Top 15 ESG Startups to Watch in 2024
Guest Author: Emily Singleton
Forget flying cars and robot butlers, those who can solve real-world problems are capturing the interest of today’s investors. In 2024, that means businesses that prioritize not just profit, but also environmental and social responsibility.
The UN’s 2004 “Who Cares Wins” report was a major milestone, but it wasn’t until the Paris Agreement in 2015 that ESG took center stage, pushing companies to focus on environmental impact. Today, there’s growing pressure from investors, regulators, and consumers for businesses to prioritize ESG factors. Since sustainability is synonymous with business resilience, climate change regulation compliance, and long-term financial success, it’s a mainstream consideration for industries globally.
1. Kilimo
Meet our list of the 15 hottest ESG entrepreneurs, the innovators who are safeguarding our planet and communities – from the fields our clothes come from, all the way to the screens we use to shop for them.
The team at Kilimo collects and consolidates public stations’ meteorological data to calculate hyperlocal evapotranspiration. They then use a multi-satellite array with AI to provide specific irrigation recommendations that allow the farmer to irrigate according to actual needs.
In addition, by rewarding water-efficient practices and providing data-driven irrigation tools, they’ve empowered over 2,000 farmers across six countries, from large corporations to small-scale micro-farmers. This collaborative effort has led to a remarkable achievement: saving over 70 billion liters of water.
2. Bottleplus
Instead of focusing on solving the problem of flying cars or robot butlers, Bottleplus set out to develop a product that can carbonate drinking water while on the move, eliminating the need to buy polyethylene terephthalate (PET) bottles. Driven by the vision of making beverage consumption easier and more sustainable on the go, the Bottleplus founders steer the beverage industry into a resource-saving future.
3. Predictive Maintenance Solutions
Helping companies worldwide extend the useful life of assets and reduce energy consumption, this Latin American startup has sustainability at its core. Its predictive maintenance solutions cater to the food industry, office buildings, energy, hotels, factories, and transportation. The company integrates artificial intelligence (AI) into the maintenance planning process, forecasting asset reliability and establishing strategies that ensure efficient and sustainable resource usage.
From predicting voltage spikes and insulation failures to preventing cavitations in control valves, Fracttal’s mission is to keep industrial operations safe long-term.
Instead of focusing on solving the problem of flying cars or robot butlers, Bottleplus set out to develop a product that can carbonate drinking water while on the move, eliminating the need to buy polyethylene terephthalate (PET) bottles. Driven by the vision of making beverage consumption easier and more sustainable on the go, the Bottleplus founders steer the beverage industry into a resource-saving future.
4. Allie
Allie streamlines factories in three steps: connects machines to the cloud through Internet of Things (IoT) devices for real-time monitoring, predicts downtime with line-specific machine learning models, and uses AI for instant query access to metrics, trends, and alerts. As a result, across its clients, the company has seen a 22% average productivity increase.
With automation that connects systems to analytics software, monitoring machinery downtime is increasingly simple, but more needs to be done to ensure employees get better rest and working conditions.
5. Cobalt Mining Ethics
Cobalt, a critical mineral for lithium-ion batteries in our phones and laptops, remains tainted by unregulated or artisanal (small-scale) mining operations. The Democratic Republic of Congo (DRC) stands out as the world’s leading cobalt producer, accounting for roughly 70% of global production.
However, the DRC’s cobalt mining industry has been plagued by issues such as child labor, unsafe working conditions, and environmental damage. ESG startups are stepping in to address these challenges and promote ethical cobalt sourcing.
By leveraging blockchain technology and traceability solutions, these startups are creating transparent supply chains that hold mining companies accountable for their practices. This not only benefits the workers and the environment but also provides assurance to consumers that the products they purchase are ethically sourced.
Conclusion
The rise of ESG startups is a testament to the growing importance of environmental and social responsibility in business. These startups are not only addressing real-world problems but also driving innovation and pushing for a more sustainable future.
From water conservation and sustainable agriculture to resource-saving beverage consumption and ethical mining practices, these startups are making a significant impact across various industries.
As investors, regulators, and consumers continue to prioritize ESG factors, the influence and success of these startups are likely to grow. By supporting and investing in these innovative ventures, we can all contribute to a more sustainable and responsible business landscape.
