Venture capital is looking more into your company’s sustainability performance
Sustainability in general, and The UN Sustainable Development Goals in particular, make for good business. And some investors have recognized that for quite some time – since 2004, to be precise. When the UN started conversations with a number of global stock exchange operators, corporate social responsibility hit the radars of listed corporations. In 2012, Nasdaq (USA), B3 (Brazil), Johannesburg Stock Exchange (South Africa), Borsa Istanbul (Turkey) and The Egyptian Exchange made a public commitment to advance sustainability in their markets. It was the first step in the Sustainable Stock Exchanges initiative (SSE), a UN-led global movement which now counts more than 80 members from all continents.
In the past few years, the SDGs have boosted the discussion on corporate sustainability and the role of companies in building a better business culture with a stronger positive impact on society. More importantly, the SDGs were eventually adopted by many companies to be an integral part of their sustainability plans as a major performance target. Since then, a number of studies have related SDGs to business performance, proving that gender equality, investments on education and fair wages lead to a more competitive society and, thus, to more sustainable businesses.
More recently, venture capitalists have been looking more closely into sustainability practices before deciding which companies to invest in. With the help of UN agencies, Social venture funds and social impact-driven investors networks were set up to prompt companies into improving their CSR practices while pursuing their profit-making operations. The recently launched UNDP SDG Impact program is a good example of how to channel private investment and capital to meet the SDGs, via providing funders with roadmaps and data on the best investment plans.
Initiatives like HoryouToken are also a worthwhile alternative for all investors to consider, from big corporations to private investors, owing to its Blockchain technology which provides transparency and traceability with proof of impact, resonating with the UN Sustainable Development Goals
Sustainability is now. It’s profitable, it can help change the world and build better times for all.