A few years ago, sustainability was seen as a nice bonus—something startups might consider if they had extra resources. Today, it’s a necessity. Consumers demand it, investors prioritise it, and governments are enforcing it. For startups, sustainability is no longer a “good to have.” It’s becoming the biggest competitive advantage in 2025 and beyond.

Startups that integrate sustainability into their core business strategy aren’t just helping the planet—they’re building more resilient, profitable, and future-proof companies. Here’s why sustainability is set to be the biggest growth driver in the coming years and how startups can capitalise on it.

The business case for sustainability: Why startups can’t ignore it

• Consumers are voting with their wallets

The modern customer doesn’t just care about what a product does—they care about where it comes from, how it’s made, and what impact it has. Millennials and Gen Z, now the dominant buying force, are willing to pay a premium for sustainable products.

Consider Patagonia, a company that built its brand on environmental activism. When they launched the famous “Don’t Buy This Jacket” campaign—urging customers to think twice before making a purchase—it didn’t hurt their sales. Instead, it boosted their reputation and customer loyalty.

For startups, this is a game-changer. A strong sustainability narrative isn’t just about ethics—it’s about differentiation.

• Investors are pouring money into ESG startups

Venture capitalists (VCs) and institutional investors are increasingly backing sustainability-focused startups. BlackRock, the world’s largest asset manager, has seen its ESG-related assets under management grow significantly. As of 2024, BlackRock’s sustainable funds exceeded $423 billion in assets under management, making it the leading sustainable funds asset manager globally. ​

This substantial growth underscores the escalating demand for sustainable investment options. For startups, having a clear sustainability strategy can be pivotal in attracting investment, as investors are keen to support businesses that align with environmental, social, and governance (ESG) principles.​

VCs aren’t just investing in green startups out of goodwill—they see sustainability as a risk management strategy. Companies that operate sustainably are less likely to face regulatory fines, public backlash, or sudden shifts in market demand.

For startups looking to raise capital, having a clear sustainability strategy can be the difference between securing funding and being overlooked.

• Governments are tightening regulations

Governments worldwide are implementing stricter environmental policies, and startups that get ahead of these regulations will have a significant advantage.

For instance, the EU’s Corporate Sustainability Reporting Directive (CSRD) requires businesses to disclose their environmental impact in a standardised way. In Asia, Singapore has introduced mandatory climate-related disclosures for publicly listed companies, signalling a shift toward greater transparency.

Also Read: Some lessons on how to fulfil the climate tech promise

For startups, proactively adopting sustainable practices can mean fewer compliance headaches down the road—and potentially securing grants, incentives, and partnerships with regulatory bodies.

The competitive advantages of sustainability for startups

• Cost savings and operational efficiency

Many assume sustainability is expensive, but in reality, going green reduces costs in the long run. Energy-efficient supply chains, waste reduction strategies, and sustainable packaging can lower operational expenses significantly.

Take Tesla’s gigafactories, which operate on renewable energy, dramatically cutting long-term production costs. Similarly, brands like Unilever have reduced expenses by prioritising sustainable sourcing and waste reduction.

For startups, adopting similar efficiency-driven sustainability measures can increase margins and reduce overhead costs—a major advantage in competitive markets.

• Talent attraction and retention

The best talent wants to work for companies that align with their values. Employees today, especially younger professionals, prioritise mission-driven companies.

Startups like Beyond Meat and Impossible Foods have built passionate teams by positioning themselves as companies with a strong purpose. Their sustainability-driven mission attracts top-tier engineers, marketers, and operations professionals who want to make a difference.

For startups struggling with hiring, sustainability isn’t just a marketing tool—it’s an employer branding advantage.

• Brand loyalty and market differentiation

When every startup is fighting for attention, sustainability can be the X-factor that makes your brand stand out.

Certifications like B Corp status or carbon-neutral pledges can enhance credibility. Take Allbirds, for example. Their entire marketing revolves around sustainability, from their materials to their supply chain. As a result, they’ve cultivated a fiercely loyal customer base willing to advocate for the brand.

For startups, embedding sustainability into your brand story isn’t just about doing good—it’s about creating a stronger emotional connection with customers.

• Future-proofing against market risks

What is the biggest risk businesses face today? Climate change and resource scarcity.

