{"id":52064,"date":"2022-05-17T11:04:57","date_gmt":"2022-05-17T18:04:57","guid":{"rendered":"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/?p=52064"},"modified":"2025-09-29T01:35:38","modified_gmt":"2025-09-29T08:35:38","slug":"esg-for-startups","status":"publish","type":"post","link":"\/us\/en\/blog\/esg-for-startups\/","title":{"rendered":"ESG for startups: What it is and why it&#8217;s critical"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Environmental social governance (ESG) for startups isn&#8217;t just a new buzzword, or something that&#8217;s only important to <a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/5-successful-examples-of-social-entrepreneurship\/\">social enterprises<\/a>. In fact, more and more investors are taking ESG into consideration when making decisions about where to allocate their capital, so it\u2019s essential that startups pay attention to ESG sooner than later.\u00a0<\/span><\/p>\n<p>Today, we&#8217;ll cover:<\/p>\n<ul>\n<li><a href=\"#one\">What is ESG?\u00a0<\/a><\/li>\n<li><a href=\"#two\">The benefits of ESG for startups\u00a0<\/a><\/li>\n<li><a href=\"#three\">How to integrate ESG into your startup plan<\/a><\/li>\n<\/ul>\n<hr \/>\n<p><strong>\ud83d\udd11 Does your startup have the 4 keys to success<\/strong>?<\/p>\n<p><span style=\"font-weight: 400;\"><\/p>\n<div class=\"download-form-widget standart-download-form\" data-url=\"http:\/\/netstorage.ringcentral.com\/ebook\/smb_startup.pdf\" data-id=\"69e212c82721a\" id=\"69e212c82721a\">\n\t\t<button tabindex=\"on\"  on=\"tap:69e212c82721a.toggleClass(class='open')\" class=\"open-modal-download-action download-form-button\" type=\"submit\">See how you measure up<\/button><\/p>\n<div class=\"download-form-modal\">\n<div class=\"download-form-modal-body\">\n<div class=\"download-form-modal-content\">\n<div class=\"download-form-modal-title\">Learn the top 4 components to any successful startup<\/div>\n<form class=\"download-form SMB\" method=\"post\">\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<input class=\"download-form-input\" aria-label=\"Full Name\" aria-required=\"true\" aria-invalid=\"false\" type=\"text\" name=\"fullname\" placeholder=\"Full Name\" data-dl-events-hover=\"true\" data-dl-element=\"text\" data-dl-additional-info=\"download form\">\n\t\t\t\t\t\t<\/div>\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<input class=\"download-form-input\" aria-label=\"Email (please enter a work email address)\" aria-required=\"true\" aria-invalid=\"false\" type=\"email\" autocomplete=\"on\" name=\"email\" placeholder=\"Email (please enter a work email address)\" data-dl-events-hover=\"true\" data-dl-element=\"email\" data-dl-additional-info=\"download form\">\n\t\t\t\t\t\t<\/div>\n<div>\n\t\t\t\t\t\t\t<input type=\"hidden\" name=\"popup_form\" value=\"1\">\n\t\t\t\t\t\t<\/div>\n<div><input type=\"hidden\" name=\"Asset_ID__c\" value=\"ODAM-01423 \" class=\"download-form-input\"><\/div>\n<div>\n\t\t\t\t\t\t\t<input type=\"hidden\" name=\"Lead_Entry_Source__c\" value=\"RC Blog\" class=\"download-form-input\"\/>\n\t\t\t\t\t\t<\/div>\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<button class=\"download-form-submit\" type=\"submit\" data-dl-element=\"button\" data-no-auto-dl=\"true\" data-dl-additional-info=\"download form\" data-dl-name=\"Read the eBook\">Read the eBook<\/button>\n\t\t\t\t\t\t<\/div>\n<\/p><\/form>\n<p> \t\t\t\t\t<button on=\"tap:69e212c82721a.toggleClass(class='open')\" role=\"button\" tabindex=\"0\"  class=\"download-form-modal-close\"><\/button>\n\t\t\t\t<\/div>\n<div class=\"download-form-modal-thank\"> Enjoy!<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p><\/span><\/p>\n<hr \/>\n<h2><span style=\"font-weight: 400;\"><a id=\"one\"><\/a>What is ESG?<\/span><\/h2>\n<p>ESG, or environmental\/social\/governance, is <strong>a holistic leadership approach that includes issues beyond the traditional scope of a company&#8217;s bottom line.<\/strong> This includes thinking about the business&#8217;s environmental impact, employee culture, and the ethics of how the company itself is run.<\/p>\n<p><span style=\"font-weight: 400;\">As a startup, you probably have a thousand and one things on your mind as you <a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/how-to-grow-a-small-business\/\">grow your business<\/a>, so you might not be thinking about ESG yet. But as investors try to decide who to trust with their capital, they&#8217;re investigating ESG as a means of mitigating future risk and predicting startups&#8217; sustainability over time. