Navigating the Waves of Sustainability Investment

Often the most critical decision in starting a new venture or expanding on current company operations is the question of financing.   Some entrepreneurs and small business owners prefer self-financing; however, most business ventures must seek external options. Despite the fact that investment dollars remain less available than a few years ago, an emerging bright spot seems to be forming around ‘sustainability’ investment.

According to figures from DowJones VentureSource, venture capital funding has not yet fully rebounded to 2008 levels. However, ‘green’ business investment showed a dramatic improvement over the second quarter. The largest gains were seen in clean tech, which was up more than 46% from the previous quarter. Leading the way in total investment dollars were projects in:

•    Energy and Electricity Generation
•    Alternative Fuels
•    Energy Efficiency
•    Environmental (recycling, air quality, waste reduction)

With capital becoming more available to fund business sustainability programs, executives are positioning their organizations to attract investor interest. In a recent investment article, GreenBiz described executive leadership as the key distinguisher in sustainable business investment appraisal.   ‘Green’ investors are looking for executive leadership which understands the implications and opportunities associated with:

•    Consumer market shifts.
•    Public and private sector business development.
•    Politics and legislation impacts.
•    Commodity and energy price affects.
•    Environmental and social risk.

At Taiga Company, our small business resources work with corporate leaders to define the unique value drivers for each business sustainability venture. We provide information and professional consulting services which assist business leaders build a comprehensive case for business sustainability.