ESG_VC publishes first large-scale analysis of the ESG performance at startups

Lakestar is delighted to see the publication of the ESG_VC’s 2023 annual research, in partnership with the British Venture Capital Association (BVCA). The report is the first large-scale analysis of the ESG performance of venture-backed businesses. Collected by 16 VCs using the ESG_VC Measurement Framework, the report contains data from 450 portfolio companies all round the world.

Including Lakestar, these startups are backed by the likes of Astanor Ventures, Balderton Capital, Beringea, Cambridge Innovation Capital, Clarendon Fund Managers, Conviction VC, Gresham House Ventures, Highland Europe, Mercia Asset Management PLC, MMC Ventures, Molten Ventures, Par Equity, ScaleUp Capital, and Volution.

Lakestar Founder & Chairman Klaus Hommels says, “Over the past year, leading funds across the globe worked towards a common goal: Developing a leading framework for ESG aimed at start-ups, while also creating a community of founders and investors dedicated to advancing the ESG movement.”

@ESG_VC was founded to help early-stage startups measure and improve their ESG performance. Lakestar is proud to collaborate with a vibrant network of more than 200 member firms spanning Europe, North America, Australia, New Zealand, Asia - supporting thousands of portfolio companies globally.

The 2023 report unveiled compelling insights with the objective of assisting companies in their ESG journey. Notably, companies are excelling in prioritizing mental health and addressing social issues. However, there is room for growth in sustainability and responsible AI practices.

"Whether you are an investor or an entrepreneur, ESG is an ongoing journey," says Klaus. "Given the additional scrutiny of the Sustainable Finance Disclosure Regulation (SFDR), the Corporate Sustainability Reporting Directive (CSRD) and others, it is important that we not squander this opportunity by treating our obligations as a one-off exercise. Instead, we should build upon these principles iteratively to achieve a truly sustainable future. "

ESG_VC has partnered with experts to deliver webinars on topics like carbon accounting, gender pay gaps, and responsible AI usage, providing valuable insights into these areas for startups. And as the industry works towards universal ESG frameworks, Klaus also highlights “ESG_VC has developed a set of 57 questions that cover the key areas necessary for VC firms, ensuring the process is succinct and mutually beneficial for businesses”.