Introduction

The Natural Hippy (“we,” “us,” or “our”) is an independent, self-funded venture capital firm focused on investments in sustainable real estate, disruptive technologies, and AI-driven innovation. Our primary objective is to generate strong, long-term returns for our investment partners while prioritizing ethical and sustainable growth. We recognize that responsible investing is crucial to long-term success and aligns with our core values of environmental stewardship, social impact, and strong governance principles. Collectively, these principles form our commitment to Environmental, Social, and Corporate Governance (“ESG”).

Investment Process

The Natural Hippy believes that ESG issues have substantial investment implications, and it is our responsibility as investors to identify and manage these risks proactively. We firmly believe that companies operating in an environmentally and socially responsible way are more likely to deliver sustainable, long-term value.

As part of our due diligence process for each potential new investment, our investment team carefully evaluates key ESG concerns that could impact the investment case. This evaluation includes:

• Assessing the environmental footprint and sustainability practices of the target company.
• Evaluating social impact, diversity, and community engagement.
• Reviewing governance practices to ensure ethical management and transparent reporting.

The Natural Hippy’s term sheets for new investments require that target companies, within 12 months of closing the funding round, must:

1. Assess their environmental footprint and adopt an ESG or climate policy with measurable carbon footprint reduction or offsetting targets.
2. Commit to building a diverse and inclusive workforce by establishing a clear diversity and inclusion policy.

If our evaluation identifies ESG risks that could adversely impact the business, these issues will be raised directly with company management. If satisfactory responses are not received, the matter is escalated to The Natural Hippy’s Investment Committee, which may choose to discontinue interest in the investment opportunity.

Ongoing Monitoring

It is our policy to maintain representation on the board of directors for the majority of companies in which The Natural Hippy invests. We require that at least one board meeting per year is dedicated to discussing ESG topics and evaluating sustainability practices.

Our board representatives are tasked with monitoring the company’s adherence to ESG standards and its overall impact. If an ESG issue arises that could negatively affect shareholder value, our representative is obligated to address these concerns with the board. If these issues are not resolved satisfactorily, the representative will report the matter to The Natural Hippy’s Investment Committee for formal review. As a last resort, The Natural Hippy may withdraw its board representation and consider the disposal of its holding in the company.

Ethical Investment

The Natural Hippy will refrain from investing in companies that do not align with our ethical standards and those of our investment partners. We will not invest in companies primarily engaged in the following activities:

• The production, distribution, or trade of tobacco, weapons, and ammunition
• Casino and gambling enterprises (online or offline)
• The manufacture, sale, or distribution of pornography products
• Genetically modified organisms (GMOs)
• Human cloning or related products
• Animal testing, except where no generally accepted alternative solutions exist

We believe that sustainable growth and ethical business practices are not just compatible but essential for building long-term value and impactful change.

“Natural Hippy VC” is trading name for The Natural Hippy Ltd