3 reasons why you need sustainability integration in your startup

Sustainability is important for all businesses

Startups are often defined as businesses that haven’t quite found their market fit yet. They tend to have a business model that is yet to be validated. And they also tend to have quite a lot of risk involved as well.

So why does a business like a startup that already has so many of its issues to contend with, need to look for further issues to solve with sustainability? Would it not be better for a startup facing an uncertain future to simply focus on its core issues and leave sustainability to successful businesses?

Well, these are the questions that we will explore here.

There are several benefits that a business can gain by becoming sustainable. But which of these benefits are relevant for a startup?

How a startup can benefit from integrating sustainability 

There are many ways a business will benefit from integrating sustainability into its activities and strategies.

Given the wide-ranging nature of ESG (environmental social governance), these issues span several functions and departments of a company. And for the most part, we do have examples of businesses of all sizes that have integrated sustainability to gain these benefits.

Unlike businesses that are already successful, startups do not often have the luxury of having enough resources to focus on business sustainability. Their challenges are different and the problems they need to solve are more immediate. By definition, startups are unstable businesses looking for ways to grow.

This is why the benefits that a startup can gain from sustainability integration are also different to what a stable business would gain. The need to grow is among the top priorities for a startup. So how does sustainability integration help a startup grow and achieve its goals?

Sustainability helps reduce risks associated with a startup

Startups are always a risky proposition. It is risky for the founders to invest time, money and other resources to build a business with an unvalidated model. It is risky for employees and cofounders who join a startup with no guarantee of future success. It is especially risky for investors who bet their money on a startup without knowing whether it’ll be a success or not.

This is why it is a good idea for a startup to look for ways to reduce such risks. And business sustainability, with its focus on environmental, social and governance issues, is a surefire way of reducing various risks.

Governance issues in particular are of strong concern for investors. Social issues being prevented or solved as a result of sustainability integration can make it more attractive to potential employees as well as customers and partners. Environmental risks being eliminated will also help ease the minds of all the stakeholders, as concern over climate change increases worldwide.

Sustainability will make a startup more attractive to investors

Impact investing is a growing concept. And major investors including individuals, VCs and other institutional investors have all begun integrating ESG into their decision-making process.

This will be accelerated by increasing demand from their clients to invest in sustainable businesses. There is a global shift happening towards sustainable businesses now. And your startup will be well-positioned to benefit from it by being a sustainable business. 

It has to be said that simply being a sustainable business will not be enough to attract investors. After all, these investors do have a fiduciary responsibility to target returns on their investments. But competing against a similar business that is not sustainable, you will have the advantage.

Business sustainability presents opportunities for a startup to take advantage

There is no doubt that over the coming months and years, businesses from around the world will have no choice but to integrate sustainability into their activities.

And with this mass transformation of businesses will come tremendous opportunity. Opportunity for startups across various industries to come up with solutions and products that will help these businesses become sustainable.

If you are a startup in the energy industry, you can focus on ways to help businesses become environmentally sustainable through your solutions.

 If you design air filters, you can market to companies with facilities where they can install them to make the work environment better for their employees, and thus become socially sustainable.

 If you are an AI (Artificial Intelligence) firm, you can target companies that are looking to reduce the work hours of their employees through automation to become socially sustainable. 

The possibilities and opportunities are endless. And for a startup that attempts to integrate sustainability into its activities, the possibilities will be easier to spot. 

How do you become a sustainable startup?

This is the real question for us. The need to become a sustainable business is clear. But how a startup might go about doing that is the real challenge that needs to be solved.

Thankfully, it is not as hard as some might make it out to be. Becoming a sustainable startup that does have a focus on reducing its ESG issues is not a mountain to climb. It simply requires you to take a few steps that will make small, but significant (in the context of sustainability) changes to how you conduct your activities.

Becoming environmentally sustainable, for example, does not mean you have to stop using petrol-powered cars today. Sustainability that forces you to take extreme decisions does not make sense. And sustainability has to make sense for a business.

The point of integrating sustainability is to make better decisions when and where you can.

And that is easier than you might expect. There are already several institutions and organisations that present guidance for businesses of all sizes including startups on how they can integrate sustainability. The principles presented by the UN Global Compact is one such example. The UN Sustainable Development Goals (SDGs) are also a widely accepted tool for incorporating sustainability in business. 

We already have plenty of content that presents you with introductory guides of sorts to help you understand the relevance of these organisations better. 

Beyond that, you can also look through each organisation’s own website for specific resources they might offer that will help your startup become sustainable. And then, of course, comes the option of help from businesses that focus on sustainability.

Becoming a sustainable startup with SUSTINARO

SUSTINARO is all about sustainability that makes sense. And we strongly believe that sustainability integration is a sensible choice for all startups today.

While our focus is on sustainability communication, we can also help you integrate sustainability into your overall business and marketing and communication strategies. Connect with us today and learn more about how we can help you with a quick 15-minute meeting, free of charge!