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Be it innovative startups or high-growth companies, London is already home to a significant number of purpose-driven businesses focused on tackling climate change and promoting sustainability.

With supportive green initiatives led by the Mayor of London, which include investment in green projects, work to slash transport emissions and projects to reinvigorate the recycling industry with ReLondon, the city is a leading Green Finance hub providing access to high levels of growth funding and a thriving ecosystem for building networks.

London also provides a diverse talent pool via leading Universities like Imperial College, UCL and the Royal College of Arts, which are constantly driving innovation, plus an excellent lifestyle for people living and working here.

London offers a plethora of reasons as to why it is a good city to grow a sustainability business.

Firstly, the Mayor of London has been actively promoting sustainability and green initiatives. There are many policies, incentives and grants available to support sustainability businesses.

Secondly, we truly are a global hub, with a diverse and multicultural population. London provides access to a wide range of markets, international investors and a global talent pool.

Finally, London has a great ecosystem for sustainable companies. This ecosystem fosters innovation and provides opportunities for collaboration with academia and research organisations to develop and refine sustainable technologies and solutions.

Why do you think now is the best time to set up and grow a sustainability business in London?

Now is without a doubt the right time for sustainability and green-focused businesses to set up in London. The combination of several very important factors also makes London the no.1 destination for businesses to expand.

The Mayor of London has commited to net zero carbon by 2030 and to a healthier, more sustainable environment. With this commitment, he has set out policies, incentives and grants for forward-thinking businesses and set guidelines businesses can work to without the fear of these changing. The Mayor has also launched the Mayor’s Business Climate Challenge, which provides energy-efficiency support to 250 small and medium-sized enterprises (SMEs) across London to help achieve net-zero buildings. Alongside this, the Mayor is also the Chairperson of C40 cities.

In terms of green financing, London has ranked second in the world since 2018, behind only the Bay Area. London’s green economy is valued at £48bn with the Mayor aiming to reach £100bn by 2030. In line with that, there are major US investors with offices in London, such as Fifth Wall and Andreesen Horowitz, plus major UK-based green VCs like Lightrock who have announced a $900m fund. 

London also has access to more than 40,000 graduating students a year and access to six of the top 50 universities worldwide within an hour of the city. There are also specific institutions associated with sustainability like the Grantham Institute of Climate Change and Environment. These are just some of the great ways London is the right place for a sustainability focused business and London & Partners is here to help you all the way.

We believe that London is pioneering the green revolution for businesses, elevating the green economy, environmental sustainability, and setting the trend for the world to follow with ambitious green targets. Sustainable businesses choose London for four core reasons: commitment, talent, investment and ecosystem.

London's commitment to sustainability is exemplified by its Mayor, who has set ambitious targets to make London a zero-carbon city while also doubling the green economy by 2030.

London boasts a vast talent pool and access to four of the world’s leading universities. It is a global hub for diverse skill sets, particularly in finance, technology and sustainable development. It's also a magnet for investment in sustainable ventures. Last year, London attracted $1.7bn of investment into climatetech, the second highest year on record after 2021 ($2 bn).

The city's ecosystem for sustainability is robust, with numerous organisations, accelerators and incubators focused on green initiatives. Notably, London is also home to the Green Finance Institute, which is driving the transition to a sustainable, net-zero carbon economy.

There has never been a better moment for sustainability companies to tap into London’s tech ecosystem. With trailblazing policies at home such as the Ultra Low Emission Zone (ULEZ), the Mayor's Accelerated Green pathway and the Business Climate Challenge, and visionary leadership abroad as the current Chair of C40, London doesn’t just embrace net-zero strategies - it pioneers them.

The depth and diversity of talent in the city is unmatched, boasting four of the world's top 50 universities (more than any other city) and 233 different spoken languages. Groundbreaking climate research institutions, combined with networks of accelerators and incubators, as well as proximity to regulators make London a hotbed for collaborations and synergies.

This growing momentum has already caught the attention of global innovators and investors, catapulting the size of the market from $70bn to $621bn over the last decade. Beyond San Francisco, London is home to more climate tech startups and investments than anywhere in the world.

London offers businesses more than a market, a foundation for sustainable leadership.