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It's turning the 
crank of mutation and artificial selection. We can harness the power of evolution by 
automating and empowering it, using AI 
and ML. I have been publishing on this for 
10 years. But even more exciting is that 
some of these generative AI capabilities 
are being used to invent proteins from 
scratch. Enzymes are more complicated, 
but I predict it will be possible to invent 
them, too, in the future. This is the 
convergence of experimental capabilities, 
understanding the features that really 
make up a successful protein and then 
harnessing the new methodologies made 
available through generative AI. I predict 
that, in the next few years, AI is going 
to be a powerful force – one capable of 
recoding life.


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I predict that, in the 
next few years, AI is 
going to be a powerful 
force – one capable of 
recoding life."


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Inside the mind of a Nobel Prize laureate
37
Capgemini Research InstituteClimate Tech: for a Sustainable Planet
How can generative AI help in creating new proteins? I am on the board of Generate Biomedicines, a biotech startup which uses 
AI to generate therapeutic proteins that could be used to cure diseases. Machine learning algorithms can generate novel sequences for proteins 
that have never been seen in nature. These algorithms analyze hundreds of 
millions of known proteins, looking for statistical patterns linking amino acid 
sequence, structure, and function. Using these learned statistical patterns, 
the company generates custom protein therapeutics – from short peptides 
to complex antibodies, enzymes, gene therapies, and yet-to-be-described 
protein compositions. What is your advice to young women who want to enter the 
field of science?


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I tried many fields of science before I found what I love 
to do. If you’re going to change the world, you’ve got to be fearless. Don't 
feel that you have to stick with something just because you said you were 
going to do it. If you don't like it, do something else. MY ADVICE TO YOUNG WOMEN: BE FEARLESS


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Inside the mind of a Nobel Prize laureate
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
To what degree is finding the path to a sustainable world 
dependent on innovation from science/new technologies as 
opposed to behavioral changes? It has to be both.


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What we have learned during the pandemic is, you can have 
all the science and technology you want, but if people won't be vaccinated, 
it doesn't do any good at all. We can offer scientific solutions, good or bad, 
but if people don't want them and don’t accept the necessary behavioral 
changes, it's not going to happen.


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So, this interface between science and 
people is vitally important. If you had a magic wand, in our transition to a sustainable 
world, what would you change right now? I would love to see respect for biodiversity. I would love to see respect for 
the natural world that we rely on, but that we treat so badly. I would love to 
see the natural world being accounted for as an invaluable asset on which 
our very existence depends. I WOULD LOVE 
TO SEE RESPECT FOR 
BIODIVERSITY
THE IMPORTANCE OF THE INTERFACE BETWEEN SCIENCE AND PEOPLE


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"We can offer scientific 
solutions, good or bad, but if 
people don't want them and 
don’t accept the necessary 
behavioral changes, it's not 
going to happen."
Dr. Frances Arnold,
Linus Pauling Professor of Chemical 
Engineering, Bioengineering and 
Biochemistry
California Institute of Technology
Inside the mind of a Nobel Prize laureate
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet


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Executive Conversations
40
Capgemini Research Institute Climate Tech: for a Sustainable Planet
Executive 
conversations 
with…


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Executive Conversations
41
Capgemini Research InstituteClimate Tech: for a Sustainable Planet
L’ORÉAL
Alexandra Palt
Chief Sustainability Officer
P.42
PROCTER & GAMBLE
Virginie Helias
Chief Sustainability Officer
P.52
VOLVO GROUP
Karin Svensson
Chief Sustainability Officer
P.64
ENEL GREEN POWER
Eliano Russo
Head of 3SUN Gigafactory
P.74
CRADLE TO CRADLE 
William 
McDonough
Designer, Architect, Innovator, Author 
P.84
POTSDAM INSTITUTE FOR 
CLIMATE IMPACT 
RESEARCH 
Johan Rockström
Director
P.94


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42
Capgemini Research Institute Climate Tech: for a Sustainable Planet
Executive Conversations
ALEXANDRA PALT  
Chief Corporate Responsibility 
Officer, L ’Oréal, and CEO of the 
Fondation L ’Oréal
L’Oréal


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Executive Conversations
43
Capgemini Research InstituteClimate Tech: for a Sustainable Planet
Alexandra Palt is the Chief Corporate Responsibility 
Officer of L’Oréal and CEO of the Fondation 
L’Oréal. A lawyer by training, specializing in human 
rights, Alexandra joined L’Oréal in 2012 as Chief 
Sustainability Officer. She was instrumental in 
launching the Women4Climate initiative. The 
Capgemini Research Institute spoke to Alexandra 
about L’Oréal’s collaborative sustainability journey. COLLABORATION 
FOR A SUSTAINABLE 
FUTURE
Founded in 1909, L 'Oréal is one of the 
world's largest manufacturers of high-
quality cosmetics, perfumes, hair care, 
and skincare products spread across 150 
countries. In 2022, the company reported 
a revenue of $38.2 billion with assets 
worth $48.9 billion.


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The company currently 
employs more than 85000 people across 
150+ countries. The company has been 
awarded a ‘AAA’ rating by CDP for seven 
years in a row.


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Executive Conversations
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
What are your priorities as Chief 
Corporate Responsibility Officer 
of L’Oréal and CEO of the 
L’Oréal foundation? At L 'Oréal, I'm responsible for internal 
business-model transformation, making 
sure that we develop a circular economy 
within the planetary boundaries model.1  
As CEO of the L ’Oréal Foundation, 
I'm in charge of the organizational 
contribution to tackling the greatest 
environmental and societal challenges 
we face today. These two functions 
present complementary targets.


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We 
cannot continue to follow conventional, 
profit-driven business models; we need 
an approach that combines two essential 
elements: internal transformation and 
mobilization of economic resources for 
impact investing. Alexandra Palt,
Chief Corporate 
Responsibility Officer of 
L’Oréal and CEO of the 
Fondation L’Oréal
WE CANNOT 
CONTINUE TO FOLLOW 
CONVENTIONAL, 
PROFIT-DRIVEN 
BUSINESS MODELS
1 The planetary boundaries model sets a number of boundaries within which humanity must maintain 
its activities in order to preserve environmental equilibrium and preserve a safe, survivable 
operating environment (See interview with Johan Rockström)


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Executive Conversations
45
Capgemini Research InstituteClimate Tech: for a Sustainable Planet
SUSTAINABILITY TRANSFORMATION AT L’ORÉAL
Where is L’Oréal on its sustainability journey? L 'Oréal’s sustainability journey started way back in 2013.


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We set ambitious 
sustainability goals throughout our value 
chain, which focused on reducing the 
environmental footprint of our products 
and increasing our social impact. This 
led to a profound shift in mindset, which 
prompted all our employees to begin to 
address these issues. As part of a virtuous 
circle, this helped us develop our next 
generation of sustainability targets. By 2020, we had reduced our carbon 
emissions by 78% from 2005 levels. We 
had reduced the carbon footprint of more 
than 90% of our products. In 2020, L ’Oréal launched L ’Oréal for the future program, a strategy that 
included pledging to respect planetary boundaries. The strategy is based 
on setting quantifiable, measurable goals to minimize the impact of 
business operations on the climate, security of water supply, biodiversity, 
and natural resources, while addressing some of the most urgent social 
and environmental challenges facing the world.


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We aim to improve energy 
efficiency by transitioning to 100% renewable energy by 2025. And we 
intend that, by 2030, 100% of our packaging will be either from recycled or 
bio-based sources. "We aim to improve energy 
efficiency by transitioning 
to 100% renewable energy 
by 2025."
By 2020, we had 
reduced our 
carbon emissions 
by 78% from 
2005 levels."


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Executive Conversations
46
Capgemini Research Institute Climate Tech: for a Sustainable Planet
In defining and setting our new targets, we not only focused on reducing 
emissions and carbon footprints; rather, we went about designing an entirely 
new, scientifically based business model that will assist us in maintaining 
our operations within the planetary boundaries. This won’t be easy; it’s a 
completely circular model that will oblige us to make difficult choices.


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WE ARE DESIGNING 
AN ENTIRELY NEW, 
SCIENTIFICALLY BASED 
BUSINESS MODEL 
THAT WILL ASSIST US 
IN MAINTAINING OUR 
OPERATIONS WITHIN 
THE PLANETARY 
BOUNDARIES.


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Executive Conversations
47
Capgemini Research InstituteClimate Tech: for a Sustainable Planet
SHARING RESPONSIBILITY AND HELPING CONSUMERS MAKE THE RIGHT CHOICES
How does a global organization 
such as L’Oréal engage consumers 
on sustainability? We engage our customers by advocating an 
approach based on shared responsibility.


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We 
believe it is our responsibility to produce the 
most environmentally sustainable products. We have started sharing information with 
consumers on the carbon footprint of our 
products and their material impact on the 
environment. We also encourage the consumer to 
make sustainable choices; they might 
not be prepared for a major shift in their 
consumption behavior, such as refilling or 
recharging, rather than buying new every 
time. So, the onus is on us to help them 
make these choices. There are various 
strategies that can help us do this; for 
instance, by making refilling and recharging 
available in the most impactful categories; 
by encouraging specific behaviors through 
price discounts; and through nudges [using 
environmental factors such as in-store 
signage and advertising to subtly influence 
behaviors]. We have started sharing information 
with consumers on the carbon footprint of 
our products."


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Executive Conversations
48
Capgemini Research Institute Climate Tech: for a Sustainable Planet
COLLABORATING WITH COMPETITORS FOR A SUSTAINABLE PLANET
How do you balance the pros and cons of the collective 
approach initiated by L’Oréal through the EBS Consortium 2  
in a highly competitive industry? As we strive for global sustainability, some things belong to a non-
competitive space.


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There will be no business to compete for in a world where 
consumption is no longer possible. The challenge for us is not to occupy the 
leadership position, but how we can facilitate shared progress in a limited 
timeframe. Through the EBS, we can hold discussions across the industry 
about how to achieve sustainability and protect the environment without 
curbing our commercial ambition. What are the key success factors in fruitful collaboration? There must be a shared vision, and a willingness to look for common ground. We need to understand the realities of the climate crisis and align targets to 
maximum effect. By doing this, we can preserve our industry and continue to 
operate, create, and grow within the planetary boundaries. 2  The EcoBeautySystem Consortium, comprising around 60 leading industry players, has the aim of 
developing an industry-wide environmental impact-assessment and scoring system for cosmetics 
products. AS WE STRIVE 
FOR GLOBAL 
SUSTAINABILITY, SOME 
THINGS BELONG TO 
A NON-COMPETITIVE 
SPACE.


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Executive Conversations
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
INNOVATION AND BEHAVIORAL CHANGE NEED TO GO HAND IN HAND
Innovation or behavioral change – which will be the 
greater driver of the transition? In order to overcome the challenges we face, we will need to pursue 
scientifically based innovation.


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It is the responsibility of organizational 
leaders to foster this approach. For the past half-century or so, since the 
climate became a topic of concern, people have reassured themselves 
by saying, "We will find a technological solution, we will find a scientific 
solution.” But, to date, one hasn’t been found. Even when someone does 
come up with a viable solution, that will only be half the battle, because 
we will need to find the financing to realize it. Technology will be part of the solution, but only if we start to innovate 
with sustainability as the goal. Likewise, science will help us, but we will 
also have to change our consumption behaviors. Businesses need to accept 
that they are not just carrying on with business as usual, with a few green 
tweaks; they are looking at wholesale change of the business model. It 
doesn’t matter how much it costs to do it either; the cost of not acting will 
be infinitely greater.


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Executive Conversations
50
Capgemini Research Institute Climate Tech: for a Sustainable Planet
MAKING THE TRANSITION FAIR FOR EVERYONE 
Can you tell us a bit more about the “just transition” 
concept? We still operate in a system that only works for a minority.


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Most of the 
global population lives in poverty and suffers from a lack of decent living 
conditions. As long as this situation persists, the environmental transition is 
going to be uneven. We have to work together as a global society to provide populations 
with basic living essentials, so that they can then become invested in 
environmental issues. One of the most important issues is fair pay – it’s not 
just about our employees but also our value chain. Our suppliers have to 
pay a living wage. But what is a living wage? A living wage is a salary that allows a person 
working in the value chain to cover their basic needs and the basic needs of 
their dependents. Unfortunately, a lot of companies don’t consider this their responsibility. So, L 'Oréal has decided not only to pay a living wage to our employees, but 
also to work with suppliers, where necessary, to help them do the same. By 
2030, all our strategic suppliers will be paying living wages to employees in 
their value chain if they want to continue to work with us. Climate change is not a local issue, it’s a planetary issue.


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Executive Conversations
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
"L'Oréal has decided not 
only to pay a living wage to 
our employees, but also to 
work with suppliers, where 
necessary, to help them do 
the same."
Alexandra Palt,
Chief Corporate Responsibility 
Officer, L’Oréal, and CEO of the 
Fondation L’Oréal


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52
Capgemini Research Institute Climate Tech: for a Sustainable Planet
Executive Conversations
VIRGINIE HELIAS  
Chief Sustainability Officer 
Procter & Gamble


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Executive Conversations
53
Capgemini Research InstituteClimate Tech: for a Sustainable Planet
Virginie Helias is P&G’s Chief Sustainability Officer. Her mission is to develop the organization’s 
strategies and goals on sustainability and 
operationalize them across businesses and regions. She has been part of P&G for over 30 years, working 
on brands including Pantene, Ariel/Tide, and  
Pampers. Capgemini Research Institute spoke to 
Virginie about sustainable product design and using 
innovation to drive sustainability and customer 
satisfaction. PUSHING 
THE BOUNDARIES OF 
SUSTAINABILITY THROUGH 
INNOVATION 
The Procter & Gamble Co (P&G) is a 
manufacturer and marketer of fast-
moving consumer goods. It operates 
through the Beauty, Grooming, Health 
Care, Fabric & Home Care, and Baby, 
Feminine & Family Care segments.


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More 
than 106,000 employees work at P&G. The company was founded in 1837 and is 
based in Cincinnati, Ohio.


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Executive Conversations
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
ENABLING AND INSPIRING RESPONSIBLE CONSUMPTION
You have been with P&G for 
over three decades. How did 
you come to the Sustainability 
function?


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When I first pitched my current role to 
the then CEO, sustainability was only 
loosely connected with business. I saw 
an opportunity to reinforce our business 
methods with scientific knowledge, 
with the primary mission of making 
sustainability integral to how we build our 
brands and innovate. Over the years, my role has evolved 
from driving change on the periphery 
to being central to how we do business, 
and now I’m responsible for enabling our 
business to deliver our Ambition 2030 
goals and helping our brands to develop 
irresistibly superior innovations that are 
more sustainable. It is also about helping 
the company meet the needs of all our 
stakeholders – consumers, retailers, 
employees, shareowners, and society at 
large, for whom sustainability is an ever-
increasing expectation. Virginie Helias,
Chief Sustainability Officer,
Procter & Gamble


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Executive Conversations
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
Can you explain Ambition 2030 
and the progress to date? We launched Ambition 2030 in 2018, 
with the goal of enabling and inspiring 
responsible consumption through our supply 
chain, brands, employees, and partnerships.


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The ambitions have since been expanded 
and refined several times with specific goals 
for reducing greenhouse-gas emissions 
on the way to reaching net zero in 2040, 
increasing recyclability of our packaging and 
reducing our use of virgin petroleum plastic, 
and most importantly creating the systems 
and the culture to embed sustainability into 
the organization. The initiative is built on 
the strength of four science-based pillars: 
climate, waste, water, and nature. From 2010 to 2022, we reduced absolute 
Scope 1 and Scope 2 emissions across our 
global operations by 57% through energy 
efficiency and renewable-energy sourcing.


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As we continue to reduce emissions, 
we are also advancing natural climate 
solutions, which will balance any residual 
emissions from our operations that cannot 
be eliminated by 2030. In September 
2021, we set a new ambition to achieve 
net zero greenhouse-gas emissions across 
our operations and supply chain, from 
raw-material to retailers. Last year we 
reported close to 80% of recyclability for 
our packaging globally with 2 times more 
recycled content versus two years ago. From 2010 to 
2022, we reduced 
absolute Scope 1 
and Scope 2 
emissions across 
our global 
operations by 57% 
through energy 
efficiency and 
renewable-energy 
sourcing."


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Executive Conversations
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
LAST YEAR WE 
REPORTED CLOSE TO 
80% OF RECYCLABILITY 
FOR OUR PACKAGING 
GLOBALLY WITH 
2 TIMES MORE 
RECYCLED CONTENT 
VERSUS TWO YEARS 
AGO. 


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Executive Conversations
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
MAKING LONG-LASTING PRODUCTS 
How far have you progressed on sustainable 
product design? Sustainability is an integral design principle in P&G today – it is 
built-in, not bolted on.


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Previously, sustainability and innovation 
were treated as separate entities, but we have integrated 
them into one cohesive strategy, known as 'irresistibly superior 
and sustainable innovation.' Our goal is to have 100% of our 
innovations be irresistibly superior for consumers and represent 
an improvement on sustainability on any of the four dimensions 
(climate, waste, water, and nature). I would say today we 
are halfway there. I am 
particularly proud of some 
of our recent 'irresistibly 
superior and more 
sustainable innovation.' 
Gillette and Venus undertook 
a sustainable packaging 
upgrade to transition 
premium refillable razor 
packs to a plastic-free, 
recyclable cardboard box 
made with recycled materials 
and FSC certified paper. This is available in every 
P&G region globally and it 
delights consumers with 
its ease of opening and full 
recyclability.


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We estimate 
this packaging change 
saves the plastic equivalent 
of more than 85 million water bottles per year. The Ariel 
performance improvement in cold water is another example. By 
addressing the biggest carbon footprint driver – the temperature 
of the washing cycle – Ariel is helping consumers reduce their own 
footprint while getting a superior clean in cold water. This is a win-
win-win for people, as washing in cold helps clothes stay looking 
like new longer, for the planet and for our business. Our goal is to have 
100% of our innovations 
be irresistibly superior 
for consumers 
and represent an 
improvement on 
sustainability on any 
of the four dimensions 
(climate, waste, water, 
and nature)."


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Executive Conversations
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
How do you find a trade-off between recyclability and 
biodegradability in packaging? At P&G our goal is to design all of our packaging to be reusable or recyclable 
because we believe that packaging materials, such as plastic, have lasting 
value. Our efforts are focused on circular solutions so that our packaging 
materials can be used again and again. I often get asked whether to prioritize 
recyclability or biodegradability in packaging. This is complicated because, 
under some conditions, biodegradability can be counterproductive to 
recycling. It can become a contaminant in the recycling streams, and it can 
be a pollutant if the packaging ends up in landfill with no oxygen. There are 
certain regions of the world that lack waste management infrastructure 
and biodegradability may be relevant in these regions until good waste 
management infrastructure is in place. We are currently testing marine 
biodegradable packaging for shampoo for the Philippines market. How does P&G as a corporation balance its responsibility 
for driving growth and increasing consumption with 
promoting sustainability?


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One of our key strategies here 
is to make products long-lasting. We are aiming to produce razors that are 
superior and more durable. On our new Gillette Labs Razors for instance, we 
are offering a lifetime warranty. Furthermore, we are engaging in reverse 
logistics to recover some of the components in used products. We are 
working with third parties to collect the handles and the blades for recycling. We have several programs globally to accelerate circularity and durability of 
our materials. It's completely central to our sustainability strategy.


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Executive Conversations
59
Capgemini Research InstituteClimate Tech: for a Sustainable Planet
Are consumers willing to pay a premium for sustainable 
products? Only a small portion (10–15%) of consumers are currently willing to pay for 
sustainable products that do not offer performance or experience benefits.


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Most consumers want a product that is sustainable but without any trade-
off. You will see in many surveys that a significant percentage of consumers 
globally are claiming they are willing to pay a premium for more sustainable 
products. But we are also seeing an intention-to-action gap between what 
people claim and their actual purchase behavior. In real purchase situations, 
sustainability is rarely the main driver (although it can be a tie breaker all 
things being equal). Therefore, the focus has to be on developing innovation 
that provides more delight and is more sustainable. MOST CONSUMERS 
WANT A PRODUCT 
THAT IS SUSTAINABLE 
BUT WITHOUT ANY 
TRADE-OFF.


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Executive Conversations
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
COMMUNICATING ENVIRONMENTAL INNOVATIONS TO CONSUMERS 
How do you manage communication around 
sustainable innovation? As I said before, the focus is on being irresistibly superior and sustainable.


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Therefore, we communicate how superiority enables sustainability or 
includes sustainability. For instance, when it comes to Ariel, 60% of its 
environmental footprint comes from the temperature of the washing 
cycle.


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We are developing products that have superior performance in cold 
water. This is what we communicate – with Ariel you can be confident your 
clothes will be clean when you wash in cold because “every degree makes 
a difference,” which is the name of the campaign. That means saving on 
your electricity bills and reducing your footprint at the same time. With that 
campaign, we have seen the average claimed wash temperature in Europe 
go down by 2 degrees, even more among Ariel users. "When it comes 
to Ariel, 60% of 
its environmental 
footprint 
comes from the 
temperature of 
the washing cycle. We are developing 
products that 
have superior 
performance in cold 
water."


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Executive Conversations
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
Another example is our Cascade brand. Dishwasher usage in the U.S.


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is low 
due to the erroneous belief that it wastes water and energy compared 
to manual washing. We have developed a product that works so well 
that you don’t need to pre-rinse your dishes before putting the dishes in 
the dishwasher, a habit done by 75% of people in the U.S. We launched a 
campaign called “Do It Every Night,” where we encouraged people to skip 
pre-rinsing dishes and run the dishwasher every night instead of doing it 
by hand. While this could mean running the dishwasher before it is full, it 
avoids people handwashing in between dishwasher loads, which turns out to 
be much less water efficient. A person can save up to 100 gallons of water 
a week if they run their dishwasher every night instead of washing those 
dishes by hand. This initiative has the potential to save 25 billion gallons of 
water in the U.S.


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The key to our successful sustainability communication is a 
combination of superior performance and sustainability innovation. How do you at P&G manage your responsibilities around 
deforestation and biodiversity? We take specific steps to ensure no deforestation in our palm, wood 
pulp, and paper packaging supply chains. We focus on understanding our 
business’s dependency and impact on nature and where in the supply chain 
that impact is greatest, and 
then concentrate our efforts 
there. We have committed to 
protecting 1.5 million acres 
of land and we follow closely 
the emerging standards for 
the Taskforce on Nature-
related Financial Disclosures 
(TNFD). We have a Nature 
and Biodiversity leader in 
place to lead our holistic 
program, including investing in natural climate solutions. This is an exciting 
emerging field, with lots of possibilities.


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How can technology help us transition to a 
sustainable world? I'm fascinated with the overlap between information technology and 
sustainability. We use satellite technology to monitor our palm-oil supply 
chain, for instance. The real-life data helps us with compliance and making 
immediate interventions, when required. Data can also help consumers 
understand their own impact on the environment. In the UK, for example, 
Biodiversity is 
an exciting emerging 
field, with lots of 
possibilities."


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Executive Conversations
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
THE BEST EXPERTS FROM EVERY DISCIPLINE TO DRIVE SUSTAINABILITY
How has sustainability impacted skill development 
at P&G? We are focusing on reskilling and upskilling at every level, from the top 
down.


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Last year, we conducted a massive sustainability upskilling program 
for 300 top executives, where we took them through our strategies and 
goals. I have also started a monthly Q&A session with all employees. And 
we just launched our new Sustainability Academy capability platform that 
is open to all employees globally. It includes a curated list of topics with on-
demand training videos and resources; fundamental and advanced trainings 
are available to everyone in the company. What suggestion would you give to young talent who want 
to follow in your footsteps?


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Work toward sustainability in your current role; make it part of your job, not 
a separate topic. There are very few dedicated positions for sustainability 
experts – we can spark large-scale change when we all use our individual 
roles to drive sustainability. Champion sustainability where you are. We 
need the best marketers, best finance experts, and the best lawyers to make 
sustainability an integral part of the organization. When the best people in 
every discipline drive sustainability, this is how society will thrive.


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water-consumption levels dropped immediately when people had meters 
installed. They could see their consumption in real time, it made the invisible 
visible for them. I am amazed by the power of digital data to change 
consumer habits. I AM AMAZED 
BY THE POWER OF 
DIGITAL DATA TO 
CHANGE CONSUMER 
HABITS.


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"When the best people in 
every discipline drive 
sustainability, this is how 
society will thrive."
Virginie Helias,
Chief Sustainability Officer, 
Procter & Gamble
Executive Conversations
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet


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Capgemini Research Institute Climate Tech: for a Sustainable Planet
Executive Conversations
KARIN SVENSSON 
Chief Sustainability Officer 
Volvo Group


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Executive Conversations
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
Karin Svensson has been a part of Volvo Group for 
over 27 years. Prior to her current role, she was 
Vice President Public Affairs and Group Strategy, 
roles in which she focused on public policy, the 
impact of industry, competitive trends on the 
current market and on the future of business. The Capgemini Research Institute spoke to Karin 
to hear her views on sustainability through 
collaboration. WINNING THE 
SUSTAINABILITY RACE 
TOGETHER
The Volvo Group is one of the world’s 
leading manufacturers of trucks, buses, 
construction equipment and marine 
and industrial engines. The Group also 
provides complete solutions for financing 
and service.


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The Volvo Group, with its 
headquarters in Gothenburg, employs 
about 100,000 people, has production 
facilities in 18 countries, and sells its 
products in more than 190 markets. The 
company was founded in 1915.


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Capgemini Research Institute Climate Tech: for a Sustainable Planet
As a veteran of transport, how do 
you think the industry has evolved 
from a sustainability perspective? We know how important it is from an 
environmental perspective, but over the 
past few years, sustainability has now 
become business critical.


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We feel increasing 
pressure from stakeholders, investors, 
customers, employees, and society in 
general. Sustainability is no longer just a 
government-driven agenda; now, businesses 
are leading the way and setting ambitious 
goals. We are talking about sustainability as 
a business opportunity, rather than just a 
compliance requirement. Karin Svensson, 
Chief Sustainability Officer 
Volvo Group
HOW SUSTAINABILITY HAS BECOME BUSINESS CRITICAL  
"We are talking 
about sustainability 
as a business 
opportunity, rather 
than just a compliance 
requirement."


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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
How much progress has Volvo made towards achieving its 
own climate-related goals? For the business industry in general, there is an intense focus on the 
environment, but our sustainability agenda is broader and includes climate, 
resources, and people.


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Climate change is one of the biggest challenges today 
and road transport is a significant emitter of CO2 and greenhouse gases. We are addressing this challenge by transitioning our range to electric.


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We have set ambitions for 2040, including achieving net zero, validated 
by the Science Based Targets initiative. We are focusing on reducing our 
use-phase emissions, as well as our Scope 3-upstream emissions alongwith 
Scope 1 and 2. We are rolling out our electric vehicles (EVs) across different 
regions; further developing our charging infrastructure; and ensuring that 
renewables make up a greater proportion of our energy mix. We are looking 
to governments to support such initiatives; if they put in place relevant 
legislation, then we can adjust our policies to make these changes happen 
more quickly. WE ARE LOOKING TO 
GOVERNMENTS TO 
SUPPORT SUSTAINABILITY 
INITIATIVES; IF THEY 
PUT IN PLACE RELEVANT 
FAVORABLE LEGISLATION, 
THEN WE CAN ADJUST OUR 
POLICIES TO MAKE 
THESE CHANGES HAPPEN 
MORE QUICKLY.


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Capgemini Research Institute Climate Tech: for a Sustainable Planet
WINNING TOGETHER RATHER THAN RISK LOSING ALONE
How do partnerships help you to 
achieve your sustainability goals? Partnerships are key.


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We all need to think 
about working together – with competitors 
and suppliers. We have been doing this for 
a while.


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We partnered with Swedish steel 
company SSAB to produce steel materials 
without the use of fossil fuels. With [Danish 
wind-turbine manufacturer] Vestas, we 
have established a partnership to develop 
renewable-energy sources. Our partnership 
with [German auto manufacturer] Daimler 
Truck and Traton on charging infrastructure 
is an interesting example of how we 
partner with competitors to address the 
complexities of climate change. In essence, 
we are forming partnerships across the 
value chain. Rather than risk losing alone, we 
want to win together. We all need to 
think about working 
together – with 
competitors and 
suppliers."
"Our partnership 
with Daimler 
Truck and Traton 
on charging 
infrastructure 
is an interesting 
example of how 
we partner with 
competitors 
to address the 
complexities of 
climate change."


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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
DEVELOPING SUSTAINABILITY SKILLS 
What investments have been made in sustainability 
initiatives at Volvo? We are investing a lot in sustainability initiatives through our R&D, both in 
battery-operated EVs and in fuel-cell electric vehicles [FCEVs].


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But for some 
applications, the existing internal combustion engine will still be required, 
so we need to ensure they run efficiently at the same time as investing in 
the transition to fossil-free alternatives. Sustainability is at the core of our 
business and scaling our EV offering is a major part of our strategy. We 
are also investing significantly in reducing our future industrial footprint; 
for instance, we have invested heavily in the development of sustainable 
manufacturing techniques at our Skövde plant, with reduced consumption 
of non-renewable materials. Some investments are also being directed 
towards the development of technology platforms and re- and upskilling the 
workforce to ensure a successful transition to sustainability.


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This is what we 
are doing to tackle sustainability from the perspective of climate, people, 
and resources. How are you overcoming talent shortages related to 
sustainability? Sustainability is a growing field of expertise and ensuring the right talent 
is in place to tackle our societal issues is a challenge for all manufacturers. It starts in school, and this is why we are pushing for more sustainability 
competency development in the educational system in Sweden, France, 
and the US, among other countries, to secure the talent pipeline for the 
future. Attracting and retaining employees with sustainability-focused 
expertise is crucial – not only for us, but across many industries – meaning 
there is significant competition for these skills. We are a business that is 
driven by our passion to deliver a net-zero society, so even with our existing 
employees we are all playing our part to drive change from the inside out. We are also developing specific competencies in areas such as human rights, 
where finding qualified individuals can be challenging. Furthermore, as the scope of sustainability widens to include areas such as 
biodiversity, we will require access to a wider range of skillsets.


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Capgemini Research Institute Climate Tech: for a Sustainable Planet
A THREE-PATH APPROACH TO TECHNOLOGIES
Our research found that 80% of the environmental impact 
of a product is linked to decisions made at the design stage. What are your views on product design and sustainability?


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I agree, it's very important to influence the early design phase. We work 
closely with all departments – including purchasing, technology, and R&D 
teams, as well as our suppliers – to ensure this happens. Our decision to 
become a founding member of the First Movers Coalition, a public-private 
partnership seeking to commercialize clean technologies through advance-
purchase commitments, is testament to this. Another example of this is our 
partnership with SSAB on fossil-free steel. We need to think about different 
types of materials we use within our products and find clever ways to 
mitigate their impact. Volvo Group is a 
founding member 
of the First Movers 
Coalition, a public-
private partnership 
seeking to 
commercialize clean 
technologies through 
advance-purchase 
commitments."


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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
What are some of the key technologies accelerating your 
sustainability journey? We believe three technologies are needed to reduce transport emissions.


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The first path is related to the technology around battery EVs. The second 
is around FCEVs, which includes technologies allowing longer driving ranges 
that circumvent issues around inadequate charging infrastructure. The third path relates to our ICE range. We're looking into new types of 
biofuels and other fossil-free fuels, including hydrogen. This wide-ranging 
three-path approach is unique.Efficient data collection and effective analysis 
of that data are essential to making the right technology choices for the 
many varied applications we have in our industry. Which challenges do you face in taking suppliers/partners 
along on your sustainability journey?


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We are working both with members of our own supply chain and across 
sectors to address sustainability challenges. One challenge is that our 
network consists not only of large companies, but also several small and 
medium-sized companies. Another challenge is that we need to go very deep 
into our supply chain, not only by looking at our tier-one suppliers, but also 
at tiers two/three/four. So, when we talk about partnerships and making 
sure that we're all on this journey together, a lot of people need to be in 
alignment. WE NEED TO GO 
VERY DEEP INTO OUR 
SUPPLY CHAIN, NOT ONLY 
BY LOOKING AT OUR 
TIER-ONE SUPPLIERS, 
BUT ALSO AT TIERS TWO/
THREE/FOUR.


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Capgemini Research Institute Climate Tech: for a Sustainable Planet
If you had a magic wand, what would you change to 
accelerate progress towards sustainability? We need access to greater quantities of renewable energy for sustainability 
reasons, but also as a prerequisite for achieving our net zero targets. Currently, that’s not something we can fix, so that’s what I would do, given a 
magic wand.


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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
"We need access to greater 
quantities of renewable 
energy for sustainability 
reasons, but also as a 
prerequisite for achieving our 
net zero targets."
Karin Svensson,
Chief Sustainability Officer, 
Volvo Group


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ELIANO RUSSO
Head of 3SUN Gigafactory
Enel Green Power
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Executive Conversations


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Eliano Russo is Head of Enel Green Power’s 3Sun 
Gigafactory, in Catania, Sicily, which will become 
Europe’s largest solar panel factory by 2024. 3Sun’s 
mission is to produce new-generation photovoltaic 
(PV) panels and modules, combining research, 
innovation, and sustainability, thereby supporting a 
transition to clean energy.


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The Capgemini Research 
Institute spoke to Eliano about his work and the 
future of solar energy. POWERING AHEAD 
WITH EUROPE’S 
LARGEST SOLAR PANEL 
GIGAFACTORY 
Founded in 1962, Enel has grown to 
become one of the largest electricity 
and gas operators in Europe, with a 
focus on sustainability and clean energy 
solutions. The company is headquartered 
in Rome, Italy, and operates in more than 
30 countries. Enel’s Green Power’s 3Sun 
Gigafactory, in Catania, Sicily will 
become Europe’s largest solar panel 
factory by 2024
Executive Conversations
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet


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Capgemini Research Institute Climate Tech: for a Sustainable Planet
You are Head of the 3SUN 
gigafactory. Can you help us 
understand the factory and your 
own role?


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The gigafactory started in 2010 when the 
technology deployed was thin film. In 2015, 
we started deploying bifacial technology 
internally and, around the same time, Enel 
Green Power incorporated 3Sun as an extra 
division. Last year, we committed to invest 
more than 600 million euros to increase 
production capacity fifteen-fold. As CEO, I'm responsible for running 
the business, and for ensuring that the 
3-GW production capacity will be fully 
operational by July 2024. We will start with 
the first 400 MW as early as September 
this year, with the intention of reaching full 
capacity in July 2024.


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My responsibility is to 
ensure that everything will happen on time 
and within budget. Eliano Russo,
Head of 3SUN Gigafactory, 
Enel Green Power
CURRENTLY, WE ARE 
AT 1 TW OF INSTALLED 
SOLAR CAPACITY 
GLOBALLY, BUT THIS 
IS EXPECTED TO 
INCREASE SEVENFOLD 
BY 2040.


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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
What do you think is the role of solar energy in our 
overall transition? Solar energy will play a key role in meeting the growing demand for 
sustainable energy. Currently, we are at 1 TW of installed solar capacity 
globally, but this is expected to increase sevenfold by 2040. We expect 
most of the additional demand to be satisfied by solar energy because 
it's easy to install and it's increasingly competitive with conventional and 
other renewable sources. It will certainly play a key role in ensuring that 
this transition is sustainable and will eventually allow us to stabilize CO2 
emissions in the atmosphere.


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Capgemini Research Institute Climate Tech: for a Sustainable Planet
THE LARGEST SOLAR PANEL GIGAFACTORY IN EUROPE
In terms of scaling, how does a gigafactory differ from a 
traditional factory? We stopped production of our existing lines in July last year, having reached 
the production capacity of 200 MW.


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We are now increasing capacity 
fifteenfold, to 3 GW annually. This will make 3Sun the largest European 
solar-cell and solar-module manufacturer. Our proposition is not based 
exclusively on efficiency and economies of scale.


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It's more closely related to 
the promotion of robust, unique technologies that we have developed since 
2015; we’ve achieved a certified level of efficiency with a clear roadmap to 
continue developing this technology. How are you making sure that the gigafactory is itself 
sustainable? Sustainability is a key to everything we have been doing to date, from 
sourcing materials such as cement and iron, to grinding, excavating, and 
recovering materials. We are also embedding circularity principles; we 
use materials that are already recycled in the construction phase. We 
reused excavated ground as the foundation of this factory. We minimize 
consumption of water and electricity. Everything is finalized to create a real 
connection with the local environment and minimize the impact of what we 
are building here. We plan to achieve 100% recyclability soon. We would 
like to upcycle and make sure that most of our components can be recycled 
directly in our sector and reused to produce new modules. WE PLAN TO 
ACHIEVE 100% 
RECYCLABILITY SOON.


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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
ENTERING MANUFACTURING TO ACCELERATE DECARBONIZATION
What were some of the broader 
challenges you faced in setting 
up the gigafactory? At Enel, we are not just talking about 
circularity and sustainability.


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The challenges are 
enormous. We started before the 
pandemic reached its peak, but it was 
already a big issue, impacting logistics 
and availability of staff; then, the war in 
Ukraine started just as we made these 
investment decisions. But, thanks to the 
commitment of all the people working 
with us on time and in budget, we have 
reached our targets. Nevertheless, 
we are aware, of course, that there 
will be other unexpected events that 
will influence the way we execute and 
operate the factory. What other roadblocks have 
you faced? One of our biggest challenges was 
the decision to enter manufacturing. Although it’s not Enel's core business, 
the move makes sense strategically, 
as it will accelerate decarbonization; 
remove bottlenecks in the supply chain; 
and promote energy independence. The 
challenge now is to ramp up operations, 
optimize throughput, minimize 
operational expenses, and hit our 
technology-development targets. "One of 
our biggest 
challenges was 
the decision 
to enter 
manufacturing. Although it’s 
not Enel's core 
business, the 
move makes sense 
strategically, as 
it will accelerate 
decarbonization."


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Capgemini Research Institute Climate Tech: for a Sustainable Planet
BUILDING AN ECOSYSTEM OF PARTNERS
BIFACIAL SOLAR PANELS TO PRODUCE MORE POWER
How do you collaborate with partners, other 
organizations, and stakeholders to drive greater 
adoption of solar energy? In Europe, we want to achieve 740 GW of solar capacity by 2030, which 
requires building and installing an additional 540 GW. This cannot be 
achieved by just one single company or via a typical supplier-customer 
relationship.


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We are building an ecosystem of partners, in which we 
align interests to accelerate this process. We need to make sure that 
we have visibility of the entire value chain, to avoid developing new 
dependencies on other countries for key components. The only way to 
do it is by joining forces and building partnerships. Can you shed some light on the technological 
innovations in your own process to drive the efficiency 
of solar panels? The key component of Enel's technology is bifacial solar cells, made of 
amorphous silicon and coupled with cells of monocrystalline silicon. We have achieved the highest bifaciality factor [power produced 
by the back side in relation to the energy absorbed by the front 
side] in the world, and the cells have already achieved a certified 
efficiency level of 24.6%. We plan to develop tandem technology by 
coupling monocrystalline cells with perovskite cells to capture a wider 
spectrum of light and increase efficiency. The heterojunction process, 
a process where we combine the two different types of solar cells 
used in our technology, is managed at a relatively low temperature, 
which allows for a longer lifetime, lower degradation, and higher 
energy production. We aim to employ materials that can be reused in 
the PV value chain for circular and sustainable technology.


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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
MAKING THE TRANSITION TO RENEWABLES REAL
Also, our factory has a strong level of automation and digitalization, 
which allows us to fully exploit digital intelligence and machine learning 
for quality control, reduce waste, and improve circularity. We plan to 
track everything that happens in the factory using a manufacturing 
execution system and build analytics and KPIs for continuous 
improvement. Technology will drive higher production efficiency.


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Ultimately, this will differentiate us from other players. Are policymakers doing enough to push renewable 
energy? We need support, financial and regulatory, to incubate new industries 
such as ours. Financial support can help cover the funding gap that arises 
when competing against more traditional players, but regulatory support 
defines standards for compliance with carbon-footprint reduction, 
circularity, and labor laws. "We need support, 
financial and regulatory, 
to incubate new industries 
such as ours."


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Capgemini Research Institute Climate Tech: for a Sustainable Planet
What do you see as the future of green energy, and what 
place does solar occupy in that? Diversification is going to be key.


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The technology is getting cheaper, which 
will allow the renewables journey to accelerate. There are some sectors that 
are very energy-intensive and difficult to fully electrify unless you make 
green hydrogen viable. Renewable energy is currently seen as the answer 
and the direction to go, and the focus should be on maximizing efforts to 
reduce CO2 emissions because time is running out to stabilize concentrations 
in the atmosphere. Our CO2 budget is close to zero, though, so we must 
stay open to other options.


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We need to manage the transition and to make 
sure that those alternatives become viable, technically and economically.


