Understanding the CleanTech Trend in Global Start-Ups

“Sustainability is the integration of environmental health, social equity, and economic vitality in order to create thriving, healthy, diverse and resilient communities for this generation and generations to come.” — UCLA Sustainability Committee, 2016.

With the rise in awareness, there will be accelerated action. This is true in the case of Sustainability in business. Many start-ups throughout the world have made sustainability a priority. Incorporating sustainability into a start-up’s business model can have a range of benefits. It can help attract and retain customers who prioritize sustainability, and it can also help attract socially and environmentally conscious investors.

Chandrashekar Kupperi, Founder and CEO of Anova Corporate Services, Chennai, India shares his thoughts about the trend:
“As a General Partner of Peaceful Progress Fund, I do embrace ESG i.e., socially responsible, and sustainable investing, as in today’s economic situation, the supply chain has become more complex, and therefore there is a wider cognizance of labor, human rights, and social issues and the related risks for the business world.

Further, the concern for environmental issues such as climate change has only been growing ever since the discussion around it started and it does influence investor decisions. The heightened engagement of young men and women with startups focused on ESG and addressing the evolving societal values and norms is contributing to the greater interest to consider investments in ESG-led Startups.

It is noteworthy that the new fund has three cleantech start-ups in its portfolio, out of its nine co-investments.”

In 2023 we expect to see a continued focus on sustainability in the start-up world, as more entrepreneurs seek to build businesses that prioritize social and environmental impact alongside financial growth.

However, social justice, equality, health, medicine and safety for all, and related concepts are gaining momentum alongside ecological balance. Here are a few areas where we may see sustainable start-ups emerge:

Clean energy: As the need for sustainable energy sources becomes more urgent, start-ups that focus on renewable energy, energy storage, and energy efficiency are likely to continue to grow.
Circular economy: Start-ups that prioritize the circular economy, which involves designing out waste and keeping products and materials in use, are poised to make a significant impact in 2023 This could include companies that offer sustainable alternatives to single-use plastics or develop technologies for recycling or upcycling materials.
Sustainable agriculture: Start-ups that focus on sustainable agriculture and food systems are also likely to continue to gain momentum. This could include companies that develop innovative farming methods to reduce water and resource usage or those that offer sustainable food products or distribution models.
Social impact: Start-ups that prioritize social impact, such as those that work to reduce poverty or inequality, could also gain more attention in 2023. This could include companies that offer financial or education services to underserved populations or job opportunities in developing countries.
Sustainable transportation: As the world looks to reduce emissions from transportation, start-ups that focus on sustainable transportation solutions, such as electric vehicles, bike-sharing programs, or autonomous vehicles, are likely to continue to grow.
HealthTech: Healthcare for all could be enabled with technology. Many start-ups are working towards reaching medically underserved communities. Medical devices are being designed to function in remote areas with no access to doctors. These devices can function with minimum power requirements and few resources and skilled professionals.
EdTech: Education is the only way out of poverty. Many start-ups provide open education platforms with nominal or no-cost programs in various verticals such as technology, commerce, and biosciences to empower underprivileged communities.