Industries relying on finite resources or unsustainable supply chains will face increasing challenges in the coming years. Meanwhile, startups investing in green alternatives—such as renewable energy, circular economy models, or eco-friendly manufacturing—will be better positioned to adapt.

For example, while fossil-fuel-based energy companies struggle, renewable energy startups are thriving. Sustainability isn’t just about survival—it’s about gaining a first-mover advantage in the industries of the future.

Also Read: Investing in climate tech: Why investors should focus on impactful, low-hanging fruits

How startups can integrate sustainability for competitive advantage

• Innovate with sustainable products and services

• Use eco-friendly materials and ethical sourcing
• Explore circular economy models (e.g., renting instead of selling)
• Example: Lush Cosmetics’ zero-waste packaging

• Optimise operations and supply chains

• Partner with green suppliers to reduce your carbon footprint
• Adopt energy-efficient technologies to lower operational costs
• Example: Unilever’s sustainable supply chain initiatives

• Leverage sustainability in marketing and storytelling

• Be authentic—customers can detect greenwashing
• Highlight measurable impact (e.g., CO2 reductions, waste saved)
• Example: The Body Shop’s commitment to ethical sourcing

The future: The rise of the green economy

By 2026, sustainability won’t just be a competitive edge—it will be the baseline expectation.

Startups that embed sustainability into their DNA will attract better talent, gain stronger customer loyalty, and secure funding faster. Those that ignore it? They’ll struggle to stay relevant in a market that increasingly demands responsible business practices.

In short: The startups that win in 2025 will be the ones that make sustainability a core part of their strategy—not an afterthought.

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The Simple Agreement for Future Equity (SAFE) was popularised by Y Combinator (YC) in 2013 and has quickly become a ‘go-to’ instrument for startups seeking quick, flexible early-stage funding in the venture world. 

However, failing to understand how SAFE works as a legal instrument may pose significant risks, especially for first-time angels. 

How does a SAFE agreement work?

A SAFE (‘Simple Agreement for Future Equity’) is an easy way for startups to raise money without dealing with immediate valuations or shareholder responsibilities. 

A SAFE usually includes terms like a valuation cap or discount rate, which give angels the chance to convert their investment into equity at a better price during a future event, like the next funding round. Unlike loans, SAFEs don’t have interest or a set repayment date, which makes them appealing for startups.

Until the SAFE converts, angels don’t have any ownership or voting rights in the company. But once the agreed event happens, the SAFE turns into equity based on the terms, letting angels receive shares in a startup at a lower price than future angels. This makes SAFEs a flexible and straightforward option for startups looking for quick and easy fundraising.

SAFEs can create uncertainty for angels

For first time angels, it’s important to understand that a SAFE is an early stage, risky investment, in many ways the antithesis of a “safe” investment. While SAFEs promise early access to high-growth ventures, they strip angels of traditional legal safeguards.

• No priced round: YC’s SAFEs usually have no maturity date, so they would likely sit in a startup’s books in practice “forever” without any legal requirement requiring the startup to do anything about them. If there is no qualified financing, or a sale event, the last closure for the SAFE angel may likely be a wind- up or liquidation, where the angel may be able to receive up to their original investment back. And that’s only if (a) the company has enough assets to liquidate, and (b) those assets are not taken up by secured and other unsecured creditors. 
• No legal protections, no legal control: Until the SAFE converts, an angel usually does not have any of the rights that a shareholder would have (e.g. any voting rights or say in company decisions). A SAFE holder lacks voting rights, board seats, or liquidation preferences until a SAFE conversion in contrast to preference shareholders in a priced round. In liquidation events, they’re often subordinate to debt holders, risking total loss if the startup fails. According to Carta, a significant number of SAFEs signed by VCs also have side letters with common terms such as Most Favoured Nation (MFN) clauses, pro-rata rights, and information rights. Therefore, you may wish to get a startup lawyer to draft a side letter if you want additional rights beyond those outlined in the standard SAFE. 
• Complex cap table and conversion roulette: In our experience, as more SAFEs convert into equity and multiple SAFEs with varying terms are in play, the startup’s capitalisation table (‘cap table’) can end up becoming complex.  If you are unfamiliar with cap tables, you may want to read up about “cap table cramming” and how later SAFEs with better terms may dilute your stake.

