Balancing Risk, Return and Impact

After the initial screening, a potential investment moves into a more detailed due diligence phase. ‘At that stage, we bring together a dedicated deal team to look at the opportunity from different angles’, Jeroen explains.

Focusing on high-impact investments

In line with our strategy, we continue to prioritise investments that deliver meaningful impact. Our screening approach therefore places particular emphasis on impact-focused funds and early-stage companies, where we believe our capital can make the greatest difference.

1. Investment funds All new fund commitments are assessed against strict sustainability criteria. We prioritise funds classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR), or funds with a comparable level of ambition. In 2025, the large majority of our impact funds met these standards. Many were classified as Article 9 (60% of impact venture capital (VC) and 34% of larger impact funds) or Article 8 (30% of impact VC and 36% of larger impact funds) under SFDR.

   As SFDR classifications continue to evolve in practice, we use Article 9 primarily as a reference point. Rather than focusing on the label itself, we assess each fund’s underlying strategy, impact ambition and implementation approach. In addition, at least 80% of a fund’s strategy must align with one or more of our six solutions.

2. Early-stage investments: We also focus on supporting companies in their earliest growth phases, including pre-seed, seed and Series A. By investing at these stages, we aim to help promising ventures scale solutions that address pressing societal challenges.

   To qualify, companies must operate within one of our solution areas and be headquartered in Belgium or the Netherlands. Over time, and as our organisation grows, we intend to gradually broaden our geographical reach.

Turning data into dialogue

At the start of our current strategy, we partnered with a consultancy firm to develop a tailored BCS engagement framework. This also helps strengthen dialogue with portfolio companies and better align our capital with our impact ambitions. As Jobien Laurijssen, Impact Manager, explains: ‘After the first year of implementation, we gathered feedback from our portfolio to refine the approach. Based on these insights, we further improved the tool in 2025 to better reflect the realities of different asset classes.’

The analysis of the data is carried out by Dune Partners, helping us translate insights into actionable learnings.

Our methodology is built on two core principles: managing risks and negative impacts, while maximising positive impact.

For each investment, we assess its level of maturity across biodiversity, climate and social equality (BCS). This means evaluating whether key risks and negative impacts have been identified, and to what extent policies and processes are in place to manage and mitigate them.

We also assess how much of our capital actively contributes to one or more of our six solutions. Our ambition remains that by 2028, 80% of our capital – excluding direct participations – will be allocated to these solutions. For each solution, we have defined a set of KPIs to track progress. ‘Measuring impact is an evolving process’, Jobien explains. ‘We work closely with our investments to understand which metrics they already track, what we can learn from them, and how we can strengthen impact together.’

For our direct participations, we monitor progress on their impact roadmaps and use these insights to identify where additional support or engagement can help accelerate their journey.

Engaging for greater impact

After analysing the data, we share a tailored analysis with each investment, highlighting strengths, potential risks and opportunities. ‘The goal is to create meaningful dialogue with our portfolio’, says Jobien. ‘These conversations cover topics such as governance structures, risk management and ways to further embed impact into strategy and operations. They also provide space to exchange experiences and share best practices across the portfolio. Through these conversations we aim to deepen our engagement and move the impact field forward together.’

Our portfolio at a glance

We allocate capital across a range of asset classes, including funds, real estate, listed equities and ventures. Our long-standing direct participations continue to represent the majority of our invested capital.

By the end of 2025, our portfolio included:

• 8 direct participations

• 7 real estate funds, including our in-house fund VP Vastgoed, which comprises our direct real estate investments

• 13 ventures

• 2 listed equities

• 41 funds, of which 29 impact funds and 12 non-impact funds

Through our investments in both fund holdings and direct companies, we have exposure to around 800 underlying assets across 49 countries. While this number of assets is globally diversified, invested capital remains largely concentrated in the Benelux (84%), primarily driven by our larger direct participations, such as Mediahuis and Batenburg Techniek.

Exposure to emerging and developing markets spans 13 African countries and extends into South and Southeast Asia and Latin America, mainly through impact funds such as Goodwell, TPG Rise, Aquaspark and Leapfrog.

