Debunking ESG myths for more sustainable investing

Categories and frameworks

  • Financial — with no ESG policy or tracking in place, these VCs are concerned only with maximising financial returns. This has become an increasingly unpopular approach, with many funds viewing responsible investing as the baseline;
  • Responsible investing — while most investors are focused on delivering financial returns and remaining competitive, they’re careful to avoid certain verticals, such as gambling, to minimise ESG risks, and protect rather than enhance value;
  • Sustainable investing — with a desire from LPs for every investment to be sustainable, this is now high on every VC’s agenda; adopting progressive ESG practices to enhance
  • Impact — this group of investors actively seek out those companies that deliver both a quantifiable societal and environmental impact, as well as competitive financial returns. To measure this impact, investors will set and track KPIs relating to their portfolio. In addition, there is a sub-group of impact investors which don’t seek above market financial returns — this doesn’t include VCs.

Dispelling common myths

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Maddyness UK

Maddyness UK

News from UK startups — innovation, tech, entrepreneurship, finance. Subscribe to our newsletter 📲 http://bit.ly/Maddynews