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However, we cannot wait for new solutions and must continue to accelerate 
current efforts. If you had a magic wand, what would you do to give clean 
tech a massive fillip? We need the courage to make the transition to renewables real; this will 
require significant funding. I think we need to have the courage to start 
planning in one direction and providing support. My desire, my dream is that 
we really start thinking with some long-term vision, rather than staggering 
from crisis to crisis. To paraphrase Seneca, there is no favorable wind for 
those who don't know in which direction they want to go. If you only look 
at your feet, you will get lost. So, I would use that magic to give people the 
courage to look far enough ahead and then follow that vision. 


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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
"We need the courage to 
make the transition to 
renewables real."
Eliano Russo,
Head of 3SUN Gigafactory, 
Enel Green Power


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WILLIAM 
MCDONOUGH 
Designer, Architect, 
Innovator, Author
Cradle to Cradle
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
DESIGNING 
A WORLD IN SYMBIOSIS 
WITH NATURE
William McDonough is a globally recognized leader 
in sustainable design and development. He is a 
green architect, designer, and author. He is Chief 
Executive of McDonough Innovation, the founding 
partner of William McDonough + Partners, co-
founder of MBDC, and co-author, with Michael 
Braungart, of Cradle to Cradle: Remaking the Way 
We Make Things (2002) and The Upcycle: Beyond 
Sustainability – Designing for Abundance (2013). The Capgemini Research Institute spoke to William 
about his work, the role of design, and how carbon 
can be beneficial to humankind. The Cradle to Cradle Products Innovation 
Institute is a non-profit organization 
created to bring about a large scale 
transformation in the way we make 
things.


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The Institute’s mission is to lead, 
inspire and enable all stakeholders across 
the global economy to create and use 
innovative products and materials that 
positively impact people and planet. The 
Cradle to Cradle Certified® Products 
Program is administered by the Institute 
and the product standard is recognized 
by the world’s leading retailers, including 
Amazon, Home Depot, Walgreens and 
Walmart. 


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Capgemini Research Institute Climate Tech: for a Sustainable Planet
HOW CAN WE GO BEYOND “SUSTAINABLE” TO SHARED ABUNDANCE BY DESIGN? You hold many unofficial titles: 
“Hero of the Planet,” “Father 
of the Circular Economy,” “Mr.


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How 
do you see yourself? I see myself as a designer working 
across many scales and contexts and 
I believe design is the first signal of 
human intention. I celebrate culture 
and commerce as powerful engines 
of both stability and change. For me, 
growing up in Japan and Hong Kong 
with summers in the Puget Sound, I 
always wanted to share the amazing 
things I saw with others. I always found 
beauty in nature – a smooth round 
rock or pebble on the beach, a leaf, a 
flower, a tree. Nature had a hard time 
being ugly, while human artifice had a 
rough time being beautiful – crushed 
sharp gravel, clear-cut forests, concrete 
and steel. l love working on designing 
the future we want for our children 
and their children, and trying to work 
in accord with the laws of nature. I’m 
not alone; there are many who think 
this way. We seek to design in a way 
that is true to nature and true to 
ourselves. It is difficult to summarize 
my occupation or characterize my work, 
but, essentially, I want to turn work 
into play while playing by nature’s rules 
– the laws of nature. l love working on 
designing the future 
we want for our 
children and their 
children, and trying 
to work in accord 
with the laws of 
nature."
William McDonough,
Designer, Architect, Innovator, 
Author 
Cradle to Cradle


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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
You suggest that the term “sustainability” is often 
insufficient to encapsulate what we should be aiming to 
achieve as a global society. Why is that?


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The first globally referenced definition of sustainability (Brundtland 
Commission, 1972) had to do with meeting the current generation’s 
needs while allowing future generations to meet their own needs. It’s an evocative term derived from ancient wisdom and has inspired 
thousands of current policies and business programs. But sometimes 
the term loses much of its positive meaning when it is seen as minimal 
maintenance or even when it leads to 
people focused only on the economics of 
being efficiently less bad, trying to not 
do something – for example, looking for 
net-zero. Sustainability is a nice, accessible 
term but is often awkwardly defined in so 
many situations because, like politics, all 
sustainability is best recognized on a local 
level, even when it may be responding to 
perturbations caused by global behaviors, 
like climate change and supply chain 
disruptions. It can be most vividly described 
in detail by its effects on local ecosystems 
and the stories of people in a place.


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That’s 
part of the issue, and that is why I focus 
on developing principled design tools that 
work anywhere at any scale and can be used by everyone to consider 
and execute net-positive activities. These tools include books, Cradle 
to Cradle and The Upcycle, the circular economy and, now the circular 
carbon economy. We can continue to build on sustainability only if 
we build with it in mind and deed. I prefer to think of sustainability 
closer to its original description but with the potential for growth – 
intergenerational stewardship and growth of a living planet. Even as we 
reduce our fugitive carbon in the atmosphere, we want to be increasing 
our use and reuse of materials and energy.


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We have come to realize 
that what we thought was an energy problem is a materials problem 
since we use carbon as both a material and a fuel. We can return much 
of the carbon in the air to the biosphere as living carbon (nature-based 
solutions) or earth-bound as durable carbon. We need a positively 
defined system of use and reuse of growth cycles that goes beyond 
sustainability toward abundance that we can share. We have come to 
realize that what we 
thought was an energy 
problem is a materials 
problem since we 
use carbon as both a 
material and a fuel."


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Capgemini Research Institute Climate Tech: for a Sustainable Planet
You say that nature doesn't have 
a design problem – people do. Can 
you elaborate?


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In nature, waste from one system can 
provide nourishment to another. Nature 
does not have resources, rather it has 
sources. One of the fundamental values of 
human activity is that we can turn nature’s 
sources into resources that we use over 
and over again, reducing our need for 
our extraction or destruction of natural 
sources. For me, this is not simply taking the 
existing take-make-waste linear economy 
and twisting it into a circle; it is actually a 
continuously resourceful activity within a 
regenerative biosphere (which are natural 
living systems) and circular technosphere 
which are objects of human intention, 
purpose, and use. When it is not unbalanced by human 
interference, nature finds itself in symbiosis: 
everything is in a mutually beneficial 
relationship with everything else.


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I want 
to quote Thomas Jefferson: “The earth 
belongs to the living.” We can see ourselves 
as stewards safeguarding nature from 
one generation to the next. Furthermore, 
the recent language surrounding the 
circular economy is slightly problematic 
because terms reflecting undoing such as 
“decoupling economic growth from resource 
use” and “decarbonizing” do not accurately 
reflect the positive relationship that can 
exist between humans and nature. For 
example, we can focus on re-carbonizing 
things like soil and living things while turning 
natural sources into resources available for 
continuous use and reuse. IN NATURE, WASTE = FOOD
"For me, this 
is not simply 
taking the 
existing take-
make-waste linear 
economy and 
twisting it into a 
circle; it is actually 
a continuously 
resourceful 
activity within 
a regenerative 
biosphere (natural 
living systems) 
and circular 
technosphere 
(objects of 
human intention, 
purpose, and 
use)."


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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
You describe climate change as a “design failure”; can you 
elaborate on that? Climate change is the result of breakdowns in the carbon cycles, which 
we have caused; it is a design failure. If design is the first signal of human 
intention, did we intend to do this? Emerson in the 1830s referred to nature 
as unchangeable essence – the mountains, oceans, leaves, and air. These 
things are all seen as too big to imagine destroying.


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As we see modern-day 
damage to ecosystems at every scale, we find ourselves needing to regulate 
the human activities that are overwhelming and destructive to the commons. Whenever we see a need for regulation, we see a sign of design failure. Our 
intentions were flawed. I am not against regulation. Society needs to regulate its own behavior in 
order to keep our world habitable. But what we need from regulations is a 
level playing field that provides society with a clear set of rules. If people 
are not playing by the rules, it makes it harder for everyone to work and live. Executives can ask the right questions to find innovative solutions.


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We did this with Ford Motor Company and their River Rouge facility. In order 
to meet the Clean Water Act requirements, instead of building chemical 
treatment plants and massive piping systems, we designed and engineered 
the world's largest green roof and integrated water purifying landscapes 
that saved Ford as much as $35 million in CAPEX over conventional systems. With cars coming out of factories with a 5% margin, this is equivalent to an 
order of $700 million worth of cars. Regulation can be useful in keeping our 
world clean and safe, but we need to be mindful of why it is necessary in the 
first place. WE CAN SEE OURSELVES 
AS STEWARDS 
SAFEGUARDING NATURE 
FROM ONE GENERATION 
TO THE NEXT. 


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You have said that “carbon is an innocent element” and that 
“not all carbons are equal.” Could you help us understand 
your perception of carbon? Anthropogenic greenhouse gasses in the atmosphere make airborne 
carbon a material in the wrong place, at the wrong dose, and for the wrong 
duration.


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This is a description of a toxin. Imagine lead and mercury in 
drinking water – they are toxic to humans. It is we who have made carbon 
problematic. In the right place, carbon is both a resource and a tool. It is also 
a source of life. Carbon dioxide is the currency of photosynthesis, a source 
of Earth’s capacity for living things and regeneration. Earth-bound carbon 
is one of the guarantors of terrestrial and marine ecosystems and food and 
water security.


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Carbon atoms are the building blocks of life. We are carbon 
and it is us who make carbon toxic. The world’s current carbon strategy promotes a goal of reaching net-zero 
carbon emissions. There are terms such as “low-carbon,” “zero-carbon,” 
“negative carbon,” and even a “war on carbon.” The design world needs 
to adopt values-based language that reflects the desire to live in a safe, 
healthy, and just world. In this new paradigm, by building urban food 
systems and cultivating closed-loop flows of carbon nutrients, carbon can be 
recognized as a critical asset, rather than a toxin, and the life-giving carbon 
cycle can become a model for human design. WORDS DRIVE ACTION
"In the right place, 
carbon is both a resource 
and a tool." 


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The point I wanted to make here is that we have started to refer to carbon 
as the enemy, but carbon is not our enemy. It is our friend.


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We are carbon. Carbon moves through all living things in an endless cycle that makes 
life possible. It's an innocent element in all of this.


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I think we need a new 
language around carbon. The term “Triple Top Line” was coined in the book Cradle to 
Cradle to describe the rich opportunities for revenue and 
growth inherent in sustainable design. Can you expand on 
that? The Triple Bottom Line, referenced often since the Earth Summit in 
1992, has been about balancing traditional economic goals with social 
and environmental concerns and has become a measure of corporate 
performance. One realizes, however, that a business strategy focused solely 
on the bottom line does not expose opportunities to innovate and create 
new forms of value in the design process. This new design perspective 
actually creates Triple Top Line growth: products and processes that 
protect nature and society while generating revenue and economic growth. Designing for the Triple Top Line involves giving commerce the tools to 
develop systems and products that generate economic prosperity while 
combining with social benefit and ecological intelligence. 


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Are there any new innovations that you are excited about 
when it comes to sustainability? Too many to mention here, but I would love to focus on the idea of 
conceptually separating the terms “hydro” and “carbon” in the word 
hydrocarbon because I’m very excited about the idea of a technology that 
can use hydrogen as a clean fuel and carbon as a durable good that does 
not go fugitive in the atmosphere or require sequestering in the geosphere.


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On the carbon side, I’m very excited about our ability to use natural gas 
to produce graphene. I'm also very excited about graphene as a material 
because of its elegance, strength, and conductivity. In 50 years’ time, I hope 
to see a shift towards hydrogen-powered energy and renewable energy 
combined with battery and high-temperature thermal storage for industrial 
heating uses. And in the middle of it all, durable and living carbon once 
again is an integral – rather than feared or fugitive – element supporting our 
global life support system. 


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"In 50 years’ time, I hope to 
see a shift towards hydrogen-
powered energy and 
renewable energy combined 
with battery and high-
temperature thermal storage 
for industrial heating uses."
William McDonough,
Designer, Architect, Innovator, Author 
Cradle to Cradle


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JOHAN 
ROCKSTRÖM 
Director 
Potsdam Institute for 
Climate Impact Research
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Executive Conversations


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PLANETARY BOUNDARIES: 
A SCIENTIFIC GUIDE 
TO OUR SUSTAINABILITY 
JOURNEY
Johan Rockström is Director of the Potsdam 
Institute for Climate Impact Research. In addition, 
he is also Professor at the Institute of Earth and 
Environmental Science at Potsdam University, and 
Professor in Water Systems and Global Sustainability 
at Stockholm University. Johan gained international 
recognition for his role in the development of the 
Planetary Boundaries framework, which has since 
become a universal benchmark of sustainability 
science. His research activities cover a range of topics 
within Earth system science and global sustainability 
in the Anthropocene, with the overarching research 
question: “What is the safe operating space for 
humanity's future on Earth, and which sustainable 
transformations can take us there?”
The Capgemini Research Institute spoke to Johan 
about the principles behind Planetary Boundaries 
and how the framework is helping to drive 
conversations – and action – on sustainability. The Potsdam Institute for Climate 
Impact Research has a two-fold mission 
—advancing the scientific frontier on 
inter-disciplinary climate impact research 
for global sustainability and contributing 
knowledge and solutions for a safe and 
just climate future.


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In 2009, you helped design the 
Planetary Boundaries framework. Can you help our readers 
understand the concept behind it 
and its implications?


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The Planetary Boundaries framework 
was the result of the integration of three 
scientific advancements. The first is the 
evidence that humans have entered the 
Anthropocene1 era as the dominant force 
of change on our planet.


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The second is the 
overwhelming evidence that the Holocene2  
is a unique state of equilibrium that has 
enabled the development of modern 
civilizations. The third is the understanding 
of “tipping points,” where irreversible shifts 
in the biophysical processes that regulate 
the climate on Earth permanently alter our 
living environment. In essence, the Planetary Boundaries 
framework is a scientific guide to our 
journey through the Anthropocene: what 
we, humanity, can do to keep the planet 
in a manageable state. The framework 
provides boundaries that, if observed with 
discipline, give us a good chance of keeping 
the planet in a safe operating space, not 
too dissimilar to that provided for us by 
the Holocene period. Going beyond these 
boundaries, however, risks reaching the 
tipping points that will undermine the 
Earth’s life-support systems. Johan Rockström,
Director,
Potsdam Institute for 
Climate Impact Research 
Impact Research
PLANETARY BOUNDARIES
The Planetary 
Boundaries 
framework is a 
scientific guide 
to our journey 
through the 
Anthropocene."
1 The Anthropocene Epoch is an unofficial unit of geologic time, used to describe the most recent 
period in Earth's history when human activity started to have a significant impact on the planet's 
climate and ecosystems. 2 The Holocene Epoch covers the past 12,000 years of warm and stable interglacial climates.


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We invited scientists across all disciplines to help us identify the nine 
boundary systems, a framework we finalized in 2015. To my mind, the 
Planetary Boundaries framework is an essential guide to our transformation 
to sustainability and to a safe landing for humanity. GOING BEYOND THESE 
BOUNDARIES RISKS 
REACHING 
THE TIPPING POINTS 
THAT WILL UNDERMINE 
THE EARTH’S LIFE-
SUPPORT SYSTEMS.


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Figure 1: Planetary Boundaries framework
Source: Stockholm Resilience Centre. Estimates of how the different control variables for seven planetary boundaries have changed from 1950 to present.


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The green shaded polygon represents the safe operating space. Increasing risk
BIOSPHERE 
INTEGRITY
NOVEL ENTITIES
STRATOSPHERIC OZONE 
DEPLETION
ATMOSPHERIC AEROSOL
LOADING
OCEAN
ACIDIFICATION
BIOGEOCHEMICAL
FLOWS
FRESHWATER USE
LAND-SYSTEM
CHANGE
BII
E/MSY
(Not yet 
quantiﬁed)
(Not yet quantiﬁed)
P N
CLIMATE CHANGE


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You have said in the past that 
there is a risk that net zero 
targets will be misused. Can you 
expand on that?


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To achieve a safe landing on climate, 
we need to cut emissions by half by 
2030 and continue cutting them by 
half every decade to reach a net zero 
world economy by 2050. However, these 
models are based on assumptions that 
global agriculture and farming practices 
will provide a significant carbon sink 
over the next 30 years, and that natural 
ecosystems on land will continue to 
provide major carbon sinks. These 
models also assume that the oceans will 
continue to absorb CO2 until the end 
of this century. These are huge carbon 
offsets that are already factored into 
our assumptions and they therefore 
can’t be factored in again as mitigating 
possibilities when we calculate time to 
net zero. So, the only way to make net zero work 
is if we add carbon uptake beyond 
what is already factored into the 
assumptions in the models. Can we do 
that? There is certainly room for true 
net zero compensation by, for example, 
afforesting completely degraded 
lands; planting forests in completely 
unforested areas; or restoring soil carbon 
in completely degraded regions. However, 
these measures must be taken without 
slowing down the phasing out of fossil-
fuel emissions.


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It has to be additional, not 
an offset. "The only way to 
make net zero work 
is if we add carbon 
uptake beyond 
what is already 
factored into 
the assumptions in 
the models."


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3 CRITICAL FACTORS: PRICE ON CARBON, TECHNOLOGIES AND REGULATION
What are your views on a carbon tax? Putting a price on carbon is an absolute necessity of modern economic 
policy.


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Burning fossil fuels and damaging the climate without paying for it is 
the world's largest market failure. Sixty countries in the world have a price 
on carbon today but it needs to be a universal standard. Currently there are only small, voluntary green investments in a few 
markets. We need a price on carbon to be set by widescale legislation 
across markets and geographies; that is the only way to secure the scale of 
investment required. The challenge here is to ensure that the revenue from 
a tax on carbon stores in wetlands or forests is not lost to inefficiencies, but 
rather returned to the communities that manage these systems, which are 
often home to invaluable biodiversity and indigenous communities. Which technologies will drive us to a sustainable future?


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We currently emit around 40 billion tons of CO2 per year. With every passing 
day, the need for technology for CO2 removal becomes more urgent. We need to start not only scaling different forms of carbon capture and 
storage [CCS] technologies, but also supporting R&D into direct air capture. Apart from imposing a price on carbon and investing more heavily in 
R&D, regulation and governance to support the business and technology 
development are also key. "With every passing 
day, the need for technology for CO 2  
removal becomes more urgent."


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We need to have a very open discussion on governance, to ensure that 
carbon-removal technologies are carefully regulated. Too intense a focus 
on CO2 removal could impede the transition from fossil fuels, so regulation 
and governance are necessary to strike a viable balance between reducing 
emissions and developing renewable-energy sources.


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Hence, we require 
a comprehensive approach to supporting the development of carbon-
removal technologies, which incorporates both business and technology 
development and regulation to ensure that these technologies do not create 
new problems while solving others. ADJUSTING OUR ECONOMIC MODEL
Can we balance economic growth with a sustainable 
transition?


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Our current economic growth model will not give us the future we need 
and want. Completely abandoning capitalism to pursue a “degrowth” path 
would undermine most populations, which rely on conventional economic 
growth to provide them with a structured life that offers the basics required 
for subsistence. We don't have time to redesign the global economic system 
from scratch; we must make adjustments to the current economic model 
rapidly by setting planetary boundaries, science boundaries, putting a 
price on pollution and other damage, health threats, climate damage, and 
biodiversity loss. We also need to halt the destruction of the Earth's surface; we cannot afford 
to lose any more of the natural world. It is interesting to see how, even 
within a conventional economic growth paradigm that is not aligned with 
the principles of sustainability, there are still potential workarounds to keep 
it within the planetary bounds operating space. That's where we need to 
start. In the long term, we need to move away from the over-consumption 
paradigm and support economic development within scientifically defined 
boundaries, to ensure social stability and avoid conflict. 


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How do you think the Planetary Boundaries framework can 
help large organizations? I'm positively surprised – almost overwhelmed – to see how the Planetary 
Boundaries framework has become a mainstream part of organizations’ 
culture around the world. Already, around 4,000 companies have adopted 
science-based climate targets. This year, we'll be launching the science-based 
target network for the remaining planetary boundaries. Many big companies 
are ready to move beyond climate and set their business models along a 
more science-based pathway, starting with biodiversity, and potentially 
expanding to include water, nutrients, and other essential aspects of 
planetary conservation. However, as always, there is much more work that 
needs to be done.


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"Apart from imposing a 
price on carbon and investing 
more heavily in R&D, regulation 
and governance to support the 
business and technology 
development are also key."
Johan Rockström,
Director
Potsdam Institute for Climate 
Impact Research 


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The 
Climate 
Tech 
Startup 
Corner... The Climate Tech Startup Corner
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CLIMEWORKS 
Dr. Nathalie 
Casas
Head of R&D, 
Climeworks
P.114
CAPGEMINI VENTURES 
Lucia Sinapi
EVP and MD, 
Capgemini Ventures
P.106
CLIMATE TECH 
START-UPS
P.126
The Climate Tech Startup Corner
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HOW CLIMATE TECH 
STARTUPS CAN HELP 
US TRANSITION 
TO A CARBON-FREE 
WORLD
LUCIA SINAPI
EVP and MD, 
Capgemini Ventures
The Climate Tech Startup Corner
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Capgemini Research Institute Climate Tech: for a Sustainable Planet


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The Climate Tech Startup Corner
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
Over the past two decades, startups have become a critical 
source of innovation as a perfect blend of technology and talent, 
supported by unprecedent private capital funding: since 2015 the 
Venture Capital industry (VC) investments into startups amount to 
$2.6 trillion1 globally. This has been, and still is, the era of cloud, 
data and software, contributing to the digital transformation of 
the economy and disrupting nearly every industry.


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The changes required to achieve 2050 Net Zero target and return 
to pre-industrial C02 levels in the atmosphere go beyond digital 
and will require massive investments to transition to clean energy, 
transform our production and consumption models, or minimize 
our use of natural resources. THE KEY TO 
OUR FIGHT AGAINST 
CLIMATE CHANGE


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Interestingly, Venture Capital industry 
is now also directing investments into 
promising startup solutions active at 
building our future carbon-free world. After a record 2021 year, VC funding 
was not immune from the geopolitical 
context in 2022 and is taking a more 
conservative stance post recent negative 
newsflow, however the climate tech 
segment is showing some resilience. We believe there are fundamental 
factors supporting startups engaging in 
sustainability and climate tech moving 
forward. And this is why.


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OVER THE PAST TWO 
DECADES, STARTUPS 
HAVE BECOME A 
CRITICAL SOURCE OF 
INNOVATION. Lucia Sinapi, 
EVP and MD, 
Capgemini Ventures


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Re-imagining energy is on the critical path, 
as it contributes to 34% 2  of global carbon emissions. VC industry is currently backing about 38%3 of startups engaged in the race 
for clean energy supply (also referred to as Energy Tech)4, which received 
$26 billion5 funding in 2022, a 40% CAGR over 2018 - 20226 (4 times the 
global VC funding growth over that period).


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Renewables, energy storage7 
and management8 still receive the lion’s share, but VC industry is also 
fostering emergence of Green Hydrogen and New Generation nuclear 
energy (including fusion) breakthrough solutions. According to International Renewable Energy Agency recent report, 
investment into climate tech would need to annually quadruple until 2050, 
while current pledges and plans lead to an emission gap of 16 GT. Carbon Capture Utilization & Storage solutions are 
expected to address close to 15% 9  of total CO2 reduction 
by 2050
Startups focusing on direct carbon capture and/or storage solutions from 
the air10 or at industrial sites11 are attracting major funding for their projects 
by corporates12, on top of VC funding, which accounts in 2022 for $3.3B13. 1 CB Insights data
2 Les Echos, March 19th, 2023 
lesechos.fr/monde/enjeux-internationaux/climat-ce-quil-faut-retenir-des-six-derniers-rapports-
du-giec-1917145
3 Tracxn data 
4 Energy Tech top-funded sub-sectors are: energy storage tech (Energy Storage Systems, Battery 
Systems, Charging Solutions), energy efficiency tech (Energy Management Systems, Utility Bill 
Management), smart grid (Advanced Metering Infrastructure, Green Utilities), renewable energy 
tech (Horizontal Software, Solar Energy, Bioenergy)
5 Tracxn data
6 Tracxn data
7 In 2022 the top-funded startup was Northvolt, Sweden
8 Form Energy, US (low-cost battery system to store and supply renewable energy for long duration); 
Hydrostor, Canada (Advanced Compressed Air Energy Storage solution for smart grid energy 
storage)
9 International Energy Agency
iea.org/data-and-statistics/charts/global-energy-sector-co2-emissions-reductions-by-measure-in-
the-sustainable-development-scenario-relative-to-the-stated-policies-scenario
10 Climeworks, Switzerland, devices for extracting CO2 from ambient air
11 Svante, Canada, technology that traps carbon produced from industries such as cement and steel
12 Microsoft announced in July 2022 a 10 year carbon removal agreement with Climeworks
13 CB Insights


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Another area of high potential is 
carbon-recycling technologies14, carbon 
transformation15 or even carbon 
sequestration solutions16. VC backed innovation can be 
adjacent but critical to climate 
tech and sustainability agenda
New space-based Earth observation imaging 
systems and AI allow for natural resources 
monitoring and climate intelligence17, as well 
as biodiversity monitoring18. Pending the promises of Quantum 
Computing, synthetic biology is already 
opening new frontiers when it comes to the 
development of new materials19, or enabling 
biodegradable plastics to be created 
from waste recycled using enzymatic 
bioprocesses20.


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Innovation can also be 
inspired by nature, as reflected by bio-
mimetic solutions, while sustainable product 
design and manufacturing is already made 
possible by 3D printing technology21. Public research, policy and carbon 
markets provide the tailwind for 
climate tech…
Climate tech development is enjoying a 
unique combination of levers, among which 
the ability to leverage IP from academic 
and public research :  UK based Mimicrete 
synthetic biology 
is already opening new 
frontiers when it comes 
to the development of 
new materials."
14 LanzaTech, US, bioprocessing technology to capture and recycle industrial emissions
15 Carbix, US, carbon-enriched concrete
16 Carbfix, Iceland, converts carbon captured from the atmosphere into underground rock
17 Prométhée, France, New Space operator of nanosatellite constellations for earth observation ; 
Agroscout, Israel, crop scouting solutions ; Cervest, UK, climate intelligence platform
18 Nature Metrics, UK, molecular methods for biodiversity assessment ; Spoor, Norway, cloud and 
AI-driven biodiversity monitoring solutionss
19 Bolt Threads, US, protein-based silk fibers ; Spiber, Japan, protein-based yarn
20 Carbios, France, enzymatic recycling 
21 Aeditive, Germany, ready-to-use precast concrete


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comes out of Cambridge University research, US based Verdox’s CO2 
removal technology was developed at MIT22. Similarly, in the nuclear field, 
startups Hexana and Stellaria developing fourth-generation small AMRs23 
are stemming from France’s CEA Research labs24. Public policies and regulation mandating change towards energy transition 
(alike EU Green Deal) or funding climate projects through tax credits 
(alike US IRA25) foster investments into new infrastructure, as reflected 
by the Gigafactories for batteries being currently built in Europe and 
North America.


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They also pave the way to bankable business cases for 
entrepreneurs in Deep Tech, who consequently are more likely to be eligible 
for VC funding, despite climate deep tech being more capital intensive and 
longer horizon ROI compared to software. Last, but not least, offset mechanisms provide eligible startups with an 
additional funding source, as corporates investing into their projects to fast 
track their NetZero targets can benefit from offset credits. On that front, 
digital marketplace solutions are aiming at making the carbon credit markets 
more efficient26, some being blockchain technology based27.


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No doubt that 
quality of carbon credits and transparency in trading are prerequisites for 
an efficient carbon credit market that will further back the climate tech 
expansion. INNOVATION CAN 
ALSO BE INSPIRED BY 
NATURE, AS REFLECTED 
BY BIO-MIMETIC 
SOLUTIONS. 22 Business Wire, April 2022, “Verdox Wins $1M XPRIZE Carbon Removal Award Together with Partner 
Carbfix”
23 AMR : Advanced Modular Reactors
24 CEA : Commissariat à l’Energie Atomique et aux Energies Alternatives – French Atomic Energy and 
Alternative Energy commission
25 IRA : Inflation Reduction Act
26 Aspiration, US, tech platform to source high-quality nature-based carbon projects 
27 AirCarbon, Singapore, blockchain-based carbon credits trading exchange


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… as well as sense of purpose! Every day I meet talented startup founders fully determined to bring their 
solutions to market, enthused and energized by the unique confluence 
of public and private interests in preserving the planet.


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This fuels my 
confidence about our collective ability to embark on this new industrial 
revolution and address the existential challenge of our age. 


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"Offset mechanisms 
provide eligible startups with an 
additional funding source.www"
Lucia Sinapi,
EVP and MD, 
Capgemini Ventures
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WHY CARBON-
REMOVAL SOLUTIONS 
ARE KEY TO FIGHTING 
CLIMATE CHANGE
DR. NATHALIE 
CASAS
Head of R&D, 
Climeworks
The Climate Tech Startup Corner
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Zurich-based start-up Climeworks was founded in 2009 to help 
address the massive challenge of climate. The company uses direct 
air capture (DAC) technology to capture CO₂ directly from the 
air, reducing the atmospheric concentration of CO₂ by only using 
renewable energy, energy-from-waste, or other waste heat as 
energy sources. In addition to getting corporate clients to pay for 
future removals, Climeworks has raised more than $810 million 
from a wide variety of investors to scale up. Dr Nathalie Casas heads R&D at Climeworks. She is also a 
member of the innovation council of Innosuisse – the public Swiss 
innovation agency.


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The Capgemini Research Institute spoke to 
Dr. Casas to understand why carbon removal is key in our fight 
against climate change. CARBON REMOVAL – 
THE KEY TO FIGHTING 
CLIMATE CHANGE


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The enormity of the challenge posed by 
global warming can be daunting. What 
can any individual, organization, or even 
country do to fight climate change?


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We can and must make changes to our 
current lifestyles, but this alone won't be 
enough to stop temperatures from rising. The science is clear: to have a chance of 
keeping the global rise in temperature 
below 1.5°C, we need to get the world to 
net zero, as quickly as humanly possible. This means doing everything we can to 
reduce our carbon footprint and actively 
removing the CO₂ we have already emitted 
into the atmosphere. We need to extract 
billions of tons of CO₂ between now and 
2050, a task so gargantuan that we will 
need all known carbon-removal solutions  
to work together, uniting nature and 
technology in urgent symbiosis. Dr. Nathalie Casas 
Head of R&D, 
Climeworks
We can and must 
make changes to our 
current lifestyles, 
but this alone won't 
be enough to stop 
temperatures from 
rising."


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"We need to extract billions of tons 
of CO₂ between now and 2050, 
a task so gargantuan that we will need 
all known carbon-removal solutions to 
work together."


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Why is carbon removal so 
important? Let’s talk about unavoidable and historical 
emissions.


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The most important thing any of us, 
individuals or companies, can do to 
stop global warming is to shrink our 
carbon footprints. According to the 
Intergovernmental Panel on Climate Change 
(IPCC) and the Science Based Targets 
initiative (SBTi), companies must reduce 
their CO₂ emissions by at least 90% before 
2050. However, that will still leave around 
10% of current levels of unavoidable 
emissions.


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Carbon removal is crucial to 
neutralizing these emissions and keeping 
global warming at around the 1.5°C target. Then, there’s the matter of “historical” 
CO₂ emissions already released into the 
atmosphere. There are billions of tons of 
historical CO₂ emissions in our atmosphere, 
which must be removed if we are to go 
beyond carbon neutrality and achieve net 
negative emissions (i.e., removing more CO₂ 
from the atmosphere than we pump into it). Carbon removal is the only way to achieve 
this and, in doing so, take the first steps in 
restoring balance to our climate. Beyond unavoidable and historical 
emissions, carbon removal is also an 
important safeguard in the fight against 
climate change. If, despite drastic efforts to 
reduce emissions, a temperature overshoot 
takes us above 1.5°C, additional carbon 
removal could help us bring the temperature 
down again. Carbon removal is 
crucial to neutralizing 
CO 2  emissions and 
keeping global 
warming at around the 
1.5°C target."


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THERE ARE BILLIONS OF 
TONS OF HISTORICAL 
CO₂ EMISSIONS IN OUR 
ATMOSPHERE, 
WHICH MUST BE 
REMOVED IF WE ARE TO 
GO BEYOND CARBON 
NEUTRALITY. Figure 1: Why carbon removal matters
50
40
30
20
10
0
2010 2020 2030 2040 2050 2060 2070 2080 2090 2100
-10
-20
Net emissions
Current climate policies
Net-zero
Remaining emissions
GtCO2/year
Negative  emissions
Avoided emissions
Reduce as much 
as possible
Conventional mitigation 
technologies
Remove unavoidable 
emissions
Carbon removal solutions
Source: Climeworks.


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Source: Climeworks. Some effective carbon-removal solutions:
There are a variety of carbon-removal solutions available. Let’s look at some of the more viable options. Direct air capture:
Direct air capture (DAC) is a technology that captures CO₂ directly from the air and, when combined with 
storage technology (DAC+S), locks the captured CO₂ permanently deep underground. Our storage partner 
– in Iceland, this is Carbfix – transports the CO₂ deep underground, where, through a natural reaction with 
basalt rock, it transforms into stone, theoretically remaining in this state for over 10,000 years. This allows 
us to offer companies and individuals a high-quality, effective, and permanent removal of unavoidable and 
historical emissions.


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In practice, DAC is a three-step process:
1. Air is drawn in using fan-generated suction. Once inside, it passes through a filter that traps the CO₂ 
particles. 2. When the filter is completely full of CO₂, the collector closes, and the temperature rises to about 100°C – 
the same temperature it takes to boil water for a cup of tea. 3.


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This causes the filter to release the CO₂ so we can finally collect it. Figure 2: Climeworks' DAC plant in Iceland: Orca


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There’s global potential for 
DAC+S, from the Middle East to 
North America. We’re currently 
investigating new opportunities 
in the US, Norway, and Oman. Climeworks’ DAC system is 
one of the key technological 
weapons in the battle against 
climate change. It captures CO₂ 
directly from the air, reducing 
the atmospheric concentration 
of CO₂ by only using renewable 
energy, energy from waste, 
or other waste heat as energy 
sources. Each solution, whether natural 
or technology-based, has its 
benefits and drawbacks, making 
it essential that all approaches work in synergy if climate targets are to be 
achieved. Below are the benefits of DAC:
• Location-independent: CO₂ concentration is the same everywhere in the 
world. As there is no specific emissions source, this means that DAC plants 
can, in theory, be located anywhere there is a renewable-energy source and a 
suitable site for CO₂ storage. • Highly scalable and measurable:  
Climeworks’ plants are based on a 
modular-technology design, making them 
highly scalable.


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• Efficient land usage: Climeworks’ plants 
require less land than other techniques. For example, on a land area of 0.42 acres, 
our Orca plant can remove 4,000 tons of 
CO₂ from the air every year – this is almost 
1,000 times more efficient than trees (the 
same land area would host around 220 
trees with an estimated capacity of 22 kg 
each, giving an annual carbon-removal capacity of only 4.62 tons of CO₂). Our Orca plant can 
remove 4,000 tons 
of CO₂ from the air 
every year – this is 
almost 1,000 times 
more efficient 
than trees."
Direct air capture 
(DAC) is a technology 
that captures CO₂ 
directly from the air 
and, when combined 
with storage 
technology (DAC+S), 
locks the captured 
CO₂ permanently deep 
underground."


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Afforestation: Planting more trees
Trees are an excellent natural solution because they reduce the amount of 
CO₂ in the atmosphere by absorbing it and storing it for long periods of time 
– centuries, in some cases. Naturally, however, there are downsides:
• Trees are vulnerable to fire and disease; once cut down or rotting, they 
release all the carbon dioxide they’ve captured up to that point.


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• A tree can only store CO₂ over its lifetime (average ~100 years). • Afforestation requires a great deal of water, and, most importantly, time; 
young trees absorb far less CO₂ than do mature ones, meaning that a 
newly planted forest could take decades to absorb the levels of CO₂ we 
need to lock away. • Trees need a lot of space: to generate sufficient CO2 storage capacity we 
would need to afforest an area the size of Europe. • Protecting and strengthening our forests to ensure that they continue to 
serve as natural carbon sinks is of the utmost importance, but pinning our 
hopes on tree planting is not credible. A NEWLY PLANTED 
FOREST COULD 
TAKE DECADES TO 
ABSORB THE LEVELS OF 
CO₂ WE NEED TO 
LOCK AWAY.


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Bioenergy with carbon capture and storage (BECCS)
To prevent CO₂ emitted from biomass, such as trees, from ending up in the 
atmosphere, the biomass can be burned in a power plant, following which 
the CO₂ released is captured and then buried. BECCS allows for the creation 
of energy as a secondary activity.


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Why has it not yet been implemented at scale? • To achieve the required level of CO₂ removal, this process would require 
access to an area of arable land equivalent to more than twice the size of 
India (i.e., half the current global arable land area). • The required levels of water and fertilizer are very high and could impact 
food production if redirected to BECCS.


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• It is imperative that CO₂ emissions from the growing, harvesting, and 
processing of biomass don’t outweigh total carbon captured. Enhanced weathering
Enhanced weathering is a technology that mimics and accelerates the 
natural climatic weathering process of rocks. Rocks exposed on the Earth's 
surface absorb CO₂ from the atmosphere and, in the presence of water, 
transform it into other compounds, retaining CO₂ for a long time. This solution accelerates this process by spreading finely ground rock over 
the land surface (farmland, beaches, forests, etc.); this results in a greater 
area of rock surface being exposed to the atmosphere, and therefore 
available to absorb carbon.


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Benefits include improving degraded soils and plant growth and helping 
to reverse ocean acidification. However, there are a few uncertainties:
• Scientists suggest that rapid, uncontrolled changes in pH value, 
carbonate-saturation state, and dissolved aqueous CO₂ could affect 
ocean ecosystems. • Although this technology mimics a natural process, it’s not itself natural 
per se; the substance used is released into ecosystems at much higher 
rates than normal and could create “dead zones” in which oxygen levels 
are too low to support life. • These are only some of the available solutions; all must be evaluated 
carefully and as a matter of urgency, including in terms of scaling 
potential and applicability to the central struggle against climate change.


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"Trees need a lot of space: to 
generate sufficient CO2 storage 
capacity we would need to 
afforest an area the size 
of Europe."
Dr. Nathalie Casas, 
Head of R&D, 
Climeworks
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CLIMATE 
TECH 
START-UPS
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RUNNING TIDE
TRAVERTINE
FIGHTING CLIMATE CHANGE 
WITH SEAWEED
• Running Tide is a start-up whose 
goal is to curb climate change by 
harnessing the ability of seaweed 
to capture carbon. The company 
plans to remove CO2 from the 
atmosphere with the help of carbon 
buoys made of kelp (large brown 
sea algae), which then absorbs CO2 
through photosynthesis.


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• After a period of capturing carbon, 
marine engineers 
sink the buoys into 
the depths of the 
ocean, where they 
remain, containing 
the captured CO2. • Travertine is a CO₂-removal and 
industrial-chemical production 
company.


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• The startup aims to capture CO₂ 
from the air, mineralize it, and, as a 
by-product of the process, produce 
sulfuric acid, which has significant 
industrial applications. Sulfuric acid 
is the world’s most used inorganic 
chemical and is traditionally 
produced by burning a by-product 
of fossil-fuel production; a process 
which generates massive quantities 
of environmentally hazardous 
waste sulfates. • Travertine works on eliminating 
that waste stream and upcycling 
sulfuric acid. At the same time, the 
company eliminates CO₂ from the 
atmosphere by removing carbonate 
minerals. This happens through 
water electrolysis, which produces 
equal quantities of acid and base. Travertine eliminates 
CO₂ from the 
atmosphere by  
removing carbonate 
minerals. CARBON CAPTURE
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Peter Reinhardt
CEO, Charm
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CHARM 
INDUSTRIAL
PUTTING OIL BACK INTO 
THE UNDERGROUND TO FIGHT 
CLIMATE CHANGE
• Charm uses plants to capture CO₂ 
from the atmosphere; it converts 
inedible biomass such as corn stover 
recovered from agricultural operations 
into a stable, carbon-rich liquid, which 
it then pumps into EPA (Environmental 
Protection Agency)-permitted deep 
underground reservoirs where the 
bio-oil sinks and solidifies in place. This 
permanently removes CO₂ from the 
atmosphere, putting it out of reach 
of potential release by wildfires, soil 
erosion, or land-use change.


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“By 2050 [humanity 
needs] the carbon-
removal industry to 
grow by 2 million 
times, with a 
compound growth 
rate of 65%. I think it’s 
possible. It’s going to 
be very hard, but it’s 
also a problem that 
the government and 
a lot of people are 
throwing their weight 
behind.”
Cellulosic 
biomass currently 
captures >100 Gt 
CO₂/yr. • At a large scale of bio-oil production, 
Charm will use it to make carbon 
negative iron. The bio-oil helps 
transform the iron ore into metallic 
iron at lower temperatures than 
traditional fossil fuel methods. By 
capturing the cleaner gaseous carbon 
waste stream, Charm could turn 
the 6% of global emissions from 
iron-making (2x that of aviation) net 
negative.


