Funding for a sustainable business

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In order to build credibility as a sustainable business, your funding needs to come from a sustainable source. If your company has investors, you therefore need to consider if they are the right investors.

There is a risk of the credibility of your business being called into question if those investing in the business do not share your values in matters such as product development, sustainable investment and equality.

Sustainability will also play a major role when the time comes to value your business. Parts of the regulations developed by the EU are already being applied today, known as taxonomy for sustainable investments. This applies to large companies and categorises what can be classed as environmentally sustainable. The increased requirements for reporting in the large companies can mean that small and medium-sized companies are also affected, in the role of suppliers to the larger companies.

Questions to consider
  • Is it attractive for investors who want to support sustainable development to invest in your business? If yes, have you described it in a clear manner in your communication?
  • Do the values of investors and other funders align with what you want to achieve as a business?
Links and detailed information

The purpose of the EU taxonomy is to help investors identify and compare environmentally sustainable investments by means of a common classification system for environmentally sustainable economic activities. 

The EU taxonomy for sustainable investments at europe.eu

 

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Responsible: Swedish Agency for Economic and Regional Growth

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