In the tech world, we’re seeing big ambitions in addressing equally big environmental issues. A broader green tech ecosystem is also thriving as corporations and brands, keen on meeting their ESG (environmental, social, and governance) goals, are hungry to bring these innovative technologies into their practices. Investors – retail and institutional – are in search of lucrative opportunities in the space while feeling a sense of purpose as they better society through investments. So it’s no surprise that, in Asia alone, the market size for green businesses, according to McKinsey, is expected to reach between $4 trillion and $5 trillion by 2023.
While this is all very promising, more should be done by investors at all levels, so well-meaning efforts and investments can lead to genuinely effective outcomes in terms of impact on sustainability. Today, although awareness of sustainability has risen, it is also increasingly difficult to ensure impact through investment. This is largely due to a more crowded market and higher greenwashing risks, making it time-consuming to sift through and scrutinize opportunities. Therefore, better understanding, due diligence, and goal setting need to be incorporated into the process from the get-go – rather than tacked on as an afterthought – in order to meet impact goals.
However, this process doesn’t end with investment. Equally important is a set of measurements that hold investors and corporations accountable for their sustainability efforts.