As covered by a recent article on UKTN, the proportion of startups measuring their carbon footprint has declined for the first time—dropping from 28% in 2023 to 23% in 2024, according to new research by ESG_VC and the BVCA.
The fall is partly attributed to more effective materiality assessments, with some early-stage companies determining their emissions are too negligible to report. But experts also point to growing backlash and confusion around ESG frameworks as a contributing factor, prompting fears that environmental concerns may be getting sidelined.
In contrast, startups are doubling down on people-focused initiatives. The percentage of companies offering educational support to employees jumped to 70% in 2024, up from 57% the previous year. Mental health support is now provided by nearly three-quarters of startups, and more than half offer apprenticeships, internships, or trainee programmes—signaling a shift toward prioritising workforce wellbeing and talent development over carbon accountability.
Despite the drop in carbon tracking, UK startups continue to outperform peers in ESG leadership. Twenty-six percent of UK startups measure their carbon footprint, compared to 23% in Europe and just 8% in the U.S.
Fintech companies led the charge on responsible AI, with 67% offering relevant training or codes of conduct, far ahead of SaaS (53%) and deeptech (27%) counterparts.
As ESG_VC prepares to merge with VentureESG, its renewed focus on materiality aims to bring clarity and accountability back into the ESG equation.
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