The second annual Next Wave Report surveyed 42 purpose-driven businesses from across the country. All are finalists in the 2025 Sustainable Business Awards for disruptive innovation. They include innovators in clean tech, climate and socially inclusive business models.
The findings paint a picture of an ambitious sector, constrained by funding structures, policy instability and limited mainstream market adoption.
“New Zealand doesn’t lack good ideas,” says James Griffin, General Manager of the Sustainable Business Network.
“This report shows there’s a remarkable cohort of businesses already building a better future. The challenge is that too many are still operating in systems designed for short-term returns rather than long-term impact and resilience.”
Report co-lead Dr Kate Prendergast from UC’s School of Language, Social and Political Sciences agrees that the sector needs support and longer-term thinking to both scale up and innovate further.
“This barometer is important for giving a voice to the organisations whose innovations will create a better future for us all. Their success will encourage and inspire others to pursue enterprises that are both successful and committed to creating a positive impact on the planet.”
According to the report:
- 67% of respondents are confident in their growth prospects
- 79% are focused on launching new products and scaling operations
- 50% say access to funding remains difficult
- 52% identify customer demand and awareness as a critical challenge
- Only 18% believe the current policy environment is supportive
- 78% say investors who do support them understand and value their sustainability mission
The report also reveals a growing “missing middle” in sustainable innovation. While more businesses are reaching operational break-even, fewer are achieving strong profitability, and many are struggling to secure finance suited to longer innovation and commercialisation timelines.
One of the clearest signals from the report is the growing appetite for more flexible forms of capital. Half of respondents said they would likely apply for longer-term or revenue-linked finance if it were available.
“The businesses in this report are solving real problems – from emissions and waste to resilience, energy, food systems and materials,” says James.
“But the report shows that innovation alone isn’t enough. If we want these businesses to scale and succeed, we need the structures around them – investors, corporates, procurement, policy and consumers – to move with them. The opportunity is enormous if we can create the right conditions.”
The report identifies four opportunities to accelerate sustainable innovation in Aotearoa New Zealand:
- Unlock fit-for-purpose, long-horizon finance
- Create a stable and enabling policy environment
- Build mainstream customer demand and awareness
- Strengthen capability, infrastructure and partnerships
The Next Wave Report 2026 is an annual barometer tracking the progress, sentiment and barriers facing Aotearoa New Zealand’s sustainable innovation sector over time.