New analysis has revealed that, for the primary time, the proportion of startups measuring their carbon footprint has fallen, declining from 28% in 2023 to 23% in 2024.
ESG_VC and the BVCA analysed ESG information from 711 startups backed by main enterprise capital corporations.
In keeping with the information companions, the drop may very well be defined – partially – by the growing numbers of startups conducting more practical materiality assessments and figuring out their footprint is simply too immaterial to report.
Henry Philipson, director of promoting and communications at Beringea and co-founder of ESG_VC, mentioned: “The information we now have compiled signifies that the noisy debate round ESG could also be resulting in environmental points being deprioritised by startups.
“To sort out this diverging efficiency, ESG_VC – following our merger with VentureESG – can be strengthening its give attention to materiality because the vital difficulty in buyers’ strategy to ESG in startups.”
In distinction, startups have positioned a big give attention to initiatives that determine and develop expertise. The proportion of firms offering academic help to staff rose to 70% in 2024, up from 57% in 2023 and 40% in 2022.
Over half (56%) of startups analysed supplied an apprenticeship, internship or trainee programme, whereas 73% supplied psychological well being help to staff.
Outperforming international friends
Regardless of the rising quantity of environmental regulation inside the EU, startups based mostly within the UK have outperformed friends in Europe, the US and APAC on a broad set of ESG-related points.
Key highlights from the information introduced that 26% of UK startups measure their carbon footprint in comparison with 23% in Europe and solely 8% within the US.
As well as, 16% of UK firms analysed have adopted a net-zero coverage or programme versus 13% in Europe, 7% within the US, and seven% in APAC.
Sector breakdown
The analysis additionally revealed that fintech startups led the push into accountable use of AI, as 67% of fintech firms monitored provide codes of conduct or coaching on accountable AI versus 53% of SaaS firms and 27% of deeptech firms.
The next proportion of fintech firms additionally measure their carbon footprint (37%) than their friends in SaaS (20%) or healthtech and biotech (19%) the information confirmed.
Suzi Gillespie, head of analysis on the BVCA, added: “The ESG_VC framework supplies a precious toolkit for startups and scaleups to determine and monitor the metrics that are related and materials to them.
“It’s pure that firms do extra on sustainability initiatives as they develop, and this analysis evidences this.
“By offering benchmarking, steering and finest follow, we hope to assist firms develop from sustainable foundations.”
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