Expansion of the greentech market is a trend and an objective

Understand what greentechs are, what their role is in building a sustainable future and how to enable innovation in this area

The scarcity of natural resources and the climate changes have placed sustainable development among the main economic agendas in the world. With Earth Overshoot Day arriving earlier and earlier (in 2022 it was on July 28), it is urgent to create innovative solutions to reduce environmental impact, with the search for renewable sources, for example. 

It is in this scenario that calls greentechs They are great allies for the planet and the economy. Don't know what the greentechs? So keep reading to understand not only what they are, but also what their role is in building a sustainable future, as well as knowing how to enable innovation in this area. 

What are greentechs?

Known as “green startups”, greentechs They are innovative companies that promote sustainability, through actions to minimize environmental degradation and optimize the use of natural resources. 

These companies develop scalable projects focused on generating positive socio-environmental impacts. His approach is focused on nature and people's well-being. 

To the greentechs are present in several sectors, including Energy, Transport, Sanitation and Waste Management. And, for innovations to work, generate the desired benefits and be viable, green startups use technological solutions such as:

Growth of greentechs

It is not news that consumer behavior and demands are also changing when it comes to sustainability. One Kantar study, a consultancy present in several Latin American countries, pointed out that Eco Actives consumers represented 8% of the Brazilian population in 2022. 

The term refers to ecologically active consumers who are concerned about environmental issues, to the point that this directly influences their consumption habits and purchasing decisions.

This behavior is not new. Studies show that, since 2019, concern about the environment has gained strength. Factors such as the pandemic, the water crisis, the lack of inputs and the increase in prices were and continue to be decisive for this change of perspective and for dictating new behaviors.

The projection is that, in the next ten years, at least one in five Brazilians will have this “ecological profile”. In the same period, the world population engaged with the environmental cause is expected to reach 56%. 

This is already identified by the market. So much so that brands associated with sustainable practices are well regarded by consumers, who buy something only after verifying whether the production of an item is environmentally sustainable. 

One CNI survey points out that 24% of Brazilian consumers have this concern in all purchases, and 26% observe this most of the time. 

ESG investments

But it is not only consumer behavior that dictates global trends or increases the importance of the role of greentechs. The financial market itself and world bodies, such as the UN, have increasingly spoken about ESG, acronym for Environmental, Social and Governance or, in a direct translation, environmental, social and governance practices of an organization. 

The term ESG appeared in 2004 in a publication by Global Compact and directs investor decision-making from a sustainability perspective. This is because the ESG criteria are aligned with the 17 Sustainable Development Goals (SDGs) established by the UN in 2015 and which bring together society's challenges and vulnerabilities. 

Among the objectives to be achieved by 2030 are responsible consumption and production, sustainability, sanitation and clean energy. Such goals will only be achieved with investments in ESG, and the greentechs will play a fundamental role in this scenario.

The UN estimates that global investments must be at least US$ 5 trillion per year to achieve the SDGs. This investment universe is made up of equity funds and debt securities from companies or governments with varying degrees of environmental or social impact. 

Investors have the possibility to buy green bonds, sustainability bonds and social bonds. This way, the investment is aligned with the purpose and values of the buyer, also guaranteeing profitability. 

Data from Anbima (Brazilian Association of Financial and Capital Market Entities) shows that in 2020, ESG funds accumulated R$ 543 million. 

In the same year, B3 launched the S&P/B3 Brasil ESG index. The objective is to select Brazilian companies for the portfolio, with criteria based on environmental, social and governance practices. 

So-called B Corporations also enter these investments. They are from other sectors, but have the same socio-environmental commitment. The movement takes social and environmental awareness into account in companies' business models, offering certification that confers credibility, trust and value.

iFood Labs and greentechs

If the objective is sustainable development, the joint effort of companies, government and consumers is essential to envision this future. That's why the iFood Labs seeks ecologically correct solutions, adopting initiatives, movements, ideas and investing in startups. 

Through an initiative mediated by the startup Moss, for example, iFood has already helped protect 1.25 million square meters of the Amazon Rainforest. The company believes that actions like this or the Electric motorcycle can make a much-desired sustainable future possible. 

In this sense, there is certainty that approaching the greentechs and B Corps can be beneficial to a more conscious capitalism

Is your company aligned with our purpose of creating sustainable solutions that promote development? Whether in the Foodtech, Retail, Logistics or Martech area, if you have an innovative idea, visit the iFood Labs and send your pitch or proposal!

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