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Technologická Inkubace

Filip Kruta: High upfront investments are the main obstacle for the transition to sustainable technologies

ECO TECH Startups
20.05. 2024
line-arrow Filip Kruta: High upfront investments are the main obstacle for the transition to sustainable technologies

Last year, the CzechInvest Agency became an expert guarantor of the SME EnterPRIZE competition to promote sustainability in business, organised by Generali Česká pojišt’ovna. Filip Krůta, Director of the EcoTech Hub of the Technology Incubation Project of the CzechInvest Agency, mentions all this in an interview.

The article was taken from hn.cz

The CzechInvest Agency is intensively devoted to the topic of sustainability and responsible business. What do you see as the main potential of combining ESG activities with business development?

CzechInvest perceives ESG activities as key to the sustainable development of companies. They are not only associated with better evaluation by investors and customers, but also lead to more efficient use of resources and innovation. Companies that integrate ESG principles often experience greater long-term sustainability and competitiveness.

How would you assess the current situation on the Czech market in comparison with other European countries?

The Czech Republic is gradually catching up with the European leaders in sustainability, but there are still areas for improvement, especially in energy efficiency and renewables, and in sustainable transport. Compared to the Nordic countries or Germany, where these principles are already deeply embedded, the Czech Republic has huge potential for improvement in innovation and implementation of green technologies. It is also crucial that many people have a “lukewarm” attitude towards climate change or do not believe in it in principle. They do not take into account that this is a scientifically proven fact, but rather see the issue of climate change as a regulation from Brussels. That is why this topic does not come up so much in the mouths of our politicians, with a few honorable exceptions, such as President Petr Pavel, for whom the topic of sustainability and the climate crisis is crucial.

What are CzechInvest’s priorities in this area in the coming years?

Currently, the Technology Incubation Project is a key project that supports seven promising areas of innovation. One of them is EcoTech, which includes the EcoTech Hub and the EcoTech Incubator. EcoTech focuses on supporting projects that use clean technologies. We are therefore trying to promote technological solutions to replace conventional, often less environmentally friendly ones. But it can also be breakthrough technologies in the field of energy, hydrogen, energy storage, waste or projects in the field of smart and sustainable cities or projects in the field of circular economy and sustainable agriculture. In addition, colleagues from the regional offices are very active in addressing these issues at the local level and are thus important carriers of the whole topic of climate change and clean technologies. There is also a lot going on in foreign investment. Furthermore, we cooperate with entities such as EIT Manufacturing, Czech Hydrogen Technology Platform, Czech Battery Cluster, Institute of Circular Economy, Change for the Better, Facts on Climate, UCEEB, Czech Hemp Cluster and others, which are becoming essential partners in the field of technological cooperation and scouting and implementation of innovative solutions.

How did the connection with the SME EnterPRIZE competition, which aims to promote sustainability in business, come about?

We welcome this activity of Generali Česká pojišt’ovna and we are very happy for it. We feel that it is very important to give space to projects with an impact that address a big issue such as climate change. CzechInvest has been supporting start-ups through various projects for more than twelve years and in the SME EnterPRIZE competition we are responsible for the patronage of the start-up part of the competition. Our role is to make the competition known to as many sustainable start-ups as possible, as the competition is an extremely interesting marketing tool for them that can help them attract clients from all over Europe. For example, the winner of the SME EnterPrize in 2023, Myco, went through the EcoTech Hub. We also manage a database of more than 1500 start-ups, and if only 15 percent of them manage to grow to the size of a medium-sized enterprise or scaleup, we can consider it a huge success for Czech business. Start-ups already employ more people than the agriculture sector and are two-thirds the size of the construction sector.

CzechInvest is the guarantor in the category of start-ups. Can you compare how the interest in the topic of sustainability in start-ups has developed in recent years?

In recent years, CzechInvest has registered a significant increase in interest in sustainability among start-ups. This trend is particularly visible in areas such as energy, energy storage, waste management, climate-tech, hydrogen technologies, but also sustainable production, new materials and technologies for sustainable cities. Start-ups are increasingly motivated not only by market opportunities, but also by the pressure of legislation, which also motivates potential clients of start-ups.

In your opinion, what are the main obstacles for companies that make them unwilling or unable to become more sustainable?

The main obstacle is the high upfront investment needed to switch to sustainable technologies. This is what we are trying to help with through the Technology Incubation project. Furthermore, this is basically a very young segment that still does not have all the legislation finalised, which together is not a little. At the moment, corporations are just getting up to speed on sustainability and ESG reporting. Often the topic is handled by an individual or a small department, which is also fighting against management that is not 100% convinced about climate change or the need for a more sustainable approach. But one thing is clear – the topic of sustainability and ESG is a huge opportunity and we will do everything in our power to ensure that the Czech economy does not squander it.

In summary, what do you think is the biggest motivation for companies?

I partially answered in the last question. Firstly, it is a legislative necessity that is associated with non-financial reporting. At the same time, this is a huge market opportunity that can absolutely shake up value supply chains. Companies will simply not be able to afford to take unsustainable services and supplies. And last but not least, the need to decarbonise and behave responsibly towards the planet.

What do you expect from this year’s edition?

We firmly believe that we will be able to find other interesting projects in the field of sustainability and ESG that we can help to become more visible and successful in the market.

Based on your experience, what would you recommend to start-ups that want to go the environmentally friendly route?

At the beginning of a sustainable business, it is essential to be very well informed about legislation, trends and new technologies, for example in taxonomy. It is a good idea to join forces with partners who have already made a similar journey and to engage in thematic networks. It is important to avoid greenwashing and to be open and authentic. Ideally know the true impact of your product, for example, have a calculated carbon footprint to contribute to positive ESG ratings from potential clients. I would recommend trying to integrate sustainability into all aspects of the business. And if you’re developing an innovative product, take advantage of programs like Technology Incubation and competitions like SME EnterPRIZE from Generali Česká pojišt’ovna, which can help you grow and provide valuable resources.

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