Streetwise with Climate Intelligence
Getting versed in climate change will get you 5 steps ahead of other founders. This won’t be 15 insights on climate change. Instead, here are some thoughts that can help you disco dance with stakeholders, legislation and financial incentives. Just like Travolta dances with Thurman in Pulp Fiction.
An acquaintance, Haje Kamps from TechCrunch, was recently analysing thousands of pitch decks he had received from founders. He discovered that less than 1% of founders mention sustainability in their funding docs.
Is that a crisis? For the climate, yes. But, there’s something else. It seems like many new founders are missing out on the best opportunities to gain hands-on market and contextual awareness — not just an impression of news headlines. At least, I wish I had been introduced to getting my hands dirty with raw market research earlier.
Given the urgency of the EU’s climate change agenda, the legislation and financial incentives it’s pushing are no longer mere technicalities. They will empower governing entities to reward or penalise your operations more directly than ever with various CO2 tax mechanisms and the EU ETS (emissions trading scheme) which is a cap and trade system for emissions.
Death by climate tax
Why is market awareness important? For example, the real estate industry will get triple taxed for not fulfilling multiple climate legislations by 2030 in the EU, both for residential new construction and rental properties. It is each company’s individual responsibility to comply. Why is this critical knowledge? Imagine you own a real estate company. Without this simple legislative insight your magnificent ship could suddenly sink because you failed to read a piece of paper.
Doesn’t that sound like a bloody horror movie? Now, picture your startup as a horror movie.
Climate change is the plot
Your choices shape survival
Building contextual awareness is critical to survive long term
Avoiding it will have fatal consequences
All right, I’m not going to write a horror movie. But, contextual awareness is the thing that lets you capitalise on opportunities effectively. It opens your eyes to valuable business synergies in the market that are otherwise hidden.
That’s why legislation and financial incentives aren’t mere technicalities. They represent the laws shaping opportunities and the likelihood of your success. Ignorance is not an option.
Leveraging contextual awareness
I haven’t told you the best part. You can build high leverage market awareness without any fancy education. The knowledge is freely available. But, it requires a little more effort than watching youtube. You must go to the source. Beyond mere news headlines. I am simply suggesting that you spend a little time reading some climate reports and legislation. Don’t read to absorb the contents, but to paint a picture of:
Entity awareness: who is who, and who is dancing with who
Reasoning structure: categories of information and data you must address
Fundamentally, that’s it. Number one will give you an awareness of the entities you must engage with, and the rules that govern these interactions. Number two will give you the vocabulary and reasoning structure that enables you to articulate solid arguments and value propositions.
Think about it: if less than 1% of founders mention sustainability in their funding pitches, they are missing this valuable context. This is your opportunity to get ahead.
Reading to paint a picture
Delving into climate change reports can feel overwhelming, but they’re a gold mine of insight when you understand the above. Luckily, a holistic understanding of climate change is what will give you the most bang for the buck:
Emissions data: understand the driving numbers.
Climate adaptation: practical application of strategies.
Fossil fuel production: energy industry dynamics.
Climate finance: how climate goals are facilitated.
Health impacts: fundamental driver of our fear.
Pro reading tip: Be patient and take your time studying the table of contents. It will help you navigate information quicker, allow you to focus on what is relevant to you, and give you a map of the context you must reason within.
Remember: Success isn’t just about getting ahead. It’s about cultivating the drive and self-discipline to navigate challenges consciously.
Be intentional in your actions and decisions to pave the way for long-term success. Be a conscious player by giving yourself an open view of the playing field. Be contextually aware.
Resources
For your convenience, I’ve compiled an overview of useful resources to get started on your journey.
How come founders don’t give a crap about sustainability? by Haje Kamps. “Everyone talks a good game, but fewer than 1% of founders mention sustainability in their fundraising docs.”
Emissions Gap Report 2023 by UNEP. Analyses future trends in greenhouse gas emissions and suggests potential solutions to the challenge of global warming.
Adaptation Gap Report by UNEP. Highlights under-financing and under-preparation in climate adaptation, with the current adaptation finance gap estimated at US$194-366 billion per year.
Production Gap Report by UNEP, SEI, Climate Analytics, E3G, IISD. Proposes that top fossil fuel producers plan to extract more coal, oil, and gas despite climate promises, which is inconsistent with the Paris Agreement’s temperature goal.
State of Climate Action 2023 by WRI. Provides a roadmap of how to close the gap in climate action across sectors to limit global warming to 1.5°C.
Climate Equality: A Planet for the 99% by Oxfam. Talks about disproportionate impact of climate breakdown on the poorest and most marginalised groups, and the responsibility of wealthy individuals and countries to prevent catastrophic consequences.
The Climate Action Monitor 2023 by OECD. Shows worsening climate impacts in 2023, record temperatures, extreme events, and escalating hazards. Inadequate policies demand increased ambition.
UN Climate Change Conference Synthesis by UNFCCC. Synthesises information on 165 nationally determined contributions toward climate change under the Paris Agreement.
Greenhouse Gas Bulletin No. 19 by WMO. Shows greenhouse gas concentrations hitting a record high in 2022 and emphasises the need for sustained monitoring to meet Paris Agreement goals.
Early Warnings for All: Executive Action Plan 2023–2027 by WMO. Outlines a strategy to build a global early warning system coverage with a $3.1 billion investment.
Burning Billions: Record Public Money for Fossil Fuels Impeding Climate Action by IISD. Provides latest data on global public financial flows to fossil fuels and clean energy in advance of UN Climate Change Conference COP 28.
Global Landscape of Climate Finance 2023 by CPI. Reports on global public financial support for fossil fuels exceeding $1.7 trillion, contradicting climate commitments.
The 2023 Global Report of the Lancet Countdown by Lancet Countdown. Tracks the relationship between health and climate change across five key domains and 47 indicators, providing an assessment of the links between health and climate change.
World Energy Outlook 2023 by IEA. Provides analysis and strategic insights into all aspects of the global energy system.
The State of Climate Action: Major Course Correction Needed from +1.5% to −7% Annual Emissions by WEF, BCG. Offers a macro view across nations, corporates, technologies, and financing, and assesses where climate action is falling short.