Biggest sustainability achievements in London's ecosystem
2012
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The Olympic Games
2017
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The Mayor of London kick started work on green finance to fund the transition to a zero-carbon, sustainable London
2018
2019
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Ranked as number 1 centre for green finance quality
2022
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Highest number of EV charging stations in Europe
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Leading city in the world for improving real estate longevity based on its environmental, economic and innovation impacts
2023
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Highest number of PropTech companies in the world
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Highest number of Zero emission buses in Europe
2024
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Thames Tideway Tunnel
2030
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Net Zero Carbon city
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40,000-60,000 EV charging points
2034
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Fully zero-emission bus fleet
Introduction
London has long been a global mover, leader and innovator, and when it comes to tackling the pressing issue of climate change, the UK capital is already getting to work.
Enterprise has driven tremendous economic growth, but it’s also been responsible for regrettable byproducts that have led to major environmental issues.
London and its business community are leading the global charge in alleviating these negative impacts by delivering a cleaner, greener and more sustainable future.
The case for mitigating climate change is clear, and there’s also a significant economic advantage to be gained from investing in sustainability. London’s circular economy – an economic system that reuses and recycles materials to reduce waste – is already worth about £11bn. By 2030, if the city’s true sustainability potential is realised, this figure could more than double to £24.2bn, creating 515,000 jobs in the process. Sadiq Khan, the Mayor of London, has also set 2030 as the target year to achieve net-zero carbon.
It’s not just the obvious sectors like energy and transport that need a green overhaul. Food, finance and property also need a radical sustainability rethink to achieve those aims.
Luckily, London isn’t starting from scratch. The capital already has Europe’s highest concentration of cleantech startups, and the value of the country’s tech scene surpassed $1tn in 2022, representing a great deal of innovation and financial power to make changes.
Read on to discover some of the businesses and initiatives driving London’s sustainable future.
“London is a fantastic place to do business. We made the strategic decision to open an office in the UK because of the liveliness of the market here, not just the finance industry but multiple other business sectors that are still very connected nationally and internationally.”
Plan A
Green Finance
Green finance is the foundation of sustainable growth, and London has already carved out a place as a global leader in the sector, recently clinching the top spot in think tank Z/Yen’s 11th Global Green Finance Index (GGFI) for the fourth year running.
Earlier in 2023, the UK government launched its Green Finance Strategy, which outlines proposals for making London the world’s first net-zero aligned financial centre by ensuring funding flows towards net-zero, energy security and environmental industries.
£172bn
As of 2023, the Green Economy Mark, which recognises London Stock Exchange-listed companies and funds play a key role in the global green economy, has been awarded to 112 companies and funds, which have a combined market capitalisation of £172bn.
£70bn
The Exchange has also established the world’s first dedicated Sustainable Bond Market, which has so far admitted more than 300 bonds and raised more than £70bn for the green economy.
£500m
In June 2023, the Mayor launched the Green Finance Fund, which lends up to £500m to projects focused on delivering energy efficiency, clean transportation or renewable energy.
Case study #01
Plan A
How did London & Partners help you to set up and grow your sustainability business in London?
London & Partners has been a great help to us. When we opened the office, London & Partners supported the announcement, helping us connect with business leaders and groups, as well as with established players in the market, so we could set up our operations and hit the ground running.
What does Plan A do?
Plan A is a B Corp-certified software provider for corporate carbon accounting, decarbonisation and ESG reporting. We help organisations understand, calculate, report and reduce their carbon emissions.
What is Plan A’s long-term sustainability goal in the coming years?
We will become a net-zero business before 2030. Moreover, we have a plan to expand to other forms of impact footprint and maintain our B Corp status through continuing to better our ESG performance.
Due to our business model, a lot of our impact will come from decarbonising our clients’ businesses. In this respect, we aim to get one gigatonne of carbon under management and eventually eliminated.
What challenges did you face to become a successful sustainability business in London? How did you overcome them?
