The article discusses the rise of Environmental, Social, and Government (ESG) standards in the tech ecosystem in 2024. The author emphasizes that ESG is no longer just a buzzword, but a business imperative. Companies are expected to have mission-backed, integrated, and executed ESG policies to meet consumer demand and win deals. The article highlights that 88% of publicly traded companies, 79% of venture and private equity-backed companies, and 67% of privately-owned companies have implemented ESG initiatives since 2020. The driving forces behind the demand for ESG include the new Gen Z/Millennial workforce, who prioritize causes such as diversity, inclusion, climate change, and social inequalities. The rise of consumer sustainability demands is also driving businesses to prioritize ESG. The article points out that financially successful companies that integrate ESG into their growth strategies outperform their competitors. However, the increasing bar and regulations on ESG metrics, particularly regarding carbon emissions reduction and diversity, pose challenges for companies. Despite challenges, venture capitalists (VCs) have started considering ESG in their investment process, with 76% of global VCs considering ESG and 64% acknowledging their limited partners’ expectations regarding ESG risk management. The article highlights Pitango Venture Capital as a leader in adopting ESG and impact into its investment strategy since 2020. Pitango has developed the “ESG-SDG continuum” methodology to ensure companies integrate relevant ESG practices and track impact-related outcomes aligned with the UN Sustainable Development Goals. The author concludes by stating that companies that adapt and implement new ESG strategies will outperform, outgrow, and outlast competition.
ESG: Transforming Into a Powerful Business Imperative
Latest from Blog
SET Ventures secures €200m for fourth fund, accelerating Dutch innovation
TLDR: Dutch VC firm SET Ventures has raised €200 million for its fourth fund. The firm plans to invest €127 million of the fund in next-generation carbon-free energy technology companies. Dutch VC
New Mexico’s $50M Investment in Albuquerque Startups Sparks Innovation
“`html TLDR: New Mexico’s sovereign wealth fund is investing $50 million in Roadrunner Venture Studios, a venture studio focused on building startups in Albuquerque. Roadrunner aims to bridge the gap between technology
Level Up: Gaming VC Firm Headquarters at 320 Fillmore
TLDR: Konvoy, a venture capital firm in the gaming industry, has opened its headquarters at 320 Fillmore St. in Denver’s Cherry Creek neighborhood. The new 60,000-square-foot Class A office and retail building
Chaotic $450 Million Bolt Round Leaves Investors Stunned with Restraining Orders
TLDR: Ryan Breslow planned to raise $450 million for Bolt, but investors claimed they had not given their support. BlackRock, along with other investors, applied for a restraining order to halt Bolt’s
NY Authorities Investigate VC Giants a16z, Union Square Ventures Over Uniswap
TLDR: New York Attorney General Letitia James has subpoenaed venture capital firms Andreessen Horowitz and Union Square Ventures in connection to the cryptocurrency trading platform Uniswap. The U.S. Commodity Futures Trading Commission