ESG stands for Environmental, Social, Governance and refers to the three essential criteria for evaluating the sustainability of an investment. ESG investing examines investment principles intended to produce higher financial returns while creating or maintaining a positive environmental, societal, and governance impact. As Environmental, Social & Governance matters are on the agendas of many large companies, the early-stage startups need to adopt the same criteria. ESG investing advantages for startups: 1️⃣ More investment – ESG implementing startups are recognized as safe companies because they reduce the risk of social retaliation, civil litigation, or state fines. That’s why these startups are popular among investors. 2️⃣ Top talent acquisition – nearly 40% of millennials opted to work for companies that uphold and implement ESG strategies. 3️⃣ Better reputation – businesses that are socially responsible gain more trust and respect than those that do not apply ESG policies. 4️⃣ Higher profits – implementing ESG factors will surely boost your tech startup’s income. Not only investors are using ESG to screen startups, so are the customers.