London is a fantastic place to do business. We made the strategic decision to open an office in the UK because of the liveliness of the market here, not just within the finance industry but multiple other business sectors that are still very connected nationally and internationally.
Why do you think now is the best time to set up and grow a sustainability company in London?
London is and continues to remain a decisive business centre. Not only is the city incredibly connected to the rest of the world, but it is also committed to becoming one of the largest sustainability hubs in the world.
The UK government has voted on and enacted multiple regulations that require businesses to report on and decarbonise their emissions. What is more, these regulations often serve as templates or models for other countries to follow. These are already very solid reasons to see London as a great opportunity.
Mobility: EV Revolution
Nowhere in the UK can you get from A to B more sustainably than in London.
103,000 electric vehicles
The city already has more than 13,000 electric vehicle (EV) charging points (180% growth since 2019), and it’s well on its way to meeting the target of 40,000 to 60,000 chargers by 2030. More than 103,000 electric vehicles are registered in the capital.
880 rapid charge points
The Mayor also plans to add 100 rapid charge points to the current network of 880 chargers, the most of any European capital.
£1.44bn
London’s transport and storage industry employs more than 295,000 people, and London-headquartered transport companies raised £1.44bn in 2022, up from £883m in 2021.
London’s top universities are also collaborating on the electric vehicle revolution
Imperial College London is home to the Centre for Transport Studies, which teaches transport engineering and planning, and the Transport Systems and Logistics Laboratory, which develops autonomous transport systems for passengers and freight.
The Royal College of Art’s Intelligent Mobility Design Centre is leading research into the intersection of people, mobility and technology in the urban environment.
At UCL, the Sustainable Transport, Infrastructure and Cities Research Group focuses on delivering sustainable transformation within urban systems, while the Mobility as a Service Lab (MaaSLab) is engaged in cutting-edge research and policy support on mobility and the challenges of green energy and smart cities.
Case study #02
Einride
How did London & Partners help you to set up and grow your sustainability business in London?
The collaboration with London & Partners has greatly supported Einride's UK expansion strategy, putting us in contact with relevant industry and government leaders and helping us with visibility at renowned events such as London Tech Week. Overall, our broad engagement with organisations like London & Partners, as well as a number of UK government departments and academic representatives has helped with critical insights, networking opportunities and market understanding, resulting in a successful UK market entry and launch event in London, generating awareness and excitement for the start of our operations.
What does Einride do?
Einride designs, develops and deploys technologies for freight mobility. We’re building grids powered by a first-of-its-kind ecosystem – our intelligent platform Einride Saga, electric and autonomous fleets, charging infrastructure and connectivity networks – to unlock a more resilient, cost-effective shipping future.
What is Einride’s long-term sustainability goal in the coming years?
We are tackling several problems at once and contributing to society as best and as flexibly as we can. By building the infrastructure to support the transition to low-emissions freight Einride has been able to reduce CO2 emissions by up to 95% compared to diesel with its customers to date. We still have a long way to go if we want to tackle the 7% of global carbon emissions generated by heavy transportation trucks.
What challenges did you face to become a successful sustainability business in London? How did you overcome them?
Whenever we enter a new market, we are challenged by those who say you can’t do effective haulage with electric lorries. The fact that we are now scaling our live operations in eight markets has proven that, yes, it can be done. It’s one big myth that we rebuffed, just like misconceptions that we continue to face every now and then, such as “the battery is too heavy” or concerns about range-anxiety. The fact is that most transport doesn’t happen in those long ranges, across entire countries. The day-to-day reality of haulage is shorter distances and a low complexity environment, notable here in the UK. We need to rethink transport and leverage intelligent movement to go electric.
Why do you think now is the best time to set up and grow a sustainability company in London?
The sector and other industries are emerging from operational challenges of recent years. To be able to manage the issues of today, the UK and particularly the government in London is looking to the future and to meeting the opportunities and challenges of the transition to net-zero, ensuring it has the right skills, people and technology to succeed. This is where companies like Einride can come in at just the right time and place.