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CARBFIX
• Carbfix uses its cutting-edge 
technology to capture CO₂ from 
the air and turn it into stone, 
which is stored underground.. The technology extracts CO₂ from 
emissions and dissolves it in water 
(effectively making carbonated 
water).


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The water is then injected 
into specific rock formations that 
react with the CO₂ and transform 
it into stone to form stable 
minerals, providing a permanent 
and safe carbon sink. The process 
takes less than two years.


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• The process has a low up-front 
capital cost and is low-cost overall 
compared to other processes. • In 2020, the company signed an 
agreement with Climeworks, a 
Swiss company that captures 
CO₂ from the atmosphere and 
then stores it at its location-
independent plants. It will 
significantly scale up carbon 
removal and storage, permanently 
removing 4,000 t/yr of CO₂ from 
the air. The process 
has a low up-front 
capital cost 
and is low-cost overall 
as compared to other 
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Permanently 
removing 
4,000 t/yr of CO₂ 
from the air.


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Devon Wright 
CEO & Co-Founder, Lumo 
LUMO
• Agriculture accounts for 70% of 
global water use and Lumo provides a 
solution to enable farmers to reduce 
water consumption by as much as 50%. • Lumo is a California-based irrigation 
technology company obsessed with 
helping growers conserve their most 
precious resources – time, money, and 
water.


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• Built alongside some of the best 
growers in the world, Lumo's smart 
irrigation valve is wireless, cloud-
managed, and contains an embedded 
flow meter to track water consumption 
and detect leaks – the first of its kind in 
the industry. • Presently, Lumo's smart irrigation 
solution is being used 
by 15 growers in 
California, including 
Wente Vineyards 
and Driscoll's
“Imagine a device 
that is located 
permanently in the 
fields, providing 
real-time visibility of 
systemic health, and 
that can be controlled 
remotely to deliver 
the exact amount 
of water, not a drop 
more or less.”
Lumo provides 
a solution to enable 
farmers to reduce 
water consumption 
by as much 
as 50%. SMART IRRIGATION
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SPACE FORGE
• Space Forge is a UK 
start-up that is leading the 
clean industrial revolution 
by harnessing the benefits 
of manufacturing in space. It is developing fully 
reusable satellites capable 
of manufacturing the next-
gen supermaterials in space 
for a return to Earth as part 
of the move to low-carbon 
technologies. • Space Forge focuses on 
developing technologies that 
enable in-space manufacturing 
and resource utilization, 
which can reduce the need for 
resource-intensive launches and 
enable more sustainable space 
activities.


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Leading the 
clean industrial 
revolution
Enable 
more sustainable 
space activities. IN-SPACE MANUFACTURING
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HYDGENE 
RENEWABLES
BOLT THREADS
CONVERTING BIOMASS 
INTO HYDROGEN
FASHION FROM MUSHROOMS
• Hydgene Renewables 
reprograms bacterial microbes by 
using synthetic biology techniques 
to produce clean, renewable 
hydrogen gas from feedstock. • The company is developing 
a hydrogen solution that is 
produced on-site on farms, from 
renewable plant-based feedstock, 
which removes the high costs of 
transport and storage associated 
with hydrogen. • In 2022, the 
company won 
Australia’s 
climate tech 
award in the 
Newcomer 
category. • Bolt Threads is a start-up that 
uses synthetic biology to develop 
sustainable materials to supply to the 
apparel industry. One such material 
is the synthetic spider silk called 
Microsilk, which replicates properties 
of a silk fibre produced by a spider.


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Their newly launched product Mylo is 
derived from mushrooms. • The company's technology helps 
reduce the environmental impact 
of the textile industry, which is 
known for its heavy use of water and 
chemicals.


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• In October 2022, the company 
launched a multi-project in 
collaboration with Ginkgo Bioworks 
to increase production efficiency and 
enhance performance. The company's 
technology helps 
reduce the 
environmental 
impact of the textile 
industry. SYNTHETIC BIOLOGY
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TREECARD 
WOODEN DEBIT CARD THAT 
PLANTS TREES
• Founded in 2019, TreeCard is a 
climate tech start-up that has 
developed a debit card that 
uses the revenue generated 
from merchant fees to fund 
reforestation projects around the 
world. • When customers use their 
treecards to make purchases, 
a portion of the merchant fees 
generated from the transactions 
is automatically donated to 
reforestation projects. • In addition to funding 
reforestation projects, TreeCard 
also aims to reduce the carbon 
footprint of its customers. The company has developed a 
carbon-tracking feature that 
allows customers to track their 
carbon emissions and offset them 
through the 
purchase 
of carbon 
credits. TreeCard 
also aims to reduce 
the carbon footprint 
of its customers.


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A portion of the 
merchant fees 
generated from 
the transactions is 
automatically donated 
to reforestation 
projects. BIODIVERSITY FINTECH
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NATUREMETRICS 
SPOOR
• NatureMetrics is a technology 
start-up that uses genetic 
techniques to monitor biodiversity. The company uses spatial 
intelligence technology that taps 
into information derived from 
environmental DNA (eDNA).


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When an organism's cells are 
shed into the environment, 
its genetic signature is also 
released. NatureMetrics isolates 
these signatures from water or 
sediment samples and uses them 
to determine which species are 
present. • The startup offers a subscription 
service that allows companies to 
gain insights into the biodiversity 
impact of their operations. • Founded in 2020 in Oslo, Norway, 
Spoor uses computer vision and AI 
to detect, track, and classify birds in 
wind farms to help developers and 
operators gain insights and guide 
mitigation measures. • It has developed AI-powered 
software for bird monitoring on wind 
farms. It uses machine vision for 
monitoring, managing, and reporting 
environmental impacts. Ask Helseth
CEO , Spoor
“We use 
artificial 
intelligence 
to monitor 
bird activity 
around 
wind 
turbines 
both 
onshore 
and offshore. By focusing on 
highly advanced software 
over cumbersome  traditional 
hardware, we are able to 
build a comprehensive global 
database as part of our 
detection and monitoring 
work, which to date has 
successfully tracked over 
126,000 birds in about 18,562 
hours.”
BIODIVERSITY MONITORING
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CERVEST
• Cervest’s Unified Climate 
IntelligenceTM (UCI) platform 
is enabling enterprises, public 
bodies, and financial institutions 
to measure interconnected climate 
risks and opportunities on built 
and natural capital assets – across 
physical and transition risk. • Powered by cutting-edge 
Earth Science AITM and globally 
comparable climate risk ratings, 
Cervest’s flagship product 
EarthScan provides UCI-driven 
insights that Chief Risk & 
Sustainability Officers use to 
increase asset resilience and meet 
climate-related financial disclosure 
requirements. • By connecting and de-risking 
decisions on every built and natural 
asset through UCI, Cervest is 
powering a Climate Intelligence 
NetworkTM whose climate-aligned 
decisions will drive a chain reaction 
of adaptation actions to build a 
more resilient world
Iggy Bassi,
Founder & CEO of Cervest
“We are now in the era of 
climate volatility, where 
decision-makers will 
need access to a unified 
picture of climate risk that 
encompasses physical and 
transition risk, and attributes 
value to natural capital 
assets alongside net-zero 
targets. From climate-aligning critical 
infrastructure development 
to supporting national 
renewable energy schemes, 
establishing sustainable 
supply chains to protecting 
and restoring environment 
ecosystems and their vital 
services, unified climate 
intelligence is the new 
decision-making superpower 
of the 21st century.”
Unified climate 
intelligence is 
the new 
decision-making 
superpower of the 
21st century.


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CLIMATE INTELLIGENCE
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AGROSCOUT
PLANET LABS
• Agroscout uses drone and 
satellite technology to help 
farmers monitor crop health and 
optimize irrigation and fertilizer 
use. The company's goal is to 
improve yields while reducing 
environmental impact. • The platform collects data 
to create powerful analytics 
for actionable insights into 
crop management. AgroScout 
monitors the crop size from 
emergence stand count through 
canopy coverage estimates and 
plant biomass. • Planet Labs owns and 
operates a fleet of 200 satellites 
that image the entire Earth 
landmass daily.


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The company’s 
satellite-imagery data helps 
companies and governments 
to map and understand the 
agricultural evolution of Earth. • On an average, Planet Labs 
has 1,700 images across every 
location. The company's 
goal is to improve 
yields while 
reducing 
environmental 
impact.


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The company’s 
satellite-imagery 
data helps 
companies and 
governments to 
map and 
understand the 
agricultural 
evolution of 
Earth. SPECIAL INTELLIGENCE
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GLACIER
FIGHTING CLIMATE CHANGE 
WITH WASTE RECYCLING
• Only 5% of plastic in the US is 
recycled today. • Conventional recycling facilities 
rely significantly on manual labor, 
which is being heavily hit by a 
labor shortage. Glacier provides 
a low-cost, high-performance 
sorting robot to superpower these 
facilities. • Founded in 2019, Glacier uses 
AI-enabled robots to identify and 
sort recyclables in these facilities. Their robots can distinguish 
between different recyclable 
materials such as cartons, plastic 
bottles, and containers.


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These 
robots are already being adopted 
by facilities 
across the 
country and 
have diverted 
millions of 
recyclables 
from landfill 
to date.


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“We as a society have 
become really good at 
producing and consuming, 
but we haven't figured 
out what to do with all 
our stuff when we're 
done with it. Glacier exists 
to solve that problem, 
to solve the circular 
economy.”
Areeb Malik, 
Co-Founder, Glacier
Glacier provides 
a low-cost, high-
performance sorting 
robot to superpower 
conventional 
recycling facilities. WASTE MANAGEMENT
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CARBON CURE
KEBONY
SUNFUNDER 
• Carbon Cure uses technology 
to reduce carbon emissions in 
the construction industry. It has 
developed a process that injects 
CO₂ into concrete, reducing 
the amount of cement needed 
and lowering levels of carbon 
emissions. • Implementing Carbon Cure’s 
model globally could reduce CO₂ 
emissions by 700 Mt annually – 
equivalent to the emissions of 
150 million internal combustion 
engine vehicles. • Kebony focuses on using food 
waste to produce sustainable 
softwood.


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• The company uses technology that 
uses food waste and modifies it to 
reproduce the qualities of tropical 
hardwood. • Kebony’s technology permanently 
modifies the wood by enhancing 
the properties 
of sustainable 
softwood to 
mirror premium 
hardwood 
characteristics. • SunFunder is the leading debt-
financing provider for distributed 
solar power in Africa and other 
emerging regions, bringing access 
to energy and long-term climate 
investments.


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• It has issued over $150 million 
in loans to 57 solar companies 
working in off-grid solar, mini-grids, 
agri-solar, and other commercial 
and industrial (C&I) solar projects. These investments mitigate carbon 
emissions by replacing fossil fuels, 
and also help communities adapt 
to climate change by increasing the 
resilience of local economies and 
food systems. • SunFunder’s investments have 
directly resulted in over 750,000 t/
yr of CO2e mitigation. BUILDING A 
GREENER FUTURE WITH 
FOOD WASTE
SunFunder is the 
leading debt-
financing provider 
for distributed solar 
power in Africa. The Climate Tech Startup Corner
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CARBON EQUITY
SOLAR FOODS
• Founded in 2021, Carbon Equity 
enables people to invest more easily 
in climate funds. Carbon Equity 
makes it possible to invest in small 
ticket sizes, starting from €100k. • As of 2023, the company had 
sourced more than 800 climate 
private equity funds, including 
venture capital, growth equity, and 
buyouts. • Food production requires significant 
land use and negatively impacts the 
environment.


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Solar Foods aims to 
liberate protein production from the 
challenges of agricultural production 
methods. • Solein – the company’s sustainable 
alternative to animal-derived proteins 
– is an edible bacterium: a single-
cell microbe that is grown using 
gas fermentation. Producing Solein 
requires only air, water, and energy, 
without taking up vast tracts of land. RELIEVING AGRICUL TURE 
OF THE BURDEN OF FOOD 
PRODUCTION
You can listen to many of these exciting startups on the Hardware to Save 
a Planet podcast from Synapse, Part of Capgemini Invent at 
www.hardwaretosaveaplanet.com
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Voice of Gen Next
140
Capgemini Research Institute Climate Tech: for a Sustainable Planet
Voice of 
Gen Next...


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Voice of Gen Next
141
Capgemini Research InstituteClimate Tech: for a Sustainable Planet
Arielle 
Kouyoumdjian 
Teen Podcaster,
Founder, Changing Planet Justice, US
P.142
Vinisha 
Umashankar
Founder, Solar Ironing Cart, India
TEDx and COP26 Speaker, The 
Earthshot Prize Finalist
P.148
Rahmina 
Paullete
Climate activist at Fridays For 
Future International, 
Founder of Kisumu Environmental 
Champs, Kenya
P.152


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ARIELLE 
KOUYOUMDJIAN 
Teen Podcaster,
Founder, Changing Planet 
Justice, US
Arielle Kouyoumdjian is a podcaster, 
wilderness enthusiast, and 
climate justice activist. She is the 
producer of the podcast “Changing 
Planet Justice,” which dives into 
environmental justice and social 
equity.


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She actively talks about 
climate change’s impact on vulnerable 
communities. She has won various 
awards, including the “Best of SNO 
Journalism Award” and “The NYTimes 
4th Annual Student Podcast award,” 
among others. She is based in Virginia, 
USA.


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Voice of Gen Next
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
You are the producer of the Changing Planet 
Justice podcast. Could you tell us what inspired 
you to start a podcast and what impact you 
wanted to make?


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From second to eighth grade, I 
was always listening to something 
stimulating: Science Friday, 
BrainsOn, TEDx, Moth Radio Hour, 
Fresh Air, and a plethora of other 
podcasts. At age 12, I decided to 
combine my passions for podcasts, 
national parks, and environmental 
activism; I believed that even 
someone as young as I was could 
make a difference. Climate change 
terrified me, but I wanted to spread 
awareness without resorting to 
alarmism. My podcast evolved 
into an exploration of how climate 
change disproportionately affects 
marginalized communities. Today, I try to explore the intersections of climate change and 
social justice in a way that is both engaging and accessible to 
the public.


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I aim to amplify the voices of those on the front 
lines of the climate movement. WE NEED TO ADDRESS
THE GROWING 
APATHY TOWARD 
CLIMATE CHANGE 
AMONG YOUNGER 
GENERATIONS. My podcast 
evolved into an 
exploration of how 
climate change 
disproportionately 
affects marginalized 
communities."


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Voice of Gen Next
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
You chose podcasting as the 
medium through which to spread 
awareness about climate change 
and drive behavioral change. What are some of the other 
approaches that interest you in 
terms of inducing a change in 
society?


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I’m still searching for the most impactful 
ways to catalyze change. Sometimes, I 
wonder why the raw facts of climate change 
aren’t sufficient on their own to scare those 
in power into overhauling social, political, 
and economic systems. Civil disobedience 
can be an effective way to drive widespread 
change but, beyond protests, we need 
positive action that everyone can get 
behind. I think that financial incentives 
would encourage adults to commit to 
behavioral change: taxing and/or capping 
carbon emissions; cutting financial support 
for fossil fuels; and subsidizing sustainable 
energies would all make a big difference. Additionally, we need to address the 
growing apathy toward climate change 
among younger generations; when it seems 
like the climate is changing but government, 
politics, and society fail to respond, young 
people begin to grow hopeless and passive. Telling my story, voicing my fears, and 
amplifying the voices of those who have 
more power than me are what I feel I can do 
to take the future of this Earth into my own 
hands and make a difference. Which is more important to 
achieving sustainability: a shift in 
consumer behavior or disruptive 
innovation to create solutions/
products that are sustainable by 
design? Consumer change is key to becoming a 
more sustainable community. While novel, 
“greener” products are eye-catching and 
garner abundant media attention, they are 
often inaccessible to a large section of the 
general public. Instant gratification is at 
the core of much of today’s consumption 
issues; if consumers and capitalists can curb 
their desire to develop, produce, consume, 
receive, and travel as fast as possible, we 
can massively cut the carbon emissions that 
are the corollary of prioritizing efficiency at 
all costs.


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Rather, consumers and producers 
need to make the most of the assets we 
already have, funneling technology and 
other reusables into circular economies, 
drawing on renewable resources, and 
recycling. FINANCIAL 
INCENTIVES TO 
DRIVE BEHAVIORAL 
CHANGE
I think that financial 
incentives would 
encourage adults to 
commit to behavioral 
change."


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Voice of Gen Next
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
WHY THE 
WEALTHIEST NATIONS 
HAVE THE GREATEST 
OBLIGATIONS
What sort of support do you 
expect from society in terms of 
protecting the environment? Everyone can contribute to collective 
change.


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I believe that, as individuals, our 
only responsibility is to do the best that we 
can with the resources we have. The wealthiest nations have the greatest 
obligation to make sustainable investments, 
not only because they are historically 
responsible for climate change, but because 
they are the least vulnerable to its effects. Developing countries that contribute 
negligibly to climate change should receive 
the full support of developed countries 
as they grapple with its most devastating 
impacts. As a young person, I wish that 
adults would invest in sustainable initiatives, 
rather than continuing to fund the fossil-fuel 
industry. It seems that older generations 
prioritize the short-term benefits and 
rapid rewards of fossil fuels over the long-
term social and environmental rewards of 
renewable energy. I’d have a lot more faith 
in society if I knew that it valued the survival 
of future generations over momentary 
prosperity.


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I believe a larger portion of 
taxpayers’ money should be allocated to 
achieving sustainability goals. The wealthiest 
nations have the 
greatest obligation 
to make sustainable 
investments, not 
only because they 
are historically 
responsible for 
climate change, but 
because they are the 
least vulnerable to 
its effects."


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Voice of Gen Next
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
HOW LARGE 
ORGANIZATIONS CAN 
WORK WITH YOUNG 
ENVIRONMENTAL 
ACTIVISTS
How can large organizations 
collaborate with younger 
environmental activists such as 
yourself to achieve these goals? Providing youth activists with a podium, 
amplifying our voices, and empowering us 
to speak up keeps the climate movement 
in motion.


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In a corporate-controlled 
society, kids’ inability to contribute 
financially, pay taxes, or vote renders us 
socially powerless – or at least, it often 
feels that way. When large organizations 
allow us to participate in their initiatives, it 
gives us some sense of agency in a society 
that sometimes makes us feel overlooked 
and even trampled. At times, the sense of 
social inertia becomes so pervasive that it 
feels like young people and adults are each 
waiting for the other to save the world. Large organizations can gain the trust of 
young people by inviting, encouraging, 
and motivating them to work alongside 
adults. Then, instead of feeling helpless 
and restricted by our youth, we feel 
both acknowledged and appreciated. By 
combining the business and technical 
knowledge of the adult generation with the 
fresh perspectives and idealism of youth, 
we are far better equipped as a society 
to combat our common Earth-destroying 
enemy. You have won various 
environmental impact awards.


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Where do you see yourself in 10 
years? In 10 years, I hope to be a broadcast 
journalist on public radio, covering climate 
justice. I understand the transformative 
impact that green spaces can have on 
children growing up; to be able to run, play, 
picnic, and relax in a public park is a privilege 
I took for granted but, now, I value it more 
than ever. I’d have a 
lot more faith in 
society if I knew that 
it valued the survival 
of future generations 
over momentary 
prosperity."


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Voice of Gen Next
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
When large 
organizations allow 
us to participate 
in their initiatives, 
it gives us some 
sense of agency 
in a society that 
sometimes makes us 
feel overlooked and 
even trampled."
If you could have one superpower 
to change the way things are 
today, which would you choose? I’ve always said my superpower would be 
persuasion: rhetoric so powerful that it 
could unequivocally convince anyone who 
listened. Climate change, and the impending 
devastation of our planet, constantly 
weigh on me.


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I want to convince everyone, 
young and old, that change is possible. This requires us to build momentum, show 
dedication, and endure discomfort, but 
change is possible and within reach. We may 
have reached the “point of no return,” but 
there is no point at which we cannot begin. What is the one piece of advice 
that you would like to give to 
your peers? Stay hopeful, but not too hopeful. Stay 
frightened, but not paralyzed. Passivity is 
the worst crime.


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Your voice is more powerful 
than you think it is, and our voices are most 
powerful when we speak up together. I 
want my peers to assert themselves when 
they see an opportunity to promote and 
drive sustainability. Contrary to what we’ve 
been taught, sometimes we need to push 
back against adults: email the head of 
school about your idea for implementing 
solar energy in school buildings; teach 
your dad about reducing food waste as he 
prepares a meal; show your grandmother 
how to recycle; talk about politics and 
environmental issues at the dinner table. Climate change is a global crisis, which also 
means it’s a global fight that, like it or not, 
we’re in together. So, no matter where you 
are in the world, how old you are, or how 
loud or quiet your voice is, speak up, push 
back, and keep going.


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VINISHA 
UMASHANKAR
Founder, 
Solar Ironing Cart, India
TEDx and COP26 Speaker,  
The Earthshot Prize Finalist
Vinisha is a student, a TEDx speaker, 
an innovator, and an environmentalist. She is known for her innovation, the 
Solar Ironing Cart.


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She was only a 
school student when she was selected 
as the youngest Earthshot Prize 2021 
finalist. She spoke along with Prince 
William, the Duke of Wales, at COP26.


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Her 5-minute speech went viral on 
social media and may have been seen 
over 30 million times. Despite her age, 
Vinisha advocates change through 
innovation. She was the recipient of 
the EarthDay Network "Rising Star" 
award in 2021 and the Children's 
Climate Prize in 2020, among many 
other awards. She lives in a rural town 
in Tamil Nadu, India. Voice of Gen Next
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Capgemini Research Institute Climate Tech: for a Sustainable Planet


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You developed a solar-powered 
ironing cart as a clean alternative 
to the charcoal-powered version 
prevalent in India. What inspired 
you? In my neighborhood, six ironing vendors use 
charcoal to heat a heavy cast-iron box for 
pressing clothes and usually throw the burnt 
charcoal away with the garbage. It made me 
think about this being done all across India. There may be 10 million traditional ironing 
carts in India, which burn about 50 million kilos 
of charcoal every day. Think of how much CO2 
THERE MAY BE 10 MILLION 
TRADITIONAL IRONING 
CARTS IN INDIA, WHICH BURN 
ABOUT 50 MILLION KILOS OF 
CHARCOAL EVERY DAY. and toxic pollutants mix with the air!


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About 
7 million people worldwide die every year 
due to toxic air pollution. I looked for a viable 
solution and discovered that solar energy 
could effectively replace the 300-year-old 
tradition of using charcoal as a fuel, thus 
eliminating its harmful impact on the Earth, 
humans, and animals. At the moment, people have no choice but 
to breathe toxic air. When scaled up, the 
solar ironing cart will eliminate the use of 
charcoal for ironing clothes in India and other 
developing countries. Prevention is still the 
best solution!


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DRIVING CHANGE IN 
SOCIETY
In a powerful speech that you 
have given on various platforms, 
including COP26, you have 
emphasized the impact that the 
younger generation can have on 
climate change. What are some 
of the approaches through which 
young people can induce change 
in society? Being able to express myself through 
speeches is great, but the world requires 
action. Spreading the word, keeping up the 
political pressure, using public transport, 
cutting down on electricity use, buying 
locally grown produce and locally made 
products, eating plant-based meals, not 
wasting food, buying fewer clothes, planting 
trees, and recycling used products are some 
of the ways in which everyone can help 
change society. Protesting is a democratic choice. But 
climate change activists are increasingly 
turning to acts of civil disobedience 
to make their point, and this can be 
counterproductive. In April 2022, hundreds 
of scientists from more than 35 countries 
planned and synchronized actions, including 
blocking highways, picketing infrastructure, 
and spray-painting and pasting large climate 
posters on monuments. In May 2022, the 
UK government initiated efforts to ban the 
climate action group Extinction Rebellion 
on the grounds that it is an organized 
crime outfit, in light of the group’s plan 
to blockade oil companies across the 
country. Such radical actions – and the 
official responses to them – will hinder non-
destructive climate activism and negatively 
affect public support for climate change 
mitigation.


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SCIENCE AND 
BEHAVIORAL CHANGE
As an innovator and inventor, 
what do you see as more 
important to the transition to 
sustainability: a shift in consumer 
behavior, or disruptive innovation 
to create solutions/products that 
are sustainable by design? I would say that both are key to progress.


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Science can’t solve all the problems 
humanity has created; some we will have 
to resolve for ourselves through changes 
to our behavior. We, as consumers, should 
take full responsibility for our actions. The 
resources that we are using are finite.


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We 
are answerable to future generations. Voice of Gen Next
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
Climate change 
activists are 
increasingly turning 
to acts of civil 
disobedience to 
make their point, 
and this can be 
counterproductive."


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If it continues, our reckless use of major 
resources will hamper the economic and 
financial well-being of posterity. We have to 
be responsible consumers. What support do you expect 
from society in protecting the 
environment? Failing to solve our environmental problems 
is not an option. No one country or group of 
countries can do this for the whole world, 
either. We have to identify, understand, and 
work collectively to do this. How can large organizations 
collaborate with younger 
environmental activists such as 
yourself to achieve these goals? Large organizations can help and collaborate 
in a variety of ways by engaging with, 
investing in, and empowering young 
environmental activists. Young people are 
taking the initiative to address climate 
change, from volunteering to raising 
funds for environmental initiatives. We 
need support to develop a climate action 
framework and a green economy. Large 
organizations must work with governments 
to support youth innovations to combat 
climate change through grants and capital or 
zero-interest loans to scale solutions quickly. If you had a superpower to change 
the way things are today, which 
would you choose?


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I would like the power to turn people who 
cut down trees and pollute soil, water, 
and air into rock statues! Deforestation 
and air pollution are the two most serious 
environmental issues of the 21st century. Deforestation is happening on a large scale 
to produce palm oil and cocoa. The land is 
sprayed with gallons of weed killer, which 
permanently damages the soil.


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Air, be it on 
Earth or in space, is being polluted to the 
point that clean air may one day go extinct!


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We have become the most careless people 
the Earth has ever seen. Voice of Gen Next
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
Science can’t solve 
all the problems 
humanity has 
created; some we 
will have to resolve 
for ourselves 
through changes to 
our behavior."
Large organizations 
can help and 
collaborate in a 
variety of ways 
by engaging with, 
investing in, and 
empowering young 
environmental 
activists."


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RAHMINA 
PAULLETE
Climate activist at Fridays For 
Future International,
Founder of Kisumu 
Environmental Champs, Kenya
Rahmina Paullete is a Kenyan teen 
climate activist and a speaker at COP. She is involved with Fridays for Future 
MAPA (Most Affected People and 
Areas), which provides a platform to 
those most affected by the climate 
crisis.


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She is the head campaigner 
for #LetLakeVictoriaBreatheAgain, 
which advocates for the restoration 
of Lake Victoria, one of the African 
Great Lakes. She is the founder of 
Kisumu Environmental Champions, for 
environmental, wildlife conservation, 
and climate change advocacy. She 
has won many awards since 2016, 
including the Green Kids Award, 2018; 
Environmental Ambassador Kisumu 
County, 2018; and the Eco Warrior 
Tourism Change Maker Award, 2019;  
Africa Kids Awards 2021; ICPAC Climate 
Action Awards East Africa by IGAD, 
2021 among a host of others. She is 
based in Kisumu, Kenya. Voice of Gen Next
152
Capgemini Research Institute Climate Tech: for a Sustainable Planet


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You launched a campaign called 
Let Lake Victoria Breathe Again, 
to support the restoration of the 
lake's ecosystem. How did your 
journey start? (Lake Victoria is one 
of the African Great Lakes, and is 
the world’s largest tropical lake, 
spread over nearly 60,000 square 
kilometers across three countries.)
Pollution of Lake Victoria and related 
flooding have accelerated, posing many 
threats to my community. So, I began the 
work of restoring Nam Lolwe [the name of 
the lake in the local Dholuo dialect), the lake 
that my ancestors grew up with. You are also a part of Fridays 
for Future; what impact did you 
want to make as a member of the 
group?


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Being part of Fridays for Future has allowed 
me to amplify my knowledge of the critical 
problems caused by the climate crisis 
POLLUTION OF LAKE 
VICTORIA AND RELATED 
FLOODING HAVE 
ACCELERATED, POSING 
MANY THREATS TO MY 
COMMUNITY. Voice of Gen Next
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet


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and centering on the importance of vocal 
collectiveness for Most Affected People and 
Areas (MAPA). Which is more important to the 
sustainability effort: a shift in 
consumer behavior or disruptive 
innovation to create solutions/
products that are sustainable by 
design?


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However, I guess I would slightly 
prefer solutions through innovation since 
this would create a huge impact on existing 
global issues. What support do you expect 
from the older generation in 
protecting the environment? It would be interesting and useful to learn 
from older generations, to understand how 
they view climate change and work with 
them towards greater sustainability. They 
could add social weight to existing projects 
and perhaps teach us about environmental 
solutions that have seen success in the past. How can large organizations 
collaborate with younger 
environmental activists such as 
yourself? The main way is to fund younger 
environmental activists' work and help them 
amplify their message, through access to 
corporate media channels, for example. Voice of Gen Next
154
Capgemini Research Institute Climate Tech: for a Sustainable Planet
Large organizations 
can help fund younger 
environmental 
activists' work and 
help them amplify 
their message, through 
access to corporate 
media channels, for 
example."


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Going forward, do you aspire 
to start any environmental 
initiatives? Where do you see 
yourself in 10 years? I founded my organization, Kisumu 
Environmental Champs, back in 2020, to 
allow kids, teens, adults, and older people 
to dedicate their time to environmental 
conservation, climate activism, and wildlife 
advocacy. In ten years, I feel like our work 
on the restoration of Lake Victoria will have 
made great progress in terms of the lake 
ecosystem being restored.


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If you had one superpower to 
change the way things are today, 
which would you choose? I would want the power that world leaders 
have; that is key to changing the world. It is 
unfortunate that world leaders don’t seem 
to know how to use this power. Which one piece of advice would 
you give to your peers? I would say just use your voice to advocate 
for the planet; while it may seem like a small 
contribution, you can make a big impact. Voice of Gen Next
155
Capgemini Research InstituteClimate Tech: for a Sustainable Planet
I see myself as a 
policymaker on 
climate change and the 
environment."
It is unfortunate 
that world leaders don’t 
seem to know how to 
change the world."


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From 
the desk 
of... From the Desk of 
156
Capgemini Research Institute Climate Tech: for a Sustainable Planet


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From the Desk of 
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
COP28: BUILDING 
MOMENTUM FOR 
CORPORATE CLIMATE 
ACCOUNTABILITY
Ovais Sarmad,  
Deputy Executive Secretary 
United Nations Framework 
Convention on Climate Change 
(UNFCCC)
Ovais Sarmad is Deputy Executive Secretary of the 
United Nations Framework Convention on Climate Change 
(UNFCCC). Mr.


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Sarmad advises the Executive Secretary on 
a range of issues relating to intergovernmental affairs and 
strategic planning of the UNFCCC process. He provides 
oversight of the operations of the UNFCCC, covering 
human and financial resources, as well as organizational 
development. Prior to taking up his post at the UNFCCC, 
Mr. Sarmad held several senior posts at the International 
Organization for Migration for over 27 years. He is 
based in Germany.


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IF YOU CANNOT SET A 
CREDIBLE COURSE 
FOR NET ZERO, 
WITH 2025 AND 2030 
TARGETS COVERING 
ALL YOUR OPERATIONS, 
YOU SHOULD NOT BE 
IN BUSINESS. From the Desk of 
159
Capgemini Research InstituteClimate Tech: for a Sustainable Planet
I
n a speech to the UN General Assembly in February 2023, Secretary-
General António Guterres made a stark declaration: “If you cannot set a 
credible course for net zero, with 2025 and 
2030 targets covering all your operations, 
you should not be in business.”1 
Every fraction of a degree of global warming 
results in loss of life and livelihoods. In 2015, 
with the near-universal recognition of the 
Paris Agreement, world leaders agreed to 
take steps to limit global warming to no 
more than 2°C, with a strong preference for 
imposing a limit of 1.5°C. However, we have 
already passed 1.1°C and the trajectory, 
based on the current level of greenhouse-gas (GHG) emissions, poses 
danger to lives, livelihoods, and nature, a reality already beginning to be 
experienced around the world.


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We are in a critical decade. Climate action must reduce GHG emissions 
by 45%,2 while also progressing towards the targets of UN Sustainable 
Development Goals 3 by 2030. In recent years, there has been growing 
Time for climate action
Every fraction of 
a degree of global 
warming results 
in loss of life and 
livelihoods."


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From the Desk of 
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
recognition of the need for sustainability in both work practices and general 
living, accompanying a shift in global attitudes towards the environment. This has provided a significant push towards the incipient mega-trend of 
driving systems transformation across society and business. This phenomenon has spread, especially during the last two years, in 
particular owing to mounting geopolitical tensions and the COVID-19 
pandemic, which have acted as significant disruptors of business. Multinationals worldwide are now typically climate-aware, with 64% of 
executives globally saying sustainability is part of their leadership agenda.4  
As Larry Fink’s annual letter to corporate CEOs and investors in his company, 
Blackrock, said in 2022: “We have seen a tectonic shift of capital. Sustainable 
investments have now reached $4 trillion. Every company and every industry 
will be transformed by the transition to a net-zero world.”5 
We have seen a 
tectonic shift of 
capital. Sustainable 
investments have now 
reached $4 trillion. Every company and 
every industry will be 
transformed by the 
transition to a net-
zero world."
1 https://www.un.org/sg/en/content/sg/statement/2023-02-06/secretary-generals-briefing-the-
general-assembly-priorities-for-2023-scroll-down-for-bilingual-delivered-all-english-and-all-french-
versions?_gl=1*1i5syt3*_ga*MTg0ODA3NzcyOS4xNjQ2NDAzNDg0*_ga_
TK9BQL5X7Z*MTY3NTkzMzgxMy4xLjEuMTY3NTkzMzgyMC4wLjAuMA (last retrieved on February 
10, 2023). 2 In line with the temperature goals of the Paris Agreement: https://unfccc.int/sites/default/files/
english_paris_agreement.pdf (last retrieved on 10th February 2023).


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3 https://www.un.org/development/desa/jpo/wp-content/uploads/sites/55/2017/02/2030-Agenda-for-
Sustainable-Development-KCSD-Primer-new.pdf (last retrieved on 10 February 2023). 4 Capgemini Research Institute, “A world in balance,” 2022. 5 https://www.blackrock.com/corporate/investor-relations/larry-fink-ceo-letter (last retrieved on 10 
February 2023).


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From the Desk of 
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
COP27, held in Sharm El-Sheikh, Egypt, on 
6th–18th November 2022, and presided 
over by the Egyptian government, brought 
together over 45,000 participants to share 
ideas and innovative solutions, and to build 
partnerships and coalitions towards the 
implementation of the Paris Agreement 
operationalization agreed upon at COP26 
in Glasgow in 2021. Representatives of 
businesses, indigenous people, local 
communities, cities, and civil society, 
including young people, showcased the ways 
in which they are addressing climate change 
and shared their experiences of how these 
efforts are impacting both their lives and 
their communities.


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Learnings from COP27
For many, particularly Millennials and Gen Z, environment, social, and 
governance (ESG) considerations have become increasingly important 
when evaluating the impact of organizations worldwide. Today, clients and 
stakeholders take a different perspective to the traditional financially driven 
considerations, focusing on the long-term purpose of an organization and 
ensuring its net-positive effect in terms of sustainable development. Public climate-action protests around the world, frequently spearheaded by 
the younger generation, are another source of disruption that is building in 
potency. Movements such as Fridays for Future, Extinction Rebellion, and 
Last Generation are calling urgently for climate action and sustainable living 
and embody the growing social drive towards public- and private-sector 
accountability. The growing momentum of such movements has been in evidence at the 
annual UNFCCC Conference of the Parties (COP) over the past seven years 
(since the adoption of the Paris Agreement in 2015). Rising numbers of 
delegates from businesses, NGOs, and civil organizations are testament 
to this, as is the rising value of financial pledges in the Glasgow Financial 
Alliance for Net Zero (GFANZ)6 and the swelling number of partners in the 
UN Race to Zero  campaign.7 
6   https://www.gfanzero.com/ (last retrieved on February 10, 2023). 7   https://unfccc.int/climate-action/race-to-zero-campaign (last retrieved on 10 February 2023).


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From the Desk of 
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
The Sharm el-Sheikh Implementation Plan8 estimates the expected annual 
financial requirements of a global transformation towards a low-carbon 
economy at $4-$6 trillion a year. If apportioned with forethought, this 
investment could generate significant returns, both financially and in 
terms of contributing to sustainable development.


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Delivering such funding 
will require a swift and comprehensive structural transformation of the 
financial system and engaging governments, central and commercial banks, 
institutional investors, and other financial actors. At COP27, much was said about the compelling need for transparency 
and accountability in relation to climate action taken in the private sector, 
specifically in the context of the drive towards carbon neutrality. The 
UN Secretary-General’s High-Level Expert Group on Net-Zero Emissions 
Commitments of Non-State Entities released a report9 at COP27 that 
illustrates the need to develop stronger and clearer standards for net zero 
emission pledges by businesses and to create stricter, monitored programs 
for their implementation. The Secretary-General invited non-state actors to 
put forward credible and transparent transition plans in time for 
COP28 in 2023 as a key milestone towards the emissions-reduction global 
plan for 2030. The Sharm el-Sheikh 
Implementation 
Plan estimates 
the expected 
annual financial 
requirements 
of a global 
transformation 
towards a low-
carbon economy at 
$4-$6 trillion a year."
8 https://unfccc.int/documents/624444 (last retrieved on 10 February 2023). 9 https://www.un.org/sites/un2.un.org/files/high-level_expert_group_n7b.pdf (last retrieved on 10 
February 2023).


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From the Desk of 
163
Capgemini Research InstituteClimate Tech: for a Sustainable Planet
Another important outcome of COP27 
was the establishment of a new dedicated 
Fund for Loss and Damage to assist 
developing countries in coping with 
the consequences of climate change. A transitional committee has been 
established to make recommendations on 
operationalization of the fund at COP28. COP27 also saw significant progress on 
the Global Goal on Adaptation, which will 
conclude at COP28 and inform the first 
global stocktake of progress towards 
the goals set out in the Paris Agreement, 
improving resilience among the most 
vulnerable countries. New pledges, 
totaling more than $230 million, were 
made to the Adaptation Fund at COP27. Governments cannot, on their own, 
implement this transformation across 
business and society.


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Multilateralism is the 
key to finding an inclusive and effective 
way forward. Inclusive multilateralism 
means involving non-state actors, including 
businesses, NGOs, academics, young 
people, and civil society in general, to play 
an active role in the journey to carbon 
neutrality and sustainable living. This 
opportunity for regulatory support and 
governmental cooperation represents 
an opportunity for the corporate world 
to put climate accountability at the core 
of revised business strategies.


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Through 
inclusive, multilateral collaboration, we 
can achieve the systemic transformation 
necessary for a sustainable future. The Secretary-
General invited non-
state actors to put 
forward credible and 
transparent transition 
plans in time for 
COP28 in 2023 as a key 
milestone towards the 
emissions-reduction 
global plan for 2030."


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"Inclusive multilateralism 
means involving 
non-state actors, including 
businesses, NGOs, 
academics, young people, 
and civil society 
in general, to play an 
active role in the journey 
to carbon neutrality."
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
Looking forward to COP28
The upcoming COP28, to be held in Dubai, UAE, in November and December 
2023, must see significant progress in addressing the climate crisis. The 
first global stocktake of the Paris Agreement10 will independently evaluate 
both the progress made by governments and the adequacy of the goals set.


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As well as resetting the agenda for action on climate change, it will offer 
businesses the opportunity to showcase their sustainability and climate 
actions and demonstrate how they are accelerating the transition to a green 
business model. The New Collective Quantified Goal on Climate Finance (NCQG) is expected 
to see real progress ahead of 2025, especially at COP28, in terms of 
meaningful mitigation and greater transparency of implementation plans. Developed countries have agreed to set an NCQG from a floor of $100 billion 
per year, considering the needs and priorities of developing countries. 10  https://unfccc.int/news/global-stocktake-is-about-ambition-accountability-and-acceleration (last 
retrieved on 10 February 2023).


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The operationalization of the Loss and Damage Fund represents another key 
element of COP28 in the UAE and will consequently provide clarity on which 
countries will be contributing to the fund and who will be eligible to 
benefit from it. In a nutshell, we are in a race against time to limit global warming by 
avoiding a global temperature rise in excess of 1.5°C – to preserve our 
natural resources, and to preserve our livelihoods in all parts of the world, 
especially those regions that are on the front line in terms of battling severe 
climate impacts.


