Context: The Green Transition and Corporate Needs
The green transition has recently become a defining feature of corporate strategies, driven by growing commitments to sustainable practices and ambitious environmental goals.
According to the 2023 Global Reporting Initiative (GRI) Report, 75% of large companies worldwide now release sustainability reports, compared to 60% in 2021. This shift reflects increased transparency and accountability to stakeholders. A 2022 McKinsey analysis further revealed that companies with robust sustainability practices outperform their peers in long-term financial performance. So-called “triple outperformers”—excelling in revenue growth, economic profit, and ESG (Environmental, Social, Governance) metrics—reported median revenue growth of 11% annually, surpassing their counterparts focused solely on profit by 1.4 percentage points.
Sustainability and green transitions are no longer optional but essential for long-term survival. According to a World Economic Forum report, 50% of companies believe climate change could directly impact their supply chains within five years. Similarly, the Carbon Disclosure Project (CDP) found that 215 of the world’s largest firms face $1 trillion in climate-related financial risks, with nearly half of those risks likely to materialize in the next five years.
From a profit and loss perspective, adopting sustainable practices yields measurable benefits. A Boston Consulting Group (BCG) study reported that businesses with sustainability measures experienced a 6% average revenue increase compared to those without. In parallel, CDP data revealed $14 billion in savings from carbon reduction measures in 2022.
Key areas of focus for corporates during this transition include advanced technologies to cut CO2 emissions, such as green hydrogen and carbon capture solutions. The demand for specialized sustainability expertise is also rising, as firms seek professionals skilled in environmental management and clean technologies. According to the 2023 International Energy Agency (IEA) Report, investments in renewable energy, energy efficiency, and low-carbon technologies soared in 2022, exceeding $365 billion globally.
Public-private partnerships and favorable government policies are critical to accelerating the green transition. Tax incentives and stricter environmental regulations are prompting businesses to refine waste management and resource use. Additionally, investor pressure is reshaping corporate strategies, with 78% of institutional investors considering ESG criteria in 2023, up from 65% in 2021 (Bloomberg).
In summary, the corporate green transition is a rapidly evolving process fueled by investments, cutting-edge technologies, specialized expertise, and regulatory support. Companies that adapt are positioned to reap rewards in financial performance and market reputation.
Cleantech: Investments and Focus Areas
In 2023, global venture capital (VC) investment in cleantech surged, even as overall VC funding declined across other sectors. Globally, €46 billion was invested in cleantech startups, driven by interest in energy storage technologies and electric vehicle infrastructure. Europe attracted 27% of cleantech VC funding, up from 18% in 2022, with investments surpassing €11.1 billion for the third consecutive year.
Key sectors driving cleantech VC investments in 2023 included:
Energy and Alternative Sources: Investments focused on battery technology and renewable energy components. Notable examples include Hithium, which raised €622M for lithium-ion battery innovation, and Verkor, which secured €907M to construct a battery gigafactory in France.
Chemicals and Raw Materials: Funding targeted innovations in advanced materials like graphene and green steel. For instance, Lyten raised €207M for 3D graphene technology to enhance lithium-sulfur energy storage.
Agriculture and Food: Precision farming, sustainable aquaculture, and crop-input technologies saw sustained investment. Highlights include €325M raised by Atlas Agro for green fertilizers and €200M by eFishery for sustainable fish farming technologies.
Waste Management and Environmental Technologies: Significant funding went toward innovations in circular economy solutions and climate adaptation technologies. Examples include Integrity Next (€100M) and Resourcify (€14M).
Transportation and Mobility: VC interest in electric vehicle (EV) solutions remained strong, with Driveco (€250M) and Jolt (€150M) advancing EV infrastructure.
The Role of Startups and Corporate Collaboration
Startups play a crucial role in accelerating the green transition, offering agile and disruptive solutions to bridge technological gaps for corporates. Examples include:
Renewable Energy: TotalEnergies partnered with SunPower to scale solar energy adoption, while ArcelorMittal collaborated with Form Energy on long-duration battery innovations.
Industrial Decarbonization: BP invested in Carbon Clean Solutions, which develops carbon capture technologies to decarbonize industrial processes.
Mobility and Transportation: Volkswagen’s collaboration with Electrify America illustrates open innovation in EV charging infrastructure.
Waste and Circular Economy: Unilever partnered with Bio-bean, a startup recycling coffee grounds into biofuels.
Supply Chain: IKEA worked with Optoro to optimize supply chains, reduce emissions, and improve energy efficiency.
Cleantech in Italy: Challenges and Opportunities
Italy’s cleantech market, valued at over €30 billion and supporting 150,000 jobs, is crucial for green transformation. However, only 45% of Italian companies have invested in sustainability, and 83% lack green-focused industrial plans.
Open Innovation and Corporate Venturing offer untapped potential. Open Innovation facilitates external collaboration for developing impactful green technologies, while Corporate Venturing enables established firms to invest in startups, accelerating the deployment and scaling of disruptive solutions. Together, these approaches drive co-innovation, enabling Italian businesses to remain competitive while addressing climate challenges.
A Case Study in Cleantech Collaboration: Zero
Zero, an accelerator founded in 2021 by CDP Venture Capital in partnership with Eni, is dedicated to cleantech startups. It aimed to select and accelerate 30 startups within three years, creating an ecosystem for growth. The program includes investments from Zest, a leading pre-seed investor in Southern Europe, and Elis Consortium, which manages the acceleration program. Corporate partners such as Acea, Microsoft, Vodafone, and others provide mentorship and pilot opportunities.
In three years, Zero evaluated over 850 applications, selecting 30 startups, 30% of which were international. These startups have collectively raised over €3 million, with several attracting European VC funding. The program also facilitated Proof of Concept (PoC) collaborations, such as:
Eni-Microx: Testing devices for water contamination detection.
Eni-Aura: Deploying green walls for air purification in industrial environments.
Zero integrates impact measurement frameworks to quantify environmental, social, and economic contributions, with a calculated Social Return on Investment (SROI) averaging 4.16x across 11 startups.