“Now is a pivotal moment for sustainability in London. With increasing global attention on sustainable solutions, London is a leader in this space.”
Notpla
Foodtech
Feeding London’s nine million-strong population doesn’t come without an environmental cost, but the city’s foodtech businesses are championing low-carbon culinary change.
More than £665m was invested into London foodtech businesses in 2022, beating both Paris and Berlin (Dealroom, 2022). London is home to 2,732 such companies, including three foodtech unicorns – Gousto ($1.9bn), Deliveroo ($1.8bn) and Just Eat ($10bn) - and major foodtech research hubs, including Forward Fooding Hub and University of West London Food Innovation Centre.
Food innovation is also big at London’s universities. UCL, King’s College and the University of West London are some of the 11 higher-education establishments offering a combined 36 undergraduate food science courses.
Harvest London, a vertical farming company, recently secured major funding from Foresight and plans to expand on its two current sites in east and south London.
Case study #03
Notpla
How did London & Partners help you to set up and grow your sustainability business in London?
We were aware of the work London & Partners is doing and started collaborating more closely in February 2023. Rodrigo and Pierre (our Co-Founders) attended the London for Sustainability Networking Event that London & Partners was hosting and got to meet its community of stakeholders, partners and industry experts.
Since that event, we have become part of the London & Partners international business programme which gives us access to workshops, corporate engagements and international trade missions. This is particularly important to us right now, as we are looking to expand into the North American market. Furthermore, London & Partners has been actively supporting us in our trip to the New York Climate Week, where we are hoping to showcase Notpla to potential investors and commercial partners.
What does Notpla do?
Notpla is a packaging company that was born from the need for a truly sustainable solution to the plastic problem. Everything we do and create is with nature in mind. Inspired by nature and for nature, we have developed packaging made out of seaweed to accomplish our mission of making single-use plastic packaging disappear.
What is Notpla’s long-term sustainability goal in the coming years?
The long-term goal is for our sustainable solutions to become the norm rather than an option. We believe that the scalability of truly sustainable products is necessary if we want to witness real change and tackle the plastic problem. In order to do this, legislation addressing this problem needs to be implemented and we want to be part of this conversation. As well as providing the solution to the problem, we want to inform legislation makers and the consumers about the necessary steps needed to adopt sustainability.
What challenges did you face to become a successful sustainability business in London? How did you overcome them?
One of the most recurrent challenges when it comes to scalability is the greenwashing and misinformation present in the industry. We are trying to overcome the barrier of dishonest solutions that claim to be sustainable, but in fact have plastic or microplastic that remains in the environment.
For our products to enter the market seamlessly and at the large-scale intended, legislative change still needs to happen to regulate solutions that are not in fact sustainable and halt the path to a single-use plastic-free future and market.
Why do you think now is the best time to set up and grow a sustainability company in London?
Now is a pivotal moment for sustainability in London. With increasing global attention on sustainable solutions, London is a leader in this space. If you have a sustainable idea, it's crucial to act and bring it to fruition. Engage with your community, foster discussions and drive awareness. Remember, it is not just about highlighting problems; it is about being a creative solution-maker. By leveraging London's diverse communities and avoiding environmental "doomism”, we can catalyse meaningful change and pave the way for a sustainable future together.
“London & Partners played a pivotal role in our journey to set up and grow our sustainability business in London. They provided invaluable resources, including strategic guidance, networking opportunities and access to funding channels..”
Pavegen
Case study #04
Klimato
How did London & Partners help you to set up and grow your sustainability business in London?
From the very beginning London & Partners was there to assist us in the administrative process of setting up the company, finding the right accountant to introduce us to potential clients and expanding our network. As we established ourselves as a UK business, we were lucky enough to take part in the Grow London Global accelerator, equipping us for our US expansion, thanks to our friends at London & Partners.
What does Klimato do?
Klimato is a software for businesses to calculate the environmental impact of their food, communicate it on menus and report their emissions based on procurement to get a complete overview of absolute-based and intensity-based emissions.
