Sustainability will have to be integral to startup strategy and operations because, without that organization, demise chances are very high.
Climate change is a reality. The energy mix is changing rapidly. The move away from carbon-rich fossil-based energy is gaining momentum. It is leading to a massive churn. Investors understand that businesses dependent on carbon-based energy will have to transform and move to renewables for survival. Green thinking has to be integrated into corporate culture and planning.
Internet penetration worldwide has led to an explosion of information availability. Customers, clients, investors, and stakeholders have ready access to information and knowledge derived from that. Social media has exponentially increased communication and speeded up information exchange at a pace never before.
Gone are the days when organization decisions and strategies were the sole preserve of Founders and their boards. They are today always in the spotlight. Transparency is a requirement.
I have provided an overview of the necessity of ESG practices in strategy, business models, and future business operations. Startups are the industry’s future and must be mindful of this reality.