💡The startup success narrative is changing.
It’s not just about:
1️⃣ User numbers and growth at all costs,
or as you will be constantly reading,
2️⃣ just about profitability,
of course 2️⃣ has replaced 1️⃣, thank goodness, but there is another level that is crucial for anyone that is forward looking and has a clue of what is coming, and it is making a difference when it comes to funding.
✅ The importance of Environmental, Social, and Governance (ESG) metrics. A recent playbook by AC Ventures and PwC on corporate governance for tech startups highlighted this shift.
➡️ Investors and consumers are turning their backs on “greenwashing” and are favoring sustainable products. It’s clear that aligning with ESG metrics is essential for gaining investment, customer trust, and loyalty. This isn’t a passing fad, it’s the new business ethos that will have to be adopted whether or not you agree .
⭐️ The Startup narrative is becoming ‘growth with conscience, more networking platforms are appearing to bridge tech innovation and societal betterment.
Integrating ESG metrics early isn’t merely strategic, it’s responsible on all sides, it is either do it now and get ahead of the curve and build a competitive advantage or wait until regulators make you and the mad rush and premium prices of consultants arrives. (feels like y2k)
⭐️ Here’s a straightforward breakdown for startups:
➡️ Resource Efficiency: Cut energy use, recycle, manage waste, and choose green suppliers.
➡️ Sustainable Procurement: Source responsibly considering your supply chain’s environmental impact.
➡️ Carbon Footprint Measurement: Monitor, set targets to reduce emissions.
➡️ Environmental Compliance and Reporting: Stick to environmental laws and report transparently.
➡️ Diversity and Inclusion: Promote diversity and equal opportunities.
➡️ Employee Well-being: Cultivate a positive culture and work-life balance.
➡️ Community Engagement: Engage with local communities positively.
➡️ Consumer Protection: Ensure product safety and quality, maintain open communication.
➡️ Ethical Leadership: Uphold ethics, promote ethical behavior.
➡️ Transparency and Accountability: Have clear policies, report transparently.
➡️ Compliance: Stay legal, manage risks.
Board Composition and Structure: Have a diverse board overseeing ESG implementation.
➡️ Performance Monitoring and Reporting: Adopt a framework, disclose performance, seek feedback for improvement.
✅ Adopting ESG metrics in your business is not necessarily about agreeing with the tick boxing, and some areas are totally verging on nonsense, but protesting through inaction against the inevitable tide of change coming is for fools.