In 2025, we made six new investments across two asset classes: one impact fund and five ventures. All are fully aligned with our impact strategy, contributing to one or more of our six solution areas.

Where our capital drives impact

By the end of 2025, our total investment portfolio included 401 of 814 underlying companies contributing to one or more of our six solution areas, up from 364 of 768 in 2024.

Excluding direct participations, 56% of our capital is allocated to organisations that contribute directly to these solutions – largely driven by investments in inclusive (23%) and net-zero (16%) solutions.

Impact per solution

Before outlining the 2025 impact per solution, it is important to note that the results presented here reflect the impact created by portfolio companies, not by VP Capital itself. As a minority investor, we contribute capital – but the impact is created by the companies and funds we invest in. The reported figures reflect 100% of the underlying assets and are not adjusted for our ownership stake.

All KPIs are self-reported by portfolio companies and presented as received. Where an asset appears in the portfolio multiple times (for example throughout multiple funds or investors), its impact is counted only once. As methodologies differ across companies, these KPIs are directional rather than strictly comparable. We prioritise transparency and continuous improvement over precision.

Furthermore, many of these impacts reflect cumulative or early-stage effects, with outcomes expected to materialise over longer time horizons.

BCS results: steady but moderate progress

The development across biodiversity, climate and social equality (BCS) in 2025 shows steady but moderate progress. Scores increased across all three pillars, led by climate (+0.5 to 2.7) and social (+0.3 to 2.3). Biodiversity improved only slightly (+0.1 to 1.7) and remains the least developed.

This reflects the fact that climate and social topics are more established, while biodiversity is still emerging and less embedded in investment practices.

As Jobien Laurijssen explains:  ‘These scores should be seen in context. The maturity ladders are deliberately ambitious, with level 5 representing near-full mitigation of BCS risks and impacts. Reaching that level implies alignment with leading frameworks and standards – and a role in setting best practice within the sector.’

The most visible improvements come from our direct participations, which increased their scores across all three pillars. This is largely driven by our larger stake in Batenburg Techniek and its progress on climate risks and social governance.

Beyond this, progress is visible across asset classes. Part of the increase also reflects updates to the BCS maturity ladders for ventures and VC funds. Based on last year's feedback, we adapted the scoring to better reflect the resources and level of influence typical of earlier-stage companies and investors, improving comparability across the portfolio and supporting more constructive dialogue with investees.

Climate: the most mature area

Climate is our strongest and most improved pillar in 2025, increasing to 2.7 (+0.5). Carbon measurement, target-setting and climate risk management are increasingly embedded across asset classes.

The strongest contribution comes from our direct participations, where scores improved to 3.0. Listed equities perform even stronger (3.8). Several funds strengthened their climate approach, and we added new climate-focused investments. Real estate improved more modestly, with continued focus on energy performance and physical climate risks.

As a Science Based Targets initiative (SBTi) signatory, climate remains a key priority. We continue to support our portfolio in measuring and reducing emissions, while improving the management of climate-related risks.

Social equality: positive signals

Social equality shows solid progress, reaching 2.3 (+0.3). Improvements are visible across most asset classes, particularly in governance and employee wellbeing. Companies are implementing more structured policies, strengthening employee engagement and support, and clarifying accountability.

Initial steps are also being taken in the value chain, such as supplier assessments and risk mapping, although this remains the least developed area.

Looking ahead, we aim to deepen this work. In 2026, we will conduct a portfolio-wide human rights scan of sectors and supply chains to better identify risks and support our investments in strengthening their social impact approach.

Direct participations: leading the way

Our goals: roadmaps on track

Direct participations account for 63% of our total portfolio value, making this asset class a clear priority for driving sustainability improvements. We actively engage with and support these companies in developing and implementing impact roadmaps.

In 2025, roadmap execution reached 80%, in line with our long-term target, confirming that most planned actions are being delivered. At the same time, this score is slightly lower than last year, highlighting the need to maintain focus on continued progress.

Our results: improvements on climate and social equality

Key insights

In biodiversity, progress remains more limited and less mature. VP Landbouw is taking concrete steps through regenerative farming, soil restoration and carbon sequestration, supported by innovation in precision agriculture. Other companies are exploring biodiversity footprints and material innovations, but translating this into clear priorities, actions and measurable outcomes is still at an early stage.

