ESG (environmental, social and governance) credentials are now a core factor in how investors assess startups and scaleups. Beyond financial performance, investors want to understand how responsibly a business operates and manages long‑term risk.
Clear, credible communication of ESG priorities helps companies build trust, strengthen investor confidence and stand out in competitive funding markets.
So, how can startups and scaleups best promote their ESG credentials?
Focus on your ESG strengths
Don’t try and engineer ESG factors that aren’t true of your business because you’re trying to match the claims of someone else in your market. Investors will scrutinise your credentials, and any inconsistencies can damage your credibility. Instead, identify where your business can make the most meaningful impact based on your operations and industry.
Articulate your purpose
When devising and articulating your purpose, consider its relevance to your organisation, industry and customers. This is a goal that you are committing your organisation to work towards, and it needs to be credible: one you are genuinely motivated to achieve and where you believe you can make a tangible contribution.
Back it up with action
It’s not enough to say you’re doing something or fighting for a goal. ESG must be grounded in real action. With eighty-eight per cent of institutional investors now subjecting ESG to the same scrutiny as operational and financial considerations, lip service isn’t going to cut it. Make sure your initiatives are measurable and authentic.
Partner with recognisable initiatives
You don’t get brownie points for doing it alone. Collaborating with established ESG programmes or industry peers will also make your efforts easily recognisable to potential investors.
Or, if you do genuinely have a great new idea on how to approach the issue, consider who else you can engage with to make it even more successful. These could be other industry players with complementary expertise or those working within the environmental or third sector.
Share the data and progress
As we’ve said before, it’s not just enough to say you’re doing something. Data is critical to show your impact – whether that’s the positive contribution you are making to a cause or the negative impact you are reducing or offsetting. And celebrate the journey that you are on. No one expects the impact to be immediate, so promote key milestones and update on your progress as part of your momentum announcements.
Humanise your ESG story
Your organisation’s ESG goals will inherently be working to resolve a very human issue. Therefore, it’s key to humanise your comms around what you are doing and why. It shouldn’t just be a topic for corporate press releases – it needs to be people-first communications.
What do we mean by that?
- Show your passion – A founder or senior leader needs to be able to speak passionately about the issue and the importance of overcoming it. Drawing from personal experience can make it even more powerful. Make sure your audience also knows why you are doing it and the difference that your actions are making.
- Encourage employee contributions – Whether they’re hosting STEM workshops in disadvantaged schools or building a new app for a charity partner, encourage your employees to share their contributions. Develop employee-authored content and reshare their social posts on the corporate channels (with their permission) to promote the work your team are doing authentically.
- Engage with the wider community – Engage with and celebrate the efforts of others within your industry who are helping to improve the situation. If you are partnering with a specific charity or initiative, think about how you can use your resources to help elevate their voice. Just as with customer success stories, third-party endorsement drives real credibility.
Looking to elevate your ESG profile?
If you’d like help promoting your ESG credentials and the impact your organisation is making, get in touch with us at [email protected].
Frequently Asked Questions
What are ESG credentials?
ESG credentials refer to how a company performs across environmental, social and governance factors, including sustainability, social impact, ethics and leadership accountability.
Why do investors care about ESG?
Investors care about ESG because it helps them assess long‑term risk, responsibility and resilience alongside financial performance.
How can startups communicate ESG credentials effectively?
Startups can communicate ESG credentials effectively by focusing on authentic strengths, backing claims with data, and clearly explaining how ESG initiatives align with business operations.
