Malvika Poddar MD and Chairperson at Matterhorn Sustainability In Reality

16 May 2023 , 04:59 AM

Can you please elaborate on how your company is helping in achieving India’s sustainability goals? 

We are delving into four key areas, at both a macro and at a retail level, which we believe will be transformative and make an immediate difference to our environment – biodegradable plastics for packaging, urban water management, waste management and carbon sequestering. These are also the areas where there are great enabling policy regimes thanks to the National Action Plan for Climate Change (NAPCC). For us, the path to reach these goals is partnering and investing in innovative organizations and disruptive technologies.

What are your plans regarding tech integration in these sustainability efforts? Is there any special technology that you are using? 

Yes, using technology and cutting-edge research is central to our strategy. For instance, we are working on an exciting collaboration with a UK-based company which has developed a pioneering and proprietary biotransformation technology and we are one of the few authorized distributors of their technology in India. Utilizing their bespoke technology in plastic products like packaging films and rigid plastics will ensure that they completely biodegrade, most importantly, without leaving behind any harmful micro plastics. So, if a plastic bag escapes into the open environment, it will transform into a bioavailable wax-like substance and totally biodegrade in less than 2 years. We are also exploring intelligent wireless water tank monitoring and automation systems that reduce energy consumption and water costs for large operations.

Why is there a need for collaboration and government support to promote sustainable practices and reduce plastic pollution? How can this be ensured?

India’s Plastic Waste Management Rules are very radical and are the way forward. I believe the Gazette is the Montreal Protocol of our time. These rules lay out an innovative vision for the responsible handling of plastic waste, emphasizing environmentally-friendly alternatives and producer responsibility for end-of-life disposal. One recommendation we have is that the Government could start by issuing Provisional Certificates in line with these rules for technologies that can demonstrate full biodegradation of plastic in ambient conditions – without creating micro plastics or toxic residues. This will provide a vital lifeline for the industry and the environment.

I also believe that political action is the biggest lever for change, so if we can imagine this as a national mission like the Swatch Bharath Abhiyan which is a combination of both policy action combined with the power of a public and civic awareness campaign, we can ensure a leap forward in our efforts towards reaching of our sustainability goals.

How can waste prevention and recycling help in bringing the required sustainable change to the environment? 

A recent report in The Guardian based on findings from Kayrros Methane Watch described India as the second-largest emitter of methane. This is not methane that is a byproduct of fossil fuel exploration, but from landfills, one of the most common forms of solid waste disposal in India today. And methane from human activity contributes in a substantial way to global warming. By reducing waste and increasing recycling, we can decrease the amount of waste that ends up in landfills, which reduces the environmental impact of these sites.

How can technology become an enabler in the contribution towards a better environment?

The recent ground-breaking report The Economics of Biodiversity: The Dasgupta Review–that the UK Government commissioned–combined scientific, economic and historical evidence with rigorous mathematical modelling to produce evidence that we are not paying the true value of what we are using or consuming and that we are living beyond the planet’s means. It is truly a landmark report that evidences that everything comes at an invisible cost to the environment at the moment and that we are not factoring our planet being destroyed in the process.

I believe technology and policy will help us with that accountability, we may not pay for it in monetary terms but we can still be made aware of the invisible cost. Imagine if we knew that the delicious cherries that we can buy in Bangalore actually came from Chile and the amount of carbon it created in its transport is mentioned on the box by way of a mandatory declaration or that some kind of glassmaking expended more energy to produce than an alternative. That information will empower us to make better choices and take hard decisions in things we encounter every day across sectors.

How is innovation essential to a circular economy?

At a personal level, traditional ways of doing things in India were always circular. You melted old jewellery to make new ones, you made torn clothes into beautiful patchwork quilts, we made tasty curries from stale vegetables. Everything required effort and we realized that, now with things being as easy as getting them with a click of a button, we need to go back to that old way of being where everything is precious, we need to inculcate that spirit. But at a macro level, we do need a combination of tailored policy intervention, legislative change and industry partnerships to foster innovation and create the right enabling environment, like what is being done by the Australian Government which is helping the fashion industry send less clothes to the landfills, a huge problem with an estimated 6000 kilos of textiles and clothing being dumped in landfill in Australia every 10 minutes.

How are venture capital firms like yours supporting startups doing notable work in sustainability?