Progress is most visible in climate, where companies are moving from measurement to implementation. Batenburg Techniek is advancing the energy transition through smart energy infrastructure and data-driven optimisation, while reducing emissions and progressing towards its science-based targets (SBTs). Mediahuis is also on track to meet its 2030 SBTs.

On social equality, employee wellbeing and governance continue to improve across the portfolio. However, value chain practices remain less consistent. Textile companies are leading the way through their Fair Wear Foundation membership, which supports more structured supplier engagement and oversight. For others, building a systematic approach to value chain risks remains work in progress.

Building impact through real estate

Real estate investments represent approximately 17% of our total portfolio. In 2025, we continued to build on the foundations laid in 2024, further sharpening our impact-first approach to real estate, which we see as a powerful lever for lasting change.

While the portfolio itself remained broadly stable, we deepened our engagement with fund managers and further strengthened sustainability requirements across the portfolio.

Risk and resilience

Our long-term focus is essential, particularly in a sector where assets built or acquired today will likely still exist in 2050. Climate risks, stricter regulation and changing tenant expectations are already reshaping asset values, which is why we integrate climate and social considerations directly into our investment approach.

At the same time, we see opportunities emerging through innovations in circular and biobased construction, property technology and community-focused development.

In a sector shaped by long  lifecycles, resilience is built through consistent investment choices and clear sustainability standards over time.

Progress and ambitions

In our portfolio assessment, we saw modest progress in climate performance (+0.1 to 2.0) and stronger progress in social equality (+0.3 to 1.8), while biodiversity awareness remained at an earlier stage (1.8). The share of investments classified as solutions remained stable at 61%, with growth in inclusive solutions, a slight increase in circular solutions, and stable exposure to net zero solutions. Many of these assets go beyond regulatory standards.

Growing share of impact-focused funds

Our goals: alignment of fund portfolio companies

Our fund portfolio continues to evolve towards a more mature and impact-driven composition, combining dedicated impact funds and venture capital funds that contribute fully or partially to our solution areas, alongside broader investment funds.

Currently, 7% of our capital remains invested in non-impact funds, which will be gradually phased out over time. Around 10% of capital in 2025 is allocated to impact funds, split evenly between venture and later-stage strategies.

We see increasing alignment with our solutions. One new fund commitment (Eurazeo Planetary Boundary Fund) and follow-on investments from existing funds have strengthened our exposure to climate, circularity, toxicity-free and inclusive solutions. In 2025, 46% of our fund portfolio contributed to one or more solutions. This is mainly driven by our impact and impact VC funds, which show stronger alignment at around 69%.

Our ambition is to build a balanced impact-risk-return fund portfolio, with around 80% of invested capital allocated to solutions. The split of portfolio results per fund category is available in the detailed portfolio report.

Achieving this ambition requires selecting fund managers who share our vision and who actively integrate impact into governance, investment processes and engagement with portfolio companies.

Our results: maturity in social equality

Across the portfolio, BCS scores of our funds (VC, impact and non-impact) show gradual improvement, although progress remains uneven. Overall scores increased, mainly driven by stronger climate and social equality integration and more active engagement.

Part of this increase is linked to the updated BCS maturity ladder for VC funds. This better reflects what early-stage investors can realistically influence. It places greater emphasis on engagement, governance and the use of relative rather than absolute reduction targets, resulting in more meaningful and comparable scores.

Biodiversity remains the least developed area. While awareness is growing, most funds are still at an early stage, with limited tools and inconsistent application. A few frontrunners, such as PYMWYMIC and Eurazeo, demonstrate what more advanced integration can look like by embedding biodiversity into investment processes, KPIs and decision-making frameworks.

Climate is increasingly embedded, with many funds measuring emissions and assessing risks. However, only a subset translates this into clear targets and measurable outcomes.

Social equality shows the strongest progress, with more funds implementing formal policies, clearer governance and greater integration of employee well-being into due diligence and monitoring. However, value chain topics such as human rights risks remain less developed.

