Increased awareness of the negative impact of business on the environment is driving companies to develop sustainable and climate-friendly goods and services. This shift in the world of business created a new category — Climate Technology, or simply ClimateTech — made up of business solutions whose offerings are designed to help work against climate change. As defined by the Intergovernmental Panel on Climate Change (IPCC), ClimateTech is as any piece of equipment, technique, practical knowledge or skills for performing a particular activity that can be used to face climate change.
The new industry could mean big benefits for businesses that pay attention to these trends and work to take advantage of the new category. Here is everything that your business should know about the growing sector of climate technology.
The Basics of ClimateTech
ClimateTech is similar to the older category of CleanTech, but with greater focus on the relationship between consumption, sustainability and climate change, and more focus placed on the growing sense of urgency felt — both in the public and private spheres — around climate change. As a category, ClimateTech encompasses technologies that are traditionally marketed as clean, green or sustainable and are intended to reduce emissions and overall resource consumption while making our use of energy more efficient overall.
This includes tech and offerings like electric vehicles, lithium-ion batteries, sustainable travel programs, as well as clean energy solutions — like wind, solar and geothermal. The category also includes emerging, and sometimes controversial, technologies like carbon sequestration that are less focused on sustainability and more focused on climate-related issues like the current abundance of atmospheric carbon dioxide. The category includes sustainable technology marketed directly to consumers, as well as other offerings intended for use by businesses and large organizations.
How Does Climate Technology Help Business?
The rise of ClimateTech can also be a big benefit for businesses.
Companies buying into green initiatives often save money and modern ClimateTech is now often available to help these companies with their green initiatives . Research shows that businesses that adopt sustainable technologies can reduce spending by leveraging that new technology to decrease energy use and resource consumption and boost productivity. There’s also evidence that embracing eco-friendly technology leads to a greener corporate culture that boosts motivation, leading to higher productivity, better training and stronger interpersonal relationships in the office, which improved worker efficiency.
These advantages are likely to deepen over time. As ClimateTech advances and more sustainable options for equipment, products and commercial vehicles become available, businesses will have even more avenues available to reduce resource use and save money.
Climate Technology Is Appreciated by Consumers
Investing in ClimateTech, adopting sustainable solutions or expanding offerings to include climate-friendly options could also be a good way to secure the interest of consumers — especially young consumers, who are some of the most resilient to traditional marketing methods and can be difficult to capture. Young consumers, especially those in Gen Z, have demonstrated a high level of responsiveness to businesses that show a real, material commitment to defending the environment and offer sustainable products that can help them make their lives more eco-friendly.
Sustainability also looks good to a wider audience. A recent survey found that 84 percent of customers consider social or environmental sustainability when deciding where to shop, and 88 percent of consumers would be more loyal to a company that’s environmentally efficient. Because of this, finding ways to demonstrate your commitment to green initiatives could help you secure more customers and build brand loyalty over time.
How Businesses Can Take Advantage of ClimateTech
It’s likely that ClimateTech will be a solid investment for years to come. The issues that have inspired changes in consumption and lifestyle habits among youth — like increased resource consumption, rising temperatures and the correlation between fossil fuels and climate change — aren’t going to go away any time soon. Most of these problems are likely to become only more pressing in the near future.
This means that green solutions are likely to become more and more popular, and customers will continue to feel strongly about businesses’ relationship to the climate and the environment. The rise of the Climate Technology category — which is sometimes referred to as green technology — will be good news for businesses who can take advantage of the trend.
In summary, companies that make the switch to using Climate Tech can benefit from both decreased operating costs and improved revenues. Costs savings are the result of more efficient equipment and lower energy usage. Increase sales come from customers who are more likely than ever to think about the climate when they make purchases and are more likely to appreciate companies that are sustainable and use ClimateTech solutions.
About the Author
Jenna Tsui
Technology Blogger
The Byte Beat
Jenna’s writing focuses on trending technology, environmental science, sustainability, neural networks, and cybersecurity topics. She enjoys binge-watching Black Mirror, playing video games, and saving up for her future green home.