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let&#8217;s break down each piece of &#8220;ESG&#8221; for more details on what this approach entails: <\/span><\/p>\n<h3><span style=\"font-weight: 400;\">1) E is for <em>environmental<\/em><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Environmental practices refer to a company&#8217;s impact on the environment. Examples of environmental practices may include <a href=\"https:\/\/camomileapp.com\/blog\/lower-pc-power-usage-optimize-cpu\/\">optimizing CPU usage<\/a> on employees\u2019 computers to lower carbon footprints, switching to renewable energy sources, or using recyclable packaging materials.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the type of environmental procedures you implement will depend on the type of startup you are. For example, if you&#8217;re engaged in\u00a0 manufacturing or perhaps a natural resources focused sector , you may worry more about emissions or safety than a SaaS company would.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By not complying with environmental regulations, a company risks huge regulatory penalties and bad publicity, which can be especially costly and detrimental to a startup.<\/span><\/p>\n<p><a href=\"https:\/\/cfpub.epa.gov\/compliance\/cases\/\"><span style=\"font-weight: 400;\">EPA.gov<\/span><\/a><span style=\"font-weight: 400;\"> provides a huge list of compliance cases, many of which were high profile enough to cause damage to even the largest companies\u2019 reputations. Fines this substantial could cause the permanent closure of a smaller business, reversing all of the painstaking steps it\u2019s already taken to comply.<\/span><\/p>\n<div class=\"rc-subscribe\" id=\"new-rc-subscribe\"  style=\"background-image:url('\/us\/en\/blog\/wp-content\/themes\/ringcentral\/assets\/images\/temp\/subscribe.png')\">\n\t\t<button class=\"close js-popup-close\"><svg class=\"icon_close_mobile\" width=\"20\" height=\"20\"><use xlink:href=\"#icon_close_mobile\"><\/use><\/svg><\/button><\/p>\n<div class=\"rc-subscribe__wrapper\">\n<div class=\"rc-subscribe__wrapper_text\">\n<h3 class=\"rc-subscribe__title h2\">Stay informed with RingCentral<\/h3>\n<div class=\"rc-subscribe__subtitle\">Subscribe to our emails for the latest blogs, events, and exclusive content on AI-powered communication solutions. Stay ahead with insights and tips from the leader in trusted AI communications.<\/p>\n<p>\t\t\t\t\t<a href=\"https:\/\/www.ringcentral.com\/legal\/privacy-notice.html\" target=\"_blank\" data-dl-name=\"Privacy Notic\" data-dl-element=\"link\" data-dl-additional-info=\"social\" rel=\"noreferrer noopener\">Privacy Notice<\/a>\n\t\t\t\t<\/div>\n<\/p><\/div>\n<div class=\"rc-subscribe__wrapper_form\">\n<form class=\"\" data-event-init=\"true\" novalidate data-js-form>\n<div class=\"rc-subscribe__row\">\n\t\t\t\t\t\t<input\n\t\t\t\t\t\t\t\tname=\"email\"\n\t\t\t\t\t\t\t\tplaceholder=\"Email address *\"\n\t\t\t\t\t\t\t\ttitle=\"Must be valid email. example@yourdomain.com\"\n\t\t\t\t\t\t\t\tminlength=\"4\"\n\t\t\t\t\t\t\t\tmaxlength=\"255\"\n\t\t\t\t\t\t\t\ttype=\"email\"\n\t\t\t\t\t\t\t\trequired\n\t\t\t\t\t\t\t\tpattern=\"[a-z0-9._%+\\-]+@[a-z0-9.\\-]+\\.[a-z]{2,}$\"\n\t\t\t\t\t\t\t\tclass=\"field__control\"\n\t\t\t\t\t\t\t\tautocomplete=\"on\"\n\t\t\t\t\t\t\t\taria-required=\"true\"\n\t\t\t\t\t\t\t\tdata-dl-events-hover=\"true\"\n\t\t\t\t\t\t\t\tdata-dl-element=\"email\"\n\t\t\t\t\t\t\t\tdata-dl-additional-info=\"LET'S WORK TOGETHER\"\n\t\t\t\t\t\t\t\taria-label=\"Email address *\"\n\t\t\t\t\t\t\t\taria-errormessage=\"email-subscribe-errors\"\n\t\t\t\t\t\t><br \/>\n\t\t\t\t\t\t<span class=\"field__errors\" id=\"email-subscribe-errors\" data-js-form-field-errors><\/span>\n\t\t\t\t\t<\/div>\n<div class=\"rc-subscribe__row\">\n\t\t\t\t\t\t<select\n\t\t\t\t\t\t\t\tname=\"Country__c\"\n\t\t\t\t\t\t\t\trequired\n\t\t\t\t\t\t\t\tclass=\"field__control\"\n\t\t\t\t\t\t\t\taria-required=\"true\"\n\t\t\t\t\t\t\t\taria-expanded=\"false\"\n\t\t\t\t\t\t\t\taria-label=\"Country *\"\n\t\t\t\t\t\t\t\taria-errormessage=\"country-subscribe-errors\"\n\t\t\t\t\t\t><option value=\"\" disabled=\"disabled\" selected=\"selected\">Country<\/option><option value=\"Canada\">Canada<\/option><option value=\"United_States\">United States<\/option><\/select><\/p>\n<p>\t\t\t\t\t\t<span class=\"field__errors\" id=\"country-subscribe-errors\" data-js-form-field-errors><\/span>\n\t\t\t\t\t<\/div>\n<div class=\"rc-subscribe__row\">\n\t\t\t\t\t\t<button type=\"submit\" data-event-init=\"true\">Subscribe<\/button>\n\t\t\t\t\t<\/div>\n<\/p><\/form>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"confirm-form\" role=\"status\" aria-live=\"polite\" style=\"display: none;\" aria-hidden=\"true\">\n<div class=\"confirm-form__text\">Thank you for your interest in RingCentral<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<h3><span style=\"font-weight: 400;\">2) S is for <em>social<\/em><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The social aspect of ESG looks at how a company treats its employees, customers, and other stakeholders. This includes things like diversity and inclusion, human rights, and community engagement.