Why sustainability can increase success with investors

Sustainability. How often do we hear this word? It’s something that is mentioned in the boardroom and in many a marketing campaign on a daily basis. So much so, there’s a danger that it could be treated as nothing more than an empty buzzword.

In practise, sustainability is anything but. It’s a very real, very critical factor in business success, with investors worldwide increasingly prioritising environmental, social, and governance (ESG) considerations when making funding decisions. 

Businesses that fail to keep abreast of these values risk being left behind. As a B Corp-certified business, we understand that long-term success is not solely measured in profits but also in purpose, ethics, and impact.

The rise of ESG investing

ESG investing has grown exponentially in recent years. Investors are looking beyond financial returns, considering how companies perform in environmental, social, and governance criteria. 

Climate change concerns, social justice movements, and a general push for responsible corporate behaviour have all contributed to this trend.

So, what does ESG stand for?

• Environmental: Investors favour businesses that actively reduce their carbon footprint, use sustainable resources, and mitigate environmental risks.
  
  
• Social: Companies that champion diversity, employee well-being, and fair treatment of workers are viewed more favourably.
  
  
• Governance: Ethical leadership, transparent financial practices, and accountability are key to investor confidence.

According to research, 89% of investors now incorporate ESG factors into their decision-making process. Younger generations are particularly willing to sacrifice higher returns in favour of ethical investments, making ESG-conscious businesses even more attractive to future investors.

Why sustainability matters to investors

The link between sustainability and investment success is clear. Companies with strong ESG credentials tend to have stronger financial resilience, as businesses that manage environmental risks and prioritise governance tend to be more stable and less susceptible to crises. Beyond resilience, they are more likely to attract and retain top talent. 

According to the latest Jobs Confidence Index (JCI), conducted by Robert Half, in partnership with the Centre for Economics and Business Research, 47% of workers care more about their employer’s environmental impact than they did three years ago, and 60% believe organisations should be doing more to address ESG issues.

Across all age groups, more and more employees prefer to work for businesses that prioritise ethical practices. The bottom line? Sustainability-focused firms attract top talent and people who genuinely want to make a positive difference.

This focus can help to cultivate a better brand reputation among customers and stakeholders, who will be drawn to eco-friendly businesses with strong corporate responsibility values, and better access to capital from investors looking for businesses committed to uphold ESG principles. 

Now, if only there was a way to clearly tell investors where your business stands…

The role of B Corp certification

Achieving B Corp certification is one of the strongest signals a business can send to investors about its commitment to ESG principles.

B Corp companies are rigorously assessed for their impact across governance, environmental responsibility, community involvement, and employee well-being.

B Corp certification doesn’t just reflect a company’s values: it’s proof of its credibility with investors seeking sustainable and ethical returns in a business world full of empty words and greenwashing.

According to B Lab UK, 70% of B Corps seeking equity financing secure their target amount, compared to just 56% of other companies.

Vestd is proud to be part of this global movement, using business as a force for good. As the UK’s most popular sharetech platform, we believe that fair and transparent share schemes create a more equitable economy.

By making ownership accessible to employees, companies foster a culture of shared success.

Contrary to the misconception that ESG initiatives hinder growth, evidence suggests that sustainability-driven businesses are able to consistently outperform their counterparts. 

New data from B Lab UK confirms this, with  B Corp certified SMEs achieving a 23.2% increase in turnover between 2023 - 24, compared to a national average of just 16.8%.

B Corp SMEs also grew their employee headcounts by 9.6%, a figure in stark contrast to the wider national decrease of 0.5%.

For startups and scaleups looking to secure investment, embedding sustainability into their business model is not just a good ethical choice: it’s a strategic one, too.

Business for good

As a B Corp business, Vestd is committed to ethical governance, transparency, and sustainability. Our platform is designed to help UK startups, scaleups, and SMEs build fair and well-structured share schemes for their employees.

We believe that a business’s most valuable resource is its people, and by giving them a stake in the company’s success, we create a more sustainable and equitable economy.

We have also taken steps to minimise our environmental impact, promote social responsibility, and uphold the highest standards of governance. 

As ESG investing continues to gain momentum, companies must adapt to meet investor expectations. Businesses that embrace sustainability will not only be more likely to attract funding but will also build greater resilience and growth.

B Corp certification is a powerful tool for demonstrating to investors that the business is serious about ethical governance, social impact, and environmental responsibility.

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