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There is hope. Global warming can still be limited. Young people are pushing 
for urgent climate action, and we are already seeing positive developments, 
such as the expansion of renewable-energy production and use, a shift 
towards the circular economy, and increased sustainability awareness 
and climate literacy, to name just a few examples. But, for this vision to 
become reality, businesses must put the environment and sustainability 
front and center in their planning and actions. The time for corporate 
climate accountability is now. Sustainable systems transformation cannot be 
achieved if we don’t pull together. All of us have the means to advocate and 
push for climate action and carbon neutrality in our spheres of influence. Our future will be the sum of the decisions we make today, individually and 
collectively. It can be and it must be done!


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Perspectives 
from
Capgemini


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ALIGNING 
LEADERSHIP WITH 
SUSTAINABILITY
Elisa Farri, Vice President and Co-lead of 
Capgemini Invent’s Management Lab
Gabriele Rosani, Director of Content 
and Research at Capgemini Invent’s 
Management Lab
P. 190
SOLVING THE 
SUSTAINABILITY 
EQUATION
Pascal Brier, Group Chief Innovation Officer 
and member of the Group Executive 
Committee
P.


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WHY CLIMATE 
TECH IS PIVOTAL 
TO ACHIEVING 
A SUSTAINABLE 
PLANET
Cyril Garcia, Head of Global Sustainability 
Services and Corporate Responsibility, 
Capgemini
Florent Andrillon, Climate Tech global 
lead, Capgemini  
P. 168


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Cyril Garcia was appointed Global 
Sustainability Services and Corporate 
Responsibility Head on January 1st, 2023. He is responsible for the integration of 
sustainability across Capgemini’s portfolio of 
client services, as well as driving the Group’s 
own sustainability agenda. Cyril is also 
responsible for Capgemini’s Corporate Social 
Responsibility activity. Cyril has 
been a member of the Group Executive 
Board since 2018. Cyril Garcia 
Head of Global Sustainability 
Services and Corporate 
Responsibility, Capgemini
Florent leads in bolstering the Cleantech 
business development with all sustainability 
teams across the Group and he has more 
than 20 years of experience in the energy 
and utilities sector, helping clients to achieve 
their sustainability goals and transition to a 
low-carbon economy. He has a strong focus 
on the energy, resources and cleantech 
market, as well as on sustainability, climate 
and energy transition issues.


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He leverages 
the capabilities of the Capgemini and its 
external partners to deliver innovative and 
impactful solutions. Florent Andrillon
Climate Tech global lead, 
Capgemini
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WHY CLIMATE 
TECH IS 
PIVOTAL TO 
ACHIEVING A 
SUSTAINABLE 
PLANET
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W
e have less than seven years to 
halve global greenhouse gas 
(GHG) emissions and reduce 
methane emissions by a third if we are to 
limit global warming to 1.5°C.1 To get there 
by 2030, we need to go beyond incremental 
innovations and behavior change. We must 
make systemic changes in technologies, 
institutions, and practices on a huge scale.


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We need a new industrial revolution. Climate Tech players are tackling the 
challenge from multiple angles. They are 
working to: 
• Reduce CO2 in the atmosphere with 
renewable energy sources such as wind 
and solar, energy-efficient building and 
transportation, and carbon capture/
storage technologies. • Help us adapt to climate change through, 
for example, sea-level-rise protection and 
drought resistant crops.


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• Reduce agriculture’s impact on 
ecosystems through efficient irrigation 
and precision agriculture technologies. Synthetic biology also has an important role 
to play in the climate transition, whether 
by reducing emissions through circular 
manufacturing, using bacteria to reduce 
plastic pollution, or the sequestering 
Perspectives from Capgemini
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
The Climate Tech landscape
CLIMATE TECH, 
TOWARDS A LOW-
CARBON INDUSTRIAL 
REVOLUTION 
1 Intergovernmental Panel on Climate Change (IPCC). We need systemic 
changes in 
technologies, 
institutions and 
practices at a scale 
comparable with the 
ones experienced 
in past industrial 
revolutions." 


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carbon through soil, oceanic, lithospheric, or anthropogenic sinks. And 
when it comes to hard-to-abate industries, clean hydrogen will help reduce 
emissions, potentially reshuffling the global industrial landscape. While most of the technologies we need to reduce emissions for the 2030 
target are already available, the path to 2050 relies on newer technologies, 
particularly in sectors that are hard to decarbonize, such as heavy industry 
and long-distance transport. To help unleash these technologies and make 
them more cost-competitive, we must compress the traditional 25-year 
innovation cycles and accelerate development.


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An Oxford University research team2 found 
that the faster the transition, the greater the saving (at least US$12 trillion 
compared to continuing our current levels of fossil fuel use), as a result 
of the potentially enormous decline in costs that comes with technology 
learning. Perspectives from Capgemini
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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
The rise of Climate Tech 
Between 2010 and 2022, the number of Climate Tech firms worldwide rose by 
over 400% to 44,595. In 2021, Climate Tech companies raised around US$111 
billion – more than enterprise software (US$104 billion) and only just behind 
HealthTech and FinTech (US$ 119 billion and US$129 billion, respectively).3  
While integrating most climate technologies into existing infrastructure, 
hardware, software, and operational systems may be complicated, there are 
reasons to be optimistic. "Synthetic biology 
has an important role to play in 
this climate transition."
2 Empirically grounded technology forecasts and the energy transition, University of Oxford 
https://www.cell.com/joule/fulltext/S2542-4351(22)00410-X 
3 Tech Nation, Climate Tech Report 2022, November 2022.


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SINCE 2010, THE 
NUMBER OF 
CLIMATE TECH FIRMS 
WORLDWIDE HAS RISEN 
BY OVER 400%. Perspectives from Capgemini
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
Factors helping climate technologies move into the mainstream include:
• Affordability: The learning rate for clean technologies to date suggests 
they can deliver the necessary advances and cost reductions to reach 
parity with incumbent alternatives. • Attractiveness: Pledges from large organizations to decarbonize 
their operations and product lines in the effort to reach net zero give 
confidence to entrepreneurs and backers that there will be strong 
demand for new technologies.


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• Availability of 'green money:’ There is a notable rise in investments 
earmarked for sustainability and environmental, social, and corporate 
governance (ESG) objectives. 


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Source: SVB, "The Future of Climate Tech", 2022
Figure 1: Hype curve of select climate technologies
CCU S
E xpectations
P recision A gricul ture
Green Hydrogen
V ertical  Fa rming
A l ternative P rot eins
A l ternative P ackag ing
Su ppl y Chain 
and  L og istics
Sm art G rid
Carb on 
Ma rk ets
Sy nthetic 
B iof uel s 
Wa ve/ Tid al  P ower
B attery St or age ( L I)  
A d vanced  N ucl ear
D emand  Respons e
Sol ar P V
EVs
Car/ Rid e -
Sha ring Wind
Cl imate Fintec h
Innov ation  Tr igger P eak E xpectations D isillu sionme nt Sl op e of  E nl ightenment P l ateau of  P rod uctivity
Wa ste to Fu el
Fu el  Cell 
Stat iona ry 
P ower
Fu el  Cell E V s
B attery 
Recycl ing
B iot ech 
A gricul ture 
Inputs
SA FS P l ateau w ill b e reached in:
0 –2  years
2 –5  years
5 –10 years
Mor e than 10 years
Reaching the Plateau
This  is w hen mainstream 
ad op tion  of  the technol og y 
starts. Assoc iated  risks  are 
red uced and  b ene/f_it  f rom  the 
technol og y is b roa d l y accepted .


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The next challenge is scaling new technologies at an unprecedented speed, 
for which more substantive work, more public support, and more investment 
are urgently required. The UN estimates that global transformation to a low-
carbon economy will require at least US$4–6 trillion a year until 2030.4  
There has been important progress in 2021/22, including in R&D in key areas 
such as low-carbon hydrogen-based steelmaking, small modular nuclear 
reactors, and lithium-free batteries. • Policy support: Governments are lending strong fiscal support to low-
carbon innovation and related infrastructure. A combination of these enabling factors and growing interest in green 
technologies means that many major climate technologies are now getting 
closer to their ‘tipping point’ (the point at which they attain mainstream 
adoption). See Figure 1. The need to scale up at speed
4  UN – COP27, Sharm el-Sheikh Implementation Plan, November 2022


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Governments globally are now actively supporting the industrialization and 
deployment of impactful climate technologies, with an increasing focus on:
 
• heavy industry
• green hydrogen
• batteries
• sustainable fuels
• carbon capture, usage and 
storage (CCUS)
• and other critical energy 
technologies. In the United States, for 
instance, the combined Inflation Reduction Act (IRA) and Infrastructure 
Investment and Jobs Act provides ~US$470B in new energy and climate 
funding over 10 years.


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This is more than 3 times the Marshall plan, which 
provided over $130 billion (in 2020 dollars) in economic aid to European 
countries between 1948 and 1951. And this trend is global: the European 
Union has the Net Zero Industry Act and Critical Raw Materials Act; Japan 
has a Green Innovation Fund; and China has set strong climate target and 
investment priorities in its 14th Five-Year Plan. The race to 
net zero has begun, 
and climate tech is at 
its core." 
"Climate technologies will reshuffle the 
boundaries between industries 
and open new frontiers for innovation 
and growth." 
The opportunities ahead
The race to net zero has begun, with Climate Tech at its core. Those countries 
that take the lead in speeding up the development of clean technologies 
could reap considerable economic benefits, including significant job creation. Climate technologies will reshape and in many cases remove the boundaries 


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Climate change is, 
inherently, a hardware 
problem which 
necessitates large 
infrastructure projects 
that transform how our 
economy operates." 
between industries and open new frontiers for innovation and growth. Climate Tech is set to transform the way we interact with the world more 
profoundly and on a larger scale than the digital revolution. Most businesses will need to integrate new climate technologies into 
their operations to decarbonize and reduce their environmental impact. This brings with it an incredible range of opportunities for innovation. For 
example:
• With wider use and distribution of solar, landowning businesses such as 
retailers could become power providers, or use this renewable energy to 
charge electric trucks. • CO2 captured from an industrial process (e.g.


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at a cement plant) could 
become a tradeable byproduct for use in a clean fuel refinery. • Similarly, carbon removal technologies like biochar are used for CO2 
offsetting, but have the valuable side-effect of enriching agricultural soil. • Shipping companies or airlines looking to secure their supply of clean 
fuels could move up the value chain and produce the green hydrogen 
themselves. Intelligent Industry can be a great lever to accelerate the deployment of 
climate technologies.


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Climate Tech innovation is distinct from the digital 
transformation of recent decades. Climate change is, inherently, a hardware 
problem – it requires large infrastructure projects to transform how our 
economy operates. While 
software has its role, and 
can be a great facilitator 
of emissions reduction, 
hardware is essential across 
all sectors if we are to build 
a sustainable and habitable 
society. Intelligent Industry 
can provide innovative 
ways to ramp up climate 
technologies. Better data 
and improved application, 
for example, mean more 
The need for ‘intelligent industry’ 


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productive use of fewer resources; such as 
energy and raw materials, less scrap, and 
a genuine end-to-end product lifecycle. It helps in simulating and understanding 
the full impact of a product’s impact 
through its usage, as well as its design, 
manufacture, transportation, and end of 
life.


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Digitization also has an important role: 
, revealing current blind spots through a 
comprehensive analysis. Digital twins of wind projects, for 
example, make deployment easier, faster, 
safer, and more cost effective. Likewise, 
Virtual Validation, Generative Design, 
and AIDevOps can all help the renewable 
energy industry break technological and 
performance barriers. In the fight against global warming, 
industrial automation and smart 
industries are critical. Digital technology 
can help climate tech players and leaders 
in decarbonization replace dirty and high-
emitting manufacturing processes with 
more resource-efficient and environmentally 
friendly ones. Automation, robots, 3D 
printing, virtualization, and other Industry 
4.0 technologies can dramatically enhance 
efficiency and economics. Climate Tech offers incredible opportunities 
for engineers, data scientists, and business 
innovators.


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We need to upskill and mobilize 
them to work on these challenges now to 
ensure our future. The transition to a low-carbon economy is 
as big as the Industrial Revolution, but we 
need to deliver it at the pace of the Digital 
Revolution. Let’s act now!


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"The transition to a low carbon 
economy is as big as the 
Industrial Revolution, but we 
need to deliver it at the pace of 
the Digital Revolution." 


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Pascal Brier was appointed Group Chief Innovation 
Officer and member of the Group Executive 
Committee in 2021. Previously, and starting in 2005, 
Pascal was a member of the Executive Committee 
of the Altran Group. Since September 2018, he 
was Executive Vice-President of the Altran Group 
in charge of Strategy, Technology, and Innovation, 
based in the Silicon Valley. In this position, he drove 
Group strategy, the portfolio of offers, marketing, 
and service lines, as well as the implementation 
of the research and innovation roadmap and 
the Group’s high-value-added activities (Altran 
NextCore).


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Prior to this, he was Executive Vice 
President in charge of Altran’s global accounts and 
business development for the Group. Pascal Brier 
Group Chief Innovation 
Officer and member 
of the Group Executive 
Committee
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INCREMENTAL 
AND 
DISRUPTIVE 
INNOVATION IS 
THE ROUTE TO 
SURVIVAL
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T
he struggle for sustainability is a game 
with high stakes. Global targets to 
reduce carbon emissions are being 
set against the backdrop of a fast-growing 
global population and untenable pressure 
on our finite natural resources. We believe 
the only answer to this seemingly impossible 
equation is to innovate. Let’s consider the equation in more detail, 
beginning with carbon-reduction targets. To limit global warming to no more than 
2°C – and avert the worst impacts of climate 
change, as called for in the Paris Agreement 
– global greenhouse-gas emissions would 
need to be cut by 45% by 2030 and reach net 
zero by 2050.1 
Let’s also consider in parallel population 
and economic growth. Fifty years ago, there 
were just under 4 billion people on the 
planet; since then, that figure has doubled 
to more than eight billion. The UN predicts 
the global population could rise to close to 
10 billion by 2050.2 Combine this with the 
rapid growth of developing economies and 
aspirations of improved standards of living 
across the globe and, by 2050, we may need 
40% more water and energy to sustain 
ourselves. Finally, let’s consider our resources.


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Fossil 
fuels – including coal, oil, and natural gas – 
currently supply about 80% of the world’s 
energy needs. However, these resources 
are finite and nearing exhaustion: we have 
already passed peak oil and coal, and peak 
gas is on the horizon.


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In addition, their 
detrimental effect on the environment and 
our own health is well documented. Perspectives from Capgemini
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1 https://www.un.org/en/climatechange/net-zero-coalition 
2  https://www.un.org/en/global-issues/population 


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Combine these factors and the complexity 
of the equation is alarming: 
How can we produce sufficient 
energy to support 10 billion 
people, while also slashing carbon 
emissions, all as macro-economic 
chaos rages around us, arising 
from pandemics, geopolitical 
tensions, and other, as yet 
unknown, exogenous shocks? In short, we are in a climate and energy 
emergency.


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We are all the time asking more 
of a planet that will soon have no more to 
give. To solve the equation, we believe there 
is only one solution, consisting of two 
interdependent approaches: frugality and 
innovation. Perspectives from Capgemini
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"We are all the time 
asking more of a planet 
that will soon have no 
more to give."


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The energy transition: aiming for 
responsible frugality
Frugality boils down to a global commitment 
to an economy of both production and 
consumption. The first level of frugality – which I would 
describe as “responsible frugality” - means 
choosing to do things differently.


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This kind 
of frugality halts unnecessary waste and 
emissions, but allows for the continuation 
of everyday activity, albeit in a more 
sustainable manner. For example, individuals will still be able to 
drive a private car, but car manufacturing 
would be systematically optimized to 
require fewer natural resources. We would 
build cars using lighter materials; maximize 
recycling in the manufacturing process; 
replace road-supply chains with more 
efficient rail and shipping infrastructure; 
encourage car dealers to reduce their 
energy and water use; and actively develop 
alternatives to individual ownership. With 
Responsible 
frugality means 
choosing to do 
things differently. This kind of frugality 
halts unnecessary 
waste and emissions, 
but allows for the 
continuation of 
everyday activity, 
albeit in a more 
sustainable manner." 


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responsible frugality, it should still be 
possible to enjoy motoring without causing 
devastation to the environment. However, getting to this point involves major 
challenges, whether that’s encouraging 
behavioral changes, setting regulations, or 
evolving economic imperatives.


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Moreover, 
as populations rise and finite resources 
dwindle, moderate frugality of this nature 
is unlikely to be enough to maintain 
equilibrium. Full frugality would involve a 
radical change to our current way of life: no 
air travel, no devices, no concrete, no meat – 
and that’s just the start. However, such an austere approach is 
both unfair and fundamentally unrealistic.


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It is unfair to expect developing 
countries, who have done comparatively little to contribute to the current 
climate-related issues, to give up on their dreams of economic prosperity. The developed world has long been accustomed to a consumerist lifestyle 
and, understandably, the developing world wants to experience the benefits 
of that as well. Equally, citizens in developed economies will not take kindly 
to being asked to degrade their lifestyles precipitously. It is not realistic 
to ask people to give up all their personal comforts and aspirations, for 
themselves or for posterity. Full frugality would 
involve a radical 
change to our 
current way of life: 
no air travel, no 
devices, no concrete, 
no meat – and that’s 
just the start." 
"It is unfair to expect developing 
countries, who have done 
comparatively little to contribute 
to the current climate-related 
issues, to give up on their dreams of 
economic prosperity. "


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PINNING ALL OUR 
HOPES ON FRUGALITY 
GOES AGAINST HUMAN 
NATURE. Perspectives from Capgemini
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So, while there is much to be said for the frugal route, pinning all our 
hopes on frugality goes against human nature. The notion that we can put 
a hard break on established patterns of behavior is both unrealistic and 
counterproductive, leading people to believe there is no longer anything 
worth fighting for.


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Essentially, the more we are innovative, the less frugal we will have to be. By investing in innovation now, we can develop an answer to the intractable 
equation of a fast-growing global population balanced against finite natural 
resources, and an increasingly jeopardized overall climate balance. Changing the world for the better 
This innovative route will include both incremental and disruptive paths. Incremental innovation involves a concerted effort to reduce energy 
consumption and carbon emissions in both production and consumption, 
targeting true efficiency from the design phase onward. This is valid for 
all industries; all companies should be cognizant of their current emissions 
(scope 1 to 3) and energy consumption. It is the responsibility of all business 
leaders to reduce their company’s environmental footprint by improving 
product and service design, engineering and manufacturing processes, 
supply chains, and – at a fundamental level – behaviors and company culture. The IT sector, for instance, which accounts for a growing 4% of total 
emissions, is full of new technologies that are deployed alongside the 


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legacy systems they are replacing, creating what I call a “technical debt.” As 
an example, cloud computing is often touted as a major pathway to green 
IT,  but as older systems continue to run in parallel, they will continue to do 
damage. Here’s another example: nuclear fusion promises limitless, carbon-free 
energy.


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This disruption in power could have a life-changing impact on our 
economies and societies. But we are a long way from unlocking the potential 
of nuclear fusion. Scientists will need to figure out how to produce energy 
on a large scale. They’ll also need to work out how to harvest the energy 
produced and transfer it to the power grid as electricity. While pioneering 
developments occur all the time, and while renewables such as solar and 
wind power are developing, we must also turn the lens of innovation on 
our existing technologies. For nuclear energy, this could take the form of 
building smaller, modular nuclear plants that consume fewer resources, are 
cheaper and faster to build, and allow us to scale up our energy generation 
without adding to the climate crisis. Incremental innovation can help to transform our manufacturing chains.


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Most industrial processes currently rely on traditional methods, such as 
molding and milling, where only a fragment of the raw material is used, and 
the rest thrown away or (less than efficiently) recycled, with a significant 
environmental impact. As an alternative, 3D printing offers a less wasteful 
approach, where manufacturers use 3D printers to create products using 
precise amounts of resources with upgraded designs instead of extracting 
shapes from blocks of raw material. 


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Fostering disruptive innovation
Disruptive innovation permanently changes 
the way our societies and economies 
operate. While disruptions on the 
horizon could help us address the climate 
emergency, there’s also a series of enduring 
challenges that we must overcome.


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Take 
the example of the transition to new energy 
sources such as wind, solar, and – notably – 
hydrogen. Green-hydrogen fuel cells would be a true 
disruption: energy for a new generation 
of devices, emitting water vapor instead 
of greenhouse gases. Hydrogen-powered 
vehicles could reduce life-cycle CO2 
emissions to around 60g/km, well below the 
emissions produced by even electric vehicles 
(EVs) powered by renewable electricity.3  
Green-hydrogen fuel 
cells would be 
a true disruption: 
energy for a new 
generation of devices, 
emitting water vapor 
instead of greenhouse 
gases." 
3  The Week, “Hydrogen cars explained: fuel cells, efficiency and zero emissions”, September 2021


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However, the shift to hydrogen-powered cars will require huge investment 
in research and infrastructure, whether developing and refining fuel cells or 
building the gas stations to power vehicles. Also, the much-vaunted “clean” fuels are inherently problematic; hydrogen 
is created with electricity powered by fossil fuels.


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Many people are also 
concerned about the combustible nature of hydrogen; understandably, no-
one wants a potentially explosive fuel cell in their car. As we create game-changing innovations, we must ensure we disrupt with 
care. The disruptive impact of nuclear power has been limited because 
people are afraid of something going wrong with devastating consequences. The past disasters of Chernobyl and Fukushima are still fresh in people’s 
minds. Just as nuclear power became associated with a fear of impending disaster, 
high-profile failures could mean hydrogen struggles to gain public trust. Dealing with the climate emergency successfully will entail ensuring the 
disruptive technologies we adopt are not hamstrung by an unfavorable 
public perception. A natural solution
Another example of an innovation for which there is great hope is synthetic 
biology, which involves the application of engineering principles to redesign 
natural systems. Synthetic biology holds the alluring promise of replicating 
the bounty of nature without 
depleting natural resources.


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One often-cited example 
is lab-grown “meat,” a 
synthetic food source that 
could sustain the ever-
growing global population 
without the carbon-intensive 
farming of animals. Forecasts 
in 2020 suggested spending 
on cultivated meat could 
reach $150 billion by the end 
of this decade. Synthetic biology 
holds the alluring 
promise of replicating 
the bounty of nature 
without depleting 
natural resources." 


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Synthetic biology could also give us the 
means to eradicate disease and bacteria and 
boost agricultural production. Nevertheless, despite these 
appetizing opportunities, 
people retain deep-seated 
suspicions about the 
application of such synthetic 
products.


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While the technology that 
could power disruption 
continues to proliferate at a 
searing pace, the governance 
required to pave the way for 
innovation is often lacking. We as a global society need 
to start thinking about this 
aspect of innovation now, 
and begin to prepare for true disruption 
incrementally, so that, when it arrives with 
full force, we are ready. Everyone has a part to play
All business leaders must start investigating 
creative solutions to the climate challenges 
we face. Sustainability is now a must-have 
objective, not a long-term nice-to-have. Incremental innovation will be crucial, but at 
some point, we will be required to intensify 
our activities and focus on “moon-shot” 
efforts.


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All organizations can play a role in 
this. Enterprises in the automotive and 
aerospace sectors, for example, can 
investigate hydrogen fuel cells and batteries 
manufactured without rare-earth materials. General manufacturers might think about 
how advances in synthetic biology could 
"While the technology that 
could power disruption 
continues to proliferate 
at a searing pace, the 
governance required to 
pave the way for innovation 
is often lacking." 


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help reduce global emissions. To deliver effective solutions will also 
require business leaders to understand 
the role and significance of technology 
– today, every business is a technology 
business.


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They must acquire a thorough 
understanding of how digital innovation 
can help their organizations achieve 
sustainability targets. Let’s be clear: there is a huge amount to 
do in a very short timeframe.


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We must 
remain both positive and realistic; humanity 
is capable of finding solutions to all the 
problems we face. However, we can’t sit 
back and leave it to someone else to find the 
answers. The innovative solutions to our challenges 
will come from a collective approach. We must each engage with the equation 
and think about how our organizations 
will develop an answer to the climate 
emergency. By working together, we can 
continue to develop as a society and keep 
frugality at bay. The innovative 
solutions to our 
challenges will come 
from a collective 
approach." 


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Elisa Farri is a Vice President and Co-lead of 
Capgemini Invent’s Management Lab, bridging 
the academic and business worlds. Over the 
last ten years she worked in strategy and 
innovation consulting, advising Fortune 500 
corporations in transformative projects.


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Prior 
to consulting work, she worked at the Harvard 
Business School’s Europe Research Center in 
Paris, France. Elisa is a regular contributor to 
leading management reviews and business 
magazines like HBR.org and Rotman 
Management, and a speaker on strategy and 
innovation management. Elisa Farri 
Vice President and Co-
lead of Capgemini Invent’s 
Management Lab
Gabriele is Director of Content and Research 
at Capgemini Invent’s Management Lab. He has more than fifteen years of strategy 
consulting experience with particular focus 
on innovation management and business 
transformation.


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In parallel to his consulting 
experience, Gabriele is a contributor for 
leading management magazines, including 
HBR.org, Dialogue Review, “I” by IMD, 
and The European Business Review. He 
also contributed to management books in 
collaboration with Thinkers50, PMI, and the 
Business Ecosystem Alliance. Gabriele Rosani 
Director of Content and 
Research at Capgemini 
Invent’s Management Lab
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ALIGNING 
LEADERSHIP 
WITH 
SUSTAINABILITY
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"The major obstacles to 
confronting climate change are 
not tech or policy. Organizational challenges are 
those to overcome. We need 
to create urgency today to 
shift the traditional culture of 
leadership and make it fit 
for sustainability." 
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Gunnar Trumbull 
Philip Caldwell Professor of Business Administration, 
Harvard Business SchoolImpact Research 
The legacy of the profit-only paradigm
W
hatever its history, whether stretching back centuries or just a 
handful of years, every organization comes with its own set of 
expectations based on that history. To date, sustainability has very 
rarely featured in this.


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Put simply, the vast majority of organizations were not built with 
sustainability as the keystone, or even one of the pillars supporting their 
vision. Given this, it is unsurprising that, when it comes to organizational 
culture and leadership, there exists what can be described as a 
“sustainability deficit.” The majority of today’s senior executives were 
educated at prestigious business schools; gained professional experience 
via a well-worn, traditional path; and built their careers within a profit-only 
paradigm based on hitting quarterly and annual financial targets. They 


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Taking real action – Not just 
playing a part
achieved this within 
a conventional 
business 
framework based 
on competing 
for market share, 
gaining leverage 
with key suppliers, 
and squeezing the 
margins of other 
players in the chain. This engendered a 
strict “command-
and-control” managerial style, with an emphasis on organizational efficiency 
and optimizing use of resources (including human resources).


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The legacy of this 
paradigm is still predominant in many organizations and tends to hinder the 
transition to a sustainable management model. The majority of today’s senior 
executives were educated 
at prestigious business 
schools; gained professional 
experience via a well-worn, 
traditional path; and built 
their careers within a profit-
only paradigm."
Sustainability requires a different management style and a new set of 
behaviors. Changing people’s hearts and minds is the biggest challenge – and 
it must start with the C-suite.


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While leaders broadly recognize the pressing 
need for change, they often end up following a simplistic, even superficial 
approach to implementing it. They “change the narrative,” bringing in 
buzzwords such as “purpose,” “care,” “trust,” “collaboration,” “openness,” 
“psychological safety,” “empowerment,” and “tolerance of failure.” In 
practice, however, executives do not walk the talk: the change in vocabulary 
is not reflected in a change in attitude and behaviors as expressed through 
everyday work tasks. We describe this superficial attitude to sustainability as 
sustainability theater. Employees soon pick up on a lack of genuine and coherent commitment 
to change on the part of their leaders and, as the perception gap widens 
between the values that executives espouse and the leadership styles and 
behaviors they display, employee cynicism and dissatisfaction will grow in 
parallel. This misalignment risks undermining the credibility of sustainability 


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SUSTAINABILITY 
REQUIRES A DIFFERENT 
MANAGEMENT STYLE 
AND A NEW SET OF 
BEHAVIORS. Perspectives from Capgemini
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strategies within the organization – leading to employee disenchantment – 
and outside it – feeding skepticism among customers, suppliers, investors, 
and institutions. So, what should executives do to avoid becoming actors in 
sustainability theater?


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Management research into corporate-culture change emphasizes a focus 
on leaders’ observable behaviors, rather than on vague, abstract values 
disseminated by the HR department. Authentic cultural change is not 
simply a recalibration of the existing mission statement or a freshly drawn 
up manifesto of values. Simply changing the narrative will backfire if it is 
not backed up by a meaningful change in leaders’ actions, behaviors, and 
decisions in relation to their employees, customers, suppliers, and local 
communities. 40 behavioral cards for leadership in 
the sustainability era
Identifying and defining distinct observable behaviors makes it easier to 
monitor, assess, and review the adoption of those behaviors.


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Under the 
supervision of V. Kasturi Rangan, Malcolm P. McNair Professor of Marketing 
at Harvard Business School and co-chairman of the School's Social Enterprise 
Initiative, we developed a set of 40 behavioral cards applicable to leadership 
in the sustainability era. 


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"Simply changing 
the narrative will 
backfire if it is not 
backed up by a 
meaningful change 
in leaders’ actions, 
behaviors, and 
decisions."
“Cards can be a powerful tool for triggering 
meaningful discussions, both in an 
executive classroom and in corporate-
leadership meetings," explains Professor 
Rangan. "There’s an increasing need to 
support leaders in raising awareness of the 
impact of their individual behaviors on the 
sustainability agenda,” he adds. The list of behaviors is organized around 
four dimensions: 
• Purpose: Once clearly defined, leaders 
must embrace their purpose and 
encourage the organization to follow it as 
a guiding “north star” 
• Trust: Leaders must act authentically 
and credibly in order to gain the trust of 
employees, suppliers, and partners 
• Collaboration: Leaders must be open to 
different perspectives, co-creating with 
partners and finding systemic (rather than 
siloed) solutions  
• Innovation: Leaders must build creativity 
and encourage experimentation 
outside comfort zones; incremental 
solutions alone will not be enough to 
solve sustainability challenges – more 
immediately impactful solutions are 
required
Each of the four dimensions comprises 
ten specific behaviors: five designated 
“positive” behaviors that should be 
initiated and/or encouraged; and five 
“toxic” behaviors that should be eliminated. Each behavior should be articulated using 
clear descriptors that enable managers to 
enact them.


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We encourage managers to 
customize the standard list to fit the specific 
business context and to encompass both 
environmental and societal dimensions of 
sustainability. Prof.


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V. Kasturi Rangan,
Malcolm P. McNair Professor of
Marketing at Harvard Business School 
and co-chairman of the School's
Social Enterprise Initiative.


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"Enel combines an 
environmental focus with the 
concept of 'soft leadership,' 
based on exhibiting 'kindness' 
towards the firm’s multiple 
stakeholders."
After fostering environmentally conscious 
decisions and actions, it is important to 
examine the social and people components. “If leaders care for the planet, they should 
also care for the people,” affirms Guido 
Stratta, Chief of People & Organization 
at Enel, a global leader in the fields of 
electrification and decarbonization. Enel 
combines an environmental focus with 
the concept of “soft leadership,” based on 
exhibiting "kindness" towards the firm’s 
multiple stakeholders.


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Enel's model of 
soft leadership incorporates valuing and 
nurturing personal relationships, trust, and 
respect for the abilities and commitment of 
others, while simultaneously maintaining 
a focus on achieving sustainable business 
objectives. In the table below, we present an excerpt of 
the 40 behaviors that includes two for each 
of the four dimensions: one example with 
a positive connotation and another with a 
negative connotation.


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DIMENSIONS 
PURPOSE
POSITIVE BEHAVIORS 
– EXAMPLES 
NEGATIVE BEHAVIORS
 – EXAMPLES
Make signiﬁcant changes in the 
ﬁrm to embed purpose
Systematically rethink all 
business processes (including 
KPIs and method) to integrate 
purpose into decision-making
Be prepared to drop projects or 
activities that, while proﬁtable, 
are problematic in ESG 
dimensions
Predominantly focus on 
ﬁnancial goals
Meeting time largely devoted 
to margins, market share, 
competitors, and potential 
eﬃciencies
Sustainable purpose relegated 
to "nice-to-have" status, 
secondary to proﬁt
TRUST
Listen and empathize with 
stakeholders
Foster an open, transparent, 
and regular dialog with 
external actors, considering 
diﬀerent perspectives
Put people ﬁrst, both internally 
(employees) and externally 
(suppliers, local communities, 
and other stakeholders)
Act opportunistically to serve 
own agenda
Pursue self-interest (of the 
organization or of the 
individual), rather than looking 
after the interests of 
colleagues, customers, and 
other stakeholders 
Prioritize personal advance-
ment, rather than contributing 
to shared purpose 
COLLABORATION
INNOVATION
Co-create solutions with partners
Jointly deﬁne problem spaces, 
considering multiple perspec-
tives 
Run initiatives with partners 
across the entire value chain, 
upstream and downstream (e.g., 
in developing a circular 
economy)
Think always in terms of win/lose
Deal opportunistically with 
value-chain partners (suppliers, 
distributors, etc.), taking advantage of 
them and squeezing their margins 
where possible, rather than 
considering them true partners 
Value control and power in the 
partner relationship over consensual 
contribution to a mutually beneﬁcial 
solution/outcome
Promote experimentation
Within a clear strategy, deﬁne, 
prioritize, and run a portfolio of 
experiments aimed at 
validating critical assumptions
Involve partners and stakehold-
ers in innovation programs, 
grassroot initiatives, and trial 
balloons
Follow the mainstream
Wait for others to move and 
follow their lead, rather than 
taking the initiative in new 
markets
Use existing approaches as the 
benchmark, rather than 
formulating an original strategy


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In our work with clients, we have found 
the list highly useful in encouraging 
executives to focus on three or four 
positive behaviors to commit to, and the 
same number of negative ones, which 
they will commit to abating. This exercise 
works equally well when conducted on 
either individual or team level.


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Once the 
level and type of commitment are defined, 
it’s important to make monitoring of the 
commitment transparent and to bring it 
into practice as part of everyday activities. Respecting and upholding the new 
behavioral structure requires sustained 
effort. Despite leaders’ best intentions, 
after the initial burst of commitment, it is 
tempting to slip back into the accustomed 
management style. To help leaders, 
teams should introduce new routines and 
team practices to support planning and 
monitoring of new behaviors, including 
periodic retrospective sessions to discuss 
the progress of adoption. For example, 
a specific behavior could be added as a 
focal point in each departmental meeting.


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By providing time and space for candid 
discussion and assessment, leaders 
can facilitate the transition to the new 
behavioral framework. Feedback and discussion should not be 
limited to executive peers; leaders should 
incorporate feedback from employees and 
other stakeholders beyond the company 
walls (suppliers, partners, customers, 
etc.) in relation to progress on behaviors 
relevant to that group. "By providing 
time and space for 
candid discussion 
and assessment, 
leaders can 
facilitate the 
transition to the 
new behavioral 
framework." 


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IF MANAGERS CAN SET 
THEMSELVES A SERIES 
OF CONCRETE, DEFINED 
BEHAVIORS TO 
FOLLOW OR ELIMINATE, 
ORGANIZATIONS WILL 
SEE MEASURABLE 
CHANGE AND TANGIBLE 
BENEFITS. Perspectives from Capgemini
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In light of the importance of internal organizational 
behaviors, as detailed above, it is surprising that discussion 
of behaviors tends to concentrate on consumer behaviors 
rather than behavioral 
change at leadership level. Executive and managerial 
behavior is pivotal to project 
credibility and nurturing 
trust inside and outside the 
organization.


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Simply defining 
a new manifesto of values and 
cascading it down from the top 
in the hope that change will 
follow is rarely successful. If 
managers can set themselves 
a series of concrete, defined 
behaviors to follow or 
eliminate, organizations will see measurable change and 
tangible benefits. Leaders should 
incorporate feedback 
from employees and 
other stakeholders 
beyond the company 
walls."


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Insights 
from the  
Capgemini 
Research  
Institute
LOW-CARBON 
HYDROGEN
A path to a greener future   
P.201
A WORLD IN 
BALANCE 
Why sustainability ambition is not 
translating to action   
P.206


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LOW-CARBON 
HYDROGEN
A PATH TO A GREENER FUTURE
For details on the research methodology and to read the full report, please visit: 
https://www.capgemini.com/insights/research-library/green-hydrogen/


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E&U organizations expect low-carbon hydrogen’s share of the 
total hydrogen mix to increase significantly by 2050
Grey Blue Low-carbon Others
Hydrogen mix 
expected in 2050
Hydrogen mix 
today
71%
22% 21% 55%
23%5%
1%
3%
-49 pp +16 pp +54 pp -20 pp
Note: This represent subjective organizational expectations for low-carbon hydrogen and is not based on present capabilities and 
investment levels. Source: IEA, Hydrogen Tracking Report, September 2022; Capgemini Research Institute, low-carbon hydrogen survey, November–
December 2022; N=500 respondents from unique energy and utilities organizations.


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E&U organizations believe that with 
low-carbon hydrogen, nations can reduce 
their dependence on fossil fuels
of energy demand will be met by low-carbon 
hydrogen by 2050 as per the estimates of  
E&U organizations
End-user organizations are looking at 
low-carbon hydrogen to replace carbon-in-
tensive systems
E&U organizations agree that low-carbon 
hydrogen is one of the key long-term solutions 
for decarbonizing economies
61%
62%
62%
63%
18%
E&U organizations believe that the current 
crisis has led nations to reconsider their 
energy mixes
Insights
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Organizations are optimistic and ambitious 
about low-carbon hydrogen


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Industries such as refining, fertilizers, and chemicals will 
widely harness low-carbon hydrogen 
A majority of E&U organizations are planning to invest in low-
carbon hydrogen initiatives
% of respondents who see high potential for low-carbon hydrogen 
in their respective industries
94%
High potential by 2030
100%
83%
99%
56%
96%
43%
74%
41%
30%
85%81%
High potential by 2050
Heavy transportAviationMaritime transportSteelChemicals
and fertilizers
Petroleum reﬁning
Note: Respondents from each sector answered about potential for their own industry only. Source: Capgemini Research Institute, low-carbon hydrogen survey, November–December 2022; N=360 respondents from unique end-
user organizations.


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Source: Capgemini Research Institute, low-carbon hydrogen survey, November–December 2022; N=447 respondents from unique 
energy and utilities organizations. Insights
203
Capgemini Research InstituteClimate Tech: for a Sustainable Planet
Investment in low-carbon hydrogen 
is on the rise
26%
2022 2030 2050
64%
98%
% of organizations that are investing/planning to invest in
 low-carbon hydrogen


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E&U organizations are making investments across the low-
carbon hydrogen value chain
% of organizations investing or planning to invest in diﬀerent
 areas of low-carbon hydrogen value chain
45%
52%
15%
7%
53%
R&D and 
innovation Production Storage Transport and 
distribution 
End-to-end 
value chain
Source: Capgemini Research Institute, low-carbon hydrogen survey, November–December 2022; N=500 respondents from unique 
energy and utilities organizations. Insights
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Capgemini Research Institute Climate Tech: for a Sustainable Planet
Cost, engineering, and skills challenges 
are yet to be addressed
Cost
Challenges
Engineering 
& Infrastructure 
Challenges
Skills
Challenges
Low-carbon hydrogen is 
2-3 times more 
expensive to produce 
than fossil fuels
Half of E&U organizations 
rank high energy 
consumption during 
production as one of the 
top production 
challenges
A majority of E&U 
organizations rank safety 
concerns, speciﬁcity of 
storage conditions and 
insuﬃcient existing 
hydrogen pipeline 
infrastructure among the 
top challenges
Around half of E&U and 
end user organizations 
rank lack of skills 
and expertise among the 
top ﬁve challenges to 
scale hydrogen


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Investment in low-carbon hydrogen 
is on the rise
• Harness the potential of 
digital-twin technologies to 
reduce cost and operational 
risks
• Develop robust data and 
technology foundations to 
maximize agility and resilience 
in the supply chain
• Tailor the business-case assessment to your organization 
• Establish governance models to support new business models
• Establish hydrogen-competence centers for skills development
• Clearly articulate partnership 
strategy and design appropriate 
trade-oﬀs while partnering with:
- Primary energy producers
- Equipment suppliers
- Storage-system developers
- Infrastructure providers
- End-users
- End-to-end value chain ACTIVATECOLLABORATE
STRATEGIZE
Accelerate 
and scale 
low-carbon 
hydrogen


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For details on the research methodology and to read the full report, please visit: 
https://www.capgemini.com/insights/research-library/sustainability-trends/
A WORLD 
IN BALANCE 
WHY SUSTAINABILITY AMBITION IS NOT 
TRANSLATING TO ACTION 


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The business case for sustainability is currently largely 
underestimated or misunderstood  
Organizations often see sustainability initiatives as 
obligatory and unprofitable
Source: Capgemini Research Institute, Sustainability Transformation Trends Survey, August–September 2022, N = 2,004 
executives, 668 organizations
Source: Capgemini Research Institute, Sustainability Transformation Trends Survey, August–September 2022, N = 2,004 
executives, 668 organizations
21%
% of executives who agree 
with the statement:
The business case for 
sustainability is clear
Insights
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Organizations view 
sustainability as a cost driver, 
not an investment   
Sustainability initiatives are a 
ﬁnancial burden we have to bear in 
order to do business
The cost of sustainability initiatives
outweighs  the beneﬁts
53%
53%
% of respondents who see high potential for low-carbon hydrogen 
in their respective industries


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Our research suggests that environmental sustainability 
is financially viable 
We identified a set of frontrunners, who have progressed further on their 
sustainability transformation than the rest of the companies we surveyed. One in ten organizations (11%) in our survey are categorized as a sustainability 
frontrunner.


