 Galvanize Impact Report. Specifically, Galvanize disclosed ~5.1 million metric tons of CO2e abatement enabled in 2023 by 2023 Innovation & Expansion portfolio companies.

As of December 2024, Galvanize had not conducted a third-party verification of portfolio company emissions abatement.

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. As of December 2024, 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 such as Integrum ESG and MSCI ESG ratings as 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.

At least once a year, a member of the GGE team runs the previously determined investment screens through a combination of data from Bloomberg and Equity Data Science. The companies that these screens identify are then further reviewed by the GGE team.

While there are no fixed rules relating to Transition alignment, GGE seeks investments that have accelerating capital allocation (fixed capital or operating expenditure) to aligned activities and a meaningful amount (ideally, >10%) of revenue and/or new capital formation focused on the net zero opportunity.

In addition, in June 2024 GGE announced its Net Zero Pledge, which will be revisited and revised at least once every five years. GGE’s Net Zero Pledge commitments are set forth below:

1. Measurement: GGE commits to annual measurement and transparent reporting on a range of portfolio- and asset-level metrics relating to portfolio company emissions, portfolio company alignment to the Energy Transition, and our engagement.
2. Long-term GHG emissions reduction target: We commit to align our portfolio with Net Zero GHG emissions by 2050 or sooner.
3. Near-term GHG intensity reduction target: By 2030, we aim to achieve a minimum 50% reduction in our portfolio Scope 1-2 weighted average carbon intensity (WACI, tCO2e/US$M invested) from a 2019 baseline.
4. Engagement: We aim for at least 33% of current GGE companies to be the subject of direct, material^[1] engagement.

As of December 2024, 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 validate this data.

As of December 2024, Galvanize had not conducted a third-party verification of portfolio company emissions abatement.

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 estimated tons of CO2 or its equivalents (CO2e) the company or other investment could directly or indirectly reduce, remove or avoid if it could capture 100% of the market as it stands today. For adaptation-oriented solutions, the TACI represents the total impact on the relevant resilience or adaptation metric (e.g., water use efficiency) if the company or other investment could capture 100% of the market as it stands today. TACI is not a measure of estimated or actual climate impact of the company or other investment in question. Rather, the purpose of TACI is to evaluate the magnitude of the climate transition pathway the company is addressing and help us focus on sectors, markets and products that truly matter.”

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^[1] Defined as active dialogue with portfolio company C-suite and/or Board.