Small business investment could be key to tackling climate change
At the end of October the UK will play host to the COP26 summit, designed to bring together world leaders to urgently tackle climate change and set new targets to limit warming to 1.5C. The UK is already a leader in this space with carbon emission targets among the most ambitious in the world and a robust ecosystem of businesses working to reach them. This need for innovation is something recognised by investors in the UK, with research from IW Capital showing that 45% of investors are set to back green and clean tech businesses in the next year.
With over 6 million SMEs in the UK, making up 99.9% of private sector businesses, the work of this sector looks set to play an increasingly large role in tackling climate change. To understand this impact, SME private equity specialist IW Capital have commissioned landmark national research which shows:
Key statistics:
45% of investors will back green and clean tech businesses in the next year
13% of Brits plan to start a business in the next year (4,245,000)
16% of investors will look to back startups and small firms in the next year
66% of Brits say that their trust in small businesses and service providers has grown during the pandemic (29,607,000)
This trend is also shown in some of IW Capital’s most recent investments in the SME sector, taking a decidedly green and sustainable turn. Below are a few of the recent companies added to IW Capital’s portfolio:
LAT Water Limited, a company set up to develop and implement new approaches to renewable energy powered desalination, water and waste water treatment. A key tenet of ensuring that construction and waste treatment remains environmentally friendly. https://latwater.co.uk
Transcend Packaging, which works with innovators, product developers and materials experts to manufacture tomorrow’s plastic-free sustainable packaging. Since IW Capital’s investment the firm has seen significant growth, doubling its workforce and expanding its product portfolio to include plastic-free PPE. https://transcendpackaging.com
Impact recycling, a company that has developed a breakthrough plastic recycling technology designed to be technically feasible, and good for the environment and the community at large. Its new technology allows for more effective separation of plastic recycling, making it economically viable to recycle a higher proportion of plastic waste. https://impact-recycling.com
Finally, SaveMoneyCutCarbon, helps businesses and homeowners take practical steps in becoming more sustainable, cutting energy & water bills, resulting in reduced carbon emissions, a key service for businesses looking to make a difference. https://www.savemoneycutcarbon.com
Luke Davis, CEO of IW Capital discusses the impact that investment in SMEs can have on climate change:
“The COP26 summit provides a focal point for the world and the business community to focus on tackling not only carbon emissions but wider environmental issues. It is, however, the businesses themselves and the investors that back them that will really push the world economy to effectively tackle climate change.
“This desire to support the innovators and business leaders of tomorrow is clear to see from the media and wider public. This is also true of what we have seen at IW Capital, investing in a number of green, innovative growing businesses throughout the pandemic with the support of our investor base.
“I believe that from what we have seen SMEs will become even more important to the UK economy and its move to cut carbon emissions, both domestically and internationally. There is a huge amount of talent and ambition in Britain’s entrepreneurial ecosystem and helping them go global should be high on the government’s agenda.”
