Global Carbon Management And Emissions Reduction Technology Startup Map
Presently, there is no single standard by which to measure environmental, social and corporate governance. And most of the time today each company has a unique strategy in how they implement it into their operations. This creates a real challenge to any company in first figuring out what the principle even means. We thought we would focus the main topic of this month’s newsletter to aid with the “environmental” part and looked into the emerging as well as scalling companies working on technologies for emissions estimation and reduction. So this month we wanted to share our findings and the Global Emissions Reduction Technology Map, comprising of 67 startups that can make it easier for any company to contribute to their ESG efforts.
The best way to use the map (apart from awesome dealflow for VCs) is to go through the cycle of carbon emissions management, which starts from the analysis and measuring of your carbon footprint, moving to reporting which, in combination with ESG planning and management enables companies to understand their impact and shift their strategies towards reducing their impact on the environment. Businesses that emit CO2 might outright choose carbon capture & storage or green PPA solutions to reduce their impact on the climate, while consumers develop their own impact strategies with the help of startups providing guidance on sustainable behaviour shifts. If you want to take a step forward, and offset company, as well as customer consumption through conventional offsetting services or funding different green projects, there are companies providing API solutions to integrate directly to a business platform.
Companies, especially smaller ones are usually trying to find examples that could apply to them, which is not usually the case (or it is not meaningfully tied to the business). Most owners and managers are looking for access to ESG knowledge and are learning by doing at the moment, so we hope our database will help these companies go the extra step sooner or enable others to take the first one in environmental corporate governance.
As the impact of current global events shows most companies’ bottom line is affected, profitability is no longer the only value to shareholders. Sustainability is no longer optional and we think it will be the only way going forward and at the core of progress and performance measurement, be it internal ones like talent or external ones like customer engagement or supply chain are all areas that fall under ESG.
Is sustainability good? Of course. However, the concept is often displayed in an unsustainable way by companies and media. We think now, more than ever we need to be intelligent about it to reduce the amount of greenwashing or box-ticking and really enable organisations and companies working to fundamentally reduce the polluting and climate-altering emissions.
And the movement is creating a strong effect, where customers and partners are choosing which companies to back based on whether the companies hold similar environmental, social, and governance values
We can talk about how incorporating these values can help management reduce capital costs and unlock access to capital from like-minded investors, or help companies protect their valuations as more global regulation is rolled out, or even maintain shareholder satisfaction with forward-looking leadership. But the most important aspect is that when implemented, these practices should become part of the long-term (permanent?) strategy so that there is accountability and real impact.
P.S. Check out the full list of carbon management and emissions reduction companies on the map here.