Responsible investing maturity matrix: Emerging markets
A maturity framework for VC funds and LPs to assess ESG and responsible investment integration across emerging market fund operations.
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OVERVIEW
The Reframe Venture EM-Responsible Investment Maturity Matrix is a structured framework designed to help venture capital (VC) funds and their limited partners (LPs) assess the maturity of responsible investment (RI) integration — covering ESG (environmental, social and governance) principles — throughout a fund’s investment value chain. It is contextualised for VC funds operating in sub-Saharan Africa, South and Southeast Asia, Latin America, and the MENA region, and is calibrated to the sustainability and RI infrastructure realistically available to managers in these markets.
The matrix was developed through consultations with LP working groups comprising 25 large institutional LPs in the EU/UK, North America, and emerging markets development finance institutions (DFIs). It also draws on insights from six training sessions with 76 VCs across 34 funds in Latin America and Africa conducted in 2024 and 2025, funded by the GIZ’s CATAL1.5°T initiative. Reframe Venture commits to revising the matrix annually through ongoing stakeholder consultations.
The framework is organised into three parts: Part 1 covers Fund-Level Governance and Ownership (including RI policy, code of conduct, and external reporting); Part 2 covers Basic Integration (materiality tools, due diligence processes, portfolio reporting, and incident monitoring); and Part 3 covers Advanced Integration (investment committee integration, legal document embedding, bespoke portfolio action plans, incentive structures, and external transparency). A Cheat Sheet offering practical first steps accompanies the matrix, along with appendices on general integration principles and responsible investing guidance mapping.
The tool serves four primary use cases: a GP self-assessment tool (“measurement stick”); a structured basis for peer learning among GPs; an LP due diligence and benchmarking tool; and a coordination and capacity-building resource for LPs seeking to harmonise expectations. Reframe Venture discourages a checklist approach, instead positioning the matrix’s action points as iterative building blocks adapted to local regulatory environments and materiality factors relevant to emerging market contexts.