VCs Are Bracing for New Wave of Global ESG Rules

(Bloomberg) Venture capitalists probably aren’t ready for upcoming ESG rules.

How sustainable is your startup?

For the most part, venture capitalists can avoid the messy scrutiny and onerous rules that come with public company investing — but not always.

A new spate of global rules around responsible investments could soon change the way VCs do business. This year, Europe began requiring more disclosures around the environmental impact of investments. The UK has introduced “greenwashing” checks even more aggressive than Europe’s. And US regulators recently voted for much tougher rules around what constitutes an environmental, social and governance (ESG) fund.