Options for building a successful innovation program to support your decarbonisation strategy

Innovation programs will provide longevity to your decarbonisation efforts. Your organisation may use innovation programs to diversify your technology and business model choices for carbon reduction, address specific carbon reduction challenges and co-develop solutions that you need to achieve net zero carbon target.

In this article, I am tackling a topic that is at the core of Enrupt’s mission: To build companies of the future using zero carbon energy solutions offered by startups.

Climate change is accelerating. Heatwaves are straining our businesses and lives. Extreme weather patterns are damaging our infrastructure. The IPCC report issued last week ( https://www.ipcc.ch/report/ar6/wg1/ ) was equivocal and clear. We can act, collectively and slow down the speed of how our climate is changing. In order to be successful in limiting temperature increase to 1.5C, we will need innovation to find new technologies and business models for more, faster and cheaper carbon reduction.?

So what are the ingredients and mechanics of a successful innovation program that will support your decarbonisation strategy?

I propose three types of programs depending on how much you want to engage your organisation’s internal resources and what is the nature of the startup interface you want to pursue. These are not CSR programmes, nor marketing stints. For an innovation program to be successful, you must undertake an internal effort on what are your innovation goals and dedicate resources to build relationships with the concerned startups.?

Option 1: You want to scan the startup market to diversify your choice of technologies and business models

What is your startup interface: Startup competition followed by several months of an acceleration programme for startup development. The programme is pre-planned and managed by a centralised innovation team. Startups may receive investment or convertible grant financing from your organisation.

How you engage your internal resources: Selection jury, startup mentors and advisors. Internal team to manage the programme.

Option 2: You want to address specific challenges you have already identified within your business leveraging startups that already have ready made solutions

What is your startup interface: Startup selection based on predefined challenges to be solved. Startups can apply or you can engage a scouting team that identifies and invites suitable startups. Once selected, startups work with a specific business unit through pre-planned activities. The innovation team offers support.

How you engage your internal resources: Business units identify challenges, engage in the startup selection process and work with startups to apply an already existing solution (This is an important difference between Option 2 and Option 3, which develops a solution from scratch).?

Option 3: You want your internal teams to co-develop a new solution jointly with a startup or a venture team

What is your startup interface: Startup or venture team competition or selection process. The innovation team manages the process at the beginning and supervises building of a team that will work independently later on.

How you engage your internal resources: Business units identify problem statements, engage in selection of a startup or venture team. Business units build a team with the selected startup/venture and co-develop a solution. This option might involve spin-off of a new commercial entity or development of a new internal tool.

To conclude, innovation holds the potential of changing how your organisation manages the transition to zero carbon. Innovation can make your teams more successful and provide a competitive edge in carbon reduction.

Reach out and we can discuss what are your options for working with startups to drive your net zero carbon goals.

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