Does sustainability matter? An investigation of investors' reactions to sustainability disclosure in US-based start-ups

Sustainability is crucial in today’s world and sustainable practices have become essential to guarantee a liveable future for both humans and planet. Individuals and firms are called into action to implement the transition to sustainable development. Sustainable business operations are fundamental in this process, but sometimes they are perceived more as marketing tools than as effective commitments. Companies’ disclosure of their sustainability causes reactions from investors, that are usually studied in the literature in the context of large public firms. The novelty of this project is that the value of sustainability disclosure is investigated in companies at their initial stage. The thesis in fact investigates the existence of a relationship between the disclosure of sustainability in companies' website and the amount of money that they are able to raise from investors, using a sample of US-based start-ups in the financial services and sustainability industry. The research is not limited to environmental matters, but it extends to all the three pillars of sustainability: environmental, social and economic. In order to do so, the analysis is carried out through the use of the United Nations’ 17 Sustainable Development Goals (SDGs) as a framework.