The complex challenges the world faces today — climate change, the energy transition, and growing inequality just to name a few — have forced large, incumbent companies to take action, reinventing their business models in some cases or radically re-engineering their products, services, and operations in others. These actions are crucial to securing a sustainable future. But large companies can’t do this alone. Indeed, they shouldn’t. Young, fledgling ventures need to be part of these solutions, too.
How VCs Can Help Startups Set (and Meet) ESG Goals
Investors have a big role to play in fostering the next generation of sustainable companies.
January 06, 2022
Summary.
Being a first mover as an ESG-oriented VC fund can become the source of competitive advantage. It will help attract high-quality portfolio firms that are eager to help address some of the most pressing challenges of today, including the climate emergency. To do this, VCs need to evolve their selecting and screening capabilities, rethink their valuation models and redesign term sheets to incorporate ESG issues.
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New!
HBR Learning
Business Case Development Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Business Case Development. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Make your next business case more compelling.