ESG vs Impact: what investors need to know

Our Managing Partner Patrick Sheehan examines the growth of the impact and sustainable investment markets in his new article for ESG Investing.

Patrick discusses the rise of ESG/impact/sustainability/responsible investment, the confusion that these terms still generate and understanding the nuances of implementing ESG practices within startups vs. large public companies.

“Back in my world working with exciting young companies, we face increasingly large and diverse information requests under the headline of ESG. Each is valid with good individual reasons and needs, but these usually have little to no practical value for our fledgling companies. They do not encourage behaviour change but are more frequently seen as an information tax on entrepreneurs who are already trying to make a positive difference in the world.

So, we find ourselves as venture capitalists increasingly as gatekeepers, protecting our family of companies from ‘bureaucracy’ so they can focus on what really matters, whilst also trying to service the needs of our clients and investors. While those needs are real, it is often not clear what, if anything, the collected information will be used for.”

Read Patrick’s article in full HERE.