5 reasons to invest in cleantech right now

Opinion 17.05.2019

Smart & Clean Foundation’s Executive Director Tiina Kähö lists the main reasons why you should invest in cleantech solutions – if you aren’t already.

1. It’s the new normal.

“The world is forced to renew itself in order to meet the 1.5°C global temperature goal. Currently, we’re hardly maintaining a 3°C temperature, and that’s not enough. The world needs to completely rethink its business logic. In this transformation, cleantech should be the new normal: renewable energy, sustainable living. Whether you’re a long-term or a short-term investor, cleantech and circular economy should be your driver.”

2. Sustainable investing brings profit.

“It has been proven, that ESG investing (environmental, social, and governance) brings more profit. Take Neste, for example. It is one of the biggest listed companies in Finland and a significant part of its operating profit consists of renewable, low-emission solutions. Although sustainable investments are still only a part of the company’s portfolio, its stock exchange rate has multiplied itself by ten in only seven years.”

3. You can’t really lose.

“Sure, some people think it’s safer and easier to invest in what they’ve always invested in. However, as climate change threatens pretty much everything on this planet, we’re in a situation where we have to delete the capacities we’ve been using this far. By investing in cleantech, you’ll participate in redefining existing structures, and that’ll be a competitive advantage. Institutional investors, such as Norway’s Oil Fund are leaving the fossil economy behind. You’re already taking a risk in investing in a scale up or startup, so why not go all in and invest in cleantech? You’ll probably end up winning.”

4. The market is blooming.

“The global cleantech market is practically limitless. There’s billions to be invested in a fossil free world, especially in cleantech mobility, living, and energy solutions. The Nordics are currently coming up with impressive cleantech innovations. For the last five or so years, Denmark, Finland, and Sweden have topped the Global Cleantech Innovation Index. Take MaaS Global, for instance, the mobility as a service company behind the disruptive Whim app. The Finnish company is a pioneer in driving the ongoing systemic transformation in mobility.”

5. You’ll be part of something important.

“The challenges in metropolises – such as organising sustainable living and mobility – require complex solutions that need more than just one technology, actor, or idea. Big cities are playgrounds for mission driven ecosystems of public and private players who work towards a more sustainable society. By investing in these ecosystems and its companies you get to participate in creating the winning solutions.”

 

Interested in joining the ecosystem and meeting innovative startups? Welcome to Cleantech Venture Day, the biggest cleantech event in the Nordics, in Helsinki on 3.–4. June 2019.