3 Ways Startups Can Impress Investors
Environmental, social, and governance (ESG) factors are becoming increasingly important to investors. As a result, startups seeking funding are being asked to demonstrate their commitment to ESG principles.

Environmental, social, and governance (ESG) factors are becoming increasingly important to investors. As a result, startups seeking funding are being asked to demonstrate their commitment to ESG principles.

A smart startup founder is looking at these three things as they prepare an ESG report to impress investors:

πŸ‘‹ Involve key stakeholders in the ESG reporting process

This is how you ensure that the report is comprehensive and reflects the views of all stakeholders.

You can use a variety of methods, such as surveys, interviews, and workshops. By involving key stakeholders, startups can gain valuable insights into the ESG issues that are most important to them. This information can then be used to inform the content of the ESG report.

In addition to gaining insights, involving key stakeholders can also help to build support for the ESG reporting process. When stakeholders are involved in the process, they are more likely to be invested in the outcome. This can lead to a more accurate and credible ESG report.

πŸ” Be transparent about your ESG performance

Investors appreciate honesty and openness, so it is important to be transparent about your ESG performance.

This means reporting on both your strengths and weaknesses.

If you have made mistakes, be upfront about them and explain what you are doing to learn from them.

Transparency is also important when it comes to data collection and measurement. Be clear about how you have collected your ESG data and how you are measuring your performance. This will help to ensure that investors have confidence in the accuracy of your ESG report.

πŸ“Š Set ESG goals and targets

Setting ESG goals and targets demonstrates to investors that you are committed to improving your ESG performance.

When setting goals, it is important to be specific, measurable, achievable, relevant, and time-bound (SMART). This will help you to track your progress and ensure that you are making meaningful improvements.

In addition to setting goals, it is also important to communicate your progress to investors. This can be done through regular ESG updates or your annual ESG report. By communicating your progress, you can show investors that you are serious about improving your ESG performance.

βœ… By following these tips, startups can prepare ESG reports that are comprehensive, credible, and informative. These reports can help startups secure funding from investors and demonstrate their commitment to sustainability.

Have you included ESG in your investor pitches? We can help.

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If you’re a startup, the chances are that the ESG topic will soon be on the agenda in discussions with investors and talent. According to Harvard Business Review, building an ESG process into your private business has more impact on investor uptake and improves commercial terms than for listed firms.