Why ESG Matters For Startups

Many of our earlier stage private company clients believe that ESG is mainly a concern of public companies (for an explanation of what ESG is, see this post). They see the growing pressure on US publicly traded companies to report on environmental goals, workforce diversity or cybersecurity risk management from regulators like the US Securities Exchange Commission and large institutional investors like Vanguard or Blackrock and assume that their company isn't subject to mandatory ESG reporting. However, in recent years we have seen ESG become more relevant to our private company clients, not only in the US but globally.

ESG's relevance for private companies. Many of the private companies we work with have stakeholders who expect them to meet basic requirements when it comes to ESG policies, risk management, data, and reporting. Understanding the importance of ESG to your investors, customers, and employees, and being prepared to explain how your company governs and