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is important when hiring candidates, engaging with customers, and creating a comfortable working environment for employees. Implementing tools and resources like RingCentral\u2019s MVP can <\/span><a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/what-is-organizational-culture-and-why-is-it-important\/\"><span style=\"font-weight: 400;\">improve company culture<\/span><\/a><span style=\"font-weight: 400;\"> and enable everyone to stay connected.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It even extends to data protection, privacy, and cybersecurity. If your company isn&#8217;t taking security seriously, you could face huge losses from a data breach. This includes critical information you need for operations as well as customer data.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><\/p>\n<div class=\"rc-post-content-cta rc-post-content-cta_green\">\n<div class=\"rc-post-content-cta-columns\">\n<div class=\"bottom-cta-img\">\n\t\t\t\t<img decoding=\"async\" width=\"930\" height=\"700\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2022\/03\/Zero-trust-security.png\" class=\"responsive-image\" alt=\"\" \/>\t\t\t<\/div>\n<div class=\"bottom-cta-copy\">\n<div class=\"headline-copy\" style=\"text-align:left;\">Cybersecurity for startups: A complete guide<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"rc-post-content-cta-footer\">\n<div class=\"bottom-cta-logo-container\">\n<div class=\"bottom-cta-logo\"><span aria-hidden=\"true\"><svg width=\"154\" height=\"34\" viewBox=\"0 0 154 34\" fill=\"#000\" role=\"img\" aria-labelledby=\"cta-ring-logo-183697031\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n\t\t\t\t\t\t\t<title id=\"cta-ring-logo-183697031\">Ring Central Logo<\/title>\t\n\t\t\t\t\t\t\t<path d=\"M154 3.89618H150.386V26.9657H154V3.89618Z\" \/>\n\t\t\t\t\t\t\t<path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M141.313 11.6299C137.976 11.6299 135.388 13.2501 134.95 16.5546H138.504C138.754 15.3082 139.675 14.5591 141.313 14.5591C143.214 14.5591 144.086 15.6499 144.086 17.3647V18.1444H140.438C137.078 18.1444 134.593 19.6411 134.593 22.697C134.593 25.7529 136.619 27.3411 139.55 27.3411C141.826 27.3411 143.323 26.3721 144.133 24.8145H144.288V26.9529H147.716V17.4802C147.702 13.8276 145.833 11.6299 141.313 11.6299ZM140.58 24.5675C139.177 24.5675 138.303 23.8809 138.303 22.7339C138.303 21.4233 139.238 20.7383 140.921 20.7383H144.069L144.086 20.9549C144.088 23.2232 142.777 24.5675 140.58 24.5675Z\" \/>\n\t\t\t\t\t\t\t<path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M128.187 26.9657V19.2047C128.187 16.8979 129.623 15.4317 131.896 15.4317H133.321V12.0036H131.854C130.14 12.0036 128.893 12.6581 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fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M16.9769 0.548269C16.101 0.914019 15.307 1.44981 14.6364 2.12196L16.332 3.81756C16.7764 3.37 17.3041 3.01548 17.8865 2.77325C18.4688 2.53102 19.0928 2.40429 19.7232 2.40269C20.3537 2.40108 20.9777 2.523 21.5616 2.76362C22.1439 3.00264 22.6749 3.35556 23.1225 3.79991L24.8181 2.10431C23.8106 1.1001 22.5289 0.415123 21.1333 0.139206C19.7377 -0.139919 18.2907 0.00285184 16.9769 0.548269Z\" \/>\n\t\t\t\t\t\t<\/svg><\/span><\/div>\n<\/p><\/div>\n<div class=\"bottom-cta-link\">\n\t\t\t\t<a href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/cybersecurity-for-startups\/\" class=\"view-all view-all-white \" data-dl-name=\"Read the blog\" data-dl-element=\"button\" data-dl-additional-info=\"bottom cta banner\" data-no-auto-dl=\"true\">Read the blog<span class=\"svg-icon\" aria-hidden=\"true\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"#000\" role=\"img\" aria-labelledby=\"cta-ring-arrow-183697031\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n\t\t\t\t\t<title id=\"cta-ring-arrow-183697031\">Ring Central Logo<\/title>\t\n\t\t\t\t\t<path d=\"M0 11.5C0 11.2239 0.223858 11 0.5 11H21.6797C21.9559 11 22.1797 11.2239 22.1797 11.5V12.5C22.1797 12.7761 21.9559 13 21.6797 13H0.5C0.223858 13 0 12.7761 0 12.5V11.5Z\" ><\/path>\n\t\t\t\t\t<path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M21.1718 12.0001L15.8086 6.63691C15.6134 6.44165 15.6134 6.12506 15.8086 5.9298L16.5157 5.22269C16.711 5.02743 17.0276 5.02743 17.2228 5.22269L23.6467 11.6465C23.8419 11.8418 23.8419 12.1584 23.6467 12.3536L17.2228 18.7775C17.0276 18.9727 16.711 18.9727 16.5157 18.7775L15.8086 18.0704C15.6134 17.8751 15.6134 17.5585 15.8086 17.3633L21.1718 12.0001Z\" ><\/path>\n\t\t\t\t<\/svg><\/span><\/a>\n\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>\t<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Social factors are relevant to all startups, and this is clear in many high-profile cases where companies failed to implement the measures necessary to protect all data.