The boom in deep technology investments in Europe is driving advances in transformative technologies that have the potential to address global challenges and revolutionize industries. However, this boom has been accompanied by a worrying trend of deep whitewashing that jeopardizes the progress of climate-focused deep technology investments.
What is deep whitewashing?
Deep whitewash is a term used to describe companies that mislead consumers by presenting themselves as deep technology innovators without substantial evidence of meaningful research and development (R&D) or scientific breakthroughs. These companies present their products as transformative, even though they lack the necessary technological innovation.
Why is deep whitewashing a problem for Climate Deep Technologies?
Genuine climate deep tech companies are critical to meeting emissions reduction targets and transitioning to a decarbonized economy. However, deep whitewash diverts important funding from these companies that is critical to driving decarbonization efforts and delivering transformative solutions.
What is the impact of deep whitewash on the European climate technology industry?
Europe is at the forefront of climate technology investment, with 42% of total climate technology investment in 2022 coming from the continent. However, professional investors in the European climate technology sector are increasingly receiving whitewash pitches from startups. These pitches often include detailed descriptions of the technology, but a closer look reveals that they lack real technological innovation. Instead, they may simply be minor improvements to existing market technologies, or a combination of incremental changes that do not result in significant impact changes.
What steps can be taken to address deep-painting?
Investors can play a key role in addressing deep whitewash by thoroughly vetting climate technology startups before investing. This should include assessing the company’s R&D capabilities, scientific expertise and the novelty and potential impact of its technology. Investors should also be wary of startups that make big claims about their technology without providing evidence of concrete results.
By identifying and avoiding deep whitewash, investors can prioritize funding for climate deep technology companies that have the potential to have a significant impact on mitigating climate change and creating a sustainable future.
