A Guide on ESG in Startups.

In a constrained global economy and amid calls to increase corporate diversity, the new era of innovation will demand companies to prioritise environmental sustainability, reorganise around social impact, and adopt tighter corporate governance.1 ESG, an acronym that stands for Environmental, Social, and Governance, is a framework for companies to measure the sustainability of their business models; that is, how their products and services contribute to sustainable development.

Environmental, social, and governance (ESG) criteria are standards that have become an essential component of the business strategy for firms worldwide. Investors are aware of this and have expected the companies they invest in to implement ESG policies and communicate them proactively. This might seem like a secondary concern for startups whose primary concern is the three-pronged fork of product & market validation, rapid scale, and profitability. Recent events, however, have shown that ESG practices could be the grease that keeps the lean machine of building and scaling a startup running effectively.

This guide aims to elucidate the importance of ESG initiatives for startups. Italso examines the benefits of incorporating ESG practices and how they canbe integrated into a startup.