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For businesses that employ people with disabilities, engage in philanthropic opportunities, and source product sustainably, the &#8220;S&#8221; also includes <a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/building-a-culture-of-inclusion-start-by-stepping-outside-your-comfort-zone\/\">social inclusion<\/a> and community relations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Companies that advertise their participation in these practices tend to be more successful and favorably viewed. It&#8217;s important to keep several sets of eyes on marketing materials and ad campaigns to avoid promoting insensitive messages, whether intentional or not.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">3) G is for <em>governance<\/em><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Finally, the &#8220;governance&#8221; part of ESG looks at how transparent and compliant a company is with regulations and ethical standards as they relate to policies, structure, and company culture. This includes things like board diversity, risk management systems, and accurate reporting.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Keeping current with governance is important to avoid penalties, but it&#8217;s also a way to build trust with investors and other stakeholders.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Investors look closely at company culture when evaluating risk and the resilience of your business. Complaints about harassment, evidence of bullying, <a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/small-business-burnout\/\">employee burnout<\/a>, and high turnover are all signs of a toxic workplace.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><\/p>\n<div class=\"rc-post-content-cta rc-post-content-cta_yellow\">\n<div class=\"rc-post-content-cta-columns\">\n<div class=\"bottom-cta-img\">\n\t\t\t\t<img decoding=\"async\" width=\"2048\" height=\"1367\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2022\/05\/GettyImages-652949396-scaled.jpg\" class=\"responsive-image\" alt=\"\" \/>\t\t\t<\/div>\n<div class=\"bottom-cta-copy\">\n<div class=\"headline-copy\" style=\"text-align:left;\">High turnover for startups: Why it happens &amp; how to fix it<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"rc-post-content-cta-footer\">\n<div class=\"bottom-cta-logo-container\">\n<div class=\"bottom-cta-logo\"><span aria-hidden=\"true\"><svg width=\"154\" height=\"34\" viewBox=\"0 0 154 34\" fill=\"#000\" role=\"img\" aria-labelledby=\"cta-ring-logo-709168685\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n\t\t\t\t\t\t\t<title id=\"cta-ring-logo-709168685\">Ring Central Logo<\/title>\t\n\t\t\t\t\t\t\t<path d=\"M154 3.89618H150.386V26.9657H154V3.89618Z\" \/>\n\t\t\t\t\t\t\t<path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M141.313 11.6299C137.976 11.6299 135.388 13.2501 134.95 16.5546H138.504C138.754 15.3082 139.675 14.5591 141.313 14.5591C143.214 14.5591 144.086 15.6499 144.086 17.3647V18.1444H140.438C137.078 18.1444 134.593 19.6411 134.593 22.697C134.593 25.7529 136.619 27.3411 139.55 27.3411C141.826 27.3411 143.323 26.3721 144.133 24.8145H144.288V26.9529H147.716V17.4802C147.702 13.8276 145.833 11.6299 141.313 11.6299ZM140.58 24.5675C139.177 24.5675 138.303 23.8809 138.303 22.7339C138.303 21.4233 139.238 20.7383 140.921 20.7383H144.069L144.086 20.9549C144.088 23.2232 142.777 24.5675 140.58 24.5675Z\" \/>\n\t\t\t\t\t\t\t<path fill-rule=\"evenodd\" 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width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"#000\" role=\"img\" aria-labelledby=\"cta-ring-arrow-709168685\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n\t\t\t\t\t<title id=\"cta-ring-arrow-709168685\">Ring Central Logo<\/title>\t\n\t\t\t\t\t<path d=\"M0 11.5C0 11.2239 0.223858 11 0.5 11H21.6797C21.9559 11 22.1797 11.2239 22.1797 11.5V12.5C22.1797 12.7761 21.9559 13 21.6797 13H0.5C0.223858 13 0 12.7761 0 12.5V11.5Z\" ><\/path>\n\t\t\t\t\t<path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M21.1718 12.0001L15.8086 6.63691C15.6134 6.44165 15.6134 6.12506 15.8086 5.9298L16.5157 5.22269C16.711 5.02743 17.0276 5.02743 17.2228 5.22269L23.6467 11.6465C23.8419 11.8418 23.8419 12.1584 23.6467 12.3536L17.2228 18.7775C17.0276 18.9727 16.711 18.9727 16.5157 18.7775L15.8086 18.0704C15.6134 17.8751 15.6134 17.5585 15.8086 17.3633L21.1718 12.0001Z\" ><\/path>\n\t\t\t\t<\/svg><\/span><\/a>\n\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>\t<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Adhering to good governance standards can be difficult and time-consuming, but it&#8217;s essential for maintaining a strong reputation and attracting capital. A leader will be able to foster a healthy work environment and be able to articulate how they do so.