A global race towards reaching net zero – now amplified by the external pressures of energy and fuel costs – has increased the demand for clean technology across the world. UK SMEs are currently experiencing a staggering 250% increase in gas bills, according to Cornwall Insight, prompting an urgent shift towards more sustainable, and affordable methods of operation across their business models. Research from global investment banking platform, JPIN, reveals that greentech and sustainable companies continue to be the leading sector of choice across the UK, with 43% of British investors opting to invest in businesses within this arena. Alongside this, there is now also an increasing desire for firms to adapt their business models to line up with current trends in sustainability.

Driven by the urgency to cut energy costs, companies are beginning to turn towards cleantech in a bid to keep profit margins up and ultimately, stay afloat during the current climate. With 99.9% of the UK’s private sector made up of SMEs, there is a wealth of cleantech innovation that can help this scale-up level firms with reducing their utility overheads and allow for growth amidst the current climate.

Growth strategist and founder of JPIN, Gaurav Singh, explained: “One of the main barriers is the initial implementation of cleantech into a business model – this can often appear complex, with many firms often also being put off by the startup costs. In light of this, it would be great to see the leading innovators in the space providing more business facing education on this topic, alongside a push from the government to help companies with early-stage adoption of these technologies.”

Singh says:
“Access to cleantech innovation and the quality of the technology play a vital role in ensuring that firms can implement sustainable business models. However, businesses need resources and backing to contribute meaningfully to the UK’s goal of achieving net-zero emissions. This includes establishing a coherent and effective structure in this area to provide support adapting cleantech practices.

“It is crucial for the startups leading the cleantech pack to make continuous changes alongside the integration of cleantech. Firms need to be aware of improving awareness amongst consumers, in addition to adopting incentive-based commercialisation of products and services in order to boost the utilisation of sustainable tech within business models.”

Singh also provided further insight into the trends of cleantech integration in business models. As many firms look set to make a significant change in their energy usage, he outlines some of the most common moves that businesses are making in the transition towards renewable energy.

Singh explains:
“The objective here is to end up using green and clean energy while minimising expenditure and waste. Alternative solutions to transport are significantly picking up pace, including a rise in the use of EVs and hydrogen-based fuel. Other trends in this area include carbon capture, energy consumption management, the use of green material and utilisation and storage (CCUS).”

As well as transitioning towards green energy, companies are also looking for technology-led solutions for more efficient management of key resources, in order to minimise any potential shortages. For instance, in agriculture, food security has taken prominence, while sustainable consumer brands are coming to the forefront of the retail industry. Alongside this, supply chains are also transitioning towards sustainability through digitalisation and process efficiencies.