The Next Wave’ report, released today by the Sustainable Business Network (SBN) in partnership with Te Whare Wānanga o Waitaha | University of Canterbury (UC), reveals a thriving ecosystem of small businesses and start-ups who are leading sustainability innovation in Aotearoa but need more investment and enabling policies to grow.
Co-authored by UC researchers Dr Kate Prendergast and Associate Professor Joya Kemper, the report draws on insights from 44 finalists in the 2024 Sustainable Business Awards – pioneers in clean tech, circular economy, social equity and climate solutions.
The companies include well-known success stories such as EV Maritime (makers of Auckland’s new electric ferries), Basis (smart metering), Daisy Lab (precision fermentation) and Cleanery (powered household cleaners).
“These are the businesses solving the biggest challenges of our time – climate change, resource depletion, social inequality,” says James Griffin, General Manager of the Sustainable Business Network.
“But our investment and policy systems aren’t set up to support them. That’s a failure we can’t afford.”
Key findings:
- 75% say accessing funding is difficult, including over half (54%) who say it’s “extremely difficult.”
- Only one in ten described the policy environment as supportive.
- Nearly half the businesses are operating at a loss.
Yet more than 65% of these businesses remain optimistic about their growth prospects, and over 90% reported increasing customer interest in the past year.
UC’s Dr Kate Prendergast says the next generation of employees and entrepreneurs are ready. “Our graduates have the ideas and energy to make a real impact locally and globally. But innovation needs the right conditions to thrive, and that will benefit us all.”
The Next Wave report calls for urgent action in six areas:
- Values-aligned capital at scale
- Sustainable procurement
- Policy leadership
- Storytelling for awareness
- Support for scaling
- Cross-sector collaboration
Trevor Stuthridge is CEO of Cetogenix, a clean tech startup that converts organic waste into renewable energy. He says: “There’s no shortage of innovation in New Zealand, but the investment systems here make it hard for startups to grow. That’s particularly the case for ‘deep tech’ companies like Cetogenix that rely on substantial investment in infrastructure and scientific research.
“Despite the rhetoric about success in sustainable innovation, we’re lagging other countries in investment. I truly hope New Zealand will continue to build the courage to move away from being a follower to being a leader in this space.”
The report identifies funding constraints, unclear policy direction and low market visibility as the top barriers facing these innovators.
The report shows a sector full of ambition. The vast majority of the surveyed businesses are small enterprises or startups founded in the last five years, driven by a strong sense of purpose and a desire to shift the status quo.
The Next Wave report is an annual barometer of sentiment in the sustainable innovation sector. UC and SBN continue to work in close partnership to align research, qualifications, and professional practice. SBN has provided industry input into UC’s proposed Master’s in Sustainable Futures and Innovation, and this collaboration underpins this iteration of the annual Next Wave barometer.