Integrating ESG in a Startup – From Intent to Impact

28.07.2025 15:00, Rita Longobardi

For early-stage startups, integrating ESG (Environmental, Social, and Governance) principles can feel like a balancing act: mission vs. margin, ideals vs. investor expectations. Yet among Switzerland’s most promising young companies, a new generation shows that ESG is more than a checkbox—it’s a framework for sustainable growth and long-term relevance. From energy-saving coatings and AI-powered recycling copilots to CO? reuse and precision monitoring of air and water, recent Venture Kick and Venture Leaders Cleantech alumni are embedding ESG into their operations from the outset.

Incorporating ESG principles may once have been a late-stage consideration for startups. Today, it's increasingly a foundation. For several Swiss early-stage ventures emerging from the Venture Kick program and in some cases, further developed through Venture Leaders Cleantech—ESG is not something added later, but something shaped from the start.

The environmental dimension is often the most visible and measurable. Startups such as Grensol, which converts captured CO2 into clean fuels, build ESG directly into its value proposition. Here, ESG alignment goes beyond messaging; it signals real market relevance in a decarbonizing world — especially as shifting policies and incentives in markets like the US influence how climate tech models scale and compete.

“From the start, we built Grensol on the belief that reducing CO2 emissions and running a profitable business can go hand in hand,” explains Rajiv Singhal, Co-Founder and CEO of Grensol. “Striking that balance requires two things: a clear understanding of the emissions we generate and those we avoid through our process, and a business model that works for our ecosystem partners while being economically viable through technological innovation — particularly in car recycling waste.

While many businesses in our field depend heavily on subsidies and government support, we chose a different path. To protect ourselves from short-term political shifts — like those currently happening in the US — we’ve spent the past few years refining both our model and technology to ensure long-term independence from external support.”

That strategy is now underway. In Biberist, Singhal and his team are launching Grensol's first facility to recycle waste otherwise incinerated or landfilled. The recovered materials will reenter the circular economy, with a CO2 footprint that is measurable and auditable.

Aerospec, whose high-precision optical sensing monitors air quality and industrial emissions, is combining innovation with accountability. By giving industries better tools to track their footprint, the company supports both operational performance and ESG transparency—an increasingly important factor for customers and investors alike.

“ESG plays an important role in aligning our air quality solutions with clients’ sustainability goals, making them more relevant and effective, while also guiding Aerospec’s responsible growth in line with evolving industry standards,” shares Nikunj Dudani, Co-Founder and CEO of Aerospec. “ESG is embedded in our product—our solutions directly address environmental impact. This makes them naturally relevant to clients pursuing sustainability goals, even when ESG isn’t their primary focus. While it wasn’t a major factor in our early traction, ESG has become increasingly important in later-stage investor discussions, reinforcing our position as a responsible, future-ready business.”

While some startups address infrastructure directly, others focus on optimization. WasteFlow retrofits recycling facilities with an AI-based copilot, improving operational efficiency without requiring major overhauls. This leads to both emissions reductions and cost savings—but how do those gains support ESG strategy?

“At WasteFlow, we believe operational performance and sustainability go hand in hand. In recycling, better waste sorting means less landfill and incineration, reducing carbon emissions and conserving resources—while also increasing facility revenue. This direct link between profit and environmental impact motivated us to focus on this often overlooked sector,” highlights Théophile Agresti, CEO and Co-Founder of WasteFlow.

To align its impact with recognized ESG goals, WasteFlow follows several key frameworks:

EU taxonomy for sustainable activities
By improving recycling rates, the company helps reduce emissions and supports the shift to a circular economy. Its technology also prevents fires and equipment downtime, avoiding unnecessary CO2 emissions.

GRI standards
WasteFlow enables clients to:
>Track recycled vs. disposed waste (GRI 306)
>Identify opportunities for energy optimization (GRI 302)
>Improve workplace safety through early detection of hazardous materials (GRI 403)
>UN Sustainable Development Goals (SDGs)

The company contributes to:
SDG 12 – Responsible consumption and production
SDG 13 – Climate action
SDG 9 – Industry, innovation, and infrastructure
SDG 11 – Sustainable cities and communities

In the less visible domain of materials science, energy-efficient coatings play a growing role in ESG discussions. Verretex addresses this with products that affect lifecycle emissions, durability, and performance, often before such concerns are even raised.

"At Verretex, ESG is central to both our mission and our material," says Mitchell Anderson, Co-Founder and CEO of Verretex. "In cleantech, the challenge is balancing performance, circularity, and traceability without raising costs. Recycled materials often come with quality issues, supply uncertainty, and limited impact data — hurdles we address through innovation and strong supplier relationships.

We produce technical textiles from 100% recycled glass fibers, sourced from end-of-life composites that would otherwise go to landfill or incineration. Our process enables high-performance reuse, lowers emissions, and reduces resource extraction. To ensure input quality, we work closely with recyclers to improve the efficiency and sustainability of their operations.

From lab to pilot scale, our decisions are shaped by life cycle thinking, EU circularity regulations, and partnerships focused on decarbonization. We combine material science with ESG accountability to align performance with impact."

And where data meets diagnostics, water becomes a focal point. As attention grows around water as a critical resource, companies are developing tools to make water systems more measurable and manageable. Smart diagnostics support both conservation and ESG accountability. Among these, Riverkin is aligning its work with rising demands for precision in resource management.

“Riverkin’s strategy is shaped by ESG managers’ need for reliable environmental data. Many still collect water samples manually or rely on fragmented sources they don’t fully trust. This led us to focus on data credibility—delivering high-quality, auditable water data that enables ESG teams to shift from fieldwork to confident reporting and decision-making,” adds Jessica Droujko, CEO and founder of Riverkin. “Venture Leaders Cleantech helped sharpen our focus by exposing us to investor expectations and peer feedback. It clarified how our water monitoring platform fits into the ESG landscape and helped position Riverkin as a partner in meeting sustainability goals.”

Balancing mission and metrics
While these startups vary in sector and stage, many face the same tension: how to demonstrate impact without overpromising or being distracted by reporting demands too early. ESG frameworks are evolving, and metrics often trail innovation. Yet for founders, the question isn't whether to engage with ESG, but when—and how deeply. Getting this balance right will be crucial as they scale and shape the future of sustainable business.