Startups

Business models with a climate return

The Frankfurt Techquartier organized an incubator program for ESG startups over several weeks. The conclusion was an elevator pitch by these young companies. Their common focus: creating value for shareholders while contributing to environmental and climate goals.

Business models with a climate return

The task is – cautiously put – challenging: Explain why your business idea is economically viable while simultaneously demonstrating how it makes a measurable contribution to pollution reduction – all within a maximum of three minutes.

Eight ESG-focused startups went through the "Green Transformation Incubator" program over several weeks, gearing up for this elevator pitch in front of a five-member jury at the Frankfurt Techquartier – and, of course, for additional showcases in front of potential investors. The Techquartier applied the concept of the incubator as a breeding ground and accelerator for innovative business models in an almost ideal way for startups aiming to contribute to the green transformation.

Eight startups present themselves

With Axon Protocol, Louis aims to simplify the lives of investors interested in forestry projects by bridging the gap between investors and project developers. Gero assists homeowners with the digital consultancy Dipala, addressing the issue that they often don't know how to initiate energy-efficient renovations – which frequently results in costly estimates ending projects before they even begin. Julia and Daniel offer companies the option to donate to social projects during the payment process through their digital donation tool Edon. Romy and her software company Exaloan systematize data points to help investors assess the sustainability of portfolios in the credit market. Thorsten and Freeze Carbon offer companies the opportunity to reduce their carbon footprint by supporting them in selecting suitable compensation projects. Christopher, with I3D Energy, builds digital twins that visualize the energy consumption of businesses, enabling data-driven energy management. Wilhelm and Planted.Green provide companies with a platform to create their ESG balance sheet, forming the basis for reporting according to EU requirements. And Lukas, with R-Loaded, builds electric vehicle charging stations based on a patented technology.

Additional motivation in the search for financiers

The common thread across all business ideas: The aim is not just profit without constraints but a gain for both shareholders and the environment and climate. In other words, a business that creates value, a business model with a climate return. The difficulties become evident during the jury's inquiries. Particularly when it's apparent that numerous well-funded competitors operate in the same domain or that acquiring customers on a larger scale is rather intricate.

And who convinced the jury? The winner is... R-Loaded. Certainly, the prize money of 5,000 euros doesn't solve the main problem of the charging station startup. Namely, shouldering the significant capital expenditure. Nevertheless, the award is likely to provide additional motivation in the search for financiers.