In 2021, Denmark made environmental social governance (ESG) mandatory. The ESG mandate is concerned not just with the impact of a company’s final product or service, but with how the company’s total operations impact areas such as employee wellness, the local and global environment, and the culture and community around them.
Tech start-ups have a natural advantage in the race to adapt to the ESG policy. Small, agile, and accustomed to ongoing evolution, start-ups are better positioned than older, larger companies to integrate new ways of working. While limiting travel, actively supporting diversity, or building strong connections with the local community may require a significant culture shift for long-established companies, start-ups can build their corporate culture around these practices from the ground up.
The legislative mandate for ESG, by shifting the way investors focus venture capital, is expanding opportunities for start-ups that ‘do good’, and do it in good ways, and simultaneously positioning Demark to be a global leader in ESG and sustainability.
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