Happy Tuesday… In case you didn’t realise, and we don’t want you missing out, we’ve released our insights report on everything AgriTech. Give it a read by clicking here
In today’s edition:
🌞 AI and nuclear energy
👟 Allbirds launch resale platform
📱 A dive into PwC’s ClimateTech report
Big Business (2-minute read)
As good as shoe – Allbirds launch resale platform
The issue: 21 billion pairs of shoes are created annually and the majority are difficult to recycle due to the use of specific types of plastic and glue.
Allbirds’ solution: The shoe brand has launched a resale platform allowing customers to return their shoes and receive a credit voucher.
Why? Allbirds is working to double the lifespan of its shoes by 2025. There’s also a financial incentive as the global fashion resale market is set to grow to $64bn by 2024.
Positive feedback? Take back schemes rely on tech that supports efficient reverse logistics. Adoption by large retailers = greater funding for development of tech = more cost-competitive prices (in theory) = even more adoption.
Companies failing to support suppliers in improving ESG performance
The challenge: Action to reduce emissions released by a company’s supply chains (i.e. Scope 3 Emissions) is critical, as these emissions can be 11x greater than from direct company operations. Also, regular readers will know there’s growing scrutiny over social issues in supply chains.
New research… from CDP highlights companies are failing to engage with suppliers on emissions – less than 3% of suppliers to large corporates have approved emissions targets in place. This is despite almost 1,000 companies pledging to reduce supply chain emissions by setting scope 3 Science-Based Targets.
Best in class… companies empower their procurement teams to make sustainable decisions by rating suppliers against sustainability criteria, then collaborating with them to improve performance.
Wales to pilot £19k-a-year guaranteed living wage for youths leaving foster care
More than 7,000 children rely on government-assisted care in Wales – the highest rate of any UK nation. When they leave care these youths are left to navigate life alone, usually ending up reliant on state support The Welsh Government will provide a guaranteed living wage to support youths as they leave care whether they’re in work or not. The aim is to test if the policy can help reduce poverty and unemployment.
🤖 Future of Tech (1-minute read)
DeepMind Has Trained an AI to Control Nuclear Fusion
Nuclear fusion: Current nuclear power stations use nuclear fission – essentially splitting an atom’s nucleus. Nuclear fusion involves joining two atomic nuclei and is what happens in the Sun. Both release large amounts of energy, but fusion has a very high energy yield and low nuclear waste = prospect of unlimited clean energy.
The challenge: In the Sun, massive gravitational forces create the right conditions for nuclear fusion, on Earth conditions, are harder to achieve for long enough for us to extract energy from the reaction (We use Extreme temperature and Powerful magnets).
Enter Deepmind: The artificial intelligence firm, backed by Google’s parent company Alphabet, has developed an AI for controlling nuclear fusion reactions. The solution, implemented in an experimental fusion reactor in Switzerland, controls 19 magnetic coils to see the impact that small changes have on the stability of the reaction.
Enabling… researchers to accelerate the long journey toward fusion power by informing the design of future reactors. Phew… that was a tricky one
The search for sustainable construction: a new design for floors could dramatically reduce concrete use
Concrete is the world’s most consumed material after water and its production contributes more than 7% of global CO2 emissions. Researchers at the Automating Concrete Construction (ACORN) project have created a new vaulted style of floor that uses 75% less concrete and creates 60% less carbon in its construction. The curved vault-shaped structure (see below pic) is covered by standard raised floor panels to create a level surface. The team also developed software that automates the manufacturing of the floor so it is made to fit each building and reduces waste.
💡Deep Dive – PWC ClimateTech Report (1-minute read)
Just released the report explores how investors are securing both climate impact and commercial returns from tech that benefits the climate. Here are the key insights↓🧵
📈Strong Growth: H1 2021 delivered record investment levels in excess of US$60bn. (210% increase from the twelve months prior). Climate tech now = 14 cents of every venture capital dollar.
💥Deal size quadrupled: in H1 2021 from one year prior, growing from US$27m to US$96m. = Megadeals are becoming increasingly common.
💰 Innovative finance remains key: The past 18 months have seen SPACs (special purpose acquisition companies) tested as a new tool. They are responsible for driving US$28bn in H2 2020 and H1 2021, enough to account for a third of all funding.
🚗Mobility and Transport most invested: Raising US$58bn, which represents two-thirds of the overall funding in H2 2020 and H1 2021. Electric vehicles (EVs) and low greenhouse gas (GHG) emissions vehicles remain dominant, raising nearly US$33bn.
🗽 American powerhouse: The US remains the most dominant geography raising nearly 65% of all funding. China saw US$9bn while Europe totalled US$18.3bn, driven by a nearly 500% increase in mobility and transport investment.
✊ Untapped opportunity … to shift capital towards solutions with untapped climate impact potential. The top five sustainable tech areas —which represent over 80% of future emissions reduction potential—received just 25% of climate tech investment.
🌊The Adaptation opportunity: 97% of funding is going towards technologies that mitigate climate change, with only 1% going into adaptation (will be critical to deal with the impacts of climate change in the short and longer-term)
TL;DR
- The climate tech market is a rapidly maturing asset class, offering investors significant financial returns and the opportunity for outsized environmental and social impact.
- There is still much work to be done to channel this investment appropriately.
💭 Little Bytes
Quote: “The transition to green procurement practices isn’t a cost burden for industries and the public sector, but something that creates long-term sustainable economic growth.” World Economic Forum president, Børge Brende,
Stat: More electric vehicles are sold in a week now than in the whole of 2012
Watch: Robot called ‘Gita’ that follows the eldery around while helping to carry grocery and shopping bags
🗞 In other news…
- California expects to end the sale of new gasoline-powered cars by 2035. This is particularly important as California is the largest auto market in the US.
- Women now represent more than half of Netflix’s global employee and leadership base above director level, and people from historically excluded racial or ethnic backgrounds make up over half of its U.S. workforce.
- US department of Agriculture is going to invest $1bn to finance pilot projects that create market opportunities for US farmers and foresters that use climate-smart and sustainable practices.
- The Italian parliament approved a law that enshrines into the constitution that Italy must safeguard ecosystems and biodiversity in the interest of future generations.
- Startup, PosiGen, is making solar power available to all demographics in the US. by leasing panels to customers.
🎣 Gone Phishing
Three of these stories are true, one we made up, can you guess which?
- UK zoo lets public name cockroaches after exes for Valentines day
- Mexican shop turns trash into treasure
- Robot chef is serving-up food at the Winter Olympics
Amazon plans to open recycling centre in space