Also Read: 5 legal mistakes startups make after inception and how you can avoid them

The legal gray zone

In 2021, after transitioning the SAFE agreement to be based on a post-money valuation, YC also began publishing international versions of the SAFE to address jurisdictional issues. To date, versions are available for Canada, the Cayman Islands, and Singapore, with clear warnings to seek local legal advice. 

Therefore, the YC’s SAFE template may usually require extensive customisations by a startup lawyer with direct experience in securities law.   Therefore, you must make sure that the SAFE is customised for your jurisdiction and that you’re complying with applicable securities laws in the country where the startup is domiciled. For example, a Malaysian startup must still comply with local Malaysian securities laws. 

In 2022, ​Singapore Academy of Law and Singapore Venture and Private Capital Association introduced the Convertible Agreement Regarding Equity (CARE), within the Venture Capital Investment Model Agreements (VIMA) as a local alternative to the YC’ SAFE agreement, to get more venture funding for startups. ​

In my past experience as startup lawyer, issues may arise when counterparties may be unfamiliar, especially over conversion mechanics (adding further to closing timeline compared to traditional equity structures). For instance, SAFE shares to be issued to a startup must be properly allotted and issued upon conversion, including setting the correct issue price at the subscription date, obtaining the necessary preemptive rights waiver from the existing shareholders to filing the necessary share lodgement returns to the registrar by the company secretary.

Final thoughts

Angels must not get fooled by the term “simple”  as there are still complicated mechanics to work through. Therefore, angels should seek legal advice before seeking to deploy capital using SAFE. As with all “standard” forms, one size doesn’t fit all and there are aspects of the YC’s SAFE that needs to be fixed each and every time one is used.

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Artificial intelligence is transforming media worldwide, yet much of Southeast Asia remains in the early stages of adoption. Studies show more than 80 per cent of the region is still in the stage of early AI adoption. Most media outlets are still exploring initiatives, experimenting with transcription, fact-checking, or content generation tools.

An Accenture report shows that 83 per cent of ASEAN countries are still in early adoption, while only 15 per cent have reached advanced implementation. Fields like communications, media, and technology sectors account for just 19 per cent of advanced adoption, highlighting untapped potential.

In the Philippines, a Vero survey found 90 per cent of journalists are familiar with AI, but only 52 per cent have integrated it into their work. Countries like Thailand, Indonesia, and Vietnam often begin their AI adoption with simple transcription or translation tools, while many navigate AI tools on their own.

This gap between AI’s potential and its implementation isn’t just about technology; it emphasises the absence of structured training and institutional support.

Faster isn’t always better: Why AI in newsrooms needs guardrails

The journalism industry faces ongoing challenges ranging from misinformation, shrinking attention spans, public scepticism, and increasingly polarised consumption. At the same time, fears of job loss, loss of creativity, and the erosion of core journalistic skills make the landscape even more challenging.

Surveys by Cision and Sword & The Script show that nearly 50 per cent of journalists receive more than 50 pitches per week, with up to 79 per cent rejected for being off-beat. Clearly signifying that most don’t match a journalist’s beat.

Meanwhile, modern AI systems are reshaping journalism by predicting trends, analysing massive volumes of data, and tracking reputational risks in real time to sharpen relevance and provide clarity. Yet researchers caution that if the content generated by AI is not transparently labelled and verified, it may blur the line between fact and fiction, particularly with deepfakes and manipulated media.

Also Read: Taiwan and Malaysia forge innovation bridge to advance AI, sustainability, and digital transformation

The field stands at a crossroads between great promise and significant uncertainty. Hence, the question is no longer about the impact of AI but about who gets to control the processes.

Reality check on policy gaps and uneven AI adoption

Despite AI’s potential to transform journalism through fact-checking, multilingual reporting, and crafting personalised content, its adoption remains uneven.

A 2025 Thomson Reuters Foundation report found that while 80 per cent of journalists in the Global South use AI, only 13 per cent of newsrooms have formal AI policies.

In Southeast Asia, surveys reveal that 79.3 per cent of newsrooms lack formal policies for AI. This shortfall raises serious concerns about integrity, creativity, transparency, and critical thinking in journalism.

