ESG is coming to venture capital

As part of a series I wrote on trends in venture capital, I took a look at how Environmental, Social, and Governance (ESG) criteria was making its way into the venture capital space. 

“Environmental, social, and governance (ESG) criteria is making its way into the venture capital space. From 2016 to 2018, ESG integration increased by 69% across global public and private markets, according to the 2018 Global Sustainable Investment Review. Nearly two-thirds of investors believe that ESG guidance will become essential to alternative assets over the next three years, as stated in the 2019 Preqin Global Private Equity and Venture Capital Report. 

The trend reflects a larger shift—in business, consumerism, and investing—toward greater awareness of impact. As consumers are making more socially and environmentally conscious choices, investors are looking to support the funds and companies that drive positive change.”