ESG plans and measures are increasingly expected from early-stage startups and are a non-negotiable requirement for later-stage companies preparing for an IPO.

I am convinced that implementing ESG early can have a powerful positive effect on building your business. As an investor at Main Sequence, we have seen countless times that companies that take a focused approach to environmental, social and governance issues are a magnet for top talent, raise significant capital from Australian and international investors and grow rapidly.

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

Reasons why you should care about ESG now (not later).

• Reason #1: Attracting Talent – 86% of employees prefer to support or work for companies that care about the same things 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 applies to consumer markets as well as B2B, where there is an increasing focus on Scope 3 emissions and modern slavery.
• Reason #3: Raising Capital – Worldwide, 3000 asset owners, asset managers and service providers committed to integrating ESG factors into investment decisions and ownership. This means that the investors to whom founders pitch are increasingly considering ESG in their investment decisions.
• Reason #4: Good governance: By integrating ESG into business operations, you have a framework to mitigate risk, maintain sustainable business operations and demonstrate 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 be caught out too late.

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