Your company’s ESG strategy should reflect your company’s unique material risks and opportunities. For example, a company that has a complex supply chain should consider ethical supply chain practices, while a company that is delivering content should consider content moderation. At the same time, some ESG focus areas are relatively ubiquitous across the tech startup space, such as Diversity, Equity, and Inclusion (DEI) initiatives, or carbon emissions management.
An ESG strategy is the reflection of your company culture. When building a company, we recommend thinking about the company culture you would like to build around the values you care about. These values will be translated into ESG goals and put into an ESG strategy.
Successfully executing an ESG strategy depends on setting clear and achievable goals that are directly tied with the company KPIs.
Putting clear and actionable objectives in place helps you operationalize your ESG principles and meet your goals. We encourage you to consider your ESG goals early on to ensure they are easily integrated into the company’s broader growth strategy.
ESG disclosures are becoming more and more common, and investors as well as clients are increasingly evaluating ESG performance, whether through ESG ratings or their own proprietary tools as part of their decision-making process. It is no longer a choice for companies to be transparent about their approach to ESG and how they measure their performance; it has become a necessity.
Three of the most common ESG reporting standards include:
<aside> <img src="https://prod-files-secure.s3.us-west-2.amazonaws.com/9099153a-1832-4693-a34c-1af5fb0f85dc/45757f36-76a6-4e4c-90d9-fd489f980ead/Untitled_design_(6).png" alt="https://prod-files-secure.s3.us-west-2.amazonaws.com/9099153a-1832-4693-a34c-1af5fb0f85dc/45757f36-76a6-4e4c-90d9-fd489f980ead/Untitled_design_(6).png" width="40px" /> Your organization's ESG goals will vary depending on your sector, your current areas of focus, and any external imperatives, like regional or industry-specific regulatory requirements. This may include standards set by the International Labour Organization (ILO) or OECD.
</aside>
<aside> <img src="https://prod-files-secure.s3.us-west-2.amazonaws.com/9099153a-1832-4693-a34c-1af5fb0f85dc/1cb5b884-5ccc-4a96-80f1-87dd97074e1a/Untitled_design_(6).png" alt="https://prod-files-secure.s3.us-west-2.amazonaws.com/9099153a-1832-4693-a34c-1af5fb0f85dc/1cb5b884-5ccc-4a96-80f1-87dd97074e1a/Untitled_design_(6).png" width="40px" /> As a company, your ESG goals should align with those of your investors and stakeholders, customers, and employees. Additionally, they must align with the goals of your regulators, vendors, suppliers, and other business partners.
</aside>
The purpose of an ESG Policy is to ensure that a company takes a responsible approach to its operations and recognizes the potential impact on the environment, employees, communities, and society, as well as the potential impact of climate change on its operations.
Specifically, the policy can help to:
.png){kind=link}
.png){kind=link}