Sustainability and Profitability Can Co-Exist: 3 KEYS TO GROWING A GREEN BUSINESS

Private equity and venture capital firms are increasingly backing resilient companies.

- LARRY CLARKE

Entrepreneurs are naturally driven toward profitability, but that doesn't mean they can't focus their attention on sustainability, too. Business founders are increasingly launching organizations with strong environmental, social, and governance (ESG) components. And private equity and venture capital firms are taking notice, backing startups and existing organizations that demonstrate a drive for sustainability, such as those in the renewable energy sector. In the third quarter of 2022, Morningstar reported that U.S. sustainable funds were worth $272 billion. Even giant legacy corporations like General Mills have started venture capital groups expected to make strategic investments while keeping ESG principles in mind. And it's not just profitability that has attracted companies to ESG policies. Employees want to be happy, engaged, and productive. Purpose-driven companies help them achieve those goals. Customers also want to support mission-based brands that align with their sustainability and environmental beliefs. Doing good has gone from being the right thing to being the profitable thing to do.