Why impact entrepreneurs should target enterprise
by Kieran Mahanty
Enterprise buyers are a key market for sustainable products and services.
"If the impetus for change is likely to be enterprise-weighted rather than consumer-driven, investors and entrepreneurs must approach the space with enterprise buyers in mind."
Enterprise businesses can be the engine for change
Whilst I am cautious on the strength of consumer pull, I am optimistic on the near-term commitment of enterprises to shift to a sustainable pathway. Investment firms such as Ontario Teachers’ are prioritizing climate-tech and sustainability in sourcing and portfolio management, while 4,000 companies covering more than one-third of the global economy’s market capitalization are setting ambitious reduction targets.
As the engine which produces the goods we consume, operates the factories that make them and drives the supply chains that move them around the world, the world’s businesses have the means and the motive to deliver change.
Microsoft is a great example of a company setting audacious goals – particularly the removal of its historical emissions and deployment of a US$1B climate innovation fund. As a result, the company has drawn principled and motivated individuals to the cause and established teams which ensure it will be extraordinarily difficult for Microsoft not to aggressively pursue its climate goals.
At Ontario Teachers’, we have long been guided by responsible investing principles which are deeply embedded in our investment process. We have set ambitious climate change goals that include decarbonizing the emissions intensity of our portfolio by 67% by 2030, working with portfolio companies to set credible net zero plans, exercising our influence via board seats and targeting $50 billion of green investments.