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Business strategy

5 reasons why every founder needs to make ESG part of their startup’s DNA

- February 9, 2023 2 MIN READ
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ESG plans and action are increasingly expected from earlier-stage startups and are a non-negotiable requirement for later-stage companies gearing up to IPO.

I’m a big believer that implementing ESG early can have a powerful positive effect on your company build.As an investor at Main Sequence, we have seen countless times companies who have a purposeful approach to environmental, social and governance matters be a magnet for top talent, raise significant capital from Australian & international investors and grow at rapid rates.

Yet we still hear from founders that ESG is something that comes later, not today, in their company build.

Reasons you should care about ESG now (not later)

  • Reason #1: Attract Talent – 86% of employees prefer to support or work for companies that care about the same issues they do. As a founder, attracting and retaining top talent is critical to achieving company goals.
  • Reason #2: Attract Customers – Messaging backed by ESG metrics can attract new customers and inspire loyalty. This is as true for Consumer markets as it is B2B, where there is an emerging focus on Scope 3 emissions and modern slavery.
  • Reason #3: Attract Capital – Globally, 3000 asset owners, investment managers and service providers have committed to integrating ESG factors into investment decision-making and ownership. This means the investors that founders pitch to are increasingly likely to be taking ESG into consideration when deciding to invest.
  • Reason #4: Good governance: Integrating ESG into operations gives you a framework to reduce risk, maintain sustainable operations and show assurance that regulations, policies and procedures are followed.
  • Reason #5: Remove friction with international expansion: Regions like the EU have expanded their ESG requirements for exporters and trade – don’t get caught out too late.

If you are a start-up/scale-up founder and are looking for tips on where to start with ESG I’d love to connect with you (and answer any questions you have getting started!) @AlezeiaB

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