Per this article in Harvard Business Review, startups need an ESG strategy.
Startups have an advantage over larger companies who have established systems. With a startup, the leadership can build a sustainability / ESG program from the start, avoiding costly rework later.
- Start with the purpose of your startup (Why does the world need you?)
- Then marry it with ESG (this is how you run your business and deliver on your purpose)
- Identify your risks and use your ESG plan to help address them
- Start with the ‘E’ and target becoming carbon neutral (investors need you to be carbon neutral / Net Zero). This is why we recommend starting with your sustainability plan first
- Then build the ‘S’ to ensure you connect with your employees
- Finally, for your ‘G’, you will need a diverse board and tight data security and privacy rules
Our strong recommendation for all companies, including startups, ties with the above:
- Start with your sustainability commitment. If done with the right standard and certification program, this is the highest ROI for you and delivers the foundation for the balance of your program
- Then pursue your carbon neutrality certification. This flows out of your sustainability program and is supported by same
- Then develop the ‘S’ and the ‘G’
- Close out with your Net Zero certification