What is Klimato’s long-term sustainability goal in the coming years?
We want to keep helping companies understand their emissions, and address how they can easily start to reduce them. Klimato is allowing for both to happen by enabling users to see where they can cut emissions from both recipe planning and procurement. We are continuously tracking our own emissions and are introducing a slow travel policy to decrease our travel emissions, as well as buying second-hand electronics whenever possible. Moreover, we want to make sure all our clients reduce their food-related emissions by 25% by 2030.
What challenges did you face to become a successful sustainability business in London? How did you overcome them?
Being a foreign company in the UK, we initially struggled as we were using case studies from our native Scandinavia. So, we focused on leveraging our international customers to develop and establish local case studies allowing us to kickstart our sales in the UK.
Why do you think now is the best time to set up and grow a sustainability company in London?
London is a city of endless possibilities. The business culture is great and efficient, and the city attracts top talent from across the world.
The presence in London helps our company in having a local presence with key clients, making it easier for us to visit them as well as having easy access to conferences and events. The biggest events we have worked on in London are the Billie Eilish concerts at The O2, the BRIT awards and the Wimbledon Championships. We work with quite a few Hilton hotels in London, and via the catering company Levy, we work with The O2, ExCel London, Chelsea FC, Tottenham FC and Wimbledon among others.
Renewable Energy
Fuelling this innovation and activity is a world-leading green energy sector.
The Mayor of London is also working with Transport for London (TfL) to decarbonise its network by deriving 100% of its energy, as well as 15% of London’s overall energy, from renewable sources by 2030.
£2.5bn
Octopus Energy and Newcleo, two renewable energy unicorns, call London home, and more than £2.5bn in VC (venture capital) investment was injected into the sector between 2017 and 2022.
This figure is set to grow thanks to the Clean Growth Fund, a £101m VC fund backing early-stage climate entrepreneurs and the Net Zero Innovation Portfolio, which provides funding for low-carbon tech.
£10m
The £10m Community Energy Fund, which funded 28 projects in its sixth phase, is helping local communities invest in renewable projects.
Case study #05
Pavegen
How did London & Partners help you to set up and grow your sustainability business in London?
London & Partners played a pivotal role in our journey to set up and grow our sustainability business in London. It provided invaluable resources, including strategic guidance, networking opportunities, and access to funding channels. The Grow London programme, supported by London & Partners, brought us valuable exposure and allowed us to connect with like-minded partners. Its deep understanding of the city's business ecosystem and commitment to fostering sustainable enterprises has been instrumental in our growth and success.
What does Pavegen do?
Pavegen is an innovative technology company at the forefront of sustainable urban solutions. Our core offering revolves around kinetic energy harvesting, with our pioneering Pavegen technology transforming footsteps into off-grid renewable energy. By harnessing the power of human movement, we're revolutionising how cities think about clean energy generation to create more environmentally conscious urban environments.
What is Pavegen’s long-term sustainability goal in the coming years?
Our overarching goal in the coming years is to create carbon neutral products. We're setting ambitious targets to transition to fully recyclable materials, increase our energy efficiency, and work towards sustainable urban development.
What challenges did you face to become a successful sustainability business in London? How did you overcome them?
As a sustainability focused business in London, we faced initial challenges in convincing the market of the viability and impact of our kinetic energy technology. Scepticism was a hurdle we had to overcome. We addressed this by showcasing real-world applications and quantifiable benefits through pilot projects and partnerships with visionary organisations. We also navigated evolving regulatory requirements and leveraged the supportive ecosystem London provides to sustainable businesses.
Why do you think now is the best time to set up and grow a sustainability company in London?
We believe that the current moment is the best time to establish and expand a sustainability focused company in London. The city's thriving sustainability ecosystem offers unparalleled opportunities for collaboration and growth. Access to top talent in sustainability, a diverse and vibrant market, and supportive governmental policies create an environment conducive to innovation and positive impact. Furthermore, London's global reputation ensures that sustainability companies based here can have a meaningful and widespread influence, contributing to the global sustainability agenda while benefitting from the city's dynamic business landscape.
