As the climate agenda becomes increasingly stringent, corporations are facing the pressure to innovate to meet new environmental standards. This has led to 85% of corporations acknowledging the growing focus on climate tech, as recent Climate Innovation Research states, spurred by government regulations and internal performance metrics. Pioneering new technologies is a key motivator for corporate engagement with startups, with research indicating that being an industry leader in innovation is a major driver for such partnerships (42%).
However, the first significant barrier emerges in locating the right startup for a corporation. Many companies resort to networking, which, despite being a popular connection method used by 64% of corporations, often proves ineffective. According to Nastasya Savina, Director of Innovation Zero Awards & Showcase, "The key ecosystem players often rely on risky, inefficient, and unsustainable communication and sales channels, such as networking, to secure deals.
The study, developed by Duamentes Alliance revealed that startups are not the default suppliers for corporates in Climate Tech. Some corporations prefer to wait until a startup becomes more mature, while others have additional, more complex requirements for startup suppliers compared to mature companies (54%).
Startups, attempting to directly penetrate corporate barriers, continue to face unstructured and bureaucratic challenges. The study reveals that there is no clear corporate structure across different companies, with procurement roles being common but no standardized department for startup engagement existing. This often results in startups navigating through complex corporate landscapes, making up to 18 attempts and spending up to 2 years to secure their first corporate client.
This journey is fraught with challenges, including a lengthy process of meeting specific requirements such as financial track records or prototype development, often described as a "closed loop" of endless prerequisites.
In addition, while some corporations internally champion innovation, the lack of a systematic approach and structure makes it difficult for startups to understand timelines or plan effectively. Experts agree that while individual corporations are willing to make concessions for innovations that genuinely benefit the climate, there is no widespread, systematic approach to such collaborations.
A potential solution could be a discovery platform with verified data that corporations can trust, as suggested by 88% of corporate respondents and eagerly supported by 80% of startups. Such a platform could standardize and accelerate the process, helping more startups to succeed and enabling a collective effort to combat climate challenges. This platform would not only bridge the gap between innovators and corporate buyers but also streamline the implementation of sustainable solutions across industries.
The research “Addressing the Primary Challenge in Climate Innovation Adoption” conducted by Innovation Zero Awards and Duamentes Global Alliance explored how corporations adopt climate innovations to meet regulations and societal expectations. The study identified factors that encourage or obstruct climate innovation adoption, offering insights to boost its implementation across the global corporate landscape.
"Our aim is to empower those making a positive impact with valuable insights. We are honoured to support the Innovation Zero Award, which seeks to connect innovators in Climate Tech with corporations, fostering collaboration for a better future," said Ksenia Sternina, Managing Partner, Duamentes.
The research was divided into two parts: 10 in-depth interviews with ESG leaders from corporations and startup founders in the climate tech sector, and a survey of corporate ESG and procurement officers, as well as climate tech startups, involving over 100 participants in March-April 2024.
Contact: Ksenia Sternina, Managing Partner at Duamentes Global Alliance, pr@duamentes.com