Measuring positive impact also remains challenging and fragmented. Indicators vary, data quality is inconsistent, and year-on-year comparisons are therefore not always fully reliable. This is particularly  true for early-stage ventures and enabling technologies, where impact is often still potential rather than realised. While measurement is not yet perfect, this does not deminish the importance of continuing to invest in solutions that contribute to a better future.

Ventures: strengthening our foundation

As part of our strategy, we invest directly in early-stage ventures – impact-driven start-ups developing innovative solutions for a more sustainable future. We focus on early-stage companies because this is where capital can be most catalytic: enabling solutions that might otherwise struggle to access funding and shaping how companies grow from the outset. Early-stage investing also allows us to work closely with founders.

Erica van Eeghen, Senior Manager Ventures at VP Capital, explains: ‘Since launching this asset class, we have focused on building a strong foundation by strengthening the team, expanding our network across venture builders, accelerators, family offices and co-investors, and refining our investment approach. Our added value lies in combining patient capital with access to a broad ecosystem, including VC funds, co-investors, foundations, and our in-house impact expertise.’

Our goals: growing our venture portfolio

Ventures are becoming an increasingly important part of our portfolio and strategy. Over the next five years, our ambition is to allocate between 8% and 10% of our assets to ventures. In 2025, they represented approximately 3% of total portfolio value, with five new investments added during the year:

• HULO uses AI to optimise water infrastructure, reducing leakage and improving efficiency.

• Integer Technologies builds AI-driven software to connect, manage, and optimise energy installations in buildings.

• Regenrate : develops value chains for cover crops as low-carbon feedstocks for feed and fuel, enabling farmers to generate additional income while restoring soil health.

• CO2ZERO focuses on carbon removal solutions.

• Solarix accelerates the energy transition through high-quality, aesthetically integrated solar panels for the built environment.

Our results: challenges in collecting data

Early-stage companies often have limited data capacity, as their primary focus is on developing business models and scaling operations. This is reflected in the relatively modest BCS scores across many ventures, although some of the more mature scale-ups already show strong performance. Overall, BCS scores improved in 2025, partly driven by the updated maturity ladder for ventures.

Ventures tend to score relatively well on social equality, often driven by mission-driven teams and strong attention to culture and employee wellbeing. Climate and biodiversity are more uneven. While most ventures contribute positively through the solutions they develop, this is not yet consistently translated into formal measurement frameworks or clear targets. At the same time, managing negative impacts – such as emissions or resource use – often remains at an early stage, becoming more relevant as companies grow.

Contribution to solutions continues to increase, as new investments are more clearly aligned with our thematic focus areas. However, impact at this stage is often still potential rather than realised, since many companies are pre-revenue or early in their scaling journey.

Overall, ventures remain a high-potential but still maturing asset class. In the coming years, our focus will be on further expanding the portfolio, supporting portfolio companies as they scale, improving data quality, and helping them translate promising solutions into measurable long-term impact.

Listed equity: promising examples

Our goals: 100% impact

We aim to build a focused listed equity portfolio that contributes meaningfully to at least one of our six solution areas and, through that, to our broader impact goals on biodiversity, climate and social equality. By the end of 2028, we aim to allocate approximately 10% of our capital to this asset class, with the requirement that 100% of investments align with one or more of our six solutions.

Our results: contributions to solutions

Our listed equity portfolio currently remains relatively small, consisting of two companies at the end of 2025 and representing around 2% of total portfolio value. In line with our strategy, 100% of these investments contribute to one or more of our solutions. Both companies contribute to bio-based solutions.

During 2025, Aquaporin exited the portfolio following its bankruptcy. This illustrates both the opportunities and the risks associated with investing in innovative, solution-driven companies in public markets.

Compared with other asset classes, listed companies generally demonstrate more structured and mature approaches to managing BCS topics. Scores reached 2.7 (+0.5) for biodiversity, 3.8 (+1.6) for climate and 2.8 (+0.6) for social equality. Climate practices are typically well embedded, supported by established frameworks such as TCFD, formal target-setting and more consistent reporting. Biodiversity and social equality are also increasingly integrated through measures such as screening tools, supplier policies and employee wellbeing programmes.