Climate change is not the only challenge we are experiencing right now. Based on our strategy at Soulmates Ventures, we rely on the Planetary Boundaries approach, which defines 9 key areas that need to be addressed to achieve the environmental stability of the planet.
The evolution of the planetary boundaries framework. Licensed under CC BY-NC-ND 3.0. You are free to share — copy and redistribute the material in any medium or format. (Credit: Azote for Stockholm Resilience Centre, Stockholm University. Based on Richardson et al. 2023, Steffen et al. 2015, and Rockström et al. 2009)
In September 2023, a group of scientists, for the very first time, measured all 9 mechanisms that influence the stability and adaptability of the Earth’s ecosystem, such as:
- Climate change and excessive greenhouse gas emissions;
- Ocean acidification and marine biological systems;
- Depletion of stratospheric ozone;
- Disruption of the nitrogen and phosphorus cycle;
- Global water use;
- Patterns of land utilization;
- Erosion of biodiversity;
- The increase of aerosols and existing substances in the atmosphere such as synthetic chemicals;
- Implementation of new entities into the biosphere.
The 2023 update to the Planetary boundaries. Licensed under CC BY-NC-ND 3.0. Credit: “Azote for Stockholm Resilience Centre, based on analysis in Richardson et al 2023”
When we consider the collective impact of all 9 planetary boundaries, it will be more effective to estimate vulnerability to risks associated with nature. Visionary leaders must carefully consider how their business operations might influence each of these key areas, and how the areas might influence business. Besides better estimating the risk, we can also better navigate our R&D, innovation, and financial capital flows, and leverage the opportunities that will arise from market moves. This holistic approach not only enhances sustainability but also fosters long-term success and resilience in an ever-changing global landscape.
Understanding the impact of our actions on the environment, and business, is extremely important. When we exceed the limits of our systems it can affect both our surroundings and the success of our companies. For example, when we experience a loss in biodiversity it disrupts ecosystems which subsequently affects climate patterns and food production. This has long-term consequences for generations and their overall well-being.
Therefore it is crucial that we all strive to expand our knowledge into how these systems function and their influence on our businesses. Armed with this understanding, we can develop strategies to promote sustainability and resilience, securing the future for everyone.
Deforested area in a mangrove forest. Credit: Oliver S. – Madagascar General / Alamy Stock Photo
In addition to social challenges, such as the state of the health and education of the population, Soulmates Ventures’s strategy and activities are based on Planetary Boundaries and thus help to find solutions that improve and stabilize them.
Essentially, some of our Venture Capital focuses on funding companies with innovative technologies that will improve one or more of these planetary boundaries without negatively affecting others. In fact, one of the biggest geographical priorities in Europe is in spearheading the climate transition through advancements in public policy, technology, and business practices.
Proposed research model. Source: https://www.sciencedirect.com
A startup’s ability to help the environment may need various ways of creating value that is good for the environment, such as when it chooses to work on a specific sustainability goal, a stronger sustainability strategy, or to aim for a certain level of sustainability.
Value creation types for sustainability in ecological startups are based on this study’s empirical analysis. Source: https://www.sciencedirect.com
In conclusion, addressing climate change is just a small part of many ongoing challenges. We need to take a more holistic approach by recognizing and tackling all the planetary boundaries we’ve crossed. For environmental startups, it is really important to understand this connection to ensure they create sustainable value that helps solve these challenges.
Venture Capitalists are increasingly inclined to fund businesses that drive innovation and change these planetary boundaries, growing a track record in climate-tech investments. This presents a significant opportunity for startups to not only make a positive impact on the environment, but to also attract the financial support needed to bring about transformative change.
Sources:
1. Source 1 and Source 2 and Source 3 and Source 4, and 5