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From 2020 to 2021, frontrunners realized: 
50% of respondents say 
that their organization provides 
autonomy to employees to 
develop solutions to sustainability 
challenges  
 
83% 09% 
higher revenue per 
employee compared 
to the average 
higher net profit 
margin compared to 
the average  
Less than half of organizations are focusing on 
sustainability recruitment/upskilling 
Source: Capgemini Research Institute, Sustainability Transformation Trends Survey, August–September 2022, N = 1,003 
executives in corporate functions. About half of respondents 
say that their organization acts 
on the concerns of internal 
stakeholders when shaping 
sustainability initiatives 
We Actively recruit 
and hire new talent with strong 
sustainability skills
Upskilling/ reskilling on hard 
sustainability skill is a top priority 
of our company 
47%
41%
% of executive who agree with the statements
Insights
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People and culture challenges limit 
enterprise-wide collaboration and adoption  


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Some organizations are 
investing in technologies to limit 
environmental impact  
How organizations can accelerate 
toward sustainability   
This report shares recommendations for how eight C-suite positions can accelerate their 
companies’ sustainability ambitions, which must be implemented in a combined, 
collaborative view: 
 
know how 
much carbon its 
technology emits 
across digital tools, 
apps, IT systems, 
and data centers  
are investing 
in AI and 
automation for 
sustainability  
are investing in 
IoT to monitor or 
reduce energy 
consumption 
use digital 
technologies to 
reduce travel 
and carbon 
footprints 
55%  60%  56%  55%  
• The CEO must make sustainability a 
business priority 
• The CFO must articulate the business 
case for sustainability and ensure it is 
understood throughout the organization   
• The CMO must implement protocols 
to avoid greenwashing sustainability 
credentials  
• The chief design/product officer needs 
to embed sustainability as a core design 
principle   
• The chief procurement/supply chain 
officer needs to work with suppliers to 
ensure they achieve sustainability goals  
• The CTO/CIO must strengthen 
sustainable IT initiatives 
• The COO needs to build the foundation 
of the sustainable organization 
• And, of critical importance, the CHRO 
needs to staff for sustainability, which 
requires new skill sets and a new 
leadership model. 


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We are grateful to all our guest contributors for sharing their experience 
and insights as well as to their teams and in particular Francois Jackow (Air 
Liquide), Domitille Fafin (Air Liquide), Christel Des Royeries (Air Liquide), 
Dr Frances Arnold (Nobel Prize laureate), Alexandra Palt (L ’Oréal), Karin 
Svensson (Volvo Group), Anna  Arbius (Volvo Group) Virginie Helias (P&G), 
Ana Sofia Hernandez (P&G), Johan Rockström (Potsdam Institute for 
Climate Impact Research), William McDonough (Cradle to Cradle), Celeste 
Weaver (Cradle to Cradle), Marcie Siegel, Ovais Sarmad (UNFCCC), Monica 
Gavriluta (UNFCCC), Emanuele Taddei(UNFCCC), Eliano Russo (Enel), 
Belén Alarcón Silva (Enel), Elisa Moioli (Enel), Nathalie Casas (Climeworks), 
Judith Hebekeuser (Climeworks), Claudia Garcia (Climeworks), Peter 
Reinhardt(Charm Industrial), Areeb Malik, (Glacier), Devon Wright( Lumo), 
Ask Helseth( Spoor), Iggy Bassi, (Cervest), Arielle Kouyoumdjian (Changing 
Planet Justice), Vinisha Umashankar (Solar ironing cart) and Rahmina 
Paullette (Kisumu Environmental champion), Emmanuel Fonteneau, Dany 
Tello, Lucia Sinapi, Priya Bohra, Andy Heppelle, Dylan Garrett for their 
contributions to the journal. We would also like to thank all our Capgemini colleagues who have been 
supporting this project throughout and in particular Cyril Garcia, Pascal 
Brier, Salomon Salinas, Florent Andrillon, Andy Heppelle, Daniel Zackrisson, 
Elisa Farri, Jean-Baptiste Massignon, Per Holmblad, Gabriele Rosani, Diane 
Botta, Suparna Banerjee, Kristin Morris, Punam Chavan and the Capgemini 
Research Institute team – Jerome Buvat, Subrahmanyam KVJ, Navya 
Atmakuri, Amrita, Dominique Banon.


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Capgemini Research InstituteClimate Tech: for a Sustainable Planet
Discover more about our recent research
Conversations for Tomorrow: 
Nurturing the future of work 
– how organizations empower 
talent
Green Hydrogen: A Path To A 
Greener Future 
A World In Balance: Why 
Sustainability Ambition Is Not 
Translating To Action
Rethink: Why Sustainable 
Product Design is the Need of 
The Hour
Conversations for 
tomorrow: Intelligent 
Industry: The Next Era of
Transformation
 Conversations for 
tomorrow: The New 
face of marketing
Conversations for 
tomorrow: breathe 
in(novation): Uncover 
innovations that matter
 Conversations for 
tomorrow: The Future 
of Work Starts Now
Conversations for Tomorrow: 
A sustainable future calls 
for collective action, bolder 
leadership, and smarter 
technologies


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Capgemini Research Institute Climate Tech: for a Sustainable Planet
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#GetTheFutureYouWant
About Capgemini 
Capgemini is a global leader in partnering with companies to transform and 
manage their business by harnessing the power of technology. The Group 
is guided everyday by its purpose of unleashing human energy through 
technology for an inclusive and sustainable future. It is a responsible and 
diverse organization of over 340,000 team members in more than 50 countries. With its strong 55-year heritage and deep industry expertise, Capgemini is 
trusted by its clients to address the entire breadth of their business needs, from 
strategy and design to operations, fueled by the fast evolving and innovative 
world of cloud, data, AI, connectivity, software, digital engineering and 
platforms. The Group reported in 2021 global revenues of €18 billion. www.capgemini.com
About Capgemini  
Research Institute 
The Capgemini Research Institute is Capgemini’s in-house think tank 
on all things digital.


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The Institute publishes research on the impact of 
digital technologies on large traditional businesses. The team draws on 
the worldwide network of Capgemini experts and works closely with 
academic and technology partners.


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The Institute has dedicated research 
centers in India, Singapore, the United Kingdom, and the United States. It was recently ranked number one in the world for the quality of its 
research by independent analysts. https://www.capgemini.com/insights/research-institute/


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2  PwC | State of Climate Tech 2021
Foreword
For all the progress of the 2021 United Nations Climate Change Conference (COP26), there is one 
conclusion that is hard to dodge. The world has got a mountain to climb. In the analysis of PwC’s 
2021 Net Zero Economy Index, to avoid more than 1.5°C of warming, the world now has to 
decarbonise at 12.9% a year, over eight times the rate historically achieved since 2000. With the 
global economy, based on COP26 2030 targets, on a glide path to producing an estimated 2.4°C of 
warming, the fundamental analysis of the Intergovernmental Panel on Climate Change (IPCC) that 
this is ‘code red for humanity’ remains unchanged. How does society plug this gap?


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As the COP26 process highlighted, with its focus on 
breakthrough technologies, there’s mounting recognition that a new generation of 
climate innovations will have a key role to play in accelerating decarbonisation, 
delivering business models that have the potential to radically decarbonise carbon-
intensive sectors, including the transport, energy, industry and food nexus that together 
constitute over 50% of global carbon emissions. We are seeing a rapid, dramatic increase of interest in climate tech start-ups—a new 
generation of innovators leveraging these technologies to shake up high-carbon 
business models ripe for disruption — but the challenge is scale.


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Most critical, for many 
start-ups, is getting hold of the funding they need to escape the ‘valley of death,’ where 
the innovator is too big for angel capital but too high-risk for commercial lending. It’s in 
this space that venture capital (VC) plays a critical catalytic role. PwC’s 2020 State of Climate Tech report highlighted the rapid increase in the climate 
tech market, booming from US$418m globally in 2013 to US$16.3b in 2019, rising more 
than 3,750% in only seven years. This year’s report sees a further acceleration, with the 
average size of climate tech deals nearly quadrupling in the first half of 2021 and over 
200% growth in terms of total volumes year on year. As Larry Fink, CEO of BlackRock, 
has commented, the next billion-dollar start-ups will be in climate tech. But as we look to decarbonise at speed and scale, it’s crucial that we also identify the 
commercially viable climate tech opportunities that aren’t yet picking up the capital. For 
the first time this year, our analysis also looks at the carbon funding gap, the climate 
tech equivalent of carbon $5 notes lying on the ground, where the deal flow is lagging 
the decarbonisation opportunity. Technology is not the answer, it’s the amplifier of intent.


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And climate tech alone is not 
the panacea, but it’s a space that is emerging rapidly as a critical mechanism to bend 
the emissions curve down and get the world back on track towards 1.5°C. Leo Johnson
Disruption & Innovation Leader, Partner, 
PwC United Kingdom
Emma Cox
Global Climate Leader, Partner, 
PwC United Kingdom


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3  PwC | State of Climate Tech 2021
Executive
summary
A hot year for climate, creating 
urgency for a green recovery
The last year has seen a transformation in 
the VC landscape. New types of capital 
and funding mechanisms have resulted in 
significant new flows of investment into 
private markets.


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In addition, cash reserves 
for investment stockpiled in 2019-20 is 
now being put to use in the deals-led 
recovery of 2021. The investment landscape for climate 
tech is no different, as society increasingly 
feels the impacts of climate change. The 
IPCC AR6 report, published in August 
2021, amplified the calls for drastic action. COP26 has echoed this, and significantly, 
the Glasgow Breakthroughs 
announcement states a plan for countries 
and businesses to work closely together 
to speed up affordable clean-tech 
adoption worldwide. This accelerated focus on environmental, 
social and governance (ESG) criteria in 
private markets,1 alongside emerging 
regulations such as the EU’s Sustainable 
Finance Disclosure Regulation, is driving 
growth and leading many companies and 
investors to pivot their strategies. Thousands of companies have made 
public commitments to net zero, set 
science-based targets or sought to 
demonstrate their wider commitments to 
society through B Corp status. Megafunds 
have been ring-fenced for climate tech, 
including Brookfield’s US$7bn Global 
Transition Fund2 and TPG’s US$5.4bn 
Rise Climate fund.3 
Climate tech scaling for impact: 
Trends from this year’s analysis
Investment in climate tech is 
continuing to show strong growth as an 
emerging asset class, totalling US$87.5bn 
over the last 12 months analysed (H2 
2020 and H1 202145, with H1 2021 alone 
delivering record investment levels in 
excess of US$60bn. This represents a 
210% increase from the US$28.5bn 
invested in the 12 months prior.


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Climate 
tech now accounts for 14 cents of every 
VC dollar. The average deal size nearly 
quadrupled in H1 2021 from one year 
prior, growing from US$27m to US$96m. Megadeals are becoming increasingly 
common and are driving much of the 
recent topline funding investment  
growth in climate tech.


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Innovative finance remains core to 
climate tech’s growth. The past 18 
months have seen special-purpose 
acquisition companies (SPACs) tested as 
a new tool in the toolkit for start-ups 
looking to go public and raise large 
amounts of funding. This new fundraising 
approach is responsible for driving a 
significant proportion of growth in climate 
tech, with H1 2021 seeing SPACs provide 
a third of all funding at US$25bn. Thousands of companies have made 
public commitments to net zero, set 
science-based targets or sought to 
demonstrate their wider commitments to 
society through B Corp status. Megafunds have been ring-fenced for 
climate tech, including Brookfield’s 
US$7bn Global Transition Fund2 and 
TPG’s US$5.4bn Rise Climate fund3. 


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Mobility and Transport remains the 
most heavily invested challenge area, 
raising US$58bn between H2 2020 and 
H1 2021, which represents over two-
thirds of the overall funding in the period. Within this, electric vehicles (EVs) and low 
greenhouse gas (GHG) vehicles remain 
dominant. In particular our analysis found 
that H1 2021 was dominated by a handful 
of significant megadeals, with Lucid 
Motors raising US$6.9bn, Northvolt 
US$2.8bn, Cruise US$2.8bn and Rivian 
US$2.7bn. There has also been significant growth 
in Industry, Manufacturing and 
Resource Management, raising 
US$6.9bn between H2 2020 to H1 2021, 
over triple the amount raised by the 
vertical in the period a year prior. This has 
been driven by megadeals such as 
Ginkgo Bioworks’ US$2.5bn raise in H1 
2020 and the rise of numerous circular 
and second-hand businesses. These 
include Back Market, which raised 
US$335m, and Vinted, which raised 
US$300m in H1 2021. The US remained the most dominant 
geography in H2 2020 – H1 2021, 
completing more deals than any other 
geography. The world’s most active 
climate tech hub, the San Francisco Bay 
Area, continued to lead the way, with 
start-ups across every challenge area 
raising funding in the 12 month period. Notable rounds included goliaths such as 
Cruise raising in excess of US$2bn 
between Microsoft, General Motors and 
Honda; as well as sectoral innovators 
such as Electric Hydrogen and Sound 
Agriculture raising US$24m (Series A) and 
US$45m (extended Series C). Beyond the 
Bay Area, the next-most active climate 
tech hubs are London, Berlin and New 
York.


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A commercial opportunity 
with impact
In this second edition of the PwC State of 
Climate Tech report, we highlight new 
analysis that covers findings and trends in 
key climate technology areas, examining 
the link between technological maturity, 
proximity to sectoral tipping point, 
emissions reduction potential and 
investment volume.


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The new analysis also 
highlights potentially underfunded areas 
that present opportunities for investors.


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We hone in on 15 specific climate 
technology areas and explore whether the 
solutions with the highest potential to 
remove carbon at speed are getting the 
funding they need to scale up. Our analysis finds that there are still 
significant areas of untapped potential—
so-called ‘carbon [US]$5 notes lying on 
the ground.’ Of the 15 technology areas 
analysed, the top five that represent over 
80% of future emissions reduction 
potential by 2050 received just 25% of 
recent climate tech investment 
between 2013 and H1 2021. This tells us that an opportunity is being 
missed, as capital is not being deployed 
in line with climate impact potential, with 
a handful of mature technology areas 
instead attracting the majority of 
investment. Though funding is needed 
across all challenge areas, targeting 
funding to nascent technology areas can 
enable breakthrough innovations, trigger 
sectoral tipping points to accelerate 
adoption and achieve meaningful  
financial returns as well as sectoral 
decarbonisation. Many of the climate tech investors we 
spoke to were driven not just by a desire 
to have a positive impact but also by the 
potential for significant financial returns. In line with science-based targets, society 
will need to remove carbon emissions 
from all stages of the value chain, and 
start-ups that can address unmet 
mitigation needs offer an untapped 
opportunity to create commercial and 
environmental value. Achieving breakthrough innovations in 
these currently underfunded areas will 
require new action from investors and 
policymakers. Interviews with industry 
incumbents have highlighted that more 
patient capital from VC is still required to 
deliver future breakthroughs in climate 
technology. In addition, long-term 
strategic plans and targeted policy 
measures by governments, such as 
carbon pricing, are needed to kick-start 
investment in hard-to-abate sectors and 
to deliver net zero infrastructure5 —for 
example, low GHG concrete or green 
hydrogen production, as well as carbon 
removal technologies that will be pivotal 
to achieve global net zero targets. This combined analysis and insight 
illustrates the need to consider climate 
change in its entirety, as a complex 
interdisciplinary issue.


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Private markets 
should be encouraged and emboldened 
to look beyond their traditional sector and 
geographical silos. They should consider 
climate tech more holistically to achieve 
deep cross-sectoral decarbonisation and 
to uncover future ‘gigacorns,’ companies 
with potential to abate one gigaton of 
emissions per year while being 
commercially viable. 4  PwC | State of Climate Tech 2021


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Climate tech as a maturing 
asset class
The climate tech market is a rapidly 
maturing asset class, offering investors 
not only financial returns but also the 
opportunity for outsized environmental 
and social impact. Climate technology 
has moved well beyond a proof of 
concept, attracting investors who have to 
date not previously invested.


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Though this 
area presents a major commercial 
opportunity, due to the inherent value 
associated with reducing emissions, 
which will be validated one day with a 
global carbon price, there is still much 
work to be done to channel this 
investment appropriately. The need for a green recovery 
and just transition
Climate tech solutions can be classified in 
three broad categories:
•  Those that help us mitigate climate 
change by reducing or sequestering 
emissions. •  Those that enable us to adapt to the 
impacts of climate change.


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•  Those that help us to understand 
climate change and its impacts through 
data. Society’s response to climate change will 
involve a combination of these three 
areas, all of which are interlinked. For 
example, the IPCC have made it clear that 
significant emissions reductions and 
carbon removal will be required to stay 
within a 1.5°C pathway. If mitigation 
technologies are not accelerated, it is 
likely that this target will be exceeded and 
that large-scale adaptation will be 
required to deal with the impacts of 
climate change. In the same vein, access 
to high-quality data and monitoring will be 
crucial to enabling mitigation and 
adaptation efforts. However, a certain amount of warming is 
already locked in. The impacts from this 
warming will be most felt by the poorest 
in society, particularly in the Global South, 
who often have been the lowest emitters 
of GHGs but who will experience the most 
severe consequences. Funding is 
therefore needed across all categories of 
climate technology to enable a just 
transition and a greener, fairer future for 
all. Indeed, the recent Glasgow 
Breakthroughs6 announcement by world 
leaders at COP26 states a plan for 
countries and businesses to work closely 
together to support the developing world 
to access the innovation and tools 
needed to transition to net zero. “Achieving breakthrough innovations in 
these currently neglected areas will 
require new action from investors and 
policymakers”
5  PwC | State of Climate Tech 2021


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6  PwC | State of Climate Tech 2021
Key findings
US$222bn
invested in climate 
tech between 2013 
and H1 2021
Mobility & Transport 
60% of total climate 
tech investment
US$132bn invested 
in the area, more than any 
other challenge area
133% CAGR
Unicorns 
78 climate tech start-ups 
valued at US$1bn+
43 of which are Mobility  
and Transport start-ups
Investors 
6,000+ unique investors 
identified
2,500 active in H2 2020 
to H1 2021
1,600 active in H1 2021
Note: The data sources used have stronger 
coverage in European and North American 
markets. This analysis may therefore be a 
conservative estimate of the relative levels of 
Chinese investment and of overall investment.


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Impact analysis  
Of the 15 specific climate 
technology areas analysed, 
the top five that represent  
over 80% of future 
emissions reduction 
potential by 2050 received 
just 25% of recent climate 
tech investment between 
2013 and H1 2021. 210% 
growth in investment 
year on year
3,000+
climate tech start-ups 
identified  
US$60bn
More than US$60bn 
invested in climate tech 
in H1 2021 
14%  
Climate tech investment 
now accounts for 14 
cents of every VC dollar
Most active 
investment hubs 
(H2 2020–H1 2021) 
1    San Francisco Bay Area, CA, US
2    London, UK
3    Berlin, Germany
4    New York, NY , US
5    Boston, MA., US
Regional findings (total climate tech investment H2 2020–H1 2021) 
$56.6bn US$9bnUS$18.3bn
North America Europe China


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7  PwC | State of Climate Tech 2021
1
Introduction
Code red for humanity
The world is waking up to the threat of 
climate change, but action does not yet 
match the rhetoric. The IPCC issued a 
stark warning in the run-up to COP26. In 
their first major assessment in nearly a 
decade, their 2021 update was 
unequivocal that human influence has 
warmed the atmosphere and that our 
window to limit warming to 1.5°C this 
century—and avoid catastrophic climate 
change—is rapidly narrowing. A year of commitments and 
kick-start capital
A significant number of new funds have 
been established to channel the rapid 
inflow of capital into climate tech and a 
variety of new investor types have 
become engaged in climate tech 
investing.


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This, paired with the growth of 
innovative funding mechanisms such as 
SPACs and the deployment of pent-up 
cash reserves, has resulted in a huge 
step-change in the scale of climate tech 
investment. This looks set to continue into 
H2 2021, with notable climate tech 
megadeals in the second half of the year 
to date including Rivian (US$2.5bn, in 
addition to the US$2.7bn raised in H1, 
followed by further funding and an IPO), 
GoodLeap (US$800m) and Redwood 
Materials (US$750m). In the policy space, the US government 
has taken a step towards a green 
recovery, backed by legislation in the form 
of the recently signed US$1.2tn bipartisan 
infrastructure framework.7 This comes at 
the same time as the US and China 
reaffirmed their commitment at COP26 to 
boost climate cooperation over the next 
decade and the UK announced the 
Glasgow Breakthroughs, an international 
plan to deliver clean and affordable 
technology. The EU has also taken action 
on greenwashing, introducing the 
Sustainable Finance Disclosure 
Regulation in March, alongside ambitious 
and sweeping reforms, culminating in the 
Fit for 55 hydrogen strategy, released in 
July 2021. Buoyed by this renewed commitment to 
tackle climate change through innovation, 
investors and policymakers have been 
working together to ring-fence huge funds 
to accelerate the uptake and adoption of 
climate tech. For example, the European 
Commission announced a partnership 
with the Bill Gates-backed Breakthrough 
Energy Catalyst to unlock new 
investments for clean tech and 
sustainable energy projects totaling up to 
US$1bn over five years.8
The private sector has also shown that it 
is willing and able to step up to the plate 
to help drive the net zero transition. This 
year has seen private-sector players 
making the market for new climate tech 
operating models, with Stripe and Shopify 
deploying tech solutions to create new 
market demand for carbon removal.


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Together, these developments have 
resulted in significantly increased focus 
from investors on climate tech assets. Investment data analysed
The data underpinning the analysis set out in this 
report includes venture capital and private equity 
investment into start-ups that have raised at least $1 
million in funding. Funding round types analysed 
include grants, Angel, Seed, Series A-H, and IPOs 
(including SPACs). It is important to note that this report does not intend 
to provide a comprehensive overview of private 
market investment into climate tech, but specifically 
focuses on funding targeted at scaling new 
innovations. As such, PwC excludes project financing 
and debt from our analysis, for example. These 
funding types have proven to be important for the 
significant scale up of renewables over recent years, 
an area of climate tech which has reached high levels 
of technological maturity; but are typically less utilised 
by start-ups developing breakthrough solutions..


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8  PwC | State of Climate Tech 2021
8  PwC | State of Climate Tech 2021
2
Investment Analysis: 
Approach
What is climate tech? Climate tech is defined as technologies 
that are explicitly focused on reducing 
GHG emissions or addressing the impacts 
of climate change. Climate tech 
applications can be grouped into three 
broad, sector-agnostic groups: 
1. Those that dir ectly mitigate or remove 
emissions.


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Those that enhance our understanding 
of the climate. The term climate tech is purposely broad 
in order to incorporate the many 
technologies and innovations being used 
to address GHG emissions and the wide 
array of industries where they are being 
applied. Categorising climate tech start-ups by challenge area
To take a more detailed look at the market, the report considers climate tech in relation 
to six traditional industry verticals and two cross-cutting horizontals, aligned with key 
sectoral opportunities for climate action, as shown on the next page. We have enhanced 
our taxonomy from last year’s analysis, this year introducing a financial services vertical 
and adjusting our title and definition of the climate change management and reporting 
horizontal to better reflect the breadth and types of start-ups in this important area. How has PwC produced the 
data to support this report? Our investment analysis is based on 
PwC’s Climate Tech Investment Index, a 
proprietary and continually updated 
database of climate tech start-ups and 
investors, built with machine learning 
models and extensive human verification, 
part of PwC’s wider Climate Tech 
Platform11 Funding data is provided by 
Dealroom.co, a global data platform that 
gathers information on start-ups, 
investors and deals. Based on feedback from the investment 
community, we have focused our analysis 
on private markets and government 
funding into climate tech start-ups. This 
approach has been taken to demonstrate 
the financial trends in innovative climate 
technologies looking to scale up. This 
analysis does not, therefore, include the 
substantial public markets or project 
financing of mature climate technologies 
(for example, large-scale renewable 
energy projects such as wind and solar 
farms), nor does it cover corporate 
research and development (R&D) funding 
into climate tech. Additional detail on our 
methodology can be found in the 
appendix.


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9  PwC | State of Climate Tech 2021
Together these eight challenge areas, shown in the diagram above, encompass PwC’s ‘universe’ of climate tech solutions. Each of 
these eight challenge areas is then further broken down into specific net zero levers.9  These net zero levers are defined in further 
detail in the appendix.


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The challenge areas broadly follow the industry classifications set out by the IPCC,10 which are typically used 
when discussing emissions reduction. Mobility and 
transport
Energy Food, 
agriculture 
and land use
Industry, 
manufacturing 
and resource 
management
Built 
environment
Financial 
services
GHG capture, removal and storage
Climate change management and reporting


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10  PwC | State of Climate Tech 2021
10  PwC | State of Climate Tech 2021
3
Key findings:
Investment
Overall funding levels
H1 2021 set a record for climate tech 
investment levels, with in excess of 
US$60bn raised by more than 600 climate 
tech start-ups. At over 200% year-over-
year (YoY) growth, it also represents the 
fastest the sector has grown in our 
recorded dataset.


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As mentioned in the 
introduction, this looks set to continue, 
with several notable megadeals in H2 
2021 announced already.


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Key highlights12 
Following rapid growth between 2013–18, 
climate tech investment plateaued 
between 2018–20, as did the wider VC 
and private equity (PE) market, tempered 
by macroeconomic trends and the global 
pandemic. However, climate tech investment growth 
rebounded strongly in H1 2021, 
benefitting from latent capital being 
deployed with an increased focus on 
ESG. We identified over 6,000 unique investors, 
including venture capitalists, private 
equity, corporate VCs, angel investors, 
philanthropists and government funds. Together, they’ve funded over 3,000 
climate tech start-ups between 2013 and 
2021, covering nearly 9,000 funding 
rounds. Around 1,600 investors were active in H1 
2021, participating in over 700 funding 
rounds. That compares to fewer than 900 
investors active in H1 2020, indicating 
increasing competition for climate tech 
deals as the wider investment community 
becomes familiar with the opportunity of 
climate tech as an asset class. Investment into climate tech start-ups and number of deals
Source: PwC State of Climate Tech 2021, analysis of Dealroom data
 Number of deals   Energy  Mobility and transport   Industry, manufacturing and resource management 
 Built environment   GHG capture, removal an storage   Financial services   
 Climate change management and reporting  Food, agriculture and land use  
Investment (US$ bn)
Number of deals
80080
60
40
20
0
600
400
200
0
H1 
19
H2 
18
H1 
18
H2 
17
H1 
17
H2 
16
H1 
16
H2 
15
H1 
15
H2 
14
H2 
13
H1 
13
H1 
14
H2 
20
H1 
21
H2 
19
H1 
20


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Climate tech start-up funding by deal size
Source: PwC State of Climate Tech 2021, analysis of Dealroom data
 Average deal size   Megadeals (>$100m)   Smaller deals
Funding (US$ bn)
Average deal size (US$m)
10080
60
40
20
0
75
50
25
0
H1 
13
H2 
13
H1 
14
H2 
14
H1 
15
H2 
15
H1 
16
H2 
16
H1 
17
H2 
17
H1 
18
H2 
18
H1 
19
H2 
19
H1 
20
H2 
20
H1 
21
11  PwC | State of Climate Tech 2021
The Mobility and Transport challenge area 
continues to receive the largest amount of 
funding, as electric vehicles, micro 
mobility and other innovative transit 
models continue to attract significant 
investor attention. Of the ten start-ups 
that attracted the most investment in H1 
2021, eight were in Mobility and 
Transport.


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Mobility and Transport also led in terms of 
growth rate, though with Industry, 
Manufacturing and Resource 
Management (IM&R) and Financial 
Services not far behind, each recording 
over 260% year-on-year growth between 
H2 2019 and H1 2021. In fact, only one 
vertical challenge area—Built 
Environment—recorded a growth rate 
below 90%, coming in at 20% growth. The horizontal challenge areas of GHG 
Capture, Removal and Storage and 
Climate Change Management and 
Reporting recorded YoY growth rates of 
27% and 16%, respectively. Underlying 
drivers are explored in the challenge area 
sections. The number of climate tech unicorns has 
grown to 78.13 The majority of these 
unicorns sit in the Mobility and Transport 
challenge area (43), followed by Food, 
Agriculture and Land Use (13), Industry, 
Manufacturing and Resource 
Management (10) and  Energy (9). Investment by deal size: Bigger 
tickets indicate a maturing 
asset class
The average deal size nearly quadrupled 
in H1 2021 from one year prior, rising from 
US$27m to US$96m.


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This was over ten 
times the size of the average deal in H1 
2013. Megadeals (ticket size of more than 
US$100m) are also becoming increasingly 
common, with H1 2021 seeing the first 
triple-digit number (122). These megadeals have driven much of the 
top-line growth in climate tech start-up 
funding. This is driven both by the growth 
in the number of megadeals, as described 
above, and in the size of an average 
megadeal. The average megadeal has 
risen in size from US$130m in H1 2013 to 
over US$430m in H1 2021 (and has 
correspondingly increased the average 
size of all deals to US$96m), indicating 
that investment growth is being powered 
by a cohort of high-potential start-ups 
raising increasingly large amounts.


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Number of early stage rounds worth more than US$1m
Source: PwC State of Climate Tech 2021, analysis of Dealroom data
 Seed   Series A   Early VC
400
300
200
100
0
H1 
13
H2 
13
H1 
14
H2 
14
H1 
15
H2 
15
H1 
16
H2 
16
H1 
17
H2 
17
H1 
18
H2 
18
H1 
19
H2 
19
H1 
20
H2 
20
H1 
21
12  PwC | State of Climate Tech 2021
Investment in early-stage  
start-ups: Stagnation suggests 
more needs to be done to 
maintain momentum
Prominent investors have set out their view 
of the scale they expect climate tech to 
reach. Bill Gates was quoted this year as 
saying that ‘there will be eight Teslas, ten 
Teslas [in climate tech, but that] only one of 
them is well-known today.’14  Similarly, 
Larry Fink believes that “the next 1,000 
unicorns [...] will be businesses developing 
green hydrogen, green agriculture, green 
steel and green cement.”15 


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13  PwC | State of Climate Tech 2021
Despite this, the number of early VC, seed 
and Series A investments has remained 
largely stagnant since 2018, sitting 
between 260 and 320 deals in each of 
those half-years.16 The fundraising 
success of larger start-ups described 
earlier reflects the growing maturity of 
climate tech as an asset class. But for the 
sector to achieve continued growth, it will 
have to enable the next wave of start-ups 
that will one day become climate tech 
unicorns and gigacorns.


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We heard from investor interviews that 
access to early-stage climate tech deals 
was far more competitive than even a few 
years prior, suggesting that the number of 
deals has not been bottlenecked by 
investor interest. Instead, what is likely 
driving this lack of early-stage deal 
volume growth is a combination of two 
key factors. Risk aversion: The first factor is that 
early-stage investors are still largely 
focused on ‘safer’ challenge areas. The 
profile of funding across challenge areas 
is similar for early- and late-stage funding, 
suggesting that early-stage investors are 
focused on areas with demonstrated 
success and a pipeline of late-stage 
funding. More patient funding is needed 
for currently immature challenge areas to 
unlock the next wave of breakthrough 
climate innovations.


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Governments and 
sovereign investors will have a role to play 
here to de-risk action and R&D. Talent pool: The second challenge, similar 
to the wider start-up community, is the 
pipeline of climate tech talent. A few of 
our interviewees noted that there is a 
growing pool of talent, with many 
professionals pivoting into this space from 
within the tech industry. However, there 
remains a gap in terms of founders who 
understand the deep climate tech 
challenges and how these can be solved. The interdisciplinary nature of climate tech 
across industries means that it depends 
on several different talent pipelines, unlike 
more defined investment areas such as 
biotech. 


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14  PwC | State of Climate Tech 2021
SPACs have improved liquidity and 
provided an alternative financing 
solution for start-ups. This is particularly 
helpful for deep tech, which is perceived 
as higher risk”
(Ramez Naam, Singularity University). Climate tech funding from SPACs
Source: PwC State of Climate Tech 2021, analysis of Dealroom data
  SPACs   Other funding types
Funding (US$ bn)
80
60
40
20
0
H1 
13
H2 
13
H1 
14
H2 
14
H1 
15
H2 
15
H1 
16
H2 
16
H1 
17
H2 
17
H1 
18
H2 
18
H1 
19
H2 
19
H1 
20
H2 
20
H1 
21
SPACs: A tool in the climate 
tech toolkit accelerating growth
SPAC investment into climate tech has 
taken off, jumping from no investments in 
our dataset pre-2020 to US$3.5bn in 2020 
and US$25bn in H1 2021 (over 40% of 
the total funding in the latter period). The 
majority of this, US$20bn, has been in 
Mobility and Transport, with US$2.9bn 
going into Industry, Manufacturing and 
Resource Management, US$1.4bn into 
Food, Agriculture and Land Use and 
US$650m into Energy. SPACs provide an alternative way for 
climate tech start-up management teams 
and sponsors to list their company and 
access public market funding.


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Many in the 
VC climate tech community believe that 
SPACs have been advantageous for 
climate tech. However, scrutiny from 
regulators (particularly the US Securities 
and Exchange Commission) has 
increased in recent times, and market 
participants acknowledge that SPACs are 
a tool that will be refined with time.


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15  PwC | State of Climate Tech 2021
Post-IPO climate tech 
performance is booming
Climate tech companies are also 
demonstrating strong performance 
post-IPO. Below, we’ve charted the 
performance of the Energy Impact 
Partners’ (EIP) Climate Tech Index against 
the S&P 500.17 The index covers much of 
the breadth of climate tech solution areas, 
including companies from the Mobility 
and Transport; Energy; Food, Agriculture 
and Land Use; and Industry, 
Manufacturing and Resource 
Management challenge areas. The Climate Tech Index has delivered 
substantially higher returns than the 
benchmark, generating triple the returns 
between January 2020 and October 2021. This above-market growth coincided with 
the emergence of many of the market 
drivers examined in last year’s State of 
Climate Tech report, such as increased 
regulatory and business commitments to 
net zero. This relative success and 
significant appetite from public market 
investors provides a signal to private 
market investors that climate tech 
start-ups can generate substantial exit 
opportunities. Whilst there has been a comparative 
decline in return for the EIP Climate Tech 
Index against the benchmark during 2021, 
this is not unexpected in the aftermath of 
a global contraction like that seen during 
the pandemic, following which investors 
have typically retreated in the short term 
into safer asset classes. However, the 
EIP Climate Tech Index has started 
rebounding as of October 2021, boosted 
by strong demand signals in the run-up to 
COP26. Some prominent venture capitalists are 
innovating their fund designs to secure 
greater financial returns from staying 
involved post-IPO.


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For example, Sequoia 
Capital announced this year that they 
would be restructuring around a singular 
and permanent structure. The move is 
designed to better align interests among 
the fund, founders and limited partners, 
and provide them with the flexibility to 
deploy more patient capital.18 This has the 
potential to create additional financial 
value. Sequoia estimates that holding 
onto shares for just 12 additional months 
would have resulted in over US$8bn in 
added returns over the past 15 years,19  
whilst also scaling up the next generation 
of climate tech gigacorns. Total shareholder return for climate tech companies
Source: Refinitiv’s Return Index.


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Caption: Total shareholder returns for Energy Impact Partners’ Climate Tech Index vs. the S&P 500 as a benchmark.


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Indices are used with permission. EIP Climate Tech Index   S&P 500
Return
500%
400%
300%
200%
100%
0%
Jan 2020 Apr 2020 Jul 2020 Oct 2020 Jan 2021 Apr 2021


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16  PwC | State of Climate Tech 2021
16  PwC | State of Climate Tech 2021
4
Overview by challenge area 
This section of the report explores each of the challenge areas, which 
attract varying levels of capital depending on the maturity of the 
technologies within them. This includes a review of two key investment 
themes selected from the sub-industry levers analysed for each 
challenge area:  
1    The lever receiving the most funding 
2    The fastest-growing lever
This review covers the last 12 months included in PwC’s research 
analysis, H2 2020 and H1 2021.


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17  PwC | State of Climate Tech 2021
Mobility and Transport 
Challenge area overview and climate challenge 
Transport is one of the fastest-growing sources of emissions globally, having increased by 71% since 1990,20 accounting for 16.2% of 
global emissions.21  The transition to electric vehicles has been a favoured tool for abating emissions.22  In addition, developments in 
green hydrogen in terms of synthetic fuels for transport are expected to be a key driver of the future hydrogen economy. 23  Use cases 
are explored further in the Energy section of this report.


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Business-as-usual continued growth in passenger and freight activity could outweigh all mitigation efforts unless transport emissions 
can be strongly decoupled from GDP growth. Electrifying transport systems remains a vital part of the net zero transition. Notably 
large mobility platforms such as Uber, Lime and Arrival have recently committed to net zero emissions by 2035.24 
Wider interventions will also be critical, such as a greater focus on increasing the attractiveness of different mobility options (modal 
shifts, shared transport and avoided journeys), improved vehicle performance, alternative fuels, infrastructure and built environment 
investment. Headlines from PwC analysis 
Investment level 
$58bn ( 281% YoY)   $132bn (133% CAGR)
H2 2020 - H1 2021  H1 2013 - H1 2021
Number of deals 
348 ( 3.6% YoY) 2223 (33% CAGR)
H2 2020 - H1 2021 H1 2013 - H1 2021
Challenge area definition  
The challenge area comprises:
•  Developments that incr ease 
efficiency (of engines, design or 
materials) associated with 
movement of goods or people by 
land, air or sea. •  Development of electric vehicles 
and micro mobility vehicles, and the 
infrastructure used to propagate 
these technologies, including shared 
car-ownership models and charging 
points.


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•  Development of battery 
technologies for mobility 
applications and the associated 
infrastructure. •  Impr ovements to the efficiency of 
transport systems, including use of 
autonomous and sensor 
technologies, improvements to 
maintenance and repair and urban 
planning and design. Most active investors
(by number of deals and excluding 
publicly funded innovation agencies, 
 for example, EIC, EIT InnoEnergy  
and Eurostars)
•  Y Combinator
•  Sequoia Capital
• T oyota
Unicorns
Mobility and Transport contains the largest number of unicorns within PwC’s analysis, 
with 43 from a total of 78 across all challenge areas. The majority are EV-related (16), 
followed by efficient transport systems (13), batteries and fuel cells (five) and low GHG 
air transport (five). Nineteen of the unicorns are in the US and 15 are in China. Investment (US$ bn)
Mobility and Transport:  funding raised and number of deals
13 H1
   Number of deals  n Travel alternatives (VR, teleworking)  n Micromobility  n Low GHG shipping 
  n Low GHG light and heavy duty transport EVs and high efficiency vehicles 
 n Low GHG air transport  n Efficient transport systems  n Batteries/fuel cells
13 H2
14 H1
50 250
40 200
30 150
20 100
5010
0 0
Number of deals
14 H2
20 H2
21 H1
17 H1
17 H2
18 H1
19 H1
19 H2
20 H1
18 H2
15 H1
16 H1
16 H2
15 H2
Source:  PwC State of Climate Tech 2021, analysis of Dealroom data


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18  PwC | State of Climate Tech 2021
Our perspective
Deal flow increased steadily from 20 in H1 2013 to a peak of 207 in H1 2019. More recently, deal flow has reduced (H2 2020: 155; H1 
2021: 193) as technologies reach maturity, resulting in higher-value deals. This has been paired with a growth in investment levels (H2 
2020: US$17bn; H1 2021: US$40bn), signalling an increase in megadeals, with the average deal size increasing from US$110m in H2 
2020 to US$212m in H1 2021. Growth in the number of deals has shown early signs of slowing since 2018 as some of the main levers—efficient transport systems 
and low GHG road transport—reach maturity. Low GHG shipping, low GHG air transport and batteries and fuel cells recorded 
significantly fewer deals than the other levers, indicating the relative immaturity of these levers. Key levers 
Investment themes: H2 2020 to H1 2021
(1) Lever receiving the most funding: Low GHG light  
and heavy vehicles
Deals are increasing in this lever (H2 2020: 49; H1 2021: 58) 
although disproportionately to investment levels (H2 2020: 
US$12.2m: H1 2021: US$20.4m). The average deal size has 
increased from US$249k to US$352k.


