How to scale your startup with one eye on sustainability

Scaling a startup is a challenging yet rewarding process that requires careful planning. This is a busy period, make no mistake, and it may have crossed your mind that you have too much on your plate to worry about environmental and social responsibility right now, in this growth phase. 

Yes, striking a balance may complicate things at the very beginning but the strategic advantages down the line cannot be overstated.

As investors and customers prioritise business sustainability, startups that embed environmental, social, and governance (ESG) principles into their scaling strategies stand to gain significant long-term benefits. 

At Vestd, we’re proud to be a B Corp company and our own recent expansion shows that it is possible for a business to grow while maintaining a strong ethical foundation.

Define a clear and sustainable vision

Every successful startup begins with a vision, but scaling requires ensuring that vision remains intact. A strong sustainability-focused vision not only guides decision-making but also attracts customers, employees, and investors who share similar values. 

Whether your goal is to become an eco-friendly business reducing carbon footprints or a B Corp startup focused on ethical governance, defining a clear sustainability mission will differentiate your brand in a competitive market.

Investors increasingly look for businesses with a well-defined commitment to sustainability. That’s far easier to implement when it’s part of the original vision, rather than injected later on.

Build strategic partnerships with like-minded businesses

Collaboration is key to sustainable scaling. No company can do absolutely everything on its own. For parts of your business, partnerships with service providers will be inevitable. This could mean appointing a web designer to overhaul your website, for example, finding an IT consultancy to handle cybersecurity or contracting a logistics firm to deliver product to clients.

It’s important to do your due diligence, as the actions and reputation of those partners can also impact your own business. If it comes to light that you’re in a partnership with a firm that is known for polluting waterways for example,  it will be that much harder for investors, clients and stakeholders to trust in your ESG promises. 

Partnering with businesses that share your commitment to sustainability can provide access to new markets, reduce costs, and improve credibility. Whether it’s forming supply chain agreements with eco-friendly suppliers or teaming up with other B Corp businesses to amplify impact, strategic partnerships can help your startup grow responsibly.

Embedding sustainability into operations

As your business grows, it’s important to scrutinise every aspect of your operations to ensure they align with ESG principles. This includes:

Sustainable supply chains: Work with suppliers that uphold fair labour practices and use environmentally responsible materials, in addition to supplying responsibly-sourced workwear.

Energy efficiency: Opt for renewable energy sources and energy-efficient office spaces. Not only will this be a sign of your real commitment to eco-friendly practices, but it will save you money, too.

Waste reduction: Implement circular economy principles by minimising waste and encouraging recycling. This can be as simple as introducing recycling bins throughout your office space or as complex as retrofitting sustainability measures such as waste water recycling in your building.

Engage customers with ethical branding

Customer loyalty is critical when scaling, and transparency around sustainability efforts can build trust. If your customer base gets the sense you’re stepping away from your ESG commitments in the name of growth, getting them back might be near impossible.

Here’s what you’ll need:

• Storytelling: Share authentic narratives about your sustainability journey. Getting solar panels on your roof? Switching to hybrid or remote work to reduce commuting? Providing charging points for electric vehicles? 
  Talk about it on  your website, on your social media and in your internal and customer facing communications.
  
  
• Transparency: Provide clear ESG performance metrics. How much energy did you save? How much pollution was avoided by letting employees work from home rather than driving to work and back five days a week?
  
  
• Community building: Engage with your audience through social responsibility initiatives and open discussions. Ask for feedback, too. People love to know they are part of a wider change, and that their views matter.

Financial planning with sustainability at its core

Scaling a startup requires robust financial planning, ensuring that profitability aligns with ethical business practices. 

Financial strategies should focus on:

Sustainable growth models: Avoid unsustainable scaling tactics that prioritise short-term gains over long-term stability. An ethical business is more likely to grow steadily rather than seeing dramatic growth over a short time.

While it may not be as flamboyant, steady growth is often more sustainable and provides a solid foundation for additional development.

Reinvestment in ESG initiatives: Allocate capital towards eco-friendly innovations and ethical workplace policies. Don’t think of it as an expense: by now you should know it’s an investment!

Transparent financial reporting: Investors and customers value transparency, so maintain clear records of how your sustainability efforts translate into business performance.

Final thoughts

In an era where business sustainability is becoming the norm rather than the exception, scaling with one eye on sustainability is the smartest move any startup can make.

If you're looking to scale sustainably, Vestd can help. By offering transparent equity management and share schemes, you can build a business that cares.

Book a call today to get started.