INNOVA Europe: First comprehensive survey on responsible practices among European startups

Almost all startups surveyed say that they integrate responsibility into their business models, yet only about four out of five (81 percent) have acted on at least one of the four pillars of responsibility: Environment, Social, Governance, or Civic engagement. This reveals a clear gap between intention and action, since almost all declare an intent to act (93 percent) while fewer actually do so. 

The study classifies responsible practices along four INNOVA pillars aligned with the ESG framework: Environment, Social, Governance, and Civic engagement. Environmental measures are the most common entry point, chosen first by about two in five startups that focus on a single area (39 percent). Social initiatives are the most widespread overall (79 percent), followed closely by good governance (78 percent) and environmental action (67 percent). Civic engagement remains less developed, with around one half of startups active in this field (51 percent). The most common barriers are financial constraints and lack of time.  

Across Europe, the challenges differ. In Germany financial limitations dominate, in France time pressure is cited more often, and in Italy many startups say responsible initiatives compete with other business priorities. Only about one quarter of the startups measure the impact of their actions (28 percent). The tendency to track results increases as companies mature, yet overall momentum remains modest.  

The difference comes from outside pressure. When investors, incubators, or customers request evidence, about two in five startups track their practices. Without such pressure, only around one in six do so (17 percent). Overall, responsibility does not yet function as a structural requirement in Europe’s startup ecosystem, since half of the respondents have never been asked about their approach. 

Founded in 2022 by EDHEC, ESMT Berlin, and POLIMI Graduate School of Management, INNOVA Europe is a coalition of ten European universities focused on creating an ecosystem of sustainable European entrepreneurship. The barometer provides a foundation for schools, investors, and incubators to better support young companies as they align growth with social and environmental objectives. The full report is available here.