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This is to be expected as 
technologies such as EVs are maturing, reaching their market 
penetration tipping points, resulting in an increase in megadeals. Noteworthy start-ups:25 
•  Lucid Motors, a Silicon Valley start-up that designs, develops 
and builds luxury EVs, raised US$6.9bn in the period. •  Plus, whose mission is to develop self-driving trucks to make 
long-haul trucking safer, cheaper, more comfortable and better 
for the environment, raised US$1bn in the period.


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2. Fastest-growing lever: Batteries and fuel cells 
Growing at a rate of 1,722% YoY , investment in this lever peaked 
in H1 2021 at US$5.9bn from just 18 deals. This has been fuelled 
by a number of factors, including the need for energy storage 
capacity to support renewables and EVs reaching their market 
tipping point.


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Noteworthy start-ups: 
•  Northvolt raised US$3.4bn in the period, producing lithium-ion 
batteries with clean energy. •  Ample raised US$24.5m in the period, using modular battery 
swapping for fast charging and providing price-competitive 
charging infrastructure. 


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19  PwC | State of Climate Tech 2021
Low GHG shipping 
Shipping is a highly polluting yet frequently overlooked sector, responsible for nearly 3% of global emissions.26 With around 90% 
of world trade relying on the sector, it is under increasing pressure to decarbonise. Despite this, limited funding is being invested 
into start-ups in this sector, with around US$113.5m of investment between 2013 and H1 2021 into only 15 start-ups, making it 
the second least invested-in lever in Mobility and Transport.


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Increased efficiency  
The highest level of funding has been funneling into software solutions that help shippers to increase efficiency through access to 
high-fidelity transportation data and predictive insights across their supply chain to reduce emissions. For example, Nautilus Labs 
raised US$13m to build AI software to advance the efficiency of ocean commerce. Elsewhere, Envoy raised $5.8m to help 
eliminate pollution from boats around the world with electric propulsion technology. Fossil fuel reduction
Investment into fossil fuel reduction in shipping remains nascent. There are some start-ups raising investments that focus on 
motor technology, including electric outboard motors (Oceanvolt, Pure Watercraft). However, typically the technology being 
developed is for smaller, recreational boats rather than long-haul shipping. There is also some investment into fuel-saving 
technologies such as hydrofoils and auxiliary wind propulsion for ships, but again, this remains limited. Why?


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•  Lack of regulatory incentives, such as carbon levies, resulting in unambitious sector decarbonisation targets. •  Capital and time required to develop new technologies and infrastructure. •  A green premium price for cleaner fuels, which reduces cost effectiveness and increases product prices. •  Lack of communication, collaboration and technological alignment between different parts of the supply chain, including 
countries, carriers, ports and manufacturers.


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● Reduced competition and minimal entry points to the global ship ping industry. •  Monopolistic nature of the global shipping industry, reducing competition and entry points for innovators. 


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20  PwC | State of Climate Tech 2021
Energy
Challenge area overview and climate challenge 
The production, transport and use of energy make up almost three-quarters of global GHG emissions, with 13.6% of total emissions 
attributed to energy, representing one of the greatest opportunity areas to be addressed via climate technology and other 
decarbonisation strategies, such as behaviour change.27  Rapid scaling of low-carbon energy is critical to curbing emissions and 
keeping the world on track to meet the Paris Agreement goals. Yet the International Energy Agency (IEA) estimates that just 2% of the 
recent US$16tn in fiscal support mobilised by governments to rebuild their economies affected by the COVID-10 pandemic was 
allocated towards clean energy.


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28  
Despite this, year-on-year unit costs of renewables have continued to fall,29  while energy efficiency has increased,30  driven by 
learning curves and economies of scale. Overall investment has been lower compared to other challenge areas, reflecting the relative 
maturity of wind and solar, which have transitioned to debt, project and other forms of financing. However, the global fusion industry is warming up, with increasing levels of investment in 35 companies founded since 2010. In 
addition, VC investment in energy storage and more efficient smart grids for energy transmission are also required to support 
innovation, the scale-up of renewables and the transition to e-mobility. Headlines from PwC analysis 
Investment level 
$8.2bn ( 96% YoY)   $31.5bn (32% CAGR)
H2 2020 - H1 2021  H1 2013 - H1 2021
Number of deals 
295 (no change YoY) 2110 (17% CAGR)
H2 2020 - H1 2021 H1 2013 - H1 2021
Challenge area definition 
The challenge area comprises:
•  Pr oduction, development and 
distribution of alternative fuels. •  Measur es that support proliferation 
of renewable energy, including  
load balancing (storage) and 
supply-demand balancing 
mechanisms.


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•  Measur es that increase efficiency of 
the energy sector or of energy-
intensive electronics (such as data 
centres) and reduce any associated 
GHG emissions. It excludes measures that create 
efficiencies for fossil-fuel energy 
generation, such as improvements to 
venting or flaring mechanisms on oil 
and gas refineries. Most active investors
(by number of deals and excluding 
publicly funded innovation agencies, 
 for example, EIC, EIT InnoEnergy  
and Eurostars)
•  T otalEnergies Carbon Neutrality 
Ventures
•  Br eakthrough Energy Ventures
•  Demeter
Unicorns
Nine of the total 78 climate tech unicorns identified in this report are in the Energy 
challenge area (12%). The leading levers are high efficiency energy intensive electronics 
and smart monitoring / management (three) and renewable energy generation (three). 5
4
3
2
1
Investment (US$ bn)
Energy: funding raised and number of deals
13 H1
13 H2
14 H1
   Number of deals  n Waste heat capture/conversion/storage n Renewable energy generation n Nuclear
 generation n Low GHG extraction and maintenance n High efficiency energy intensive electronics, and smart
monitoring / management n Grid management n Energy storage (thermal /electric) n Alternative fuels
14 H2
16 H1
15 H1
16 H2
15 H2
17 H1
17 H2
18 H1
18 H219 H119 H220 H1
20 H2
21 H1
200
150
0
Number of deals
100
50
0
Source: PwC State of Climate Tech 2021, analysis of Dealroom data


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21  PwC | State of Climate Tech 2021
Our perspective
Investment growth has come from an increase in the size of deals, rather than the number of deals. The average deal size has 
doubled from US$15m (H1 2020) to US$31m (H1 2021). Investor interest has been stimulated by hydrogen and energy storage, as 
EVs reach their tipping point, coupled with forecasts of potential lithium shortages.31 The markets for both hydrogen and battery 
storage are still relatively immature, and a combination of corporate and regulatory demand signals indicate they are primed for 
disruption. There has been a wave of announcements in terms of national hydrogen strategies, including France, Portugal, Spain, Australia, 
Germany, the Netherlands, the UK, Norway, Canada, Chile, Finland and Japan. This, in turn, has resulted in announcements of 
hydrogen projects, mainly in the production of green hydrogen, although there are a number of wider use cases.32  It is predicted that 
green hydrogen growth will continue based on global climate ambitions and sector-specific activities.33 However, it is unclear, without 
binding national commitments and targets, how quickly these projects will become cost-competitive with fossil fuels. We explore this 
further in the hydrogen spotlight box overleaf. The EU’s Fit for 55 Hydrogen Strategy is accelerating the rollout of hydrogen infrastructure in Europe and growing the addressable 
market for green hydrogen start-ups.34 The EU has also set out plans in its ReFuelEU Aviation initiative to increase the proportion of 
sustainable aviation fuel in Europe from 0.05% in 2020 to 5% by 2030, and rising further to 63% by 2050.35 Investors view alternative 
fuels like these as key transitional technologies that can be rapidly deployed using existing infrastructure. Key levers 
Investment themes: H2 2020 to H1 2021
(1) Lever receiving the most funding: Renewable  
energy generation
The number of deals has remained relatively flat (H2 2020: 144; 
H1 2021: 151) for this lever. This is despite funding increasing 
from US$882m in H2 2020 to US$2.4bn in H1 2021. This 
indicates an increasing number of megadeals, as this lever 
houses maturing technologies that are attracting higher-value 
deals. Similarly to last year, the largest deals include maturing 
technologies such as solar and wind. Noteworthy start-ups: 
•  Gr een Hydrogen Systems  raised US$196m in the period, 
producing standardised and modular electrolysers for the 
production of green hydrogen. •  Eavor T echnologies raised US$40m in the period, providing a 
geothermal energy solution.


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Their Eavor-Loop closed system 
harvests heat from deep within the Earth to be used for 
commercial heating or to generate electricity using 
conventional heat to power engines.


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2. Fastest-growing lever: Energy storage 
Energy storage is seeing continued growth in investment (H2 
2020: US$1bn; H1 2021: US$1.2bn), which is being driven by an 
increase in deals (H2 2020: 20; H1 2021: 27). This indicates a less 
mature technology area, with fewer megadeals than the broader 
climate tech asset class. Noteworthy start-ups: 
•  QuantumScape raised US$780m in the period, producing 
solid-state batteries for EVs, attracting investment from a range 
of investors and corporate VC. •  Malta raised US$50m in the period for electro-thermal energy 
storage systems that provide a new grid-scale technology to 
collect and store energy for long durations.


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22  PwC | State of Climate Tech 2021
Green Hydrogen
Interest in green hydrogen, which is produced by water electrolysis powered by renewable electricity, has ballooned over the past 
four years. Green hydrogen holds growing promise in both meeting future energy demands and supporting the world’s 
decarbonisation efforts across multiple sectors, particularly heavy industries, long distance transport and power generation. Green hydrogen value chain  
1. Production 
To meet the expected demand for green hydrogen, the cost of electrolysis must decline, and its efficiency must increase. Green 
hydrogen production raised US$1.4bn between H1 2013 and H1 2021, with a CAGR of 60%. The majority of companies focused 
on developing scalable, sustainable electrolyser technology that could enable wide-scale adoption. Notable start-ups include 
Green Hydrogen Systems and H2Pro. 2. Distribution & Storage 
Today, hydrogen can be stored, converted to synthetic fuels or transported from point of production via pipelines, trucks or ships. At the point of use, additional infrastructure is required, such as compression, storage, dispensers, meters and contaminant 
detection and purification technologies. VC investment into this part of the value chain is much lower compared to production, 
largely because it requires capital-intensive investment to build the infrastructure required to distribute hydrogen. Investment is 
starting to flow into hydrogen refuelling stations to support the rollout of fuel cell electric vehicles. For example, HTEC just raised 
CAD$217 million from Chart Industries Inc.


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3. End-use 
The most promising use of green hydrogen to date is in industrial processes (steel, iron and chemical) and long-haul 
transportation (hydrogen fuel cell technology and integration of hydrogen technologies into commercial transport). This year, the 
Swedish green steel start-up H2 Green Steel raised US$105m of Series A funding to decarbonise steel production. Investors 
included Exor, Wallenberg’s FAM, Italian steel company Marcegaglia and Swedish entrepreneur Cristina Stenbeck. Is hydrogen the next big thing?


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There is a clear acceleration of government interest in hydrogen. Twelve countries and the EU recently published their national 
hydrogen strategies, and a further 19 countries are currently drafting theirs.36 The UK government announced that it hopes to 
attract around £4bn of private-sector investment into low-carbon hydrogen energy production by 2030. 37 
On the corporate side, Shell, BP and Mitsubishi Power have announced their hydrogen plans, committing to green hydrogen 
projects as part of their net zero strategies, and have started to ramp up their investment into hydrogen energy infrastructure. PwC estimates that global demand for green hydrogen could reach about 530 million metric tons by 2050, displacing roughly 
10.4 billion barrels of oil equivalent (around 37% of pre-pandemic global oil production).38 
However, seeing green hydrogen as the silver bullet to decarbonisation across all sectors is overambitious, as it still faces 
regulatory, technical and economic challenges, particularly in certain end-use sectors. Investors need to start asking themselves 
which end-use sectors show the most promise.


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23  PwC | State of Climate Tech 2021
Food, Agriculture and Land Use 
Food systems are responsible for 20.1% of global GHG emissions,39 with the largest contribution coming from agriculture and land 
use activities.40  When combined with increasing anthropogenic pressures such as population increase, urbanisation and 
environmental degradation, society is presented with an exacerbated climate challenge connected to the world’s global food 
industry.41   
There is growing financial investment in plant-based meat and dairy alternatives, driven by consumer demand and media coverage.42  
The next generation of solutions is expected to focus on insect proteins for human and animal consumption,43  lab-grown meat44 and 
genetic editing.45 
Further attention is required to reduce food loss and waste and to create more sustainable packaging solutions, which could also 
extend the shelf life of produce. These issues are important, given that food loss and waste make up approximately one-quarter of 
food system GHG emissions.46 
Headlines from PwC analysis 
Investment level 
$10.7bn ( 132% YoY)   $24.9bn (80% CAGR)
H2 2020 - H1 2021  H1 2013 - H1 2021
Number of deals 
354 ( 3.5% YoY) 1922 (28% CAGR)
H2 2020 - H1 2021 H1 2013 - H1 2021
Challenge area definition 
The challenge area comprises:
•  Food pr oduction methods, 
commonly using biotech, that often 
replace carbon intensive animal-
based products (e.g. synthetic 
proteins).


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•  Low GHG farming practices that 
improve efficiencies or reduce 
carbon emissions, such as precision 
farming, vertical farming and 
aeroponics. •  Management and modification of 
natural environments, in particular 
through reforestation, afforestation 
and avoided deforestation. •  Land management to r educe carbon 
emissions (e.g. soil CO2 
sequestration). •  Any activity associated with r educed 
GHG emissions in food supply 
chains (e.g.


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eliminating spoilage). Most active investors
(by number of deals and excluding 
publicly funded innovation agencies, 
 for example, EIC, EIT InnoEnergy  
and Eurostars)
•  SOSV
•  T emasek
•  New Cr op Capital
Unicorns
Food, Agriculture and Land Use records the second-highest number of unicorns in 
PwC’s analysis after Mobility and Transport, 13 from a total of 78. Five of these are in 
alternative foods and low GHG proteins, three in value chain GHG reduction, two in 
precision agriculture and robotics, two in vertical and urban farming and one in 
agricultural biotech and genomics. Investment (US$ bn)
Food, Agriculture and Land Use: funding raised and number of deals
13 H1
13 H2
14 H1
14 H2
16 H1
15 H1
16 H2
15 H2
17 H1
17 H218 H1
18 H2
19 H119 H220 H1
20 H2
21 H1
200
150
0
Number of deals
8.00
6.00
4.00 100
2.00 50
0.00
Source: PwC State of Climate Tech 2021, analysis of Dealroom data
   Number of deals  n Vertical and urban farming (Inc aquaponics)  n Value chain GHG reduction 
  n Precision agriculture and robotics  n Low GHG fertilizers pesticides, insecticides and therepeutics 
 n Low GHG/energy efficient equipment inc enabling software  n Land use management  n Earth and marine
protection  n Alternative foods/low GHG proteins n Agricultural biotech/genomics and natural solutions


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24  PwC | State of Climate Tech 2021
Our perspective
Key levers 
Investment themes: H2 2020 to H1 2021
(1) Lever receiving the most funding: Alternative foods  
and low GHG proteins
Investment in this lever is increasing (H2 2020: US$1.5bn; H1 
2021: US$3bn) despite deal numbers reducing (H2 2020: 86; H1 
2021: 70). The average deal size has more than doubled, from 
US$17.4m to US$40.3m.


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This increase in deal size indicates that 
the market is maturing, however, the average deal is not yet at 
megadeal scale. Primarily, this growth has been driven by 
consumer demand to live more sustainable lifestyles by reducing 
meat intake. Noteworthy start-ups: 
•  Mosa Meat raised US$90m during the period, producing 
cruelty-free, lab-grown, cultured meat from cow cells. •  The Pr otein Brewery  raised US$26m during the period, 
supplementing the market for protein alternatives by producing 
animal-free fungal proteins for food.


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2. Fastest-growing lever: Vertical and urban farming
Investment is rapidly growing in this lever (H2 2020: US$420m; 
H1 2021: US$1.2bn), with deal levels remaining stable (H2 2020: 
12: H1 2021: 13). The sharp uptick in investment in H1 2021 
could be attributed to a greater focus on ESG as well as a move 
to streamline supply chains after the significant disruption caused 
by the COVID-19 pandemic. Noteworthy start-ups: 
•  Bowery Farming raised US$300m in the period for large-scale 
vertical farms, situated near cities to efficiently supply produce 
to consumers with reduced transport miles, less water input 
and no pesticides. •  Intelligent Gr owth Solutions raised US$5m in the period, 
focusing on creating ideal climates for plants using Internet of 
Things-enabled remote monitoring and control systems to 
manage growing conditions in urban and vertical farms. Similarly to last year, the majority of investment has taken place in alternative foods and low GHG proteins, which has shown 111% 
YoY growth. This is largely driven by consumer demand for new products to enable more sustainable lifestyles, and a maturing 
challenge area with greater levels of investor confidence bolstering the scale of investment. Agricultural biotech and genomics, natural solutions, value chain GHG reduction and vertical and urban farming have each raised in 
excess of US$1bn between H2 2020 and H1 2021. 


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25  PwC | State of Climate Tech 2021
Food waste reduction technology
Food waste is responsible for an estimated 6% of global GHG emissions,47  and this figure is likely to be higher in reality, as it 
excludes food lost on the farm. In this section, we look at the supply chain from farm to fork and highlight where innovation and 
funding are required.


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The food supply chain is segmented, starting with agriculture, followed by post-harvest, processing, distribution and, finally, 
consumption. It’s important to distinguish between food waste and food loss. Waste occurs when food that is fit for human 
consumption is removed from the supply chain at distribution stages. Food loss is a result of inefficiencies in production and 
supply.48  Food waste is more likely to occur at the retail and consumer end of the supply chain.


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Food loss happens more so 
during earlier stages of the supply chain. The infographic below illustrates where climate tech start-ups are intervening. Food loss from production to distribution forms 
a significant proportion of the total food loss and waste globally at about 76%. This is compared to consumer food waste, 
which is about 24%.49  This highlights the need for ongoing innovation and investment in start-ups that address food loss 
at earlier stages, for instance, in the agricultural biotech industry. Notably, there are no start-ups at the processing stage, where 
R&D and innovation by companies around specific products will be required. Distribution
(to supermarkets, 
restaurants and 
consumers)
Consumption
(in home and 
restaurants)
Loss
24% 
Of total food lost
Agriculture/
Production
(picking and  
sorting)
Post harvest
(handling, 
transportation and 
storage)
Processing
(canning, baking, 
juicing)
Waste
76% 
Of total food lost
Source: PwC analysis of Dealroom data and FAO


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26  PwC | State of Climate Tech 2021
Industry, manufacturing and 
resource management  
Global industry and manufacturing are responsible for 29.4% of GHG emissions50 and are one of the most difficult challenge areas to 
abate due to the need to retrofit, upgrade and replace existing equipment and transform the associated supply chains. The materials 
and resources needed for industrial processes underpin everyday lives: chemicals form plastics, fertilisers and synthetic fibres, 
concrete and metals are the basis of many infrastructure materials. Emissions result from energy used in the production of materials, manufacturing and industrial processes and emissions are 
generated by industrial processes themselves (such as CO2 emitted during a chemical reaction). Therefore, an absolute reduction in 
emissions from industry and manufacturing will require deployment of a broad set of mitigation options, including more efficient use of 
resources, more efficient processes and improved energy efficiency. Headlines from PwC analysis 
Investment level 
$6.9bn ( 266% YoY)   $18.9bn (75% CAGR)
H2 2020 - H1 2021  H1 2013 - H1 2021
Number of deals 
168 ( 10.6% YoY) 1137 (15% CAGR)
H2 2020 - H1 2021 H1 2013 - H1 2021
Challenge area definition 
The challenge area comprises:
•  Reduction of emissions fr om the 
manufacturing of large, heavy 
articles and materials. •  Activities and actions to r educe, 
reuse or manage waste in 
manufacturing.


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•  The cr eation of low GHG 
alternatives to traditional inputs (e.g. chemicals, steel and plastics).


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•  Developments in manufacturing, 
distribution and end of life that 
reduce material waste, improve 
recycling rates, or recover and 
regenerate materials, including 
circular economy models. Most active investors
(by number of deals and excluding 
publicly funded innovation agencies, 
 for example, EIC, EIT InnoEnergy  
and Eurostars)
•  SOSV
•  Bpifrance
•  Khosla V entures
Unicorns
Ten of the 78 unicorns in PwC’s analysis are in this challenge area. The majority are in 
the circularity recycling and materials efficiency lever (five) and energy/resource efficient 
manufacturing processes (three). Investment (US$ bn)
Industry, Manufacturing and Resource Management: funding raised and number of deals
13 H1
13 H2
14 H1
14 H2
16 H1
15 H1
16 H2
15 H2
17 H1
17 H218 H1
18 H2
19 H119 H220 H1
20 H2
21 H1
100
75
50
0
Number of deals
6.00
4.00
2.00
25
Source:  PwC State of Climate Tech 2021, analysis of Dealroom data
   Number of deals  n Waste management technology  n Transformative circularity, recycling and low GHG /
 efficient materials  n Low GHG plastics or plastic alternatives  n Low GHG materials and materials recycling 
  n Low GHG iron, steel and aluminium   n Low GHG extraction, supply and maintenance n Low GHG concrete
 and alternatives for construction  n Low GHG chemicals (beyond plastics) n Industrial residuals treatment and
management n Energy/resource efficient manufacturing processes
0.00


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27  PwC | State of Climate Tech 2021
Our perspective
Deal flow has remained relatively flat (H2 2020: 82: H1 2021: 86), whilst investment in this challenge area has skyrocketed (H2 2020: 
US$996m; H1 2021: US$5.9bn). Average deal size has grown from US$12.1m to US$68.6m over the period. This indicates a 
significant uptick in large deals, although not yet at megadeal scale due to the relative immaturity of the technologies in this  
challenge area.


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To accelerate the scale-up and adoption of technologies that can help to achieve net zero in this challenge area, the private sector is 
stepping in to create market demand. This includes initiatives such as SteelZero, whereby large private-sector players such as 
Landsec and Lendlease are committing to procuring 50% net zero steel by 2030 and 100% by 2050.51 This is creating market signals 
that support investment in these nascent technologies. Growth in this challenge area is underpinned by energy/resource efficient manufacturing processes, responsible for nearly 50% of the 
investment between H2 2020 and H1 2021. An increased focus on resource use and circular business models has also driven 
investment in transformative circularity, recycling and low GHG materials, responsible for a further 30% of investment in the period. Key levers 
Investment themes: H2 2020 to H1 2021
(1) Lever receiving the most funding: Energy / resource efficient 
manufacturing processes
Both funding and deals have increased for this lever, but not 
proportionately (H2 2020: US$123m, 11 deals; H1 2021: 
US$3.2bn; 16 deals). This has resulted in the average deal size 
increasing from US$11.2m to US$200m over the period.


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Efficiency in terms of energy and resources has risen up the 
agenda in line with governments and corporations setting net 
zero targets, resulting in greater investment and an increase in 
the average deal size. Noteworthy start-ups: 
•  Ginkgo Bioworks raised US$2.5bn in the period, specialising 
in using biotech to program cells to make things such as food, 
materials and therapeutics in an efficient way. •  Diamond Foundry raised US$200m in the period,  
culturing diamonds with a zero carbon footprint through  
a novel, energy-efficient plasma process, without the  
need for mining resources.


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2. Fastest-growing lever: Low GHG iron, steel and aluminium 
Low GHG metals remain at early stages of technology 
development and are highly expensive. However, the private 
sector is creating demand for investment in these technologies 
through initiatives such as SteelZero, which brings together 
leading organisations to speed up the transition to a net zero 
steel industry. Such initiatives, as well as government and corporate 
commitments to net zero, are expected to stimulate further 
interest in this lever, which has shown colossal YoY growth 
(7,271%), as it was starting from a low historical baseline (H2 
2020: US$0: H1 2021: US$171m). Noteworthy start-ups: 
•  H2 Gr een Steel raised US$105m in the period, accelerating 
the decarbonisation of steel production through raw-material 
innovation and efficient AI-driven processes, powered by 
renewable energy. ●  Boston Metal raised US$66m in the period, electrifying 
primary steelmaking using their patented molten oxide 
electrolysis process to produce liquid iron, paired with 
renewable energy to produce zero carbon emissions. 


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28  PwC | State of Climate Tech 2021
Built environment
Challenge area overview and climate challenge 
Buildings and construction are responsible for 20.7% of global GHG emissions.52 Operational emissions account for nearly two-thirds 
of this, while the remainder comes from embodied carbon emissions, or the ‘upfront’ carbon that is associated with materials and 
construction processes. To eliminate the carbon footprint of the built environment, both buildings and materials must become more efficient, smarter and 
cheaper. Small-scale efficiencies such as improvements in heating, lighting or appliances will also play a role. Given the breadth of the built environment’s impact, more pivotal solutions will also be needed, for example, building-level electricity 
and thermal storage, innovative construction methods and transformative circularity and sensor-led smart building management. Headlines from PwC analysis 
Investment level 
$1.4bn ( 19.3% YoY)   $8.6bn (25% CAGR)
H2 2020 - H1 2021  H1 2013 - H1 2021
Number of deals 
79 ( 30.1% YoY) 830 (11% CAGR)
H2 2020 - H1 2021 H1 2013 - H1 2021
Challenge area definition 
The challenge area comprises:
•  High-efficiency fittings, fixtur es, 
lighting, and heating and cooling for 
commercial and residential 
buildings, including district-level 
solutions. •  Smart management of building 
energy consumption using sensors, 
smart devices, AI analysis of the 
ensuing data and app control for 
consumers.


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•  Efficient construction methods, with 
an emphasis on ease to construct 
and reduced waste on site (in 
particular, modular construction, 3-D 
printing and imagery/computing). Most active investors
(by number of deals and excluding 
publicly funded innovation agencies, 
 for example, EIC, EIT InnoEnergy  
and Eurostars)
•  Demeter
•  Khosla V entures
•  Bpifrance
Unicorns
One of the 78 current unicorns in PwC’s analysis are in the Built Environment challenge area, 
Rubicon, a provider of cloud-based waste and recycling solutions.53 
Investment (US$ bn)
Built Environment: funding raised and number of deals
13 H1
13 H2
14 H1
14 H2
16 H1
15 H1
16 H2
15 H2
17 H1
17 H218 H118 H2
19 H1
19 H220 H1
20 H2
21 H1
80
60
0
Number of deals
2.00
1.50
1.00 40
0.50 20
.000
Source:  PwC State of Climate Tech 2021, analysis of Dealroom data
   Number of deals  n Transformative circularity and recycling  n Smart management of devices 
  n Low GHG construction processes  n High efficiency urban spaces and communities  n High efficiency
 space-water heating and cooling  n High efficiency lighting n Commercial and residential residuals treatment 
and management  n High efficiency fictures and fittings n Building level (electricity and thermal) storage


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29  PwC | State of Climate Tech 2021
Our perspective
Key levers 
Investment themes: H2 2020 to H1 2021
(1) Lever receiving the most funding: Smart management  
of devices
Although this lever received the most funding in the period, both 
funding levels and deal flow fell (H2 2020: US$206m, 12 deals; 
H1 2021: US$103m, five deals). This reflects the low level of 
funding being received in the challenge area overall and the 
maturation of smart technologies.


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As a result, it is likely that the 
start ups in this challenge area are being funded by other project 
financing mechanisms as they become more widely adopted (for 
example, large-scale smart city and digital twin projects). Noteworthy start-ups: 
•  Connexin raised US$103m in the period, specialising in 
building and operating smart-city infrastructure, supported by 
the Internet of Things (IoT), to increase building efficiency. •  Metrikus raised US$6.7m in the period, deploying smart 
building platform systems and starter kits to increase building 
efficiency.


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2. Fastest-growing lever: Building level electricity 
and thermal storage 
Start-ups in this lever raised US$50m in the period, recording a 
YoY growth rate of 181%. It should be noted that the historically 
low level of deal flow in this lever resulted in this high growth rate.


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This can easily be skewed by large deals. In this case, H1 2021 
was bolstered by Dcbel, which raised US$40m in the period. Both investment levels and number of deals have increased (H2 
2020: US$6.9m, one deal: H1 2021: US$43.5m, three deals). The 
average deal size has doubled from US$6.9m to US$14.5m. This 
trend mirrors the Energy challenge area, where energy storage is 
the fastest-growing lever. Therefore, despite being skewed by a 
large deal, this trend is expected to continue, as the focus on 
electrifying our systems to achieve net zero increases. Noteworthy start-ups: 
•  Dcbel raised US$40m in the period. It creates an AI-powered, 
renewable-energy ecosystem, providing customers with 
access to solar energy for EV charging, smart home energy 
management and backup power.


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•  V oltStorage  raised US$6.9m in the period, developing 
next-generation batteries for residential and commercial 
building-level storage. Their batteries use iron salt technology 
instead of lithium and use an iron-based storage medium; iron 
is a more abundant material. Investment in Built Environment start-ups has been slow, with the challenge area recording a CAGR of 25% from 2013 to H1 2021, 
well below the overall growth rate of climate tech investment of 68%. In H1 2021, the challenge area raised the least of all the vertical 
industries analysed (US$632m). This is likely due to the high capital intensity and technical risk of start-ups in this challenge area, 
dampening the appetite of traditional VC investors. There is a key role for strategic corporate VCs supporting start-ups to scale with their expertise and capital. In addition, creating 
market demand by committing to transitioning to certain materials will help to drive innovation in hard-to-abate areas. For example, 
the Global Cement and Concrete Association has set out the Global Net Zero Roadmap for the industry to achieve net zero by 2050.54 
Investment levels and deal flow have slightly decreased (H2 2020: US$753m, 45 deals; H1 2021: US$632.5m, 34 deals), with the 
average deal size changing minimally from US$16.7m to US$18.6m. 


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30  PwC | State of Climate Tech 2021
Financial Services
Challenge area overview and climate challenge 
Until recently, GHG emission disclosures from financial institutions focused mostly on the direct impacts of their operations. Disclosure of Scope 3 emissions continues to be a challenge, meaning disclosures often omit the most significant source of 
emissions—their portfolios. This proves a significant gap, as financed emissions have been estimated to be on average 700 times 
higher than direct emissions.55
Innovative application of new and existing technology to financial services, creation of new green products and accurate, reliable 
sources of data can all drive the challenge area to decarbonise. Climate risk is also challenging the insurance sector, with increasing 
likelihood of acute and chronic physical risks affecting underwriting, reserving, covering and pricing practices.56  
Consumer demand for green products and investment offerings is increasing. Public-sector interest is driving innovation in Financial 
Services to cater for this.


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This has resulted in allowing new competitors into the market that are enabling customers to track the 
carbon footprint of their spending, invest their pensions in net zero–aligned funds and borrow capital to upgrade their homes. Headlines from PwC analysis 
Investment level 
$1.2bn ( 260% YoY)   $2.2bn (193% CAGR)
H2 2020 - H1 2021  H1 2013 - H1 2021
Number of deals 
42 ( 35.5% YoY) 189 (46% CAGR)
H2 2020 - H1 2021 H1 2013 - H1 2021
Challenge area definition 
The challenge area comprises:
•   Investment advice, services or 
platforms that enable investors, 
from institutional investors to 
individuals, to invest in 
organisations or portfolios aligned 
with net zero. •  Pr ovision of information to better 
understand material climate-related 
financial risks and opportunities on 
financial performance and position, 
funds and portfolios.


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•  T ailored financial products and 
services, including insurance, that 
take into account physical, transition 
and reputational risk. Most active investors
(by number of deals and excluding 
publicly funded innovation agencies, 
 for example, EIC, EIT InnoEnergy  
and Eurostars)
•  Engie
•  Phitrust Investors
•  Anthemis Gr oup
Unicorns
Only one of the 78 unicorns in PwC’s analysis is in this challenge area: GoodLeap, 
(formerly Loanpal) which specialises in banking and provides flexible term loans to 
finance sustainable home solutions. Investment (US$ bn)
Financial Services: funding raised and number of deals
13 H1
13 H2
14 H1
14 H2
16 H1
15 H1
16 H2
15 H2
17 H1
17 H218 H1
18 H2
19 H119 H220 H1
20 H2
21 H1
25
20
0
Number of deals
1.25
1.00
75
50
15
25
10
5
0
Source:  PwC State of Climate Tech 2021, analysis of Dealroom data
   Number of deals  n Pensions  n Lenders  n Insurers and re-insurers  n Funds, portfolios and investment
banking  n Banking (business and retail)


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31  PwC | State of Climate Tech 2021
Our perspective
This challenge area has been relatively nascent but saw an explosion in growth in H1 2021, which accounted for 55% of funding that 
has been invested in the challenge area since H1 2013. The number of deals has remained relatively stable over the past few years, 
whilst the investment level has skyrocketed (H2 2020: US$75.6m, 21 deals; H1 2021: US$1.1bn, 21 deals). Similarly to climate tech 
more broadly, this is driven by an increase in megadeals, with the average deal size growing from US$3.6m to US$50m. Of the total H1 2021 funding, 55% was in the UK, driven by policy changes such as the UK Government Green Financing 
Framework.57 In addition, the UK’s financial regulator, the Financial Conduct Authority, has an established innovation hub that includes 
a regulatory sandbox programme. This provides access to regulatory expertise and tools to facilitate experimentation and testing for 
financial technology firms. This has created an enabling environment for innovation and established London as a fintech leader. The 
remainder of the financing in H1 2021 was split among European countries. Key levers 
Investment themes: H2 2020 to H1 2021
(1) Lever receiving the most funding: Banking (business + retail)
Funding in this lever is increasing, with the overall number of 
deals reducing (H2 2020: US$22.4m, eight deals; H1 2021: 
US$855m, four deals). The average deal size over this period 
increased from US$2.8m to US$213.8m).


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This is likely being 
driven by both customer demand and government interest. Noteworthy start-ups: 
•  Aspiration is a ‘planet first’ Los Angeles–based fintech that 
provides green financial services, raising US$50m in the 
period. It focuses on conscious consumerism and provides 
users with an impact measurement score based on their 
spending habits.


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•  Ricult Inc. has created a digital financial solution for the 
agricultural sector, raising US$3.5m in the period. They provide 
loans to improve productivity across the value chain. They use 
diagnostic and predictive analytics to leverage satellite 
imagery, agronomic models and weather data to suggest 
farming improvements and provide loans for cleaner farming 
techniques. 2. Fastest-growing lever: Funds, portfolios and  
investment banking
This lever has grown in terms of amount invested and number of 
deals (H2 2020: US$21.8m, six deals; H1 2021: US$125.5m, 12 
deals). Average deal size increased over the period, from 
US$3.6m to US$10.5m).


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This was likely driven by consumer 
demand resulting in an enhanced offering of investment banking 
products. Noteworthy start-ups: 
•  Clim8 raised US$13.9m in the period, providing an investment 
platform for sustainable investment into clean energy and 
sustainable companies. •  Ethic, a tech-driven asset manager that powers the creation of 
sustainable investment portfolios, raised US$29m in the period. They build separately managed accounts, optimised to track 
the market, align investment allocation and outperform on a 
client’s chosen sustainability criteria.


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32  PwC | State of Climate Tech 2021
Challenge area overview and climate challenge 
The recent IPCC report indicates it’s unlikely that we can limit the devastating impacts of climate change without some form of carbon 
capture and, if society is to stay the course for a 1.5°C pathway, carbon removal.58  Fossil fuels are likely to remain a primary 
contributor to energy production for some time due to their availability, reliability and affordability. Government and corporate commitments to net zero have also piqued interest in this challenge area over the last year, whilst the 
technology remains expensive and requires significant investment to benefit from learning curves. Capturing, storing and reusing greenhouse gases could play an important role in stabilising and reducing GHG emissions while our 
energy and industrial systems transition. Carbon sequestration technologies must be developed rapidly and deployed at scale if the 
world is to continue using fossil fuels as a key energy source. Headlines from PwC analysis 
Investment level 
$383m ( 27% YoY)   $1.3bn (9% CAGR)
H2 2020 - H1 2021  H1 2013 - H1 2021
Number of deals 
24 ( 4.3% YoY) 123 (17% CAGR)
H2 2020 - H1 2021 H1 2013 - H1 2021
Challenge area definition 
The challenge area comprises:
•  The r emoval of GHG emissions from 
the atmosphere and their storage for 
long periods, primarily from energy 
and industrial processes but also 
including natural climate solutions 
developed specifically to sequester 
GHGs (which do not fit within 
afforestation or land management). Most active investors
(by number of deals and excluding 
publicly funded innovation agencies, 
 for example, EIC, EIT InnoEnergy  
and Eurostars)
•  Chevr on Technology Ventures
•  OGCI Climate Investments 
•  The Roda Gr oup
Unicorns
This is the only challenge area with no confirmed unicorns,59  perhaps surprising given 
that many of the pledges made at and in the run-up to COP26 included some form of 
reliance on carbon capture or removal.


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A prevailing view in the market is that the 
challenge area needs the right enabling environment to grow—namely, a global carbon 
price that shifts the underlying unit economics of solutions in this area. GHG Capture, Removal  
and Storage
Investment (US$ bn)
GHG Capture, Removal and Storage: funding raised and number of deals
15
0
Number of deals
30
20
10
10
5
Source:  PwC State of Climate Tech 2021, analysis of Dealroom data
   Number of deals  n Geo-engineering  n CCUS  n Biomass uptake of CO2
  (excluding afforestation and land management)
21 H1
20 H2
20 H1
19 H2
19 H1
18 H2
18 H1
17 H2
17 H1
16 H2
16 H1
15 H2
15 H1
14 H2
14 H1
13 H2
13 H1
0


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33  PwC | State of Climate Tech 2021
Our perspective
Both the amount of investment and number of deals are increasing in this challenge area (H2 2020: US$120.9m, ten deals;  
H1 2021: US$262.6m, 14 deals). Average deal size has increased from US$12m to US$18.8m.


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Relatively low overall  
deal flow highlights the immaturity of the technologies in this challenge area, with H1 2021 recording the highest number  
of deals for any six-month period (14). Carbon commitments and the possibility of future carbon markets will be significant drivers to create secondary markets and drive 
learning curves.


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The cost at the moment is too high to be competitive, resulting in the lack of a commercial business model. Despite 
this, during this unprecedented year, private-sector players such as Stripe, Shopify, Ocado and Microsoft have been stimulating 
demand for new climate tech solutions in this challenge area by creating demand for carbon removal. This is a particularly nascent challenge area, which has been highly impacted by policy, resulting in a U-shaped investment pattern.


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However, since H2 2018, it has been showing signs of maturing to a YoY growth pattern, currently at 25.5%. As a result of this 
extended period of uncertainty between H1 2013 and H1 2018, the CAGR is a mere 9%, significantly lower than the climate tech 
growth rate of 68%. Key levers 
Investment themes: H2 2020 to H1 2021
(1) Lever receiving the most funding and  
(2) Fastest-growing lever:
Carbon capture, utilisation and storage (CCUS) is the most 
mature lever, having raised 93% of investment funding in this 
challenge area (US$358m) over the period. However, this lever is 
by no means mature, comprising only 29 start-ups, which have 
raised US$1.2bn collectively over the entire investment period 
analysed (H1 2013–H1 2021). The start-ups fall into two key 
categories: carbon capture technologies deployed at the 
emissions source used for various industry purposes, and 
production of useful by-products to sell on for further industrial 
purposes (for example, thermoplastics). Investment in this 
challenge area is showing some signs of growth, most likely 
driven by the regulatory environment around carbon for industry. Noteworthy start-ups: 
•  Climeworks raised US$29.5m in the period and specialises  
in direct air capture technology. •  Newlight T echnologies raised US$45m in the period,  
focusing on converting GHG emissions into high-performance, 
cost-effective thermoplastics. 


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34  PwC | State of Climate Tech 2021
Climate Change Management 
and Reporting 
Challenge area overview and climate challenge 
This horizontal has been expanded from last year, when it was called Climate and Earth Data Generation. It now allows for the 
inclusion of two new sub-levers: climate risk and resilience management and emissions data, monitoring, management, and reporting.


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Both of these changes have been made to reflect developments in the area as more start-ups emerge to help stakeholders—namely 
private companies, investors, and local/regional/national bodies including governments—to set and deliver on their net zero 
commitments. Climate and earth observation, driven by satellite and micro-sensor data collection, is beginning to provide the data necessary to help 
global decarbonisation efforts, further protect the environment and achieve broader sustainable development aims. The surge in net 
zero commitments from governments, investors, and businesses over the last 18 months has helped establish the business case for 
software solutions that are using this data to help establish baselines and prioritise emissions reductions activities to meet targets. Headlines from PwC analysis 
Investment level 
$797m ( 16% YoY)   $3.3bn (54% CAGR)
H2 2020 - H1 2021  H1 2013 - H1 2021
Number of deals 
73 ( 2.8% YoY) 386 (23% CAGR)
H2 2020 - H1 2021 H1 2013 - H1 2021
Challenge area definition 
The challenge area comprises:
•  Recor ding or analysis of earth- and 
climate-related data that will be 
useful specifically for reducing 
emissions or by climate tech 
companies. This data is typically 
collected via satellites, sensors or 
weather machines and analysed 
using machine learning algorithms.


