Sustainable Development is an idea that has been accepted globally and it is influencing not only the way established firms conduct their business but also creating opportunities for enterprising entrepreneurs. In this study, we explore the role of sustainability policy and regulations on the value of public companies and private firms. For public companies, we investigate the industry wise differences in the influence of the European Union’s Non-Financial Reporting Directive (NFRD) on firm value using a difference-in-difference regression technique. The results of this study will contribute to the nascent studies focusing on the influence of policy and regulatory interventions in reducing information asymmetry related to a firm’s non-financial performance. The reduction in information asymmetry will enable the responsible investors to efficiently allocate their capital. For private firms, using a case study approach, we explore the role of policy and other determinants of entrepreneurial activity for climate tech startups. We also investigate if and how the climate tech startups aim to balance financial returns and impact in comparison to conventional startups. The results of the study will contribute to the burgeoning stream of academic literature in the area of environmental entrepreneurship.