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The board of directors is responsible for corporate governance. This top-down approach encourages transparency, helps the company navigate difficult decisions, and protects the company&#8217;s interests.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When the board fails to do these things, it can be an early sign of a dysfunctional company, which raises a red flag to investors.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\"><a id=\"two\"><\/a>5 benefits of ESG for startups\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Implementing and promoting ESG is critical for startups that want to be successful. It&#8217;s a lot of work, but there are several reasons it&#8217;s necessary.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">1. It attracts investors<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Angel investors and VC funds evaluate ESG factors when they make investment decisions. This is because these practices are becoming increasingly influential for market benchmarks and financial performance.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Addressing ESG concerns early on in your business development and planning can help increase your chances of getting funding and operating a successful business. It can help prevent you from experiencing civil litigation, fines, and social backlash.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">More importantly, investments coming from DFIs (development finance institutions) are required to conform to certain ESG standards, while impact investors will only provide funding to businesses that demonstrate strong ESG adherence.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Focusing on ESG from the beginning will increase your likelihood of obtaining investment and can broaden your investor base.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><\/p>\n<div class=\"rc-post-content-cta rc-post-content-cta_orange\">\n<div class=\"rc-post-content-cta-columns\">\n<div class=\"bottom-cta-img\">\n\t\t\t\t<img decoding=\"async\" width=\"2048\" height=\"1424\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2022\/05\/GettyImages-112156344-scaled.jpg\" class=\"responsive-image\" alt=\"\" \/>\t\t\t<\/div>\n<div class=\"bottom-cta-copy\">\n<div class=\"headline-copy\" style=\"text-align:left;\">How to find angel investors for your startup business<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"rc-post-content-cta-footer\">\n<div class=\"bottom-cta-logo-container\">\n<div class=\"bottom-cta-logo\"><span aria-hidden=\"true\"><svg width=\"154\" height=\"34\" viewBox=\"0 0 154 34\" fill=\"#000\" role=\"img\" aria-labelledby=\"cta-ring-logo-1595943592\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n\t\t\t\t\t\t\t<title id=\"cta-ring-logo-1595943592\">Ring Central Logo<\/title>\t\n\t\t\t\t\t\t\t<path d=\"M154 3.89618H150.386V26.9657H154V3.89618Z\" \/>\n\t\t\t\t\t\t\t<path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M141.313 11.6299C137.976 11.6299 135.388 13.2501 134.95 16.5546H138.504C138.754 15.3082 139.675 14.5591 141.313 14.5591C143.214 14.5591 144.086 15.6499 144.086 17.3647V18.1444H140.438C137.078 18.1444 134.593 19.6411 134.593 22.697C134.593 25.7529 136.619 27.3411 139.55 27.3411C141.826 27.3411 143.323 26.3721 144.133 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href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/how-to-find-angel-investors\/\" class=\"view-all view-all-brown\" data-dl-name=\"Read the blog\" data-dl-element=\"button\" data-dl-additional-info=\"bottom cta banner\" data-no-auto-dl=\"true\">Read the blog<span class=\"svg-icon\" aria-hidden=\"true\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"#000\" role=\"img\" aria-labelledby=\"cta-ring-arrow-1595943592\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n\t\t\t\t\t<title id=\"cta-ring-arrow-1595943592\">Ring Central Logo<\/title>\t\n\t\t\t\t\t<path d=\"M0 11.5C0 11.2239 0.223858 11 0.5 11H21.6797C21.9559 11 22.1797 11.2239 22.1797 11.5V12.5C22.1797 12.7761 21.9559 13 21.6797 13H0.5C0.223858 13 0 12.7761 0 12.5V11.5Z\" ><\/path>\n\t\t\t\t\t<path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M21.1718 12.0001L15.8086 6.63691C15.6134 6.44165 15.6134 6.12506 