Turning Intention into Action | 2023 Research and Trends
ESG_VC, the industry initiative enabling start-ups to measure and improve their ESG performance, and the BVCA have published analysis of environmental, social, and governance (ESG) data provided by 450 start-ups backed by leading venture capital firms including Lakestar, Balderton Molten, Highland, Beringea, and MMC.
The data – collected by 16 venture capital firms using the ESG_VC Measurement Framework in 2022 and analysed by the BVCA research team – identifies areas of strength and weakness within the ESG performance of early-stage companies. In particular, it highlighted the need for greater support for companies seeking to tackle the net zero agenda, the relative strength of start-ups on social issues such as mental health and inclusion, and the potential for increased scrutiny of artificial intelligence.
In order to support companies in accelerating their progress against these targets, ESG_VC provides access to free training and resources on specialist topics including pay gap analysis, surveying for inclusion and diversity, carbon accounting, building responsible technology, net zero strategies, and life cycle analysis of products, which can be found on YouTube.
Key findings:
- Net Zero journey: 16% of start-ups surveyed measure their carbon footprint – an uplift of 5% on prior year – while only 1 in 20 companies has a stated net zero target and strategy.
- Progress on mental health and inclusion: 60% of start-ups report having a policy or strategy to support staff with mental health, and more than 30% provide annual DEI training.
- Artificial intelligence risks: only 21% of companies surveyed offer staff codes of conduct and relevant training to support the responsible development of code and use of AI systems.
