What does clean tech mean?
Did you know that the finance world is also already making efforts regarding sustainability? One of these efforts includes cleantech which is short for clean technology. Here, different companies and technologies try to improve environmental sustainability. Environment and finances may not have been a usual combination before, but it is, fortunately, getting more supports nowadays. So, what does sustainability really mean? Let us take it from the root word “sustain.” It somehow refers to maintenance. And when we say environmental sustainability, we can say that it is about avoiding the depletion of natural resources to reach an ecological balance.
Its definition has evolved over the years. In fact, some even consider it as something similar to green technology when referring to renewable energy resources, new recycling methods, and other activities that improve the environment. Other people think of it as a way to decrease the environmental impact of standard technologies like coal power or natural gas. Hence, we encounter terms like clean coal or clean energy even when some environmentalists do not really recognize these.
How did cleantech become what it is today?
In 2002, Nick Parker and Keith Raab founded the cleantech group, and they are the ones that made it famous. The venture capital investment community started using the term cleantech in the late 90s and early 00s. The organization still stands today, and it has become a research and consultancy company in San Francisco. It is a coordinating entity regarding activities in this field.
In the past, people would refer to cleantech when they talk about technologies and practices that involve solar and wind energy production to process improvements that make supply chains and production lines more efficient. Many people have been talking about environmental issues that stress the environment more. For example, we have green technology and eco-friendly technology. But, as we have said, the term cleantech is most prevalent in communities that involve finances, venture capital, business, and the like.
What are the organizations that support cleantech?
The United Nations Principles for Responsible Investing and Clean Tech
And since this movement is related to sustainable investing, the UN PRI gives its support, and it collects and publishes data coming from a network with 3000 or more financial institutions. Some companies agree to be signatories to the six fundamental principles of the UN PRI. These principles aim that these signatories will always consider environmental sustainability when they make decisions about investments. They also need to report their progress toward this aim. These signatories are responsible for over $80 trillion AUM or assets under management. Hence, they are very influential in investing communities worldwide.
Let us wrap up our discussion for today.
Cleantech refers to different environmental-friendly practices and technologies. The term comes along with green energy and eco-technology, which the American financial sector originally started. It became prevalent in the late 90s. During that time, investment in cleantech skyrocketed. A cleantech job is one of the fast-paced jobs in the US today.