ESG

The systematic incorporation of environmental, social, and governance considerations alongside traditional financial analysis in investment decision-making. ESG stands for environmental, social, and governance, referring to the three central factors used to measure sustainability and societal impact of a potential investment. Assessing ESG helps private equity and venture capital firms determine how a company performs on issues like climate change, DEI (diversity, equity & inclusion), board diversity, executive compensation, transparency, etc. Strong ESG performance signals responsible and ethical business practices. Considering ESG factors in the investment process aims to improve returns and align with stakeholder values. Poor ESG can indicate underlying risks. Private equity/VC firms are increasingly prioritizing ESG amid mounting pressure from LPs, regulators, and the public to invest sustainably. ESG metrics provide a more comprehensive view of an investment beyond just financials.

Blog

Other news you might be also interested in

Why Founders Are Choosing Investors Based on Trust — The New Currency in Venture Capital, According to Kibo Ventures

As venture capital becomes more crowded and globally competitive, founders are increasingly choosing investors based not only on access to capital, but on the expertise, reputation, and long-term support they can provide after the deal is signed. To understand how this shift is reshaping founder-investor relationships, we spoke with Sonia Fernández, Partner at Kibo Ventures, one of Spain’s leading early-stage venture firms with investments across software, fintech, and digital platforms.

Analizing The Data Gap with Vestberry: Why Venture Capital's Biggest Blind Spot Is the Portfolio It Already Owns

Marek Zamecnik, Co-CEO of Vestberry, on why portfolio management remains venture capital's most consequential — and least systematised — blind spot.

Rukam Capital — The Gen Z Consumer Revolution in India: A $7.3 Trillion Opportunity

Archana Jahagirdar — Founder and Managing Partner of Rukam Capital — argues that the country’s greatest investment opportunity is no longer technology, but the brands being built for a new generation.