A 2025 survey conducted by Trust Project examined journalists’ perspectives on AI’s influence and the results illustrate the following data:

• 53.4 per cent concern about AI’s ethical impact.
• 54.3 per cent worry it may erode creativity and originality.
• 51.4 per cent fear it could diminish critical thinking.
• 49 per cent caution about rising misinformation risks.

The facts clearly highlight the need for establishing formal AI guidelines to mitigate risks.

Also Read: A brief history of AI: Is winter coming?

Three principles for Southeast Asian newsrooms

To combat these risks associated with AI Adoption, newsrooms should know of these three principles to leverage AI responsibly.

• Transparent labelling of AI-generated content: Newsrooms should establish clear standards on labelling, oversight, and verification before surging into large-scale adoption.
• Structured training and leadership: While studies reveal more than 57 per cent of journalists using AI are self-taught, to keep pace with the rapid technological change, the industry requires structured training and formal newsroom guidelines to ensure credibility and ethical accountability.
• A human-in-the-loop model: To ensure journalism adheres to the principles of truth, accuracy, and objectivity, there’s a need for human oversight and institutional mechanisms to monitor and audit AI performance so it does not replace editorial judgment.

To maintain the principles of trust, accuracy, and ethical standards in journalism, the Southeast Asian newsrooms must follow the three principles of transparency, training, and human to balance efficiency with ethics.

Conclusion

Currently, Southeast Asia is at tipping point: eager to harness AI yet cautious of its impact on credibility and editorial integrity. The region’s media leaders must act decisively and establish ethical frameworks to balance speed and trust in journalism amidst the wave of AI adoption.

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In the climate x health space, investability is no longer solely about technical innovation; it increasingly depends on context, delivery, and inclusivity.

Investors are learning that non-financial enablers–specifically gender inclusion and capacity building–are not ancillary costs but essential components that multiply returns and ensure long-term sustainability.

Also Read: Asia’s climate-health deals are rising, but the story still lacks a name

The “Unlocking Capital For Climate x Health: The Investment Landscape in Asia” report, prepared by AVPN and Prudence Foundation, in partnership with Catalyst Management Services (CMS), says that women often carry a disproportionate burden of climate x health impacts, whether through increased caregiving roles, vulnerability to vector-borne diseases, or lack of access to adaptive infrastructure.

Consequently, ventures that intentionally expand women’s agency, income, and asset access consistently outperform on social and financial metrics.

Case study: Build Change’s resilience loans

Build Change’s pilot in Indonesia demonstrates gender-responsive models’ commercial and social benefits.

• The intervention: Build Change’s Incremental Climate Adaptation Loan (ICAL) combines micro-loans with mobile guidance to help low-income households climate-proof their homes.
• Target audience: The pilot targets and supports women-led households in heat- and flood-vulnerable zones.
• Impact: By reducing indoor heat exposure and creating safer living spaces, the retrofits improve health outcomes and potential productivity. Crucially, the process strengthens credit and adoption among women, reinforcing community resilience.
• Scale pathway: The model is highly scalable through existing microfinance networks (like KOMIDA). The Global Innovation Fund (GIF) provided an initial investment of US$460,000 to validate the pilot.

Capacity building as core infrastructure

Technical Assistance (TA) and capacity building are emerging as smart derisking investments that accelerate uptake and long-term resilience. Innovations, whether climate-linked insurance (like WRMS) or resilient housing, require frontline actors–microfinance partners, local health workers, and community-based organisations–to be adequately trained, supported, and confident in their deployment. Technical assistance facilities are referenced explicitly as a form of grant funding for capacity building and project preparation.

Furthermore, behaviour change is the bridge from design to impact. Solutions must embed local engagement and Information, Education, and Communication (IEC) components to shift how institutions and users respond to risks.

Also Read: Why climate x health startups need government backing to survive the valley of death

A portfolio approach that integrates finance with capacity, inclusion, and credible impact pathways is essential for investors seeking catalytic returns. The goal is to back ventures that build systems, not just products, generating both durable value and measurable impact across the climate x health frontier.

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Climate risk has already exposed the fragility of our global supply chains. 

