To date, over 160 businesses with assets worth over $70 billion have agreed to work together to steer the global economy towards a net zero goal.
But while these big firms have the advantage of deep pockets and an abundance of resources, start-ups have a different advantage. They can drive the clean tech transition from the ground up, utilizing the latest budget-friendly, sustainable energy efficiency solutions without having to phase out legacy equipment or processes.
Research from the World Economic Forum reveals digital tech has the potential to reduce global emissions by 15% by 2030. Additionally, investment in zero-carbon electricity investments is on the rise. The goal of a greener future is clear, and start-up founders have the power to accelerate its momentum.
Start-ups have the opportunity to utilize renewable energy sources from inception, building their business models around sustainable energy sources. Wind, solar, and hydropower are expected to account for 35% of power generated by 2030. And the opportunities to utilize these sources are growing all the time. There’s also plenty of space in these industries for entrepreneurs, making it a great sector for start-ups to get involved in.
While many large businesses are focusing on reducing their reliance on fossil fuels, start-ups have yet to establish such a dependence. Instead of opting for high emission fuel sources, alternatives can be put in place from day one. Assessing the supply chain is a prime starting point. New technologies are already reducing high carbon emissions while retaining supply chain stability worldwide. Start-ups can assess their logistics and supply chains prior to launch. Once assessed, they can base their requirements on the lowest possible carbon-emitting options.
For start-ups aiming for net zero, small acts can result in a major impact. If you consider that an estimated 627,000 new businesses open every year, something as minor as having a paperless office adds up fast—and it can save money. Storing documents electronically on the Cloud, utilizing accounting software, and opting for timekeeping apps instead of timesheets creates a clean tech culture that contributes towards net zero.
The use of electronic vehicles is yet another way start-ups can capitalize on clean tech. With the price of gas rising astronomically, EVs are not only the ecologically kinder option, but they’re also cheaper to run.
With an increased focus on decarbonization and eco-friendly, sustainable business practices, start-ups that aim to accelerate a clean tech transition also have a unique selling point. In today’s marketplace, consumers have become far more aware of the impact that businesses have on the environment.
Current studies show that a company’s environmental footprint is a major driver in purchasing decisions. A start-up that publicizes their net zero goal can gain greater market share simply because they’re proving themselves ecologically responsible. Corporate Social Responsibility has become a cornerstone of marketing. It offers new businesses major growth benefits—provided they back up their claims with actions.
Founders of start-ups have the power to drive the net zero agenda and speed up the global transition to clean tech. Helping the planet and generating revenue can go hand in hand.