ESG Pulse Check: Getting the Basics Right for Start-ups and Venture Capital Firms

The report finds that while 68% of surveyed start-ups integrated ESG from their inception, there is a significant lack of practical, start-up-friendly measurement frameworks. Customers and employees are currently the primary drivers of ESG adoption, with investor pressure seen as a forthcoming driver. Start-ups seek venture capital firms that provide 'sustainability-as-a-service,' demonstrable ESG track records, and flexible, material metrics rather than onerous reporting requirements.

• A majority of start-ups integrate ESG considerations from the very beginning of their company's existence, which leads to more mature strategies as they scale. Specifically, 68% of surveyed start-ups integrated ESG into their business strategy since the genesis of their companies.
• Existing ESG reporting standards, such as SASB and GRI, are viewed as too burdensome and resource-intensive for early-stage companies. Start-ups prefer practical frameworks tailored for venture-backed companies, such as those being developed by VentureESG, ESG_VC, and UN-PRI.
• Customers and employees are the primary stakeholders driving the implementation of ESG strategies in start-ups, whereas investor pressure is currently less significant for early-stage companies, where viable business models remain the top priority.
• Start-up founders are increasingly using the sustainability expertise and track record of investors as a criterion for fundraising, with 64% of surveyed start-ups stating that investor sustainability expertise is a factor in their decision.
• Start-ups expect venture capital firms to provide 'sustainability-as-a-service' by educating founders, helping structure sustainability strategies, and using their networks to identify best practices.
• There is a demand for VCs to avoid onerous reporting and instead collaborate with portfolio companies to identify a small, material set of ESG metrics that align with the company's specific strategic vision.

APA

World Economic Forum (2022). ESG Pulse Check: Getting the Basics Right for Start-ups and Venture Capital Firms. https://www3.weforum.org/docs/WEF_ESG_Pulse_Check_2022.pdf

Chicago

World Economic Forum. ESG Pulse Check: Getting the Basics Right for Start-ups and Venture Capital Firms. 2022. https://www3.weforum.org/docs/WEF_ESG_Pulse_Check_2022.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=ESG Pulse Check: Getting the Basics Right for Start-ups and Venture Capital Firms |date=September 2022 |url=https://www3.weforum.org/docs/WEF_ESG_Pulse_Check_2022.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2022esg, author = {{World Economic Forum}}, title = {{ESG Pulse Check: Getting the Basics Right for Start-ups and Venture Capital Firms}}, institution = {World Economic Forum}, year = {2022}, month = sep, url = {https://www3.weforum.org/docs/WEF_ESG_Pulse_Check_2022.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }