This Climate Business: The Next Wave – Dr Kate Prendergast and James Griffin (edited excerpts)
Listen to the full episode here.
Vincent
“Why do this report? It's called Next Wave. It doesn't involve surfing, I suspect, or the oceans necessarily. What's the next wave about?”
James
“Via the Sustainable Business Network Awards, we have identified an emerging sector of purpose-driven businesses who are providing solutions that are going to enable a more sustainable future. So effectively, they represent the next wave of the businesses we need.”
Vincent
“What's new about this group that suggests a new kind of definition?”
James
“They're disrupting what's currently the predominant system within the sectors that they operate in. They're disrupting to create low emissions, circular, regenerative, and equitable scenarios. That isn't currently the norm. They're really the emerging disruptors that we need.”
Vincent
“One of the key words in this group is regenerative, as opposed to sustainable. What do you think is meant by the word regenerative? And why is it different from sustainable?”
Kate
“I think we're really moving into this next wave of sustainability. We're moving beyond sustainability. In the past, we have been looking at how to, I guess, do less bad, but now regenerative is about doing more good for the environment. We're looking at how businesses can have positive impact throughout society.
Vincent
“What would be an example of a company or an organisation that's doing that?”
James
“We've got a number, but we could look at Lodestone Energy, who are putting large-scale solar farms together to provide renewable solar energy. We've got the likes of EV Maritime, who are putting electric ferries on the water, so moving away from diesel fuel. We've got the likes of Critical Design, who are providing building products made out of plastic waste. And then we've got more deep tech organisations like Zincovery, who are providing really innovative recycling processes for zinc, which is going to rip out huge amounts of carbon emissions from the economy.”
Vincent
“You've interviewed 44 people and they represent organisations. What are they telling us about the problems and opportunities?”
Kate
“The majority of the organisations identified their access to capital, so that they can grow and scale and really maximise their positive impact, is a significant challenge. I think particularly for this group of businesses, they're looking for capital that doesn't compromise their values, especially their values around sustainability, ethics, and their purpose-driven mission. The second key challenge is policy and regulatory uncertainty.
Vincent
“Were there any particular policies that were touched on that have more relevance than others?”
Kate
“They really want strengthened environmental policy. Some expressed a desire for stronger emissions reporting or stronger emphasis on emissions reporting. I think it was quite interesting to observe that just 1 in 10, so it's 10 per cent, identified that the current policy environment is supportive of their innovations. That just shows that there's a lot of work to be done in this space.”
Vincent
“Are they looking for handouts? Is that what you're saying, that they need support from the government?”
Kate
“I don't think they're looking for handouts in particular. They identified that our current tax structures, for example, aren't particularly supportive of investment.”
Vincent
“One of the attributes that comes across is that they share a kind of ridiculous optimism. And they've got that kind of entrepreneurial zeal. Is that one of the attributes that came out for you in this group?”
Kate
“The majority of these businesses, about 60 per cent, are either not making a profit or are just breaking even. But in spite of this, they have a really optimistic outlook for the future. Nearly two-thirds have reported that they are optimistic about their future growth. I think there is real potential to position this sector as a leading sector."
Vincent
“Sustainable business used to be a niche operation. Now this feels mainstream, right?”
James
“I think going towards mainstream, but we're nowhere near there yet. What was coming through from talking to these organisations, is that they're emerging, and they're offering basically new solutions, and they're looking for us as customers and procurers to pull those solutions through into the mainstream. We all have a role to play to.”
Vincent
“What do you hope will happen as a result of the Next Wave report and your ongoing work in this area?”
Kate
“I really hope to see sustainability businesses or regenerative businesses becoming the usual. Seeing these businesses not just surviving but thriving and flourishing and feeding back into our society.”
James
"This is the inaugural barometer report. Next year we'll be checking in again to identify how the next, next wave of disruptors are feeling."
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