Clean Growth Fund’s Beverley Gower-Jones was invited to speak at the Net Zero Annual Investor’s Conference recently.
The event aimed at institutional investors committed to transitioning their portfolios towards net zero, provided the perfect platform for Beverley to share insights. During her session, “Decarbonising the Economy for Growth,” Beverley delivered an insightful presentation on how cleantech innovation can serve as a catalyst for both environmental impact and economic prosperity.
Beverley began by noting that while many corporates start their decarbonisation journey by switching to renewable electricity, this is only the first step. The International Energy Agency has identified that 35% of necessary CO₂ reductions require emerging technologies, with a further 40% relying on innovations that have yet to achieve mass market deployment. Emerging technologies are key to driving significant carbon emissions reduction.
This underscores the critical role of cleantech. For investors, portfolio diversification is essential so that we get to net zero quickly without over relying on any one method. Renewables, while essential, are now heavily competed and considered a broadly safe area of investment with modest, risk-adjusted returns and sustainability impact.
The challenge, Beverley highlighted, is how to access the opportunity safely. She shared compelling examples of world-class cleantech innovation from the UK:
- Clean Food Group is tackling palm oil’s environmental toll, whose annual global production emissions are equivalent to the UK’s total emissions. By producing a cost-effective, yeast-based palm oil alternative, they are helping major corporations like Nestlé decarbonise their supply chains while creating new revenue streams for the brewing industry and local jobs.
- Sunswap is transforming the cold-chain logistics industry. Their solar-powered refrigeration units replace diesel generators, offering a cleaner, more cost-effective solution. Their strong relationship and channel to market through Gray and Adams in Scotland and a £17m Series B funding round backed by BGF and Shell Ventures, exemplifies how cleantech startups can scale rapidly while creating economic value and reducing emissions.
- Holiferm, is revolutionising the production of surfactants used in household products. Their innovative fermentation technology, developed at Manchester University, has drawn international attention, with funding secured from Dutch and US-based investors keen to capitalise on UK innovation. At their Wallasey pilot plant, Holiferm is creating local jobs while advancing global sustainability goals.
- Futraheat’s Turboclaw technology is recycling waste heat into energy for industries like brewing, laundry and steel – industrial process heat makes up 25% of global energy demand. Recently installed at an industrial site in West Sussex, the system provides a temperature uplift of 30 degrees which is enough to recycle the heat back into the front end of the process, increasing process efficiency while reducing emissions and costs.
Beverley stressed “It takes time to develop and commercialise low carbon solutions, and it’s important that we fund and back them now”. As major companies like Unilever and GSK decarbonise their supply chains, the solutions they need won’t be ready. “The toolbox of net zero solutions will be empty, and their share prices will come tumbling down.” Sustainability, she explained, can grow business topline and cut costs, increasing shareholder value and making it essential for competitive businesses.
Finally, she highlighted the enormous economic opportunity in the climate transition. “We want to deploy pension fund money into UK cleantech opportunities to invest in the “best of British cleantech” growing our economy, providing local jobs and futureproofing industries.” While risks exist, they are balanced by substantial rewards, making this a once-in-a-generation investment opportunity.
The post CGF speaks on decarbonising the economy at Net Zero Annual Investor’s Conference appeared first on Clean Growth Fund.