Why Startups Need to Consider ESG Factors
We know startup founders already have a lot on their plate, but ESG factors should be a priority from the beginning. Here's why.
As a startup founder, you’re already juggling a million different things. We get it.

You’re responsible for developing your product, building your team, marketing your business, and raising funding. Now, you’re being told that you also need to focus on ESG, or environmental, social, and governance factors.

ESG is a growing movement in the business world, and it’s becoming increasingly important for startups. Investors are looking for companies that are committed to sustainability and social responsibility. Customers are also more likely to choose brands that align with their values.

So, while adding ESG to your responsibilities may seem like another burden, it’s actually an opportunity for your startup to gain a competitive advantage. Here are a few of the benefits of ESG for startups:

๐Ÿ’ธ Increased access to capital

Investors are increasingly looking to invest in ESG-compliant companies. According to a recent study by Bloomberg Intelligence, ESG assets under management are expected to reach $53 trillion by 2025.

๐ŸŒŸ Improved brand reputation

Consumers are more likely to choose brands that are aligned with their values. A 2021 study by Nielsen found that 66% of global consumers are willing to pay more for products and services from companies that are committed to sustainability.

๐Ÿ“‰ Reduced risks

ESG can help startups to reduce their environmental and social risks. For example, by investing in renewable energy, startups can reduce their carbon footprint and save money on energy costs. By implementing fair labour practices, startups can reduce the risk of employee turnover and lawsuits.

๐Ÿ‘ฏโ€โ™€๏ธ Increased employee engagement

Employees are more likely to be engaged and productive when they work for a company that is committed to ESG. A 2022 study by Deloitte found that 70% of millennials say that a company’s social and environmental impact is an important factor in their decision to take a job.

How to secure funding and be successful in the long term

Here are a few tips for securing funding and being successful in the long term by focusing on ESG:

1. Develop an ESG strategy

Your ESG strategy should be aligned with your company’s mission and values. It should also be specific, measurable, achievable, relevant, and time-bound.

2. Disclose your ESG performance

Investors and customers want to see that you are committed to ESG and that you are making progress on your goals. Disclose your ESG performance on your website and in your annual report.

3. Get certified

There are a number of ESG certification programs available. Getting certified can help you to demonstrate your commitment to ESG and attract investors and customers.

ESG is not just another responsibility for startup founders. It’s an opportunity to gain a competitive advantage, secure funding, and be successful in the long term. By assessing your impact, developing an ESG strategy, disclosing your ESG performance, and getting certified, you can show investors and customers that your startup is committed to sustainability and social responsibility.

We’re here to help when you’re ready to take the first steps. Connect with us at hello@bloom-esg.com.

Your ESG journey will set you up for success so don’t let it fall to the bottom of your to-do list.

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