Featured Pathways

More pathways

The Science of Climate Change

Climate change is no longer a distant threat or just a possibility, it is now a reality for all of us. In this pathway, Kevin Trenberth, a renowned climatologist, delves into the science behind climate change. He first introduces the climate system, its main components and forces.

Tackling the Plastic Crisis

Plastic pollution is by far the biggest threat to our oceans and this remains an incredibly tough problem to solve. Plastic credits could potentially serve as one of the much needed solutions for this crisis.

More pathways

Book a demo

Pricing

Ready to get started?

Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Sustainability Unlocked to your current platform

Featured Content

More featured content

The Scale of the Net Zero Challenge

The price of meeting net zero is estimated to be between $100-150 trillion over the next 30 years. Regardless of this cost, we need to reach net zero before climate change does irreversible damage to the environment and the economy.

ESG, Sustainability and Impact Jargon Buster

ESG, sustainability, impact… they all just mean green, right? Not quite. Despite being used often interchangeably, there are distinct differences between these terms.

More featured content

Book a demo

Pricing

Ready to get started?

Book a demo

Pricing

Ready to get started?

Featured Pathways

More pathways

The Science of Climate Change

Climate change is no longer a distant threat or just a possibility, it is now a reality for all of us. In this pathway, Kevin Trenberth, a renowned climatologist, delves into the science behind climate change. He first introduces the climate system, its main components and forces.

Tackling the Plastic Crisis

Plastic pollution is by far the biggest threat to our oceans and this remains an incredibly tough problem to solve. Plastic credits could potentially serve as one of the much needed solutions for this crisis.

More pathways

Book a demo

Pricing

Ready to get started?

Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Sustainability Unlocked to your current platform

Featured Content

More featured content

The Scale of the Net Zero Challenge

The price of meeting net zero is estimated to be between $100-150 trillion over the next 30 years. Regardless of this cost, we need to reach net zero before climate change does irreversible damage to the environment and the economy.

ESG, Sustainability and Impact Jargon Buster

ESG, sustainability, impact… they all just mean green, right? Not quite. Despite being used often interchangeably, there are distinct differences between these terms.

More featured content

Book a demo

Pricing

Ready to get started?

Book a demo

Pricing

Ready to get started?

Book a demo

Pricing

Ready to get started?

The Business Case for Venture Capital ESG

The Business Case for Venture Capital ESG

Johannes Lenhard

ESG & VC Specialist

We know that different stakeholders are pushing ESG for numerous reasons and that attitudes can vary. But the question at the core of this is simple: does implementing ESG in venture capital investing and portfolio companies make financial sense? Join Johannes Lenhard as he explores whether ESG contributes to the financial success of investors.

We know that different stakeholders are pushing ESG for numerous reasons and that attitudes can vary. But the question at the core of this is simple: does implementing ESG in venture capital investing and portfolio companies make financial sense? Join Johannes Lenhard as he explores whether ESG contributes to the financial success of investors.

Join now to start learning today

Finance Unlocked is the video learning platform built for finance professionals.

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

The Business Case for Venture Capital ESG

7 mins 10 secs

Overview

Does implementing ESG in venture capital investing and portfolio companies make financial sense? The Harvard Law School Forum on Corporate Governance argues that companies and investors “have become too short-term oriented in their investment horizon, leading to decisions that increase near-term reported profits at the expense of the long-term sustainability of those profits.” Likewise, ESG factors are a good proxy for the longer-term health of a business. While companies that integrate ESG factors into their decision making have indeed been found to outperform the stock market, this is only true for those who focus on material ESG factors (e.g. waste reduction for a car company). There is also pressure from consumers and employees who are increasingly pushing for ESG.

Key learning objectives:

  • Understand the business case for ESG in VC

  • Outline how ESG affects revenue and operations

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Summary

What is the business case for ESG?

The Harvard Law School Forum on Corporate Governance argues that companies and investors “have become too short-term oriented … leading to decisions that increase near-term reported profits at the expense of the long-term sustainability of those profits” and that ESG factors are a good proxy for the longer-term health of a business. 

Tensie Whelan from New York University’s Stern School of Business states that ESG is essential for customer allegiance and protection against threats such as “social stability, vibrancy, and inclusiveness that makes a health business possible in the first place.” 

Bain and Company’s 2021 paper on the ‘Expanding Case for ESG in Private Equity’ argues that from consumers to employees, the large majority cares increasingly about ESG factors. 

According to a 2020 Capgemini survey, 70% of buyers are changing preferences based on sustainability. Similarly, a global HP survey for workers found that 46% of employees would only work for a company with sustainable business practices.

How does ESG affects revenue and operations?

Integrating ESG does not necessarily have a simple immediate impact on increased revenue - intermediating factors often play a role. Whelan’s team found that one apparel company’s sustainability efforts had a 5% contribution to their labour costs. This impact was mediated through higher employee retention and increased productivity. 

Avoided costs are an important factor in the business case. Deforestation-free practices for agriculture businesses significantly reduce operational risk such as wildfires, environmental costs) which can be monetized as avoided cost.

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Expert
Johannes Lenhard

Johannes Lenhard

Johannes teaches and researches homelessness and the social science of venture capital at the Max Planck Cambridge Centre for Ethics, Economy and Social Change at the University of Cambridge. Johannes is also a co-founder of the not-for-profit VentureESG, a global community of almost 300 VC funds and asset owners committed to advancing ESG practises in VC.

Related videos