Circular Economy
London’s circular economy, which contributes £11bn to the city’s overall economy – could grow to £24.2bn by 2030, thanks to a number of key initiatives.
In August 2023, Imperial College London published 10 recommendations for governments and policymakers to achieve circular economy success.
The Centre for London has placed the circular economy at the heart of its vision to achieve carbon neutrality by 2030.
The Mayor of London has pledged to send no biodegradable or recyclable waste to landfill by 2026 and to recycle 65% of the city’s municipal waste by 2030.
ReLondon’s Business Transformation programme offers practical support and consulting services to help London’s SMEs (small and medium-sized enterprises) adopt circular principles and grow them into business opportunities. Since 2017, it has supported more than 300 SMEs and 69 products and created 127 jobs.
Case study #06
EnvoPAP
How did London & Partners help you to set up and grow your sustainability business in London?
London & Partners was instrumental in connecting us with delivery partners during our early stages. It also played a vital role in introducing our business to potential investors and international blue-chip companies seeking collaborations with London-based firms. The enthusiasm and drive of the individuals at London & Partners perfectly embodies the essence of London – the global hub for business.
What does EnvoPAP do?
EnvoPAP creates packaging using discarded agricultural fibres available in abundance, while providing additional income to farmers without compromising on the durability and printability of the packaging at a fraction of the environmental cost.
What is EnvoPAP’s long-term sustainability goal in the coming years?
In the coming years, we have a clear objective: help transition from a society that depletes its resources to one that operates sustainably and eventually becomes regenerative. Presently, our focus lies on transforming agricultural waste into valuable and high-quality commodities in India. However, our ambition extends worldwide as we aspire to innovate a transformative process on a global scale, establishing an inventive approach to recycling across the globe using plant fibres.
What challenges did you face to become a successful sustainability business in London? How did you overcome them?
As we delved into the realm of packaging, we encountered yet another hurdle on the path. How could we persuade customers to embrace our product for bulk usage? Merely being an eco-friendly business isn’t sufficient; people need to be convinced of the value and effectiveness of our sustainable packaging solutions, together with certification and regulation compliance. Over the years, the world began to waken to the urgent challenges of sustainability. COP26, the David Attenborough effect, and a global shift towards conscious consumption started shaping consumers' demands and now EnvoPAP exports to 60-plus countries.
Why do you think now is the best time to set up and grow a sustainability company in London?
London’s public organisations promote sustainable businesses for growth, innovation and environmental impact. London fosters innovation by funding projects and creating a dynamic environment for ideas. London's advantageous geographical position in terms of time zones facilitates effective international business operations, particularly when engaging with Asian counterparts in the morning and American partners later in the day.
Proptech
London is aiming for all new buildings to be net-zero by 2030 and all existing structures by 2050. This goal is set to be achieved by retrofitting, adopting circular economy practices, decarbonising the grid and increasing green infrastructure, as recommended in New London Architecture’s Zero Carbon London report and the Resilient Cities report.
Two London universities, Imperial College London and University College London, are among the world’s top 50 for engineering and technology.
660 proptech companies
London has the right business population for the job. The capital is home to 660 proptech companies, more than any other city, as well as proptech accelerators Geovation and RELab, and associations such as UK Proptech Association, NLA (New London Architecture) and British Property Federation.
£1.4bn
London ranks third in the world for proptech investment, and £1.4bn was invested in the sector between 2017 and 2022. Europe’s largest proptech VC (venture capitalist), A/C Proptech, has an office in the city, as well as specialist VCs Fifth Wall, Concrete Ventures and Round Hill Ventures.
$889,000
The average seed funding round into London proptech companies is $889,000, compared to a global average of 2023 (Dealroom, 2023).
Case study #07
Rensair
How did London & Partners help you to set up and grow your sustainability business in London?
