The Power of Networks in an Age of Transformation

The Power of Networks in an Age of Transformation

Beware the things you don’t know you don’t know.?

We are coming to realise that the way we’ve designed our economies and powered our businesses has largely been degenerative.

A way of doing things, that has led us to cross several planetary boundaries, cause social unrest, accelerate biodiversity loss and broaden social inequity.?

We now live in a world of extreme uncertainty and unpredictability. Our society and way of life is transforming, leading to significant change in our essential systems for food, transport, education, health and more. ?


We are moving from an age of information to an age of transformation - an age of action.


People are building businesses to solve these issues but information is not the problem in an age of change - it's the networks people need to solve problems that's key.?

Meeting the right people leads to better implementation of information, developing the right practices to discover the right solutions.?

The power to expand networks is becoming more important than what you know.?



A Global Snapshot of Investment & Work

Net Zero Insights, shows how the Funding Landscape is shifting across the challenges that Climate Change presents.?

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With war in Europe and pressure on fossil fuels, it’s no surprise that Energy took the largest investment but there are bigger shifts in other industries.?

Combined Funding in Europe and North American has reached an all-time high of $82B in 2022, with Europe growing 26% faster than the U.S.?

New innovation and investment with the aim of upgrading social infrastructure for the planet.?

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FUNDING BY CLIMATE CHANGE CHALLENGE AREA YOY FUNDING VARIATION (2022)

  • GHG capture, removal & storage 555.1%
  • Industry 267.5%
  • Emissions control, reporting & offsetting 201.6%??
  • Natural environment 60.6%
  • Energy 55.5%?
  • Transport 14.7%?
  • Water -5%?
  • Circular economy -13.2%
  • Built environment -22.5%?
  • Food & agriculture -40.2%


At the same time, the models for assessing impact are in dispute. The ESG framework for investors seems to have fallen in glory just as quickly as it rose; seen more as a lightning rod now, with its lack of standardised criteria and shaky evaluations.?

However, even if the term dies, the topics concerned are undisputed problems, which demand attention and investment.?


ESG VC is a collective of 125 VC firms support businesses in making better contributions to the planet and society.

They reveal the performance of businesses against the ESG factors, which highlight how younger companies struggle to meet such standards:?

  • Only 12% of Series A companies score 3 out of 4 or 4 out of 4 stars on environmental metrics, compared to 27% of companies at Series C+.
  • 51% of Series A companies score 3 or 4 stars on social metrics, compared to 84% at Series C+


Essentially, it's harder for businesses to be sustainable without large resources.?And even then there's gaps.


Workforces are struggling to keep up?

The issues descend into our workforces and way of life too, where we have growing skills gaps. The need for learning how to tackle these problems is growing faster than our workforces can upskill.?

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*A 2023 survey of school-leavers recently found that almost three-quarters are interested in a green career path.?

Think-tank Green Alliance is also calling for the UK government to promote green jobs and for businesses to get 130% tax relief when investing in employees’ green skills.?

People from all perspectives see the challenges ahead of us and want to act.


Looking for Certainty in Uncertainty?

So, we face unprecedented challenges and everyone’s trying to figure it all out.?

But building businesses that buck this ecological catastrophe is costly and ultimately riskier (in the short term) for investors.?

The Risks

  • Higher capital expenditure vs purely digital technology?
  • Sometimes large infrastructural upfront investments
  • Higher short term costs in manufacturing - EI on MOQs
  • Customer education - social change for spend?
  • All layered over a flat economy?


Riskier means less investment ??

Less money means less sustainability ??

Less sustainability means less environmental solutions.


It’s a bit of a sh*t deal but nothing worthwhile is easy, right???

You’re certainly not in this game because it’s easy.


Investment is all about seeing a return. So, the magic is to embed impact within a business model that customers value.?

A hard process, but with policy change on the horizon, people switching careers, ethical spending up 35% in 2021 and Corporates challenged to meet Net Zero targets* - the world will need you.?


So, what’s the trick???

Make sustainability investible.?


We see 3 core challenges that every impact leader will need to address.?

  • Economic Viability
  • Sustainable Foresight?
  • Impact Measurement?

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And with WONDR, we’re building a network to address a variety of challenges - all at once, in an accessible and affordable way.?


To build sustainable supply chains and operations?

Things like:?

  • Building relationships ethically with suppliers?
  • Manufacturing products with the right materials
  • Thinking through carbon footprint of logistics?


To foster Partnerships?

Things like:?

  • Increasing exposure and extending services?
  • Reducing operational costs
  • Expanding supply chains and capacity building


To grow Sales and customers?

Things like:?

  • Build ethical marketing systems
  • Reach the right audiences who care?
  • Explore new underserved markets


To measure your impact

Things like:?

  • Systems to create and measure impact
  • Sources of finance and grants for impact
  • Communicating impact - one of the biggest challenges of impact leaders*


To develop new networks and connections??

Just sharing some great climate and consumer focused investors (will continue to update) -?

The Good Fashion Fund (GFF) ?

Heed Capital ?

Closed Loop Partners ?

Alante Capital

Style with Substance Ventures ?

Beyond Form

Pale Blue Dot

Uebermorgen

Bpifrance

Speedinvest

Norrsken


We’re in an age of transformation.?

It’s the power of your network that will accelerate your impact.?



WONDR is a members-only network for impact leaders building businesses tackling environmental and social issues.

Designed to give you access to experienced practitioners and community through mentoring and live workshops. All wrapped into an affordable monthly membership tailored to your KPIs.?

Request your invite here.



Sources

Matthew Tickle

TECHNICAL Sales + Marketing | LOOP Software + CRM | COMMUNITY Charities + Non Profits | PLACE Live + Work + Thrive | PICTURES AI + Energy + Artwork

1 年

Great article Sam Reader ????

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