Start-ups increasingly embracing green business and the climate change challenge, says KPMG

Start-ups here are increasingly choosing to tackle issues of climate change and green technology, KPMG Australia chief Andrew Yates says.

KPMG Australia chief executive Andrew Yates. Picture: Monique Harmer

Australian start-ups are increasingly focusing on tackling issues of climate change and green technology, according to KPMG Australia chief executive Andrew Yates.

Speaking at the launch of KPMG’s third annual Nature Positive Challenge to help grow eco start-ups, he said some 45 per cent of the portfolio of start-ups supported by KPMG’s high growth ventures arm were now in the climate technology sector.

“This is up from 14 per cent two years ago,” he said. “We are seeing a real shift in the portfolio towards nature and climate.”

He said there was also a growing interest in the area of “nature tech” with new ventures looking for ways to preserve nature.

The latest KPMG Nature Positive challenge is looking for start-ups with ideas for scalable businesses which have a positive impact on the environment.

It comes as there is a growing global interest in “nature positive” policies with some of Australia’s largest businesses, including Wesfarmers, Qantas, Blackmores and Brambles, joining forces this week to form Nature Positive Matters.

The organisation will help businesses collect data and report on the impact of their operations on nature and have input into the development of policies and investment decisions which help preserve nature.

Kylie Little, director of climate tech for KPMG’s High Growth Ventures arm, said the “climate tech” sector had been growing in recent years with the increased focus by companies, governments, and organisations on dealing with climate change.

“There has been a lot of focus on sectors like renewables with more funding coming through in these areas,” she said.

The “nature positive” area was now also gaining increasing interest given the growing global interest in the sector.

“What we are seeing is the commercial pathways (for start-ups in the nature positive sector) are opening up with the Task Force on Nature Related Financial Disclosures and more legislation (around protecting natural capital),” she said.

“There’s a bit more momentum around the nature space than there was two years ago when we first launched our Nature Positive Challenge.”

KPMG is offering a $250,000 pool of consulting, tax and accounting services for five finalists of its Nature Positive challenge to help scale-up.

This year’s challenge will include a category for Australian First Nations ventures.

It will focus on two new themes – sustainable food systems and the regenerative economy. Mr Yates said the importance of the Nature Positive movement had now “entered mainstream corporate consciousness” and was increasingly influencing how businesses operated.

Originally published as Start-ups increasingly embracing green business and the climate change challenge, says KPMG