London & Partners introduced us to a diverse set of clients, including large real estate owners and operators, governmental officers, sustainability managers and facilities managers, all of which have a natural interest in saving energy and reducing carbon emissions. In addition, London & Partners events have been very useful for networking with peers, investors and companies that support the scale up of ambitious startups.
What does Rensair do?
Rensair provides sustainable ventilation solutions that can reduce a building’s ventilation energy consumption and carbon footprint by more than 40%. Installations are simple and solutions have an immediate return on investment, requiring no capital spending.
What is Rensair’s long-term sustainability goal in the coming years?
Heating, ventilation and air conditioning (HVAC) systems are responsible for approximately 15% of global emissions. We are helping London’s leading law firms, financial institutions and real estate companies rethink how they ventilate buildings, introducing new, efficient and sustainable practices, which significantly reduce carbon emissions in a permanent fashion.
What challenges did you face to become a successful sustainability business in London? How did you overcome them?
Some barriers were raised as our solutions disrupted current ventilation practices. However, we overcame these challenges by presenting successful trials undertaken with global companies. These case studies provided hard data that demonstrated the effectiveness of our solutions and the significant energy reduction and excellent indoor air quality achieved with our installations.
Why do you think now is the best time to set up and grow a sustainability company in London?
We set up in the centre of London to serve the many public sector entities and significant businesses located in the capital. All these institutions have published ambitious ESG targets and have relatively short timelines to achieve those objectives. The size, importance and number of these organisations means, for sustainability companies operating in London, the demand is great and the opportunities are interesting and attractive.
Infrastructure
Sustainability is being woven into the fabric of London by transforming its infrastructure.
From 2025, the Future Home Standard is ensuring that all new homes produce 75% to 80% less carbon emissions. This initiative works alongside the Mayor of London’s Retrofit Accelerator, which is upgrading London’s older houses to be warm, affordable and ultra-low carbon.
In the rental market, Domestic Minimum Energy Efficiency Standard (MEES) Regulations require private rented housing to have an EPC rating of E or higher for new tenancies. As of April 2023, commercial property lets must also be rated E or higher unless they have a legitimate reason.
Bloomberg’s European headquarters in the City of London is one of the world’s highest BREEAM-rated office buildings, meaning that it meets strict standards for environmental performance through its design, construction and operation.
In August 2023, the Ultra Low Emission Zone (ULEZ) was expanded to all London boroughs. Since the scheme started in 2017, the percentage of vehicles that meets emissions standards within the zone has increased from 39% to 94%.
All new London buses are zero emission, and plans are underway to convert all existing buses by 2030, which would reduce the transport system’s carbon output by an estimated 500,000 tonnes.
Also in August 2023, the first trains from Siemens Mobility, which have 20% lower energy consumption than the current London Underground trains, entered the testing phase, with a view to rolling out the 94-strong fleet by 2025.
Case study #08
Aarvee
How did London & Partners help you to set up and grow your sustainability business in London?
London & Partners has been very helpful in guiding us and helping us network with the right companies in the sector.
What does Aarvee do?
Aarvee Associates is a multisectoral infrastructure design consultancy. Our unique delivery model for heating, ventilation and electrical (HVE) services involves technical experts with rich and varied experience, spearheading design and project management in the UK, supported by highly skilled experienced designers from our parent company in India.
What is Aarvee’s long-term sustainability goal in the coming years?
We have renewed our focus on working on renewable energy projects – with a focus on solar power and wind power, as well as green storage solutions such as pumped storage. We intend to work on more green infrastructure projects and collaborate with universities and research agencies to help bring research on sustainability related practices into mainstream use.
What challenges did you face to become a successful sustainability business in London? How did you overcome them?
We are new to London and working on increasing our footprint here. It is a great ecosystem that is giving us a lot of learning as we go through the process.
Why do you think now is the best time to set up and grow a sustainability company in London?
London has become a hub for sustainability as well as innovative startups pioneering the latest in technology, so this makes it a great peer environment and that is why we prefer London as the place to be.