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•  Systems that allow or ganisations, 
governments or individuals to 
monitor or manage carbon 
footprints, climate risk or resilience, 
typically software-related. Most active investors
(by number of deals and excluding 
publicly funded innovation agencies, 
 for example, EIC, EIT InnoEnergy  
and Eurostars)
•  Space Angels
•  Lux Capital 
•  Capricor n Investments
Unicorns
One of the 78 unicorns in PwC’s analysis are in this challenge area, the US-based 
Planet Labs, an aerospace and analytics company. Climate Change Management and Reporting: funding raised and number of deals
Investment (US$ bn)
50
40
30
0
Number of deals
0.60
0.40
0.20
20
10
Source:  PwC State of Climate Tech 2021, analysis of Dealroom data
    Number of deals  n Emissions data, monitoring, management and reporting 
  n Climate risk and resilience management n Climate/Earth data generation
13 H1
13 H2
14 H1
14 H2
16 H1
15 H1
16 H2
15 H2
17 H1
17 H218 H1
18 H2
19 H119 H220 H1
20 H2
21 H1
0.0


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35  PwC | State of Climate Tech 2021
Our perspective
Both investment levels and number of deals have increased for this horizontal challenge area (H2 2020: US$217.8m, 32 deals; H1 
2021: US$579m, 41 deals). The average deal size has increased from US$6.8m to US$14.1m over the period, indicating growth may 
be stabilising as interest in this area peaks as both the public and private sector look to monitor and manage their emissions. Growth is expected in terms of emission monitoring and management, as well as climate risk forecasting. As extreme weather events 
driven by climate change increase in intensity around the world, understanding the potential risk and quantifying the impact of these 
events will become increasingly important if society is to adapt. Extreme weather events cost the world US$140bn in 2020.60 
Key levers 
Investment themes: H2 2020 to H1 2021
(1) Lever receiving the most funding: Climate/earth  
data generation
Investment level and deal flow increased in this sub lever (H2 
2020: US$104m, eight deals; H1 2021: US$291m, 13 deals). Average deal size also increased from US$13m to US$22.4m, 
indicating increased interest in this area.


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However, the relatively 
low deal flow also indicates the immaturity of the lever. Noteworthy start-ups: 
•  Climavision raised US$100m in the period. They provide 
proprietary weather data from their network of sensors  
that enable cutting-edge prediction modelling, using 
the cloud and AI. •  Wingtra raised US$12.5m in the period. They use drone 
technology to improve decisions and reduce costs and risks 
across sectors, including surveying and geographic information 
systems, mining and aggregates, construction and 
infrastructure, environmental monitoring and agriculture.


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2. Fastest-growing lever: Climate risk and resilience 
management 
Investment level increased while deal flow decreased over the 
period (H2 2020: US$67.8m, ten deals; H1 2021: US$160.9m, 
seven deals). Low levels of funding historically have meant that 
recent growth has inflated YoY growth to 173% for the lever. Low 
overall deal flow indicates the immaturity of the lever. However, 
interest in this lever is expected to increase as society 
increasingly feels the initial impacts of climate change. Noteworthy start-ups: 
•  T omorrow.io , which raised US$172m in the period, is a 
weather tech company that creates new ways to sense the 
weather, turning them into business insights to increase 
operational efficiency. •  Cervest raised US$42.8m and specialises in earth science AI 
to help governments, growers and other businesses adapt to 
climate volatility and protect their physical assets.


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36  PwC | State of Climate Tech 2021
5
Regional investment 
distribution
Overall breakdown by region
From H2 2020 to H1 2021, nearly 65% of 
VC dollars went to climate tech start-ups 
in the US (US$55.1bn)61. The second most 
significant region was Europe at 
US$18.3bn, with China in third at 
US$9bn.


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Most regions have seen growth in 
investment over the past 12-month 
period, averaging at 208% YoY . Growth in 
investment in Chinese start-ups lagged 
behind the average, though recording a 
still pacy 138% growth rate. The fourth most prominent region for 
attracting climate tech investment was 
Asia (excluding China), which saw total 
investment of US$3bn over the period. Other regions accounted for 
approximately 1% of overall funding 
raised.


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The graphic above illustrates the flow of 
funding between geographies from 
investors on the left to start-up recipients 
on the right. Most funding still takes place 
within geographical silos, though 
emerging markets tend to attract more 
foreign investment. Climate tech start-ups 
in North America and Europe raised about 
80% of their funding from investors in the 
same region, whilst that decreased to 
55% for Chinese start-ups and just 40% 
for African start-ups. Climate tech funding by region H2 
2020-2020 H1 2021
Source: PwC State of Climate Tech 2021, analysis of 
Dealroom data
 65% North America   21% Europe  
 10% China   4% Other 


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37  PwC | State of Climate Tech 2021
NORTH  
AMERICA
AUSTRALIA
ASIA
EUROPE
AFRICA
Top ten climate tech investment hubs
The US and Europe dominated the list of most active investment hubs from H2 2020 to H1 2021, each taking five spots. Start-up HQ
San Francisco Bay Area, CA, US
London, UK
Berlin, Germany
New York, NY , US
Boston, MA., US
Stockholm, Sweden
Amsterdam, Netherlands
Paris, France
Seattle, WA, US
Los Angeles, CA, US
Climate tech funding by region H2 2020-2020 H1 2021
Latin America
Africa
Oceania
Asia (ex China)
 China
Europe
USA & Canada
Latin America
Africa
Oceania
Asia (ex China)
 China
Europe
USA & Canada
Latin America
Africa
Oceania
Asia (ex China)
 China
Europe
USA & Canada
Latin America
Africa
Oceania
Asia (ex China)
 China
Europe
USA & Canada
Source:  PwC State of Climate Tech 2021, analysis of Dealroom data


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38  PwC | State of Climate Tech 2021
Top three regions
US 
The US had the highest investment in 
climate tech across all regions between 
H2 2020 and H1 2021 (US$56.6bn), due 
to the presence of five key climate 
investment hubs, as well as its mature VC 
market. Investment was concentrated 
most significantly in Mobility and 
Transport, which raised US$36.4bn (66%).


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This represents over half of global 
investment in Mobility and Transport in 
the period. The next most significant challenge areas 
in terms of investment were Food, 
Agriculture and Land Use at US$6.9bn 
(13%) and Energy at US$4.9bn (9%). The 
least invested challenge areas were 
Financial Services, Built Environment, 
Climate Change Management and 
Reporting, and GHG Capture, Removal 
and Storage, which all received 2% or 
less of total investment. Europe
Europe is the second-largest investor in 
climate tech, edging ahead of China over 
the last 12 months analysed, totalling 
US$18.3bn. Similarly to the US, Europe’s 
highest investment was in Mobility and 
Transport, followed by Food, Agriculture 
and Land Use, and Energy. The Mobility and Transport challenge area 
in Europe saw a 494% increase in total 
investment in H2 2020 and H1 2021 
compared to the 12-month period prior. The lowest-funded challenge areas were 
Financial Services and GHG Capture, 
Removal and Storage.


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They received 1% 
and 0.5% of total funding, respectively. China
China was the third-largest investor in 
climate tech as of H2 2020 - H1 2021 
($9bn). Investment was heavily skewed 
towards Mobility and Transport, with the 
total funding raised being US$8.9bn, 
totalling 99% of all climate tech 
investment in the region. Compared to other regions, this level of 
investment in Mobility and Transport is 
highly disproportionate.


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Across the US 
and Europe, investment is also distributed 
across other challenge areas. China was the second-largest investor in 
Mobility and Transport behind the US. The 
majority of investment in the challenge 
area was in the low GHG light and heavy 
transport lever, totalling 83%, followed by 
efficient transport systems at 9.3%. Notably, our analysis shows investment in 
Mobility and Transport; Industry, 
Manufacturing and Resource 
Management and Food, Agriculture and 
Land Use during H2 2020–H1 2021, but 
not in any of the other horizontal or 
vertical challenge areas. The VC market in China as a whole is 
distinct from other regions in several 
notable ways. China is a relatively young 
player in VC, with its first state-owned VC 
firm founded in only 1985. Since then, it 
has rapidly grown to become one of the 
largest VC markets in the world, with 
much of this growth coming in the past 
decade.62  There is significant state 
support, with the Chinese government 
claiming to have amassed Rmb12.5tn 
(US$1.8tn) of state money across 
thousands of venture capital funds to 
drive technological innovation,63  as well 
as providing broader financing 
mechanisms, such as low-cost lending to 
support the country’s transition to net 
zero by 2060.64 
Climate tech funding by sector in  
US start-ups H2 2020-2020 H1 2021
 66% Mobility and transport   12.5% Food and 
agriculture  8.2% Energy   9% Industry and 
manufacturing   1.7% Financial Services  
 00% Other (Climate Change Management and 
Reporting GHG Capture, Removal and Storage)
Climate tech funding by sector in  
European start-ups H2 2020-2020 H1 
2021
 58.4% Mobility and transport   16.9% Food and 
agriculture  10.1% Energy   9.4% Industry and 
manufacturing   2.5% Built Environment  
 00.0% Other (Financial Services
Climate Change Management and Reporting
GHG Capture, Removal and Storage)
Source: PwC State of Climate Tech 2021, analysis of Dealroom data
Climate tech funding by sector in 
Chinese start-ups H2 2020–H1 2021
 99% Mobility and transport   0.7% Food and 
agriculture   00.0% Industry, Manufacturing and 
Resource Management


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39  PwC | State of Climate Tech 2021
6
The emerging investor 
landscape 
Though the market is still in its relative 
infancy, climate tech is maturing rapidly 
as an asset class, with investors of all 
types engaged, including angels and 
accelerators in Colorado and Eindhoven, 
venture capitalists in Silicon Valley and 
Tokyo, private equity firms in New York 
and London and sovereign investment 
funds and corporations across the world. We identified over 6,000 investors 
engaged in over 8,900 deals between H1 
2013 and H1 2021.


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In our Climate Tech 
Investor Landscape below, we capture 
some of the investors with the most 
climate tech deals by funding stage. Despite this relatively large top-line 
number of investors, however, on closer 
examination we find that the investor 
ecosystem remains nascent. Only a 
handful of investors have established the 
deeper familiarity that comes with 
frequent investing activity: Just 500 
investors made ten or more climate tech 
deals between 2013 and H1 2021, with 
over 75% of investors making only one or 
two climate tech deals. As Mike Zelkind, 
co-founder and CEO of 80 Acres Farms, 
said in PwC’s inaugural State of Climate 
Tech report, ‘There isn’t yet an 
understanding of what will be an 
accelerator to growth’ in the VC 
ecosystem, and it will take some time to 
increase the number of investors with 
tailored experience in helping climate tech 
start-ups reach scale. The ‘valley of death’ for 
investment
As climate tech looks to become 
increasingly mainstream, the number of 
investors active in this area will need to 
grow.


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Investors of all types and across all 
challenge areas are needed in order to 
reach this goal, from governments and 
incubators de-risking early-stage start-
ups through to the public market investors 
enabling sustained growth. In particular, start-ups will be looking for 
investors with expertise in climate tech 
who can help them meet the unique 
challenges faced in their field. However, 
when looking at deals involving 
experienced investors (defined in this 
case as investors involved in at least five 
climate tech deals), we see what 
interviewees have described as a 
potential ‘valley of death’: there appears 
to be a dearth of investors able to provide 
the largest megadeals needed by start-
ups to scale up their operations. Key findings:
Investors


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40  PwC | State of Climate Tech 2021
The Climate Tech Investor Landscape: H1 2013 - H1 2021
The following graphic showcases different types of key investors across different stages of funding. Private Equity / 
Investment 
Funds
Corporate  
Venture  
Capital
Crowdfunding
Venture  
Capital
Accelerators
Government
(including state 
owned 
investment 
funds)
BlackRock  
Goldman Sachs
T.


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Rowe Price
Engie
CrowdCube  
Seedrs
Y Combinator  
Techstars
EIT InnoEnergy
European 
Innovation 
Council  
Eurostars SME 
Programme
U.S Department 
of Energy
Angel / Seed /  
Grant
Series A / Early 
VC
Series B-D Series E-H / 
Late  VC
Growth Equity IPO, SPAC,
Post-IPO
EIT InnoEnergy  
Y Combinator  
Plug and Play
Bpifrance
European 
Innovation 
Council
Temasek  
Bpifrance
Temasek  
Bpifrance
SOSV
500 Start-ups  
Almi Invest
New Crop 
Capital
Demeter  
Breakthrough 
Energy  
Ventures
Khosla Ventures
Khosla Ventures  
Sequoia  
Prelude
Khosla Ventures  
Breakthrough 
Energy  
Ventures
Eurazeo
Vision Ridge 
Partners
Alphabet  
SoftBank  
Tencent
Amazon  
Daimler  
SoftBank
OurCrowd
Amazon 
GE Ventures  
Volkswagen
OurCrowd
BlackRock  
Fidelity
Neuberger 
Berman  
Wellington 
Management


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41  PwC | State of Climate Tech 2021
This is reflected in our data. We find a 
relatively large number of seed and Series 
A investors, echoing feedback from our 
interviews that participation in early-stage 
deals is increasingly competitive. When 
looking beyond Series C investment, we 
see a relatively sharp drop-off in the 
number of experienced investors, sharper 
than we see in non–climate tech 
industries. As markets mature and larger 
institutional capital is deployed towards 
climate tech, we expect this gap to close, 
but in the short term it is creating a barrier 
to the scale-up of climate tech. Other key reflections
•  Continued geographic borders in 
investment: Interviewees described 
how some investors, particularly 
early-stage funds, are only focused on 
one sector or geography and are more 
opportunistic in the way they operate. Although this is partly driven by Limited 
Partner (LP) requirements, as well as 
the nature of how deals are sourced 
(which is still often reliant on local 
relationships and networks), such 
geographic borders risk limiting 
investment into the solutions with the 
greatest emissions reduction potential. Unlike other sectors, where 
geographical competition can support 
innovation, the urgency of the climate 
challenge means that speed and 
cooperation will be required to rapidly 
scale up the most effective 
technologies. As Hampus Jakkobson of 
Pale Blue Dot states, ‘Climate change is 
a transboundary issue. Therefore, we 
can’t look at climate tech with 
traditional siloed geographical and 
sectoral lenses.’
•  Identifying value and tackling 
greenwashing through impact 
analysis: A number of investors we 
spoke to have increasingly taken to 
forecasting GHG mitigation potential as 
a key diligence step of any climate tech 
deal. As well as helping to attract LPs, 
such reporting is increasingly 
encouraged or mandated by 
regulations, such as the EU’s 
Sustainable Finance Disclosure 
Regulation.


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For many investors, 
however, this metric is not just about 
compliance, it’s a key indicator of 
potential success, alongside traditional  
metrics such as total addressable market. Many interviewees feel the VC market is 
heading towards more consistently 
reporting on these metrics, but the 
industry sentiment is that a flexible 
approach is needed, particularly for 
early-stage start-ups. •  Increasing numbers of megafunds: 
Megafunds are being ring-fenced for 
climate tech, including Brookfield’s 
US$7.5bn net zero shift fund and 
Inclusive Capital’s US$8bn impact 
investing fund. In PwC’s recent 
Unlocking investment for Net Zero 
infrastructure report, we found that 
there is a deep pool of private, low-cost 
capital primed to invest in net zero. However, these institutional investors 
need a more certain policy environment, 
and in particular support from 
governments to mitigate early-stage 
technology risk.65 Policymakers appear 
to be acting on this need, with COP26 
seeing over 40 world leaders sign up to 
the Glasgow Breakthroughs, aiming to 
make clean technologies the most 
affordable, accessible and attractive 
choice globally in the most polluting 
sectors by 2030.66  
Number of experienced climate tech investors by deal stage
Source: PwC State of Climate Tech 2021, analysis of Dealroom data
 Number of experienced investorsNo. of experienced investors
SEED SERIES A SERIES B SERIES C
Round type
SERIES D GROWTH 
EQUITY
SPACs
125
75
50
100
25
Caption: The number of experienced investors by round type.


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An experienced investor is defined here as one 
that has been involved in at least five climate tech deals. Time period: H1 2013 to H1 2021.


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42  PwC | State of Climate Tech 2021
7
Comparing climate tech 
investments against climate 
impact67 
Venture capital can play a critical role 
in accelerating the uptake of climate 
technologies by 2030, to achieve net 
zero by 2050. The investment trends 
found in H1 2021 are an example where 
the private sector has demonstrated that 
it can scale and rapidly deploy capital into 
climate tech. In parallel, by 2050, almost half of global 
CO2 emissions reductions will come 
from technologies that are currently 
only at the demonstration or prototype 
phase.68 Significant and sustained 
investment is required across the 
innovation life cycle to ensure that 
commercially ready solutions are able to 
scale within this next decade, whilst R&D 
is accelerated to achieve the necessary 
breakthroughs for the future. The sooner 
these nascent technologies can achieve 
scale, the greater the total emissions 
reduction potential for society. Comparing global GHG emissions by 
challenge area to the investment capital 
each has received, it’s clear that some 
areas are not proportionally funded.69 The 
Mobility and Transport challenge area 
received 61% of all investment funding in 
our analysis but represents just 16% of 
global GHG emissions.70 The funding gap 
is largest in the Built Environment 
challenge area, which receives just 4% of 
funding in proportion to its contribution to 
GHG emissions of 21%. In this section, we dive deeper into these 
challenge areas, taking a look at the 
individual technologies underpinning 
them, which are driving these patterns. Key findings:
Impact analysis
Share of global emissions and climate tech venture investment by challenge area
100%
50%
25%
75%
0
 Mobility   Industry and Manufacturing and Resource Management   
 Food and Agriculture   Energy   Built Environment
Source: PwC State of Climate Tech 2021, analysis of Dealroom data. Note: Emissions data is allocated to the 
end sector associated with emissions.


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For example, energy use associated with mobility is allocated to Mobility 
& Transport rather than Energy.


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Likewise, no emissions are allocated directly to Financial Services. Share of global emissions (2016)  Share of global climate tech venture
investment (2013 - H1 2021)
61%
16%
9%
29%
12%
20%
15%
14%
4%
21%


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43  PwC | State of Climate Tech 2021
Overall findings
•  Capital is deployed at scale when 
business models and climate 
technologies are both viable. Excitement around certain technologies, 
namely in Mobility and Transport, 
attracts significant capital and receives 
a greater proportion of funding as 
compared to their potential impact on 
climate change mitigation. Once a 
technology develops a proven business 
model, capital flows quickly and can 
have significant impact in accelerating 
adoption. However, investment is 
currently disproportionately aligned 
towards challenge areas with lower total 
emissions reduction potential (ERP) 
while high-ERP challenge areas, with 
less mature technologies, remain 
underfunded. •  Incr eased funding is needed across 
all challenge areas to enable 
breakthrough innovations and trigger 
sectoral tipping points, whilst also 
supporting commercially ready 
technologies to scale over the next 
decade. Policies are needed to provide 
incentives to investors, and clear 
government action plans, support of a 
consistent carbon price, and R&D 
investment are needed to accelerate 
private-sector investment and 
technological innovation. This will 
enable an increasing scale of rapidly 
deployed capital into the necessary 
climate technologies over the next 
decade and beyond. •  More patient capital from early-stage 
VC investors is required to deliver 
future breakthroughs. Long-term 
strategic plans and targeted policy 
measures (for example, a carbon price) 
by governments are needed to kick-
start investment into technologies in 
hard-to-abate sectors (for example, low 
GHG building materials) and carbon 
removal technologies that will be pivotal 
to achieving global net zero targets
. The decarbonisation opportunity over 
the coming decades is the biggest 
business opportunity since the Internet 
revolution, perhaps even 100x bigger 
than that revolution. So imagine the 
Googles, Amazons, etc., we’ve seen—
we’ll see more in climate tech”
(Yair Reem, Extantia)
The challenges are that we are investing 
in something that is unproven but looks 
promising.


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As things 
become more uncertain, the government 
can help, and not necessarily by 
providing 100% subsidy”  
(PwC UK Interview with Infrastructure Investor)71
How mature are climate technologies? Our analysis of maturity is defined by determining the technology readiness level (TRL) 
of technologies, sourced from academic or grey literature.72 Building on individual TRLs, 
our technology areas are ranked on a scale from prototype (TRL 4-6), to demonstration 
(TRL 7-8), to commercial adoption (TRL 9+), based on an assessment of the aggregated 
TRLs of individual technological applications and processes in that technology area.73
Prototype (TRL 4-6) 
Direct air carbon capture and 
storage (DAC/S) 
Low GHG iron and steel 
Low GHG shipping 
Ocean and tidal power
These technologies are largely 
at the R&D stage, starting as 
concepts in a laboratory 
environment, through to 
late-stage prototypes in 
relevant deployment 
conditions. Whilst individual 
technology use cases 
may have reached a 
demonstration phase with 
real-world testing, due to their 
current levels of deployment 
they are considered to be less 
mature compared to 
technologies in the 
demonstration category. Demonstration (TRL 7-8)
Alternative foods / low GHG 
proteins
CCUS in power
Precision agriculture 
Food waste technology 
Green hydrogen production 
Low GHG concrete and 
cement 
Sustainable aviation fuels 
(SAFs) 
Technologies in this category 
have full-scale demonstration 
or pilot projects under way, 
often gathering data to 
generate investor and 
regulator confidence whilst 
targeting a commercial 
introduction. Several technology areas 
listed in this category—for 
example, precision agriculture 
and food waste technology—
have already achieved 
commercial launch in some 
markets.


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However, these are 
typically at a significantly 
small scale compared to the 
total available market, hence 
a lower maturity score. Commercial adoption 
(TRL 9+)
Light-duty battery EVs 
Solar power 
Wind power 
Micro mobility
These are technologies that 
have proven commercial 
business models in their 
relevant environments. Some 
of these technologies—for 
example, solar power and 
wind power—have been 
commercially available for well 
over a decade. However, 
there is still opportunity for VC 
investors to accelerate 
innovation ‘at the edges,’ 
such as developing advanced 
materials to make efficiency 
gains or software solutions to 
manage and optimise 
renewables-to-grid 
interactions. Our research suggests that 
these technology areas are 
rapidly approaching their 
global sectoral tipping points, 
with continued investment 
needed across the funding life 
cycle to enable them to scale, 
overcome remaining barriers 
to adoption, optimise, and 
target underserved customer 
segments.


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44  PwC | State of Climate Tech 2021
Total funding against emissions reduction potential by climate technology (2013-H1 2021)
12k
8k
6k
4k
2k
0k
10k
 Energy   Food, Agriculture and Land Use   GHG Capture, Removal and Storage   
 Industry, Manufacturing, and Resource Management   Mobility and Transport 
Source: PwC State of Climate Tech 2021, analysis of Dealroom data, Project Drawdown data, and grey literature. See appendix for detail.


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Note: In our analysis the 
start-ups and funding rounds included focus on VC investment and target emerging technologies. Funding from public markets (post-IPO) fundraising or large-scale project 
financing, that is used to scale up more mature technologies, is not included. 0 20 40 60 80 100 120 140 160
Matured Maturing
Nascent Under-funded
Total investment 2013-H1 2021, US$mn
Cumulative emissions reduction potential by 2050 (GtCo2e)
Alternative foods/low GHG proteins
Wind power
Food waste technology
Green hydrogen production
Precision agriculture
Micromobility
Low GHG shipping
Low GHG concrete
Low GHG iron and steel
CCUS in powerDAC/S
SAFs
Ocean & tidal power
Is capital being deployed in line 
with climate impact? A handful of technologies are taking 
the largest slice of the investment pie
In short, the answer is no. Our analysis 
shows that the top five technologies in 
terms of cumulative ERP by 2050,74 which 
represent 81% of total emissions 
reduction by 2050, have received just 
25% of the total investment funding over 
the analysis period from 2013 to H1 2021. The share of capital is dominated by a 
handful of technology areas, with the 
majority of climate technology solutions 
receiving just a fraction.75
Two technology areas worth mentioning 
here are light-duty battery EVs76 and 
micro mobility. The former represents just 
3% of the total ERP but has received in 
excess of 60% of the total funding, and 
the latter represents just 0.4% of ERP 
whilst receiving 9% of the funding.


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45  PwC | State of Climate Tech 2021
Where might we find the next 
gigacorns?77 
The chart below focuses on the 
technology areas that, based on current 
technology penetration scenarios, 
individually represent less than 30 
gigatons of CO2 equivalent (GtCO2e) of 
cumulative ERP by 2050. Despite having 
smaller ERPs78 relative to technology 
areas such as alternative foods or solar 
power, these technologies are likely to 
play a pivotal role in decarbonising their 
sectors, each of which contributes 
significantly to the global GHG to the 
global GHG emissions budget. Though no individual company is close to 
achieving gigacorn status today, many of 
the highest-polluting challenge areas 
present a large enough problem from a 
CO2 perspective that this could be 
possible in the future. It is for this reason 
that the technologies shown here are 
likely to represent those that will achieve 
this status in the future. Today, concrete 
and cement production represents 8% of 
global GHG emissions, with iron and steel 
adding an additional 6% to 8%.79  These 
are clearly industries where significant 
impact at scale can be achieved with the 
right mix of technology and investment. What is certain, however, is that no single 
technology will be able to shift the curve 
on climate change and that innovation 
and scale are required across all the 
challenge areas mentioned in this report.


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However, as markets in maturing climate 
technologies continue to scale, investors 
looking for ten-times to 100-times returns 
and beyond should look at these relatively 
nascent technology areas, where multiple 
unicorns do not yet exist to crowd out the 
market. Total funding against emissions reduction potential by climate technology (2013-H1 2021) - ZOOM IN ON NASCENT QUADRANT
3,500
2,500
2,000
1,500
1,000
500
0k
3,000
Source: PwC State of Climate Tech 2021, analysis of Dealroom data, Project Drawdown data, and grey literature. See appendix for detail.


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Note: In our analysis the 
start-ups and funding rounds included focus on VC investment and target emerging technologies. We have not included funding from public markets (post-IPO) fundraising 
or large-scale project financing that is used to scale up more mature technologies. This chart is a closer look into the ‘Nascent’ technologies quadrant from the previous 
chart, with the x-axis limited to 30 GtCo2e and the y-axis limited to US$3.5bn.80
0 5 10 15 20 25 30
Nascent
Total investment 2013 - H1 2021, US$mn
Cumulative emissions reduction potential by 2050 (GtCo2e)
Precision agriculture
CCUS in power
Low GHG shipping
Ocean & tidal power
SAFs Low GHG iron and steel
Low GHG concrete
DAC/S
 Energy   Food and Agriculture and Land Use   GHG Capture, Removal and Storage   
 Industry and Manufacturing and Resource Management   Mobility and Transport 
Matured
Nascent
Maturing
Under-funded


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46  PwC | State of Climate Tech 2021
Venture capital’s role in 
accelerating innovation
Identifying gaps in innovation
Our analysis highlights five technology 
areas (green hydrogen production, food 
waste technology, precision agriculture, 
sustainable aviation fuels and low GHG 
iron and steel) that are potentially 
lagging behind in terms of innovation in 
research and development, as shown by 
their relative immaturity compared to the 
proximity of their sectoral tipping point 
(diagram below). Given that it can take 
many years, and even decades, to 
achieve commercialisation following the 
prototype and demonstration phases, and 
the need for rapid decarbonisation in 
some of the most carbon intensive 
industries, society needs to quickly 
mobilise and accelerate these 
technologies.


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We conducted interviews with VC 
investors to understand the market’s view 
on the role played by VC today in 
advancing climate technology solutions. Several interviewees expressed their 
concern at the level of investment 
targeted towards financing technologies 
that are scaling fast but that will not 
contribute meaningfully to global 
decarbonisation. However, many 
interviewees also expressed their hope 
that VC investors would do what they do 
best and facilitate ‘cutting the green 
premium’ on the many nascent 
technologies that have emerged across 
challenge areas, to make them ready for 
widespread adoption. Not doing so runs 
the risk of missing an opportunity whilst 
also not helping to solve the  
climate problem.


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Tipping point vs. technology maturity
Source: Adapted from IEA energy technology perspectives (2021) and PwC analysis
 Commercial adoption   Demonstration   Prototype   At risk of innovation gap
Approximate tipping point (Year)
2025
Battery EVs CCUS in power DAC/S
Low GHG shipping
Ocean and tidal power
Micro mobility Alt. foods/low GHG proteins
Low GHG concreteGreen hydrogen production
Solar power
Wind power
Precision agriculture
Food waste tech
SAFs
Low GHG iron and steel
2030 2035 2040+


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47  PwC | State of Climate Tech 2021
Source: PwC State of Climate Tech 2021, analysis of Dealroom data
Total funding by technology maturity category (2013-H1 2021)
100k
80k
40k
20k
60k
Prototype  Demonstration
Technology maturity category
19k (15%)1.7k (2%)
Commercial adoption
102k (83%)
Total investment 2013-H1 2021, US$mn
0
Disparity in funding within and across maturity categories


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48  PwC | State of Climate Tech 2021
0k
Total funding against technology maturity by climate technology (2013-H1 2021)
12k
14k
8k
6k
4k
2k
10k
 Prototype  Demonstration  Commercial adoption
Source: PwC State of Climate Tech 2021, analysis on Dealroom data, technology maturity adapted from IEA Energy Technology Perspectives (2021), and grey literatureTotal investment 2013 - H1 2021, US$mn
Relative technology maturityOcean & tidal power
DAC/S
Low GHG shipping
SAFs
Precision agriculture
Low GHG concrete
Alternative foods/low GHG proteins
Food waste technology
 Green 
hydrogen 
 production
Wind power
Solar power
Micro mobility
CCUS in power
Analysis into the total funding raised 
across the three maturity categories 
demonstrates a clear and unsurprising 
pattern, with greater funding being 
channelled into more mature 
technologies, which tend to have lower 
product and commercial model risk. However, for a given level of maturity—
and therefore a similar target internal rate 
of return for investors—there is significant 
disparity in the total funding raised, as 
shown by the chart below.81 For example, 
food waste technology received 35 times 
as much funding as low GHG concrete 
over the investment period, despite their 
similar technology maturities. This is likely 
due to the additional risks posed to 
investors when considering investment 
into capital-intensive climate 
technologies, such as carbon capture and 
storage projects, compared to low GHG 
protein technologies, which have 
significantly lower capex and end-product 
unit costs and which benefit from proven 
channels to revenue.


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Some of these 
technologies also fall within industries that 
are not typically found in the traditional 
start-up ecosystem, which can make 
innovation more difficult.


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Another explanation is that sustained 
market excitement about certain 
technologies, buoyed by high-profile 
investors, has led to significant 
investment in some technologies. This 
presents opportunity areas for capital to 
scale innovation in those technologies 
that may be underfunded for their 
technological maturity. Determining which 
technologies are underfunded vs. their 
peers remains highly geography- and 
market-dependent, and also depends on 
total addressable market assumptions, 
which are bespoke to each market. 


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49  PwC | State of Climate Tech 2021
Climate tech needs a new  
class of investor
Given the nature of VC, with fund life 
cycles rarely exceeding ten years, and the 
fact that climate technologies typically 
take longer to develop and scale than 
traditional technology offerings, there is a 
growing appetite for climate technology 
investors to be more patient with their 
capital. Additionally, with investors 
optimising internal rate of return within 
their investments, they have incentives to 
opt for technology investments that scale 
and exit fast.


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More patient capital from VC is needed to 
fund innovation in capital-intensive 
technology areas that can also deliver the 
necessary financial returns, alongside 
outsized environmental and social impact. This reinforces the point made in our 2020 
report that access to patient capital is 
important. Vinod Khosla, founder of 
Khosla Ventures, said, ‘Matching the time 
horizons of climate tech start-ups with 
investors is a key challenge. Patient 
capital is needed, which is why 
Breakthrough Energy Ventures has set up 
a 20-year fund, rather than demanding 
returns within the traditional ten years.’ 
With the right investor type, these 
technologies could achieve the 
exponential growth that is needed to 
make meaningful steps towards 
decarbonisation across the hardest-to-
abate sectors, such as the built 
environment, industry and manufacturing, 
aviation and shipping. The challenge lies 
in convincing investors beyond only the 
‘impact-first’ tribe to operate in this way 
and unlock the hundreds of billions of 
dollars of capital that is available.82 
Breaking down the barriers to  
early-stage investment in  
capital-intensive start-ups
Data from the UK’s Energy and Climate 
Intelligence Unit shows that 137 countries 
have aligned themselves to climate 
neutrality targets as of June 2021. Achieving these targets requires urgent 
action, and especially so for the most 
polluting challenge areas, such as energy, 
transport and industry and manufacturing, 
which rely on expansive infrastructure.


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Real assets with high upfront costs and 
long asset lives need to be planned, 
financed and built. Clearer investment 
signals are required if this is to happen at 
the pace and scale required to replace 
current high GHG–intensity assets with 
lower GHG–intensity alternatives. Investment by the UK and other countries 
into offshore wind power has proven that 
costs can fall, around 60% in the decade 
to 2020, with the UK now a leading 
developer for offshore wind power.83  
This demonstrates that, with the right 
balance of government policy support 
and private-sector investment, significant 
strides can be taken towards meeting net 
zero by 2050. Today’s emerging 
technologies and net zero innovations 
require the same level of strategic 
direction and partnership between 
government and private investors to 
accelerate the pace of decarbonisation, 
supported by government policies such 
as introduction of carbon pricing to 
provide market confidence and initiatives 
such as the First Movers Coalition to 
accelerate innovation in harder-to-abate 
sectors.84 
Whilst scaling infrastructure technology 
typically relies on low-cost, patient 
capital, such as that provided by 
institutional investors such as pension 
funds, sovereign wealth funds and 
infrastructure funds, there is also a 
continued need for VC to help prototype- 
and demonstration-stage companies to 
conduct R&D and to support the scale-up 
of technology and supply chains. 


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50  PwC | State of Climate Tech 2021
Correcting market failures: a global carbon price85 
The CCUS industry provides an insightful case study to examine the impact of a meaningful carbon price. Putting a price on carbon 
seeks to internalise the externality of carbon pollution across all industries.


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Carbon taxes help to reduce the ‘green premium’86 as they 
force faster price parity to more expensive green alternatives.


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They provide an incentive to pollute less and, in doing so, encourage the 
shift to more renewable sources of energy and forms of production, and can lead to lower and cleaner consumption. CCUS technologies are complex. Whilst they can significantly reduce emissions from energy generation and intensive industrial 
processes, they also prolong global dependence on fossil fuels and are seen by some as counterproductive in the mission to a  
net zero future. Though more countries are increasing their support for CCUS development and deployment, many planned projects face increased 
uncertainty in the near term because of the COVID-19 pandemic and continued faltering oil prices, which are often used to index the 
price of CO2, making commercial viability a challenge. And given that the utilisation of captured CO2 to make products or in industrial 
processes is still in its infancy, most CO2 captured today is used for enhanced oil recovery, an expensive process that relies on a high 
crude-oil price to be viable. With global oil prices seeing historic lows because of the COVID-19 pandemic, the world’s largest 
commercial CCUS power plant, Petra Nova in Texas,87 shut down operations in mid-2020, casting a shadow on the uptake of CCUS 
technologies. And though existing CCUS technologies are promising and require capital to scale, there are several technological innovations at earlier 
stages of maturity that could increase capture rates and provide greater cost competitiveness for the technology.


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CCUS applied to 
power generation is at an early stage of commercialisation, so securing investments will require complementary and targeted policy 
measures such as long-term strategic plans, supporting tax credits and grant funding. With the right mix of incentives, including a global carbon price in place, this and other clean energy technologies could see a rapid rise 
in adoption. Until then, for the majority of investors, it will remain challenging to invest in these technologies. In the investment period covered, the CCUS in the power technology area raised just US$646m of funding, representing less than 1% 
of total funding across all the impact technology areas. The majority of the funding to date (2013–H12021) has been concentrated in 
three companies: LanzaTech (US$294m), CarbonFree Chemicals (US$141m) and Svante (US$136m). Given the gap in funding, rising 
demand and growing recognition of the importance of CCUS in meeting the world’s decarbonisation goals, CCUS could provide a 
major opportunity for investors. Total funding for CCUS in power against Brent Crude and EU Emmissions Trading System prices (2013-H1 2021)
Source: PwC State of Climate Tech 2021, analysis on Deal room data, US Energy Information Agency and World Bank Group data
 Total funding (US$mn)   Brent Crude price (US$)   EU Emissions Trading Systemj (ETS price (US$/tCO2e)
Total investment 2013-H1 2021 (US$ mn)
Brent Crude price (US$) and EU ETS price (US$/tCO2e)
100
80
60
40
0
180
160
140
120
100
80
60
40
20
2013 2014 2015 2016 2017 2018 2019 2020 2021
0


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51  PwC | State of Climate Tech 2021
8
The climate tech landscape is moving 
quickly, and momentum has significantly 
accelerated over the past year since 
PwC’s inaugural report. We have 
uncovered a number of key findings, 
which should be considered in order to 
maximise the impact of climate tech 
investments.


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1   Although capital is pouring into 
climate tech, attention is still needed 
at pre-seed and seed stages to 
drive breakthrough innovations, 
advancing and scaling future 
technologies to help tackle the climate 
crisis. 2   Investors need to look beyond the 
low-hanging fruit to help scale 
technologies in harder-to-abate 
sectors. Our impact analysis 
demonstrates that, of the technologies 
analysed, just 25% of the total funding 
raised is being channeled into the 
technologies that have 81% of the 
emissions reduction potential. Investors need to focus on channeling 
funding into the critically underfunded 
technologies that have a higher 
emissions reduction potential to drive 
deep decarbonisation of the economy. 3   Investors and LPs must demand 
and support impact analysis 
pre-deal and ongoing reporting 
during the lifetime of investments. Climate tech VCs’ approaches vary 
from a ‘small, medium, large’ sizing 
approach to detailed emissions 
calculations. The latter can place 
significant strain on start-ups; 
therefore, frameworks and approach 
need to be carefully considered based 
on maturity and scale.


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4   Though the size of the prize can be 
enormous, investors must hold a 
longer-term investment horizon for 
many of these technologies to mature. Along the way, many may fail, so 
climate tech investors must also have 
a higher risk profile. 5   Many brands and pr oducts are 
pivoting to integrate ESG into their 
offering. Investors must be wary of 
potential greenwashing attempts 
and take a balanced view of emissions 
reduction potential as well as 
commercial return. 6   A significant opportunity r emains to 
take the lessons learned from 
countries that are leading climate 
tech development, to implement 
these in emerging markets. This is 
especially important in leading a just 
transition, as many of these countries 
will be disproportionately affected by 
the most severe impacts of climate 
change, despite being amongst the 
lowest emitters of GHGs. 7   Ninety-seven percent of funding is 
going towards technologies that 
mitigate climate change, with only 
1% going into adaptation. The IPCC 
have made it clear that significant 
emissions reductions and CO2 removal 
will be required for a 1.5°C pathway. It 
is therefore likely, if these technologies 
are not accelerated, that large-scale 
adaptation will be required to deal with 
the impacts of climate change in the 
short and longer term. Of the 3,000+ 
climate tech start-ups analysed, only 
1% were focused on adaptation, 
highlighting a clear innovation and 
funding gap. The last 12 months have shown a clear 
intention globally to respond to the 
climate crisis and achieve net zero. There 
is now a critical role for VC to set the 
direction of travel for investment, focusing 
on the key technologies that will enable 
deep decarbonisation. Summary


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52  PwC | State of Climate Tech 2021
Acknowledgements
This report was written by Leo Johnson, Emma Cox, Denise Chan, Tarik Moussa, Millie Foakes, 
Vish Arora and Jess Wrigley of the PwC UK Innovation & Sustainability team, in collaboration with 
Azeem Azhar of Exponential View. Leo Johnson
Disruption & Innovation Leader 
Partner, PwC UK
leo.f.johnson@pwc.com
Jess Wrigley
Innovation & Sustainability 
PwC UK
jessica.wrigley@pwc.com
Azeem Azhar
Senior Adviser to PwC UK,  
and Founder, Exponential View
azeem@azhar.co.uk
Millie Foakes
Innovation & Sustainability 
PwC UK
millie.foakes@pwc.com
Vish Arora
Innovation & Sustainability 
PwC UK 
vishvas.q.arora@pwc.com
Denise Chan
Innovation & Sustainability 
PwC UK
denise.k.chan@pwc.com
Tarik Moussa
Innovation & Sustainability 
PwC UK
tarik.moussa@pwc.com
Emma Cox
Global Climate Leader 
Partner, PwC UK
emma.cox@pwc.com
PwC would also like to acknowledge the valuable contributions of 
Dealroom and the interviewees and inspirers in the development of this 
document. Dealroom.co: Providers of the underlying investment data.


