This new index aims to assess “the potential of innovation hubs to support sustainable innovation in the ESG fields.” Its four sub-indexes, eight compound metrics and 29 individual indicators cover the “Community of ESG Entrepreneurs;” their “Entrepreneurship Support Network for ESG Solutions;” the “Societal Backing for ESG solutions” as well as the “Governance by local authorities.”
By these combined criteria, the Russian capital is ahead of Paris, Berlin and Barcelona, outperformed only by London.
Some of these criteria pertain to startup activity. Among 3,300 startups are active in Moscow, notes the report. Around 400 of them have an ESG focus, 30% of which operate in the edtech field.
Moscow also has the second largest community of ESG entrepreneurs, and ranks second in Europe in terms of Diversity & Inclusivity.
In the field of environment, the city has established “green bonds” to finance emissions reduction, and introduced Europe’s largest fleet of 800 electric buses.
The report praises Moscow’s public transport system, “the second largest and the most efficient [one] in Europe.” This ecosystem features metro raises as well as electric buses, shared bikes or scooters “with an immense potential.”
Thus, Moscow city is “a front-runner in transforming into a modern, data-driven improving its citizen’s lives at an incredible speed,” write the German analysts.
DEEP Ecosystems notes Muscovites’ “active participation” in e-government resources. The city has “the strongest performance in the area of governance,” says the report in a notably apolitical perspective.
According to the report, some $60 billion in total have been invested in ESG-focused startups across over 100 cities since 2018. The German think tank defines ESG solutions as “those that will likely see a surge in demand in the future, when the transition to a more green and sustainable economy accelerates.”
This article first appeared in East-West Digital News (EWDN), a bne IntelliNews partner publication.