This leaves many founders wondering: should you keep investing time and resources into sustainability or just focus on maximising profits while you can?

The short answer: you can do both. And in the long run, the most successful founders will be those who build profitable businesses that also solve real problems.

1. Beyond the green gloss

As an expert in sustainable investing, I've learnt that sustainability can’t just live in reports, AI, and data tools. Those are helpful. But as somebody once told me, “Having a better thermometer doesn’t cure a fever.”

In other words, sophisticated metrics don’t matter if the business itself isn’t solving a genuine problem. 

The test is simple: does your product or service genuinely solve an environmental or social challenge?

If your product or service directly addresses climate, resource, or community challenges, say, helping reduce waste, improve energy efficiency, or make clean energy accessible, then you’re building something that lasts. If not, even the best ESG rating won’t make it sustainable.

2. ESG vs. impact investing: why it matters

Many founders confuse ESG investing with impact investing, but they’re not the same. ESG (Environmental, Social, and Governance) looks at how a company operates, whether it’s ethical, well-governed, and environmentally conscious.

Impact investing, on the other hand, focuses on what the company does. Does the business itself create measurable positive outcomes for the planet or society?

Take Apple. It’s among the world’s best at managing its footprint, using renewable energy & increasing water efficiency. But its core business still revolves around producing and selling more iPhones. That doesn’t directly solve climate problems.

In contrast, impact investors look for companies whose products tackle the root causes of environmental and social problems. These are often smaller, early-stage ventures, the ones experimenting with new materials to replace plastic, developing seaweed-based packaging, or creating plant-based alternatives that reduce waste and pollution.

Yes, these solutions can be expensive today. But as any savvy businessperson knows, using the power of economics as production scales and technology mature, costs will come down, and accessibility will go up. That’s why investors and businesses should continue supporting this innovation. It’s the only way for sustainable ideas to reach mass adoption.

3. Profit and purpose can coexist

For years, sustainability was viewed as a trade-off, good for the planet, bad for profits. That mindset is outdated. Today, customers expect products that are sustainable and affordable, and businesses that meet those expectations are thriving.

Look at Schneider Electric or Siemens. Both started in the industrial era and have completely repositioned their business models around electrification and energy efficiency. They saw the writing on the wall: economies are transitioning to cleaner energy, and the companies that enable that transition are securing their long-term relevance.

Falling cleantech costs are reinforcing this momentum. According to a 2021 World Economic Forum report, solar energy prices have dropped by around 85% over a period of 10 years. Clean energy is no longer just ‘green’, it’s cheaper, more scalable, and strategically smart.

For founders, that’s proof that purpose and profit don’t just coexist; they reinforce each other. They’re increasingly two sides of the same business case.

4. Building a business that attracts impact capital

If you’re a founder aiming to attract investors who value sustainability, here are a few guiding principles:

Be clear about your impact.
You should be able to explain, in one sentence, how your company helps solve a climate or social challenge. Clarity signals credibility.

Align with the right investors.
Seek partners who genuinely understand impact and are prepared for long-term growth, not short-term headlines.

Did you know that according to a 2025 report by Morgan Stanley, 99% of Gen Z and 97% of millennials consider sustainability when making investment decisions? 

Measure what matters.
Use international frameworks to track your non-financial performance with the same discipline as your financials.

Design for scale.
A sustainable product must also be commercially viable. If it can’t scale, it can’t create lasting impact.

Stay authentic.
Transparency builds trust. Be open about both progress and setbacks. Authenticity resonates more than perfection.

5. Founders as agents of sustainable change

Startups are uniquely positioned to lead the transition toward smarter, sustainable capitalism. Unlike legacy businesses, you’re not burdened by outdated systems or sunk costs. You can design from day one with sustainability at your core, not as a side project, but as a competitive advantage.

Sustainability can be your powerful strategy for resilience, innovation, and growth.

The founders who understand that who see purpose not as a sacrifice but as a catalyst will build the companies that define the next decade.

Because in the end, sustainability isn’t a cost or a constraint. It’s the most durable business strategy there is.