15.8086 5.9298L16.5157 5.22269C16.711 5.02743 17.0276 5.02743 17.2228 5.22269L23.6467 11.6465C23.8419 11.8418 23.8419 12.1584 23.6467 12.3536L17.2228 18.7775C17.0276 18.9727 16.711 18.9727 16.5157 18.7775L15.8086 18.0704C15.6134 17.8751 15.6134 17.5585 15.8086 17.3633L21.1718 12.0001Z\" ><\/path>\n\t\t\t\t<\/svg><\/span><\/a>\n\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>\t<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">2. It gives you a leg up on the competition<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Many companies are beginning to prioritize ESG practices, and those that ignore it will inevitably lose out. It&#8217;s important not to be complacent because your competition is doing this too.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It may be challenging in the early days of a startup while you&#8217;re resource-strapped and struggling to get by, but ultimately it pays off when consumers and investors see that you&#8217;re a responsible business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Short-term solutions may be cost-effective in the beginning, but sustainable, long-term results require a larger investment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consumers are also watching closely and choosing companies whose values align with their own. They&#8217;re more loyal to a company that shares the same beliefs and will shun brands that don&#8217;t follow environmental practices.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These practices work to drive growth by cultivating a customer base that values loyalty.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">3. It helps you build trust with stakeholders<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Building trust is essential for any business, but it&#8217;s especially important for startups. When you&#8217;re first starting out, you don&#8217;t have much of a reputation to stand on.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is where ESG comes in. If you can demonstrate your commitment to corporate responsibility through ESG reporting and adhering to the UN Global Compact, you&#8217;ll be able to build trust with both internal and external stakeholders.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you&#8217;re presenting at a venture capital pitch or investor meeting, for instance, being able to discuss how you prioritize sustainability can help earn trust. This is especially helpful if there is a negative reputation or scandal associated with your company.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It&#8217;s important to be proactive about these issues and demonstrate that you&#8217;re taking steps to improve. Investors will appreciate your transparency and commitment to the long-term success of the company.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">4. It boosts <a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/employee-retention-strategies\/\">employee retention<\/a><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A good work environment is a critical part of maintaining a healthy startup. If employees are unhappy, they&#8217;ll leave for greener pastures.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">ESG policies and practices can help improve the work environment by engaging your team and giving them a voice in company decisions. This improves <a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/employee-happiness\/\">employee happiness<\/a> and retention rates.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition to making employees feel like their opinions matter, ESG also creates a sense of community within the workplace by focusing on common values. RingCentral helps boost morale because it gives you all the <\/span><a href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/spotlight\/ringcentral-updates\/\"><span style=\"font-weight: 400;\">features you need<\/span><\/a><span style=\"font-weight: 400;\"> to engage with your team: message, video, and phone all rolled into one app:\u00a0<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-49117 size-full\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2021\/09\/Creating-a-Team-Huddle-1.gif\" alt=\"\" width=\"1280\" height=\"800\" \/><\/p>\n<p><span style=\"font-weight: 400;\">This helps foster team spirit and unity, which boosts employee productivity and reduces the chances of losing valuable talent. Keeping your employees happy is an important part of growing a successful company.