Marvelous Management GmbH (“Marvelous”) is an alternative investment fund manager within the meaning of the German Capital Investment Act (Kapitalanlagegesetzbuch, “KAGB”) and as such publishes the following information in light of the consideration of sustainability-related aspects in accordance with Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability disclosure requirements in the financial services sector (“SFDR”).
Article 3 SFDR
Marvelous addresses sustainability risks in its investment decision-making process insofar as relevant. “Sustainability risk” means an environmental, social, or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment.
Throughout the due diligence process Marvelous has a multi-step sustainability screening and evaluation methodology in place with the objective to identify actual or potential sustainability risks.
If any actual or potential sustainability risks have been identified, Marvelous decides in light of the specific situation taking due account of the proportionality principle whether it gives up on the investment or proceeds with the investment alongside appropriate measures to mitigate the relevant sustainability risk.
Marvelous regularly reviews its policies to ensure that they address new and emerging risks as well as investors’ concerns.
Article 4 SFDR
Marvelous does not consider principal adverse impacts (“PAI”) of investment decisions on sustainability factors. “Sustainability factors” mean environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters.
While Marvelous tracks all mandatory and certain additional PAI Indicators (“PAIIs”) outlined in Annex I of the regulatory technical standards (“RTS”) under the SFDR, it has developed its own evaluation process tailored to the specific context of early-stage investments.
At this stage, Marvelous believes this is sufficient to effectively assess potential adverse impacts across the portfolio.
Reporting on PAI in the required form of the RTS would not only increase the administrative burden and costs but also fail to provide more valuable insights.
Marvelous remains open to reporting PAI indicators as outlined in the SFDR in the future, should it become evident that doing so would significantly enhance Marvelous’ ability to identify and mitigate possible adverse impacts of the investments while maintaining operational efficiency and cost-effectiveness.
Article 5 SFDR
As a registered alternative investment fund manager within the meaning of the KAGB, Marvelous does not have and does not need to have, a remuneration guideline or policy in accordance with the requirements of the KAGB. Sustainability risks are not considered with respect to the determination of remuneration.
Published: 31st July, 2025
This disclosure has been updated on 16 October 2026 to reflect the change in SFDR classification of Marvelous Venture Capital Fund from Article 9 to Article 8. The Fund’s underlying sustainability strategy and investment approach remain materially unchanged.
Marvelous Management GmbH is the alternative investment fund manager of Marvelous Venture Capital Fund GmbH & Co. KG (“Marvelous Venture Capital Fund”), LEI: 3912000PR9UWXY77WJ60, within the meaning of the German Investment Code (Kapitalanlagegesetzbuch) and as such publishes the following information in light of the consideration of sustainability-related aspects in accordance with Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability disclosure requirements in the financial services sector (“SFDR”).
Marvelous Venture Capital Fund is a venture capital fund with a focus on deep tech ventures in the sectors agriculture/food/land use, buildings and heavy industry. The financial product promotes environmental or social characteristics but does not have as its objective a sustainable investment within the meaning of Article 2 No. 17 SFDR. The promoted characteristics are greenhouse gas reduction, the protection and restoration of planetary boundaries, and the prevention of adverse environmental, social and governance impacts. 100% of the investments will be in line with its investment strategy and investment restrictions.
No reference benchmark has been designated to attain the environmental or social characteristics promoted by the financial product.
This financial product promotes environmental or social characteristics, but does not have as its objective sustainable investment.
Marvelous Venture Capital Fund promotes environmental characteristics through its investment strategy and invests in companies that meet the following impact and environmental, social, and governance (“ESG”) criteria:
Marvelous Venture Capital Fund works together with scientists to support the development and scaling of technologies that contribute to the environmental characteristics promoted by the Fund and provides long-term support as a transfer partner and investor to facilitate commercialization and reduce time-to-market. Marvelous Venture Capital Fund has prioritized three sectors, namely agriculture, construction and resource-intensive industries, as well as three solution areas, namely advanced materials, waste cascading and carbon capture and use (CCU).
Marvelous Venture Capital Fund intends to seek long-term capital appreciation through equity and quasi-equity investments primarily in European early-stage deep tech ventures in the sectors agriculture/food/land use, buildings and heavy industry (“Portfolio Companies”). The Investments target interconnected sectors such as buildings, agtech, foodtech, and industry, addressing both the climate and broader ecological crises through a holistic approach to sustainability.
Marvelous Venture Capital Fund will apply annual ESG reviews and engages the Portfolio Company on ESG-related suggestions and establishes an improvement program for the following 12 months. If necessary, a shorter cycle is agreed upon. During the annual ESG review, Marvelous Venture Capital Fund follows up on all previously agreed ESG actions.
Marvelous Venture Capital Fund also applies “catalyst activities”. Marvelous Venture Capital Fund's catalyst approach supports impact through the following activities:
Marvelous Venture Capital Fund has defined a comprehensive ESG framework that is used to perform the ESG due diligence prior to making an investment decision as well as throughout the holding period to review each Portfolio Company annually. For example, Marvelous Venture Capital Fund evaluates if the portfolio company has nominated a senior person holding overall responsibility for sustainability and good governance and whether sustainability-related roles and responsibilities have been described across key functions such as finance, procurement, etc.