Take semiconductors, for example: Their production requires vast amounts of water, and droughts in Taiwan have already threatened manufacturing that impacts the electronics industry worldwide. These challenges are not isolated. Similar vulnerabilities exist across agriculture, textiles and logistics, where disruption ripples through entire supply chains. 

At the same time, our physical assets are losing value as climate risks mount, operating costs are climbing, and investors are demanding far greater resilience. These nature-based risks result in interconnected risks and require interconnected solutions. 

Nature-based risk is financial risk 

For the business world, nature-based risk is financial risk, and this impacts businesses of all sizes. 

In fact, small and medium-sized enterprises (SMEs) are likely to be most affected given their prevalence, particularly in Asean where they make up more than 99 per cent of firms in the region. SMEs play a vital role in these economies, but they are also the most vulnerable – projected to lose US$237.5 billion in revenue if they fail to keep up with the green agenda. 

While this signals the urgent need for solutions, SMEs also face the added complexity of budget and scale. But before solutions can be implemented, there must be awareness of the issues at hand. Helping SMEs adapt is the single biggest lever we have for building resilient economies. 

The awareness gap is also prevalent among stewards of capital – particularly around what mitigating nature-based risks mean for their portfolios. 

Also Read: Investors bet on algorithms and insurance to tame Asia’s climate-health crisis

Large asset allocators and institutional investors have made constructive progress in steering away from financing the brown economy (such as coal, oil and gas) to focusing on the green and also the emerging blue economy (oceans and marine life), which is projected to have the highest returns in the long term. 

But there is still a need for ongoing education and purposeful integration of these values in their day-to-day investment decisions as investors continue to question the performance of such investments, particularly in volatile markets. Beyond this, investors are also in search of solutions that are capable of unlocking long-term returns as part of their decarbonisation investment strategy. 

The best solutions are nature-based 

All of these risks stem from nature itself, and one thing is clear – the best solutions too are nature-based. 

Nature-based solutions are actions to protect, sustainably manage, and restore natural and modified ecosystems that address societal challenges effectively and adaptively, simultaneously benefiting people and nature. But these solutions are currently underfunded, and innovation across the investment value chain to support these solutions has to be accelerated. 

The World Economic Forum projects that the world needs about US$2.7 trillion worth of investments per year until 2030 to build a nature-positive economy. For businesses and investors, investments and innovations in nature-based solutions hold the key to enhancing resilience against financial risks linked to climate change. 

For investors, the growth of nature-based solutions as an asset class warrants a look. There is increasing demand to align investment portfolios and targets with disclosure frameworks, such as Taskforce on Nature-related Financial Disclosure recommendations. 

Large asset owners are also keen to increase their stewardship and engagement in this asset class. A third of investors surveyed earlier this year by the Asia Investor Group on Climate Change have already adopted biodiversity-related disclosures and/or strategies. 

The vibrant landscape of climate tech solutions for the blue economy for ocean restoration and preservation of coral reefs, among others, are also key financing opportunities for investors to realise long-term value and impact. 

Also Read: Unlocking climate x health capital: A data-driven blueprint for smarter impact investing

For SMEs and businesses, the implementation of nature-based solutions must be practical, scalable and affordable. We must also consider innovation as a key driver. 

For example, we have seen the rise of artificial intelligence (AI)-enabled climate risk modelling and innovative insurance products like parametric insurance. But AI is a double-edged sword; while it has great potential to deliver intelligence and advice at scale and at a low-price point, it is not environmentally-friendly, and we must ensure that our use of tools to protect our businesses is balanced with the impact of the tools themselves. 

An interconnected response is needed now 

Interconnected risk requires an interconnected response. There is a synergistic relationship to be explored between investors who are looking for opportunities and SMEs who are seeking solutions. Financing this gap and allocating capital to nature-based solutions are the key to future-proofing economies. 

Whatever the solution, we must move beyond risk-mapping and take tangible action to build resilience. After all, awareness of risks does not protect our businesses, people and livelihoods. These actionable solutions must be implemented now, as the climate risks we face are already substantial and intensifying year on year. 

Climate resilience is built upon preparedness. This is not a challenge to be met in isolation, but a systemic shift requiring leaders to unite, innovate and catalyse action across borders, supply chains and industries. 

Nature-based solutions, and by extension climate tech, are not the next frontier, they are the present frontier. 

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