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How new regulations and investor focus force startups to be sustainable from day one

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on or enjoy below:

🗞️ Driving the news: Startups are increasingly being compelled to adopt sustainable practices from their inception due to new regulations and a growing emphasis on sustainability from investors
• This shift is changing the landscape of entrepreneurship, making sustainability a core component of business operations

🔭 The context: Governments around the world are implementing stricter regulations to combat climate change, and investors are showing a preference for startups that prioritize sustainability
• This is creating a business environment where startups need to integrate sustainable practices from the outset to be competitive and compliant

🌍 Why it matters for the planet: By embedding sustainability into their business models, startups contribute to global efforts to reduce carbon emissions and promote responsible consumption and production
• This shift helps in advancing the United Nations Sustainable Development Goals and combating climate change

⏭️ What's next: The trend of startups adopting sustainable practices is expected to continue growing, driven by regulatory requirements and investor demand
• This will likely lead to innovation in sustainable technologies and practices, further accelerating the transition to a green economy

💬 One quote: “Trying to create sustainability plans or set up ESG measures at the last minute if the business model or production concept were not designed to be sustainable in the first place will inevitably come up as a red flag for an investor” (Erik Kolehmainen, Metsä Spring)

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