In this Bloomberg Law article, Kevin Feldis and Marcy Hupp explain how effective ESG plans give startup companies a competitive edge. Here’s an excerpt:
“Developing an ESG strategy early in the life of a company has many competitive advantages.
First, an ESG strategy can differentiate and define a company’s brand by highlighting that company’s product or service in the marketplace.
Second, an effective ESG strategy can help a company gather valuable information about everything from what customers and investors want to cost-saving energy efficiencies.
Third, many ESG issues are key to attracting and retaining top talent.
Fourth, an ESG strategy can help prepare for increasing reporting demands (voluntary and regulatory) and the real climate impacts heading our way.
Fifth, a company that implements an ESG strategy focused on diversity, as well as good governance and sound decision-making, is more resilient as it evolves.
Sixth, a growth-stage company with a transparent and focused ESG strategy will attract investors focusing on long-term value.
Finally, a strong ESG strategy recognizes that focusing on these issues not only is the right thing to do, but also increases value in the eyes of all stakeholders—and in so doing, increases the corporate bottom line.”