Startups Need an ESG Strategy

Startups are often just trying to survive — do they have time to worry about ESG? Yes. That’s because they must be aware of the material risks and opportunities in their given industry, which is essentially what a careful ESG strategy provides. Startups should start by identifying their purpose, then marry that purpose to ESG considerations — for instance, by identifying risks to avoid and manage. All startups should consider their carbon footprint, make sure they treat their employees well, and have diverse boards overseeing them.

Over the last five years, the corporate world has focused increasingly on implementing stakeholder capitalism through Environmental, Social and Governance principles (ESG). However, is ESG a distraction to cash-strapped talent and time constrained startups? Should founders build their business first and worry about ESG later?

Quite the contrary: start-ups have an advantage over larger companies whose “installed…

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This article was written by Bruce Simpson and originally published on