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">5. It improves your reputation<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Your reputation is everything. It&#8217;s the first thing people think of when they hear your company name and it can make or break your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A good reputation attracts customers, investors, and business partners while a bad one repels them. This is why it&#8217;s so important to focus on building a positive reputation from the start.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">ESG can help you build a positive reputation by ensuring that your company is associated with responsible and sustainable practices. This will make people more likely to do business with you and recommend you to others.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It&#8217;s important to remember that your reputation is always at stake, so it&#8217;s worth the effort to focus on building a good one.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\"><a id=\"three\"><\/a>How to integrate ESG into your startup<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We&#8217;ve established why it&#8217;s important to develop ESG commitments from the start, but it&#8217;s not always easy to do. Here are a few ways to do it.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">1. Identify the relevant ESG factors for your startup and industry<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Not all ESG factors will apply to your business, so you have to find the ones that do. The best way to do this is by looking at the issues that are most relevant to your industry and company.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if you&#8217;re in the fashion industry, labor rights and sustainability are likely to be more important than they would be for tech companies. Once you&#8217;ve identified the most relevant ESG factors, you can start developing policies and practices around them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Start by studying your stakeholders, what they value, and what drives their success. Include employees, customers, regulators, suppliers, and anyone else who has a relationship with your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The<\/span><a href=\"https:\/\/www.sasb.org\/standards\/materiality-map\/\"> <span style=\"font-weight: 400;\">Sustainable Accounting Standards Board<\/span><\/a><span style=\"font-weight: 400;\"> (SASB) is an excellent resource during this stage of development.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">2. Create an ESG task force<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you want to make sure that your company is integrating ESG properly, it&#8217;s a good idea to create a task force dedicated to the issue. This group should be responsible for developing and implementing policies, communicating with stakeholders, and monitoring progress.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This emphasizes the importance of these practices and gets everyone in your company involved with the process. It also helps ensure that ESG efforts are ongoing and sustainable, rather than something that happens only once or twice a year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another way to support employee collaboration through this process: invest in easy-to-adopt <a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/what-is-collaboration-software\/\">collaboration software<\/a> for your team. These all-in-one platforms allow your team to keep track of important files, create task force group chats, and even hop on a phone or <a class=\"waffle-rich-text-link\" href=\"https:\/\/www.ringcentral.com\/video-call.html\">video call<\/a> to sort out next steps. RingCentral MVP is one of the most feature-rich options out there today\u2014look how clean and simple it is to use:\u00a0<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-51194 size-full\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2022\/02\/Unlimited-team-messaging-1.gif\" alt=\"Unlimited team messaging gif\" width=\"1280\" height=\"800\" \/><\/p>\n<h3><span style=\"font-weight: 400;\">3. Develop an ESG reporting strategy<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Identifying the relevant ESG factors won&#8217;t get you anywhere unless you use this information. Your company needs to report on its ESG performance and make this information available to stakeholders.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This can be done through an annual report\u00a0(you can use a <a href=\"https:\/\/digits.com\/reports-builder\/\">report creator<\/a> to prepare one), a website, or any other form of communication that\u2019s appropriate for your industry.. It&#8217;s also important to keep track of progress over time so that you can measure the impact of your ESG efforts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition to the SASB, the Global Reporting Initiative also focuses on sustainability reporting and performance. You can use these resources to standardize your own reporting practices.