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Dealroom.co is a data provider on start-up, early-stage and growth 
company ecosystems in Europe and around the globe. Project team: 
Yoram Wijngaarde and Matteo Renoldi. Interviewees and Inspirers
We interviewed the following individuals to better understand  
the latest state of play on climate tech investment over the last 
12 months. The interviewees cover a range of geographies and 
investor types:
Brett Bivens (Head of Research, Prima Materia)
Mark Cupta (Managing Director, Prelude)
Danielle Harris (Managing Director, Elemental Excelerator) 
Christian Hernandez (Partner, 2150 VC)
Hampus Jakobsson (General Partner, Pale Blue Dot)
Sven-Christian Kindt (IS&P Private Equity Investments, Credit Suisse) 
Alex Langguth (Co-Founder and Managing Partner, Ubermorgen) 
Ramez Naam (Co-chair, Energy and Environment Program at 
Singularity University) 
Matt Ocko (Co-managing Partner, DCVC)
Yair Reem (General Partner, Extantia)
Kavita Surana 
(Assistant Research Professor, Center for Global 
Sustainability, University of Maryland)
Albert Wenger (Managing Partner, Union Square)


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54  PwC | State of Climate Tech 2021
Appendix 1: 
PwC’s Climate Tech Platform
Our clients face the significant challenge of responding to 
the environmental, social and technologically disruptive forces 
shaping the global marketplace, whilst they are still trying to 
perform in current markets as they transition to net zero and 
delivery of the UN Global Goals. We work with our clients to navigate towards tech-enabled, 
sustainable futures.


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From net zero strategy development and 
target setting, market scanning and partner identification through 
to impact assessment and reporting, we help our clients meet 
their emerging needs on ESG. See our Climate page for more of 
our insights and to contact us.


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55  PwC | State of Climate Tech 2021
Appendix 2: 
Investment analysis methodology
This section explains key features in the methodology that we 
followed in our exercise to assess VC investment in climate tech. Our approach followed three broad steps:
Step 1 was to establish boundaries for the analysis.


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These 
boundaries guided our analysis by defining what is and isn’t a 
start-up and what should be considered venture capital. Our 
boundary conditions included:
•  Time boundaries: We included start-ups formed at any date 
but only examined funding that was raised from 2013 onwards. This time boundary was chosen based on qualitative 
discussions with interviewees and our own experience of the 
increased interest in climate tech investment since 2013. •  Funding boundaries: We included only start-ups that  
had raised at least US$1m. Start-ups smaller than this are 
not unimportant to climate tech but are less able to be robustly 
assessed against our climate tech criteria, as many are 
still pivoting their strategies in order to reach product and 
market fit. •  Funding type boundaries: We filtered by round type to 
include only early-stage VC and private equity funding. IPOs, 
ICOs and debt offerings were excluded from our analysis. Step 2 was to assess whether individual start-ups should be 
considered climate tech start-ups. This is not a black and 
white issue, and so we applied a set of guiding questions to 
assess whether start-ups were sufficiently climate tech–focused:
•  Does the start-up have an emissions- or net zero–focused 
strategy? Start-ups publicly indicating that reducing emissions 
was a clear objective for them were included in our analysis. •  Does the start-up address a challenge area or lever of 
critical importance to net zero? Start-ups tackling certain 
levers seen as pivotal to emissions reduction, or with use 
cases almost exclusively focused on resource efficiency and 
emissions reduction, were marked as climate tech irrespective 
of meeting our first criteria—for example, satellite operators 
gathering earth observation data that will be critical in 
informing effective climate action and optimising resource use. •  Will the start-up have a first-order impact on emissions? Start-ups that reduce emissions directly through their actions 
were included in the analysis, while those that had second-
order impacts were not included (unless they met our first 
criteria). For an example of the latter, consider a manufacturer 
of AI-focused processors. These will potentially be useful for 
start-ups using AI to address the net zero transition, but they 
do not themselves directly contribute to emissions reduction 
(and depending on how they are applied, may indeed lead to 
greater emissions). •  Does the start-up show a level of innovation and/or use of 
technology?


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Start-ups were expected to demonstrate that 
they were developing or using innovative tools or techniques. For example, in alternative proteins, a company developing 
lab-grown meat would be considered sufficiently innovative, 
whilst a company selling plant-based food supplements (in the 
absence of any other form of major innovation) would not be 
included. Step 3 was to allocate start-ups to challenge areas and 
levers.


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We assigned each start-up a primary challenge area and 
lever, based on the targeting of their products or services. We 
continually reviewed our taxonomy, making adjustments where 
we found start-ups were not naturally aligning with our initially 
hypothesised framework. In some cases, start-ups provided solutions applicable to more 
than one challenge area—for example, development of EV 
battery technology, which also supports grid management when 
connected to the grid. In these cases, we adopted a pragmatic 
approach to classification by choosing the company’s primary 
industry of focus (Mobility and Transport in the prior example). Noteworthy start-ups: Our report discusses noteworthy 
start-ups in certain levers.


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These were selected based primarily 
on funding raised in the relevant period or those having the 
highest valuation, as well as to display the diversity of offerings 
produced under each lever.


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56  PwC | State of Climate Tech 2021
Appendix 3: 
Climate tech taxonomy
Challenge area
Food 
Agriculture 
and Land Use
Challenge area
Industry, 
Manufacturing 
and Resource 
management
Challenge area
Climate 
Change 
Management 
and Reporting
Challenge area
GHG Capture, 
Removal 
and Storage 
Challenge area
FInancial 
Services
Challenge area
Built 
Environment
•  Alter native Foods/Low GHG Proteins
•  V ertical and Urban Farming (including aquaponics)
•  Agricultural Biotech/Genomics and Natural 
Solutions
•  Pr ecision Agriculture and Robotics 
•  Low GHG/Ener gy Efficient Equipment 
•  Earth and Marine Pr otection 
•  Land Use Management
•  Low GHG Chemicals (beyond plastics)
•  Low GHG Ir on, Steel, Aluminium
•  Low GHG Plastics or Alter natives
•  Low GHG Concr ete and Alternatives for 
Construction
•  Ener gy/Resource Efficient Manufacturing 
Processes
•  Low GHG Extraction, Supply and Maintenance
•  T ransformative Circularity, Recycling and Low  
GHG/Efficient Materials 
•  W aste Management Technology
•  Industrial Residuals T reatment and Management
•  Emissions Data, Monitoring, Management and 
Reporting
•  Climate Risk and Resilience Management
•  Climate/Earth Data Generation
•  Carbon Captur e, Uptake and Storage (CCUS)
•  Biomass Update of CO2 (excluding afforestation 
and land management)
•  Geo-engineering
•  Lenders
•  Banking (business + r etail)
•  Funds and Investment Banking
•  Pensions
•  Insurance
• High Efficiency Fixtur es and Fittings
•  High Efficiency Space/W ater Heating and Cooling 
•  Smart Management of Devices
•  Building Level (electricity and thermal) Storage
•  Low GHG Construction Pr ocesses
•  High Efficiency Lighting
•  High Efficiency Urban Spaces and Communities
•  T ransformative Circularity and Recycling 
•  Commer cial and Residential Residuals Treatment 
and Management
Challenge area
Energy
• Renewable Ener gy Generation
• Nuclear Generation
• Grid Management
•  W aste Heat Capture/Conversion/Storage
• Alter native Fuels 
• Ener gy Storage (thermal or electricity) 
• Low GHG Extraction and Maintenance 
•  High Efficiency Ener gy Intensive Electronic and 
Smart Monitoring / Management
Challenge area
Mobility and  
Transport
• Low GHG Air T ransport 
• Low GHG Shipping 
• Micr o-mobility
•  Low GHG Light and Heavy Duty T ransport: 
EVs and High-Efficiency Vehicles 
• Efficient T ransport Systems
• T ravel Alternatives (VR, teleworking)
• Batteries/Fuel Cells


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57  PwC | State of Climate Tech 2021
Appendix 4: 
Impact analysis detailed approach
Purpose of our analysis
In our impact analysis section, we looked for the carbon funding 
gap, assessing the funding raised by a subset of climate 
technologies against their climate impact potential. To determine 
climate impact potential, we examined the emissions reduction 
potential (ERP) of each technology, looking in particular at 
cumulative ERP to 2050. This analysis determined whether 
capital is being allocated in line with climate impact. Further, 
comparison between these data points and a technology’s 
maturity will enable investors to identify investment 
opportunities, balancing current technological and business 
model risk with large potential future addressable markets as the 
mandate for climate action increases across challenge areas and 
geographies. Methodology
Selecting the 15 climate technologies
Building on our existing taxonomy, we homed in on 15 climate 
technology areas centred around real-world applications, using a 
three-step process: 
Step 1: Identify technology areas with the most funding raised 
across all challenge areas over the analysis period to create a 
longlist. Step 2: Complete additional research to identify and add nascent 
technologies in hard-to-abate sectors, as well as technologies 
that may play a greater role in the future energy mix.88 
Step 3: Test and iterate the longlist with internal and external 
industry experts to arrive at a shortlist of 15 technology areas.89 
Technology areas90 91
1. Wind power
2.


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Ocean & tidal 
power
4. Gr een hydrogen 
production
Mobility and Transport
GHG Capture, Removal, and Storage
Carbon Management and Reporting
Energy Food, Agriculture 
and Land Use
Industry, Manufacturing 
and Resource 
Mmanagement
Built Environment Financial Services
5. Light duty battery 
evs
6.


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Low GHG shipping
8. Sustainable 
aviation fuels (SAFs)
9. Pr ecision agriculture
10. Food  
waste technology
11. Alter native foods/  
low GHG proteins
12. Low GHG ir on and 
steel
13. Low GHG concr ete 
and cement
12. Low GHG ir on 
and steel
13. Low GHG 
concrete and 
cement
N/A
14. CCUS in Power
15. Direct Air Capture / Storage (DAC/S)
N/A


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58  PwC | State of Climate Tech 2021
Technology area maturity
Technology maturity is defined here by determining the 
technology readiness level (TRL), sourced from academic or grey 
literature.92 Building on individual TRLs, our technology areas are 
ranked on a scale from prototype (TRL 4-6), to demonstration 
(TRL 7-8), to commercial adoption (TRL 9+), based on the 
aggregated TRLs of individual technological applications and 
processes in that technology area. Key assumptions
1   Given the rapidly evolving natur e of technology R&D in both 
public and private spheres, estimates of maturity may have 
evolved by the time of publication. 2   Whilst technology ar eas at TRL 9+ have proven themselves in 
a commercial environment and are ready to be proven at 
scale, the time it takes to achieve significant market 
penetration for individual technologies can vary from several 
years to decades, depending on factors such as capex 
requirements and unit costs, national policy environments, 
total investment and technical performance. 3   Wher e a technology area has a broader definition, we have 
estimated a midpoint TRL maturity score based on a 
confluence of factors and input from industry experts to 
enable meaningful comparison. Proximity to tipping point
The idea of positive tipping points is understood as a point 
beyond which sufficient market uptake of a particular technology, 
action or idea has been achieved, exponential progress is 
expected to ensue, and system transformation of the sector is 
inevitable.93  The basis of the United Nations Framework 
Convention on Climate Change’s Race2Zero Breakthroughs 
report, which identified 20 breakthrough outcomes (also called 
sector-specific tipping points), is to enable collaboration in and 
across sectors to enable producers, investors and customers to 
monitor progress towards common climate and technology 
goals. 94  The UNFCCC sectoral tipping points are aligned to the 
Climate Action Pathways set by the Marrakech Partnership to 
limit global warming to 1.5˚C. Here we build on the work by the UNFCCC and propose 
analogous tipping points for each of our 15 climate technology 
areas. Using a combination of qualitative and quantitative 
sources for each technology area, a proximity to tipping point is 
estimated on a three-point scale: 
•  Low (tipping point to be achieved by 2025). •  Medium (tipping point to be achieved by 2035).


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•  High (tipping point to be achieved beyond 2040). Key assumptions
1   Pr oposed tipping points are high-level and directional. Individual technology areas in a particular geography may 
achieve their sectoral tipping points earlier or later, driven by 
difficult-to-predict technological breakthroughs or shifting 
policy environments. Emissions reduction potential (ERP)
To assess the potential climate impact of each technology area, 
we provided an estimate for the cumulative CO2 equivalent 
emissions reduced or sequestered between 2020 and 2050, in 
gigatons. Where possible, we have used sources with defined 
and documented scenarios and assumptions, drawing primarily 
on the work of Project Drawdown.95  Given the long-term nature 
of the projections, the inherent uncertainty in ERP estimates is 
understandably very high. However, the estimates enable 
comparison between different climate technology solutions and 
can provide a useful indicator of the relative total available 
market for each. Where ERP values are quoted from outside of 
Project Drawdown (e.g.


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from academic or grey literature), these 
sources are referenced. Key assumptions
1   A verage values between two available Project Drawdown 
scenarios are used, where applicable. Drawdown Scenario 1 
is roughly in line with a 2˚C temperature rise by 2100, while 
Drawdown Scenario 2 is roughly in line with a 1.5˚C 
temperature rise.96  
2   ERP values shown here may be an underestimate. With 
increased VC investment or technological and/or policy-
driven breakthroughs, the earlier commercialisation of many 
individual technologies is possible, therefore abating even 
greater emissions than those projected by current scenarios 
quoted here.


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3   Second-order effects, such as synergies and multipliers, 
where progress in one technology area will benefit another, 
are not considered (for example, the continued development 
of energy storage technologies as a key accelerant and 
necessary partner for the uptake for renewable energy).


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Multiplier effects can be strong and greatly reduce the time to 
market for individual technologies, but they are difficult to 
predict, and so have not been considered. Sources for ERP
ERP values for most technology areas were sourced from Project 
Drawdown. Average values between the two available Drawdown 
scenarios are shown on the charts in section 7.


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59  PwC | State of Climate Tech 2021
Impact technology (Project Drawdown 
constituent solutions)
Wind power: onshore wind turbines, offshore wind turbines
Solar power: distributed solar, utility-scale solar photovoltaics, 
concentrated solar power
Ocean and tidal power: ocean power
Sustainable aviation fuels: efficient aviation 
Light-duty battery EVs: electric cars, hybrid cars
Low GHG concrete: alternative cement
Food waste technology: reduced food waste
Precision agriculture: farm irrigation efficiency, nutrient 
management efficiency
Low GHG shipping: efficient ocean shipping
Alternative foods / low GHG proteins: plant rich diets
Micro mobility: electric bicycles
Additional sources 
Green hydrogen production: The Hydrogen Council estimates 
that the hydrogen economy will reduce annual CO2 emissions by 
roughly 6 gigatons by 2050 compared to today’s technologies. The IEA Net Zero Emissions scenario projects growing hydrogen 
production between 2020 and 2050, with 11% of production 
from low-carbon forms in 2020, rising to 99% by 2050.


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We 
assume a constant GHG intensity of low-carbon hydrogen 
between now and 2050 and linear growth of production between 
decades where data is provided by the IEA. Using these 
assumptions of growth and emissions reductions per year 
compared to today’s technologies (zero tonnes in 2020 and up to 
6 gigatons by 2050), we find the total ERP of the hydrogen 
economy to be around 88 gigatons between 2020 and 2050. CCUS in power and DAC/S: The IEA Net Zero Emissions 
scenario estimates global CO2 capture by source. We assume 
linear growth of CO2 capture between decades where data is 
provided by the IEA. Using this assumption, we find the total 
ERP for CCUS in power and DAC/S to be around 28 gigatons 
and 12.5 gigatons, respectively, between 2020 and 2050. Low GHG iron and steel: Cumulative emissions reductions 
between 2020 and 2050 for iron and steel as stated in the IEA’s 
Sustainable Development Scenario.


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60  PwC | State of Climate Tech 2021
Endnotes
1. PwC, EU Private Markets: ESG Reboot, Nov 17 2021, https://www.pwc.lu/en/sustainable-finance/eu-private-markets-esg-reboot.html 
2. GlobeNewswire, Brookfield Announces Initial US$7 Billion Closing for Brookfield Global Transition Fund, Jul 27 2021,  
https://www.globenewswire.com/news-release/2021/07/27/2269263/0/en/Brookfield-Announces-Initial-US-7-Billion-Closing-for-Brookfield-Global-Transition-Fund.html 
https://bam.brookfield.com/press-releases/brookfield-announces-initial-us7-billion-closing-brookfield-global-transition-fund
3. Henry Sanderson, TPG $5.4bn climate fund backs long-duration battery start-up, Aug 23 2021 
4. H1 indicates the first six months of a calendar year (January-June) and H2 indicates the second (July-December)
5. PwC, Unlocking investment for Net Zero infrastructure, Dec 9 2021   
https://www.pwc.co.uk/industries/real-estate-and-infrastructure/real-assets/infrastructure-investment-in-net-zero.html 
6. UNFCCC Climate Champions, World leaders join UK’s Glasgow Breakthroughs to speed up affordable clean tech worldwide, (Oct 2021)  
https://racetozero.unfccc.int/world-leaders-join-uks-glasgow-breakthroughs-to-speed-up-affordable-clean-tech-worldwide/ 
7. The White House, Fact Sheet: The Bipartisan Infrastructure Deal, Nov 06 2021  
https://www.whitehouse.gov/briefing-room/statements-releases/2021/11/06/fact-sheet-the-bipartisan-infrastructure-deal/
8. European Commission, Commission, Breakthrough Energy Catalyst and European Investment Bank advance partnership in climate technologies, Nov 02 2021  
https://ec.europa.eu/commission/presscorner/detail/en/ip_21_5586
9. For example, in the Food, Agriculture and Land Use challenge area, there exist net zero levers of alternative proteins, vertical farming and agricultural biotech, amongst 
others. 10. IPPC, Key Economic Sectors and Services, Dec 9 2021 https://www.ipcc.ch/report/ar5/wg2/key-economic-sectors-and-services/ 
11. See the appendix for more detail on PwC’s Climate Tech Platform.


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12. Historical funding figures differ from those provided in State of Climate Tech 2020  
https://www.pwc.com/gx/en/services/sustainability/publications/state-of-climate-tech-2020.html, owing to enhancements in the underlying datasets. 13.


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There is not a consistent market definition of what defines a unicorn. For the purposes of this report, we define a unicorn as any start-up valued at US$1bn or greater 
that is not publicly-traded nor fully acquired as of H1 2021 (including PE-backed start-ups). Valuation data is sourced from Dealroom.co and media reports, and have 
not been verified by PwC.


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14. Bill Gates interview, SOSV Climate Tech Summit, Oct 13 2021 
15. Nicholas Earl, BlackRock CEO predicts a thousand sustainable ‘unicorns’, Oct 25 2021,  
https://www.cityam.com/blackrock-ceo-predicts-a-thousand-sustainable-unicorns/
16. ‘Early VC’ is the default label for rounds of US$1m to US$10m with no self-reported label. 17.


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EIP , Climate Tech Index, Dec 09 2021 https://eipclimateindex.com/
18. Sequoia, The Sequoia Fund: Patient Capital for Building Enduring Companies, Oct 26 2021 
https://medium.com/sequoia-capital/the-sequoia-fund-patient-capital-for-building-enduring-companies-9ed7bcd6c7da
19. Axios, Scoop: Sequoia Capital just blew up the VC fund model, Oct 26 2021 https://www.axios.com/sequoia-capital-fund-venture-capital-model-36425923-deff-430e-
9945-09b0ccb69c78.html 
20. World Resource Institute, Four Charts Explain Greenhouse Gas Emissions by Countries and Sectors, Feb 06 2020
21. Hannah Ritchie and Max Roser, CO2 and Greenhouse Gas Emissions, Our World in Data, 2020  
https://ourworldindata.org/co2-and-other-greenhouse-gas-emissions. .


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22. World Resource Institute, Everything You Need to Know About the Fastest-Growing Source of Global Emissions: Transport, Oct 16 2019
23. PwC, The green hydrogen economy, Predicting the decarbonisation agenda of tomorrow, Dec 09 2021  
https://www.pwc.com/gx/en/industries/energy-utilities-resources/future-energy/green-hydrogen-cost.html 
24. Edie, Mobility platforms commit to zero-emissions manifesto for 2035, Sep 21 2021  
https://www.edie.net/news/8/Mobility-giants-commit-to-zero-emissions-manifesto-for-2035/ 
25. Please refer to Appendix 2 for details on how these were selected.


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26. European Commision, Reducing emissions from the shipping sector, Dec 08 2021, 
27. Hannah Ritchie and Max Roser, CO2 and Greenhouse Gas Emissions, Our World in Data, 2020 Much of emissions from energy use (totalling 73.2%) can also be 
attributed meaningfully to other primary sectors such as Mobility and Transport; Industry, Manufacturing and Resources; and Built Environment. However, emissions 
from energy use across all these sectors can be addressed by many of the climate tech solutions identified under this challenge area. For reference, GHG emissions 
that are attributable only to the production of energy, including fugitive emissions, represent 13.6% of global emissions.


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61  PwC | State of Climate Tech 2021
28. IEA, With only 2% of governments’ recovery spending going to clean energy transitions, global emissions are set to surge to an all-time high, Jul 20 2021  
https://www.iea.org/news/with-only-2-of-governments-recovery-spending-going-to-clean-energy-transitions-global-emissions-are-set-to-surge-to-an-all-time-high
29. IRENA, Renewable Power Generation Costs in 2020, Jun 2021: https://www.irena.org/publications/2021/Jun/Renewable-Power-Costs-in-2020 
30. Elle Hardy, Aussie start-up creates world’s most efficient solar cell, Oct 4 2021 https://createdigital.org.au/aussie-startup-creates-worlds-most-efficient-solar-cell/
31. Davide Castelvecchi, Electric cars and batteries: how will the world produce enough?


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Aug 12 2021
32. Liebreich Associates, The Clean Hydrogen Ladder, Aug 15 2021 https://www.linkedin.com/pulse/clean-hydrogen-ladder-v40-michael-liebreich/ 
33. PwC, The Green Hydrogen Economy, 2021 https://www.pwc.com/hydrogen 
34. European Commission, In focus: Hydrogen – driving the green revolution, Apr 14 2021,  
https://ec.europa.eu/info/news/focus-hydrogen-driving-green-revolution-2021-abr-14_en 
35. European Commission, Sustainable aviation fuels – ReFuelEU Aviation, 2021,  
https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12303-Sustainable-aviation-fuels-ReFuelEU-Aviation_en
36. World Energy Council, in collaboration with EPRI and PwC, HYDROGEN ON THE HORIZON: READY , ALMOST SET, GO?, Sep 2021  
https://www.worldenergy.org/assets/downloads/Working_Paper_-_National_Hydrogen_Strategies_-_September_2021.pdf
37. HM Government, UK Hydrogen Strategy, Aug 17 2021 https://www.gov.uk/government/publications/uk-hydrogen-strategy
38. PwC Strategy&, The dawn of green hydrogen, Dec 10 2021 
https://www.strategyand.pwc.com/m1/en/reports/2020/the-dawn-of-green-hydrogen/the-dawn-of-green-hydrogen.pdf
39. Hannah Ritchie and Max Roser, CO2 and Greenhouse Gas Emissions, Our World in Data, 2020 https://ourworldindata.org/co2-and-other-greenhouse-gas-emissions.


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40. Crippa, Solazzo, Guizzardi, Monforti-Ferrario, Tubiello and Leip, Food systems are responsible for a third of global anthropogenic GHG emissions, Mar 08 2021 
https://www.nature.com/articles/s43016-021-00225-9 
41. Mario Herrero and Philip K. Thornton, Livestock and global change: Emerging issues for sustainable food systems, Dec 24 2013  
https://www.pnas.org/content/110/52/20878.full 
42. Vliet, Kronberg and Provenza, Plant-Based Meats, Human Health, and Climate Change, Oct 06 2020 
 https://www.frontiersin.org/articles/10.3389/fsufs.2020.00128/full
43. The Food Institute, Jun 22 2020 https://foodinstitute.com/focus/edible-insect-market/ 
44. Kate Whiting, World Economic Forum,How soon will we be eating lab-grown meat? Oct 16, 2020 | 
https://www.weforum.org/agenda/2020/10/will-we-eat-lab-grown-meat-world-food-day/ 
45. Nature, Revamp of UK CRISPR regulation will require public trust, Mar 16 2021 https://www.nature.com/articles/d41586-021-00672-1
46. Our World in Data, Food waste is responsible for 6% of global greenhouse gas emissions, Mar 18 2020 https://ourworldindata.org/food-waste-emissions 
47. Poore and Nemecek, Reducing food’s environmental impacts through producers and consumers, Jun 01 2018  
https://ora.ox.ac.uk/objects/uuid:b0b53649-5e93-4415-bf07-6b0b1227172f 
48. FAO, FOOD LOSS AND WASTE IN THE FOOD SUPPLY CHAIN, July 2017 http://www.fao.org/3/bt300e/bt300e.pdf 
49. FAO, Global food losses and food waste, 2011 https://www.fao.org/3/mb060e/mb060e.pdf 
50. Hannah Ritchie and Max Roser, CO2 and Greenhouse Gas Emissions, Our World in Data, 2020 https://ourworldindata.org/co2-and-other-greenhouse-gas-emissions
51. Climate Group, Steel Zero, Dec 08 2021 https://www.theclimategroup.org/steelzero
52. Our World in Data. Global GHG Emissions by Sector, 2016 https://ourworldindata.org/emissions-by-sector
53. Another start-up, Katerra, was previously valued at over US$1bn but has since filed for bankruptcy.


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Edie, Time to build our infrastructure on green foundations, Oct 10 2021  https://www.edie.net/blog/Time-to-build-our-infrastructure-on-green-foundations/6098957 
55. Mark Evans, Finance sector funds emissions over 700 times greater than its own, Apr 29 2021 https://bettersociety.net/CDP-finance-sector-GHG-indirect.php
56. World Economic Forum, The Global Risks Report 2021,16th Edition, 2021 https://www3.weforum.org/docs/WEF_The_Global_Risks_Report_2021.pdf
57. HM Treasury, UK Government Green Financing Framework, June 2021,  
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1002578/20210630_UK_Government_Green_Financing_Framework.pdf
58.


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IPCC, Sixth Assessment Report, August 09 2021 https://www.ipcc.ch/assessment-report/ar6/
59. One start-up in this challenge area, LanzaTech, is currently tagged a rumoured unicorn on the Dealroom platform, as there are unconfirmed media reports that they may 
have previously raised funding at a US$1bn valuation. 60.


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Christian Aid, Counting the cost of 2020: a year of climate breakdown, Dec 2020,  
https://www.christianaid.org.uk/sites/default/files/2020-12/Counting%20the%20cost%202020.pd
61. Of the total North America funding, the majority is tagged to the US (US$55.1bn) while US$1.4bn is tagged to Canada.


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62. Yingwei Fu, After the Mania, China’s VC Investment is Cooling Down, Dec 08 2021, https://equalocean.com/analysis/2019100412026
63. Financial Times, China’s state-owned venture capital funds battle to make an impact, Dec 08 2021 https://www.ft.com/content/4fa2caaa-f9f0-11e8-af46-2022a0b02a6c 


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62  PwC | State of Climate Tech 2021
64. Georgina Lee, Climate Change: China’s central bank unveils lending facility to spur funding for carbon-reduction projects in net zero drive, Dec 08 2021, 
https://finance.yahoo.com/news/climate-change-chinas-central-bank-093000347.html
65. PwC, Unlocking investment for Net Zero infrastructure, 2021 https://www.pwc.co.uk/industries/real-estate-and-infrastructure/real-assets/infrastructure-investment-in-
net-zero.html 
66. UNFCCC Climate Champions, World leaders join UK’s Glasgow Breakthroughs to speed up affordable clean tech worldwide,Oct 2021  
https://racetozero.unfccc.int/world-leaders-join-uks-glasgow-breakthroughs-to-speed-up-affordable-clean-tech-worldwide/ 
67. Detailed methodology and approach to our impact analysis is outlined in the appendix.


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68. IEA, Net Zero by 2050, 2021 https://www.iea.org/reports/net-zero-by-2050 
69. Financial Services; GHG Capture, Removal and Storage; and Climate Change Management and Reporting are not included in the graph as they are not sector areas 
that contribute direct emissions. 70. Global GHG emissions of 49.4 Gt CO2e in 2016. Hannah Ritchie and Max Roser, CO2 and Greenhouse Gas Emissions, Our World in Data, 2020  
https://ourworldindata.org/co2-and-other-greenhouse-gas-emissions. 71.


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PwC UK, Unlocking capital for Net Zero infrastructure, 2020 https://www.pwc.co.uk/assets/document/Unlocking-capital-for-net-zero-PwC-Nov-2020.pdf
72. IEA, ETP Clean Energy Technology Guide, 2021 https://www.iea.org/articles/etp-clean-energy-technology-guidesupplemented by academic and grey literature as well 
as internal PwC industry and sectoral expertise. 73.


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Technology areas with TRLs 1-3 were considered too immature for this analysis. 74. Solar power, wind power, food waste technology, green hydrogen production, and alternative foods/low GHG proteins
75. The ERP values shown are based on current adoption scenarios. Increased investment powering technological breakthroughs or favourable policy decisions could 
significantly reduce the time to market. This would enable individual technology areas to achieve much greater ERP by 2050 than is estimated here. 76.


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Light-duty battery EVs not shown on charts in this section as it would skew the scale (total funding in excess of US$70bn)
77. A Gigacorn is defined as a company that has achieved lowering or sequestering CO2 emissions by 1 gigaton a year while being commercially viable. Christian 
Hernandez, On Gigacorns and Sustainability Tech, Jul 6 2020 https://christianhern.medium.com/on-gigacorns-and-sustainability-tech-8b24efd04d00
78. In this chapter we refer to emissions reduction potential. Though we use reduction, this term references both emissions removed (for example, direct air capture and 
afforestation) and avoided (for example, CCUS and alternative proteins), through both technological and nature-based solutions. 79.


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IEA, World Energy Balances Database, 2018, https://www.iea.org/reports/world-energy-balances-overview
80. Micromobility (<5 Gt CO2e ) and light-duty battery EVs (~20 Gt CO2e) have been omitted due to their outsized total funding which would skew the scale. 81.


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Chart excludes light-duty battery EVs as it skews the scale
82. Dealroom, Global venture capital is crushing all records in 2021, Jul 7 2021 https://dealroom.co/blog/global-venture-capital-is-crushing-records-in-h1-2021
83. Prime Minister’s Office, World leaders join UK’s Glasgow Breakthroughs to speed up affordable clean tech worldwide, Nov 2 2021  
https://www.gov.uk/government/news/world-leaders-join-uks-glasgow-breakthroughs-to-speed-up-affordable-clean-tech-worldwide
84. World Economic Forum, First Movers Coalition, 2021 https://www.weforum.org/first-movers-coalition 
85. In a recent joint report with the World Economic Forum, PwC assessed the impacts of international carbon pricing scenarios on economies and industries to help inform 
the debate and provide insights to governments, businesses, and civil society looking for solutions for reducing carbon emissions. World Economic Forum, Increasing 
Climate Ambition: Analysis of an International Carbon Price Floor, 2021 https://www.pwc.com/gx/en/services/sustainability/assets/economic-impact-of-a-carbon-price-
floor.pdf  
86. OECD, Tax and the Environment, Dec 08 2021 https://www.oecd.org/tax/tax-policy/tax-and-environment.htm  
87. International Energy Agency, Tracking CCUS in Power 2020, Jun 2020 https://www.iea.org/reports/tracking-ccus-in-power-2020
88. Technology focus areas were identified from the UK’s Net Zero Innovation Portfolio (NZIP) and IEA Net Zero by 2050 report. 89.


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See appendix 2 for a list of the inclusion and exclusion criteria for each technology area. 90. The technologies chosen for the impact assessment are at application level (for example, solar power) rather than sector level (for example, renewables). 91. Technologies from the Financial Services and Climate Change Management and Reporting challenge areas were excluded as they are defined as enabling technologies 
that do not directly lead to emissions reductions. 92.


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Main source: IEA Energy Technology Perspectives supplemented by academic and grey literature as well as internal PwC industry and sectoral expertise. 93. University of Exeter, Our Positive Tipping Points are bringing change to the climate crisis, Dec 08 2021 https://www.exeter.ac.uk/research/tippingpoints/
94. UNFCCC, Race to Zero Breakthroughs, 2021 https://racetozero.unfccc.int/wp-content/uploads/2021/02/Race-to-Zero-Breakthroughs-Transforming-Our-Systems-
Together.pdf
95. Source: Project Drawdown. Note: Project Drawdown conducts an ongoing review and analysis of climate solutions—the practices and technologies that can stem and 
begin to reduce the excess of greenhouse gases in our atmosphere. 96. Project Drawdown, Solutions, Dec 08 2021, https://drawdown.org/solutions


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This publication has been prepared for general guidance on matters of interest only, and does not constitute 
professional advice. You should not act upon the information contained in this publication without obtaining specific 
professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness 
of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP , 
its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any 
consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this 
publication or for any decision based on it. © 2021 PricewaterhouseCoopers LLP .


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All rights reserved. In this document, the terms ‘PwC’, ‘our’ and ‘we’ refer 
to the UK member firm, or, as the context requires, to the network of member firms of PricewaterhouseCoopers 
International Limited or to one or more member firms. Please see www.pwc.com/structure for further details. www.pwc.com/climatetech


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/content/AD_CombinedData_Accenture PWC CapGemini/AD_Data_Accenture 5 Steps to Get Industries on Track for Net Zero.pdf


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8/11/23, 10:08 AM 5 Steps to Get Industries on Track for Net Zero | Accenture
https://www.accenture.com/us-en/blogs/accenture-energy/tracking-towards-net-zero 1/8
Accenture Energy Blog
Five steps to get industries on track fornet zeroJULY 29, 2022
SHARE   
Net-zero emissions by 2050 cannot be achieved without radically accelerating the
decarbonization of heavy industries. The World Economic Forum’s irst Net-Zero Industry Tracker, developed in collaboration with
Accenture, reveals the scale of the challenge and sheds light on how industries can get on track
for net zero.


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Addressing data gaps will improve visibility on solution levers and accelerate the pace of progress.


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Actions that will advance the technologies, infrastructures, demand signals, policies and
investments required for net-zero success are even more urgent. An industrial-scale problem…
Today, industrial sectors account for nearly 40% of global energy consumption and more than 30% of
global greenhouse gas emissions. The ive industries of steel, cement, aluminum, ammonia as well as oil
and gas generate approximately 80% of these emissions. Demand for energy and industrial products is
forecasted to increase by further 30% to 80% by 2050. If the decarbonization of industries does not
radically pick up pace, industrial emissions will only rise with demand. This would mean the world’s
ambition to achieve net zero can be pushed further out of reach. … Requires an industrial-grade solution
There will be no net-zero future if industries don’t decarbonize. It is imperative to understand the scope of
the challenge, the variety of opportunities for industry sectors, and to comprehensively and consistently



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8/11/23, 10:08 AM 5 Steps to Get Industries on Track for Net Zero | Accenture
https://www.accenture.com/us-en/blogs/accenture-energy/tracking-towards-net-zero 2/8
track the progress on industrial decarbonization. For this purpose, the World Economic Forum recently launched the Net-Zero Industry Tracker to raise
transparency and accelerate industrial transformation. This initiative oﬀers a comprehensive framework
for monitoring industries’ progress towards net zero. On top of that, it provides insights to inform industry
leaders, policymakers and consumers about actions that are the most critical and most eﬀective. 5 actions for 5 industries 
Based on insights from the Tracker’s inaugural report, here are ive recommendations for stakeholders of
the ive industries that produce the most industrial emissions:
. Deine “low-emission” production thresholds to direct decarbonization trajectories
Net-zero targets are necessary to set long-term ambitions, but they are insuicient to drive year-
over-year progress.


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For basic materials as well as oil and gas, international sustainability standards
CLICK TO ENLARGE IMAGE 



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need to establish emission intensity thresholds that anchor what “low-emission” production in a net-
zero world looks like. These thresholds should be technology agnostic and account for varying
product speciications, such as clinker ratio in cement or scrap content in aluminum or steel. Industry standards such as the Aluminium Stewardship Initiative or Responsible Steel alongside
multi-stakeholder collaboration (such as the IEA's recommendations for achieving net zero heavy
industry sectors in G7 members) will be essential to deine thresholds within each sector. At present, across all ive industries, the gap to meet the 2050 emission thresholds outlined in the
IEA Net Zero by 2050 Scenario is considerable.


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. Set a public-private investment agenda to decrease the cost of clean technology
Many low-emission production technologies have been demonstrated at scale and can drastically
reduce emissions, for example -80% for natural gas, -95% for cement plus steel and -100% for
ammonia. However, these technologies are much costlier than traditional alternatives. At the
current pace of development, low-carbon technologies won’t be commercially ready, let alone
competitive, before the second half of the decade, which would mean 2025 for steel, and after
2030 for cement and aluminum. Moving forward, economies of scale, eiciency gains and further
innovations are likely to drive costs down.


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But this can only happen if more full-scale projects are
developed. Public and private sectors should come together to rapidly multiply such projects
around the globe. CLICK TO ENLARGE IMAGE 



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https://www.accenture.com/us-en/blogs/accenture-energy/tracking-towards-net-zero 4/8
. Promote low-carbon demand and establish transparency and visibility among producers
Decarbonizing industries has estimated capital requirement of over 2 trillion USD in capital
expenditure by 2050.


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Such investments can only materialize if demand and green premiums for low-
emission products exist to grant producers and investors the returns they require. As of now, the
willingness and ability of consumers to pay premiums have not been demonstrated. It is critical for
industry stakeholders to strengthen and scale-up demand signals for low-emission products. Public
and private buyers’ commitments are essential to provide visibility on green products’ oﬀtake
volume and price (for example the First Movers Coalition and Clean Energy Ministerial IDDI). Carbon
footprint product labelling standards can also help diﬀerentiate materials and incentivize consumers
to pay premiums. .


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Strengthen policies and regulations to level the playing ield for low-carbon producers
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Maintaining global competitiveness is a top priority for industry leaders and governments. First
movers investing in higher-cost, low-emission production facilities assume a higher risk of seeing
their competitive positions deteriorate.


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Stable and ambitious policy frameworks are necessary to
level the playing ield and incentivize irms to venture into low-carbon markets while governments
need to facilitate the emergence of economically viable ones. Carbon pricing combined with a
border-adjustment mechanism is one potential approach that limits the risk of carbon leakage. Others include carbon contracts, preferential public procurement (like the California Buy Clean Act),
material mandates or quotas.


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. Develop risk-sharing mechanisms, green taxonomies, and public funding to de-risk investments
and attract capital
Mark Carney, former governor of the Bank of England and UN Special Envoy on Climate Action and
Finance, declared at Davos this year: “We need an energy transformation on the scale of the
industrial revolution at the speed of the digital transformation. And therefore, we need a revolution
in inance.”
The need for capital to decarbonize industries is immense. For instance, the additional capital
expenditure required is equivalent to recapitalizing 40% of the steel industry. To reduce companies’
risk exposure and accelerate capital inlow, innovative risk-sharing and inancing mechanisms will
be critical. Multilateral public-private partnerships, joint-ventures across industries and value chains,
sustainable inance taxonomies, and public funding in the form of grants, low-interest and
concessional loans and so on are a must to attract capital for the irst commercial-scale assets. All out means all in
Without radical change, industrial emissions will rise alongside demand for industrial products. The world
should go all out to tackle the industry decarbonization challenge. That means going all in on
transparency and collaboration. It is only with collective eﬀort that industries can reach net zero. Disclaimer:  The views and opinions expressed in this document are meant to stimulate thought and
discussion.


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As each business has unique requirements and objectives, these ideas should not be viewed
as professional advice with respect to the business. This document may contain descriptive references to
trademarks that may be owned by others. The use of such trademarks herein is not an assertion of
ownership of such trademarks by Accenture and is not intended to represent or imply the existence of an
association between Accenture and the lawful owners of such trademarks. 


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8/11/23, 10:36 AM Leading by example in spearheading the energy transition
https://www.pwc.com/gx/en/services/tax/publications/leading-by-example-in-spearheading-the-energy-transition.html 1/7
The EU Green Deal and the Energy, Utilities
and Resources industry: Leading by example
in spearheading the energy transitionChris Winkelman
Energy - Utilities - Resources Industry Leader & Energy Transition Leader, Partner, PwC Netherlands
In mid-2021, the Germany-based chemicals giant Baden Aniline
and Soda Factory (BASF) struck an agreement with the major
European energy company Vattenfall to buy a stake in the
Hollandse Kust Zuid offshore wind farm. The aim?


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To enable
BASF to implement innovative, low-emission technologies at
several of its production sites across Europe – and accelerate
progress towards its target of achieving net-zero emissions by
2050. The deal was just one example of how European companies in
different industries – and in some cases competitors within the
same industry – are converging around a common goal:
decarbonisation of their operations and energy usage in
support of the global drive to keep temperature increases as
low as possible. It’s an effort that’s being encouraged and
supported by the EU Green Deal, the EU’s ambitious new
strategy to transform into a more competitive economy where
growth is decoupled from use of resources. Energy, Utilities and Resources setting the
pace
However, it’s a strategy that many companies have yet to learn
about. In PwC’s recent EU Green Deal Survey – based on
interviews with 296 senior decision-makers in businesses
across Europe – 60% of all respondents said they were
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