Sustainability Investment Trends and the Role of Green Startup Going Forward
Sustainable business and ESG investment have become the norm since 2020. Large corporations are all now issuing sustainability reports and most global companies are integrating Net-Zero into their business models. In 2022 investment in ESG accelerated across all industries, and according to Bloomberg, sustainability assets under management (AUM) in 2023 reached $38 trillion. Bloomberg anticipates that ESG AUM will reach $50 trillion by 2025. This means that roughly every three dollars invested, one will be invested in sustainability. To further demonstrate the shifting investment trend, it is remarkable to check what Black Rock’s CEO Larry Fink said in 2021 in his investment letter to shareholders “There is no company whose business model won’t be profoundly affected by the transition to a net zero economy…companies not quickly preparing themselves will see their businesses and valuations suffer”. This essentially means that climate risk is becoming as valuable as investment risk and investors are acting accordingly.
Green Start-up Riding the Wave
There’s no part of the economy untouched by sustainable innovation and investment. This includes the proliferation of green or climate tech early-stage ventures. In recent years, some of the fastest growing companies are climate tech, including…
