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ESG Investment

ESG investment is often used interchangeably with sustainable investment, socially responsible investment (SRI), mission-related investment and impact investment.

Simply put, it is when investors take social or environmental factors into account when evaluating investment opportunities. An ESG investment is therefore one made into a business which has a socially-responsible mission as well as being profit-driven.

Strictly speaking, ESG investment refers to the consideration of Environmental, Social and Governance factors in the evaluation of a business opportunity. ESG metrics can usually be provided by third parties who report on companies and provide ESG ratings for investors.

The number of ESG investors is increasing as people want their capital to make a valuable difference to the world in addition to generating strong financial returns. In the sense they are no different from SRI or Impact investors – ESG just provides a more tangible metric for use in their evaluation.

The existence of ESG metrics allows entrepreneurs to focus their businesses more clearly on ESG objectives which can boost their ESG rating and ingratiate them to ESG investors.

Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. SeedTribe is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. You will only be able to invest via SeedTribe once you are registered as sufficiently sophisticated. Please click here to read the full Risk Warning.

This page is approved as a financial promotion by SeedTribe Limited, which is authorised and regulated by the Financial Conduct Authority. Pitches for investment are not offers to the public and investments can only be made by members of on the basis of information provided in the pitches by the companies concerned. SeedTribe takes no responsibility for this information or for any recommendations or opinions made by the companies.

The availability of any tax relief, including EIS and SEIS, depends on the individual circumstances of each investor and of the company concerned, and may be subject to change in the future. If you are in any doubt about the availability of any tax reliefs, or the tax treatment of your investment, you should obtain independent tax advice before proceeding with your investment.