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">4. Weave ESG throughout your startup&#8217;s investment and governance documents<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">ESG should be woven into the fabric of your company, not just something that&#8217;s tacked on at the end. This means that you need to integrate it into your investment and governance documents from the start.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This will send a strong signal to stakeholders that you&#8217;re serious about these practices and that they&#8217;re important to your business. It will also ensure that the benefits of ESG can be felt throughout your organization and not just in some isolated programs or policies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are a number of resources available to help you with this process, including the UN Global Compact, which provides tools for integrating ESG into company governance.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can also draft your compensation plans, bonus structure, and requirements for promotion so that they&#8217;re dependent on certain ESG KPIs. This requires that you&#8217;ve already implemented accurate reporting of your ESG achievements.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">5. Advertise a B Corp certification<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">One way to signal your company&#8217;s commitment to ESG is by advertising a B Corp certification. This designation is only given to companies that meet rigorous standards of social and environmental performance, accountability, and transparency.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It&#8217;s a voluntary certification, but it&#8217;s one that can help you attract customers, employees, and investors who are interested in supporting businesses that are making a positive impact.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This certification is managed by<\/span><a href=\"https:\/\/www.bcorporation.net\/en-us\/\"> <span style=\"font-weight: 400;\">B Lab<\/span><\/a><span style=\"font-weight: 400;\">. This nonprofit administers this certification after you apply and complete an audit.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Include RingCentral in your ESG efforts<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">ESG is an important part of a sustainable business model, but it&#8217;s not the only thing you need to consider. You also need to make sure that your business is profitable and that you&#8217;re providing value to your customers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, if you can integrate ESG into your business model, you&#8217;ll be in a strong position to attract the attention of purpose-driven consumers, employees, and investors. And that can only be a good thing for your business in the long run.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">RingCentral can help support your ESG efforts. Our cloud-based communications platform is a sustainable communications option that enables your business to make use of existing resources to keep communication lines open and collaboration going strong. RingCentral MVP provides voice, video, and text, enabling anywhere, anytime access for your employees and customers. See how our <\/span><a href=\"https:\/\/www.ringcentral.com\/solutions\/startups.html\"><span style=\"font-weight: 400;\">startup solutions<\/span><\/a><span style=\"font-weight: 400;\"> can help you with your ESG efforts today.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Environmental social governance (ESG) for startups isn&#8217;t just a new buzzword, or something that&#8217;s only important to social enterprises. In fact, more and more investors are taking ESG into consideration when making decisions about where to allocate their capital, so it\u2019s essential that startups pay attention to ESG sooner than later.\u00a0 Today, we&#8217;ll cover: What &#8230;<\/p>\n","protected":false},"author":29,"featured_media":51505,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17901,18722],"tags":[],"class_list":["post-52064","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-leadership","category-startups"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.3 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>ESG for startups: What it is and why it&#039;s critical | RingCentral Blog<\/title>\n<meta name=\"description\" content=\"ESG (emotional social governance) could be make or break for your startup. 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