Marvelous Venture Capital Fund will invest fully in line with its investment strategy and investment restrictions. Marvelous Venture Capital Fund will not invest a portion of its capital in any other asset class.
During the investment period Marvelous Venture Capital Fund reviews the estimates for the likely contribution to climate change mitigation annually. There will be an annual ESG review based on key performance indicators and regular check-ins to agree how to continuously improve ESG performance with the management teams of portfolio companies.
Marvelous Venture Capital Fund estimates the likely contribution to climate change mitigation by comparing the Portfolio Company’s solution for decarbonizing an economic activity in one of its focus sectors with an alternative reference solution or practice. The expected mitigation contribution, i.e., the emissions delta, is identified on a per-unit basis and multiplied by the anticipated number of units deployed and substituted.
The number of units deployed depends on the expected reference growth scenario and the substitution rate—how many reference units the Portfolio Company is likely to replace. The substitution rate is influenced by factors such as market adoption, regulatory acceptance, and technical scalability, incorporating insights from Marvelous Venture Capital Fund's commercial and technical due diligence.
The emissions delta is determined by comparing per-unit emissions of the reference and new solutions, as well as the conversion factor, i.e., how many new solution units are needed to replace one reference unit.
The point estimate reflects Marvelous Venture Capital Fund’s likelihood-based best assessment within a range. This range is influenced by variations in both the emissions delta and the expected number of units substituted. The emissions delta itself varies with the projected performance of both the reference solution and the Portfolio Company's solution. Reference performance is adjusted based on business-as-usual projections for the reference unit.
Regarding the planetary boundaries, Marvelous Venture Capital Fund reports and explains the likelihood of a significant contribution, quantifying it on a scale from 0 to 100.
To estimate this likelihood, Marvelous Venture Capital Fund evaluates three key driver categories:
Methodologies for science-based approaches to other planetary boundaries are currently evolving and not yet as mature as science-based climate models. For each boundary, however, a set of relevant quantitative metrics exist and Marvelous Venture Capital Fund will use whichever metric is most appropriate to express the contribution. For example, a positive contribution towards the fresh water boundary could be expressed in terms of m3 of water withdrawals avoided compared to a reference solution. Alternatively, the embedded water footprint for a new material could also be measured in m3 and compared to the embedded water footprint of a reference material.
Marvelous Venture Capital Fund receives data provided by the Portfolio Companies as part of the due diligence process and at regular intervals after the investment. Where necessary or beneficial, Marvelous Venture Capital Fund also makes use of publicly available data.
Where the Portfolio Companies are not in a position to provide accurate primary data, Marvelous Venture Capital Fund will rely on reputable publicly available data sources or make estimations based on team analysis and expert inputs. Regularly used data sets comprise data from IPCC, UNEP, World Bank, WRI, etc. Data estimations will typically comprise less than one third of all data. Marvelous Venture Capital Fund processes data in the internal due diligence tool and will use an established software provider to support reporting.
Marvelous Venture Capital Fund is partly dependent on information provided by Portfolio Companies during the due diligence process. In addition, in the post-investment phase, Marvelous Venture Capital Fund relies on data reported by the Portfolio Company. In both cases, due to the nature of the investments, complete data may not always be available. The information is only verified if and to the extent that misrepresentation is suspected.
Marvelous Venture Capital Fund makes commercially reasonable best efforts to ensure data quality but acknowledges that some assumptions may be based on inaccurate or incomplete data. However, by applying a robust due diligence framework as described below investment decisions are based on defensible logic and reasoning that is less susceptible to mistakes due to inaccurate data.
Marvelous Venture Capital Fund’s general due diligence process always involves carrying out an ESG due diligence. The ESG due diligence always includes the four dimensions (1) primary contribution, (2) secondary contribution, (3) DNSH along the value chain, and (4) organizational integration.
Marvelous Venture Capital Fund quantifies (1) primary contribution (i.e., climate change mitigation) and provides structured qualitative perspectives on (2) secondary contribution, (3) management of PAI / DNSH, and (4) organizational integration. The latter is often basic in small organizations, but will grow in importance throughout the lifecycle of the investment. During due diligence, Marvelous Venture Capital Fund assesses the current state of these factors and identifies areas where further development may be necessary over the course of the investment.
Every ESG due diligence results in a point estimate of the primary contribution, and ESG scores of up to 100% (best possible value) for the other three dimensions. It typically comes with a list of recommended actions (i.e., post-deal actions). Should red flags arise, Marvelous Venture Capital Fund addresses them in a deep dive and clarifies how to solve them prior to investing (i.e., pre-deal actions).
Marvelous Venture Capital Fund actively engages with Portfolio Companies in various ways to support their development and address key challenges.
The “catalyst approach” of Marvelous Venture Capital Fund aims to support the Portfolio Companies’ strategic resource allocation to enhance both the impact and financial performance of the Portfolio Companies. It includes a series of activities aimed at directly strengthening impact and increasing the likelihood of compliance with DNSH principles.
Marvelous Venture Capital Fund also engages with Portfolio Companies after the initial ESG due diligence and any annual ESG review.
See “Investment Strategy” above for more details on the “catalyst approach” and ongoing engagement after ESG reviews.
Updated: 16 October 2026