Why startups should embrace ESG factors
Businesses with a strong ESG focus can stand out from competitors, attract investors and draw top talent, and cultivate a devoted customer base
STARTUP founders might think of ESG (environmental, social and governance) factors or "sustainability" as either buzzwords that are not relevant to their firms, or as a lower priority compared to the numerous other challenges that they face in expanding their businesses.
However, savvy entrepreneurs, innovators and investors are increasingly considering ESG issues as essential drivers for success in today's markets. On the flip side, poor ESG practices can lead to significant drops in revenue and investments and, in extreme cases, lawsuits, fines and loss of operating licences.
ESG factors describe how a business impacts the world around it. The specific ESG issues relevant to each startup will differ depending on its industry and business model.
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