As an organization focused on sustainability, we support startups and scale ups that are doing notable work in this field by providing them with the necessary funding and resources to grow their businesses. We actively seek out innovative and disruptive technologies that have the potential to create a more sustainable future. Our team works closely with them to connect them with industry experts, potential customers, and partners who can help them achieve their goals. We believe that by building strong partnerships, we can create a more sustainable future together. At the heart of our mission is the belief that a circular economy is essential to achieving sustainability. That’s why we prioritize investing in startups and scale-ups that are developing new technologies, products, and services that promote sustainable practices and reduce waste. By focusing on these areas, we can help drive innovation and create new opportunities for growth and positive impact.  We believe that by fostering innovation and collaboration, we can create real change and make a positive impact on our planet.

What is the size of investments made by venture capitalists in sustainable startups/companies? What is the opportunity landscape?

The size of investments made by venture capitalists in sustainable startups/companies has been steadily increasing in recent years. According to PitchBook, in 2020, over $38 billion was invested globally in venture capital funding for sustainable startups and companies. This represents a 68% increase from 2019, where $22.7 billion was invested.

The opportunity landscape is vast and diverse, with a range of startups and companies developing innovative solutions across multiple industries. The most significant areas of investment are energy, food, and agriculture, transportation, water, and waste management. However, investors are also exploring opportunities in sectors such as healthcare, finance, and construction, among others.

The circular economy represents an exciting and promising area for investors to explore, with vast potential for innovation and growth. Startups developing circular technologies, such as recycling, remanufacturing, and upcycling, have gained significant traction in recent years. This momentum is being driven by the adoption of circular economy principles by governments and corporations worldwide, creating new opportunities for startups and investors alike.

In conclusion, the opportunity landscape for sustainable startups and companies is vast, and the increasing flow of venture capital funding in recent years represents immense potential for innovation, growth, and impact. With the circular economy gaining momentum, investors have the potential to drive positive change in multiple industries while realizing strong returns on their investments.

Do you think ESG investments around the world are ‘walking the talk’ on creating a noticeable impact?

There is an ongoing debate about whether ESG investments are truly creating measurable impact. While ESG investing has seen significant growth in recent years, some investors and experts argue that the industry needs to do more to ensure that investments are generating tangible positive social, environmental, and governance impacts. One issue is the lack of standardized reporting and measurement frameworks, making it challenging to compare the impact of different ESG investments accurately. This makes it challenging for investors to assess the effectiveness of their ESG investments, and for companies to report the impact of their sustainability efforts accurately. Another issue is that some investors prioritize ESG factors to improve risk management and reputation and may overlook investments that could have a more substantial impact. This tendency contributes to the perception of greenwashing, where companies use sustainability marketing to improve their image without enacting concrete changes. However, in recent years, ESG investment strategies have also driven considerable positive change. They have encouraged companies to prioritize sustainability and create better ESG disclosure and transparency standards. ESG investors have engaged in shareholder actions and proxy voting campaigns, pushing companies to adopt sustainable practices and policies. In conclusion, while there are legitimate concerns about the effectiveness and transparency of ESG investing, the industry has the potential to make a positive social, environmental, and governance impact. However, it is critical to establish standardized measurement and reporting frameworks and avoid greenwashing practices to ensure that ESG investments are indeed generating tangible, measurable impact.

Share with us the criteria you use while identifying startups that you support?

We favor entrepreneurs who champion the cause of our planet and enable us to leave a positive legacy for the future generations. We are interested in startups who find innovative ways of optimizing the use of our natural resources and slowing down the proliferation of our synthetic byproducts into an increasingly fragile ecosystem. Our portfolio includes a startup which helps residential societies and commercial establishments monitor and optimize the use of water, another repurposes unwanted packaged food into a component for animal feed, while a third helps capture carbon emissions from industrial sites.

Currently, organizations around the world are charging a premium for sustainable products (including sustainable packing). Do you think this trend will continue in the future?

As the world moves towards sustainability, the demand for sustainable products is increasing, and many organizations are charging a premium. However, this trend is not necessarily permanent. While sustainable products currently come with higher production costs than conventional products, we believe that as the market size for sustainable products grows, the costs will gradually decline. This shift towards sustainability is crucial to achieving a circular economy, and we anticipate that the market will continue to demand sustainable products in the future. One particular area where sustainable products are making a significant impact is in single use packaging. Biodegradable plastic packaging is an innovative solution that can reduce the environmental impact of plastic use.