In January, LHV joined hands with the Tehnopol Science and Business Park to boost a new generation of impact companies. Impact entrepreneurship is a growing trend where companies are increasingly focusing on driving business impact in the desired direction, alongside profit. Today, impact entrepreneurship has also attracted the attention of a new generation of investors.
According to Marko Kiisa, Head of Corporate Financing at LHV, every company has a positive and negative impact. “Sooner or later, all companies will need to integrate their impact management into their business model to continue their business in the long term. Today, a large number of companies still lack knowledge of this subject, but interest in sustainable business has increased considerably,” Kiisa said.
LHV is committed to increasing the knowledge of both start-ups and existing companies on responsible business management, impact measurement, implementation and mitigation issues. Agile and innovative start-ups are an ideal breeding ground for launching initiatives with a positive impact from scratch that are more resilient to future challenges. Working with the Tehnopol Startup Incubator supports start-ups with impact through a 6-month growth programme. A total of 10 companies can enter the programme.
“Companies can no longer exist just for profit, operating without choosing the resources to carry out their business idea. We have a deep understanding of this and want to spread the knowledge. We would like to contribute to the fact that there will not be a single company operating in Estonia in the near future who does not know what social and environmental effects its business has, how to measure these effects and consciously steer them towards improvement,” said Marko Kiisa.
“Investment in impact entrepreneurship is on the rise around the world. The new generation of investors is no longer just looking for a way to make money, but an increasingly bigger picture is being taken into account. Like any company, every investment has an impact. After all, only what you feed grows, and in the business world, it is where the capital goes,” said Marko Kiisa.
An investment made with a desire to generate a positive, measurable environmental or social impact as well as a profit can be defined as an impact investment.
“From the perspective of financial and large companies, accountability and impact management have been a more acute issue for years and the pressure and expectations for dealing with it are growing. Start-ups depend on external investments and therefore also need to start using more sustainable practices. Put simply, the positive impact is also a question of profitability, and businesses should see opportunities for sustainability alongside pressure. There is no doubt that companies that manage their impact will receive better funding in the future,” Kiisa commented.
For three years, LHV has contributed to measuring its effects and managing them. ESG management is part of LHV's organisational strategy. LHV's ambition is to introduce ESG criteria more and more into the company's functioning and decision-making processes. As an Estonian bank, LHV considers it important to support local entrepreneurs in terms of sustainable business.
See more: https://www.startupincubator.ee/All news