Many startups around the world will want to play their part in creating a more responsible business.
This is a mistake.
Even raising capital for early-stage companies will become tricky without having an understanding and plan for ESG.
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This last point is a critical, often forgotten, detail.
The foundation of any company is its employees, and ESG initiatives should start with them.
Employees are more and more recognizing and selecting their work environment based on the employers ESG practices.
This not only provides legal protection but also sets clear expectations for everyone involved.
Implementing ESG practices early on helps early-stage startups recruit a broad set of talent.
Booksy, for example, was selected as one of thebest tech startups globally for diversity.
More than that, there is a desire in many VC funds to invest in the future.
Investors do not expect startups to implement everything simultaneously.
In the early stages, ESG focuses on employees, product development, and legal compliance.
Depending on the product offering of the startup, environmental factors need to be considered at different time periods.
Most of the emissions stem from Scope 3, such as travel and product usage, e.g.
emissions from data centres, which the company has a hard time affecting.
External consultants can also be used before hiring to further help the company understand its ESG position.
In doing so, startups can align their values with their actions.
Each stage of a startups journey requires something different.
ESG also needs to evolve to serve its purpose.
Startups need to recognise ESG as a central part of any company for it to materialise in real value.
Story byPatrik Backman
Patrik is an entrepreneurial business executive, with a background in technology leadership.
