Harnessing the innovation economy through sustainability

THE SDG 11

FORECAST
IDENTIFYING NEWTECHNOLOGIES AND
BUSINESS MODELS

JUNE 2020

SDG 11:SUSTAINABLE
CITIES ANDCOMMUNITIES2

8What is the SDG forecast by Valuer?
5

How does the Valuer platform use AI to find SDG-related startups?

7

Reaching corporate sustainability through collaboration with startups

About the UN Sustainable Development Goals
10

11

14

17

32

In focus: SDG 11

Market opportunities and technology trends
11

Smart mobility market

12

Waste management market

13

Sustainable construction market

Aligning business with SDG 11
15

Advice for corporations16

Benefits for corporations

Case studies
17

Corporations that do a great job at tackling SDG 11

19

Three startups that can help corporations align with SDG 11

Key takeaways and what we expect in the future

INDEX

4

WHAT IS THE
SDG FORECASTBY VALUER?

Published monthly, each issue of this reportfocuses on a different Sustainable Development
Goal (SDG). By taking a deep-dive into theprogress of the goal in question, it covers various
aspects of how the business sector can play anessential role in achieving its aspirations.
Hoping to serve as motivation, the publication
starts with market analysis and the currently
trending technologies and moves onto advice
and the possible benefits for purpose-driven
companies. Moreover, it provides multiple
examples of large organizations and innovative
startups that are doing excellent work inensuring a prosperous global community.
In line with Valuer’s rationale, the report stresses
the benefits that surface once various market
actors, specifically corporations and startups,
decide to work together towards achieving
environmental and social sustainability.
The following issue focuses on
SDG 11: Sustainable cities and communities.

ABOUT
VALUER.AI

Valuer is an intelligent matchmaking platformthat helps corporations, investors, andaccelerators discover compatible startups
that will boost their innovation. The company
supports the idea that large organizations
can modernize their work with the skills
and technology of young startups while
simultaneously supporting their survival withindustry experience and resources.
To enable the formation of such symbiotic
partnerships, Valuer uses its crowdsourcing
network to discover startups relevant to thelarge organization, and a machine learning
platform to evaluate them. Functioning as aninnovation radar, the platform continually learns
and “recalibrates” itself throughout the discovery
process to meet the customer’s unique needs.
Founded in 2017, Valuer has a team of morethan 90 people from all over the world and has
so far worked with BMW, Siemens Gamesa,
Novozymes, Grundfos, and Spirent, among otherprominent organizations.

4HOW THE VALUER
PLATFORM USES AI TO
FIND SDG-RELATEDSTARTUPS

We ran the
AI platform to
identify the 1000
startups most
relevant to three
SDG 11 areas:

SMART
MOBILITYWASTE
MANAGEMENTSUSTAINABLE
CONSTRUCTION

HOW DOES THE PLATFORM FIND STARTUPSRELEVANT TO SDG 11?
The process starts with Valuer clustering its
database of startups potentially relevant to
SDG 11. Most notably, the startup descriptions
are processed by NLP, which finds patterns
impossible to recognize with tags and regularsearch mechanisms.
The platform then references the clusters to
the three focus areas deducted from SDG 11.
By choosing the ones nearest to a projected
point, it finds the 1000 startups most relevant
to each area. The three focus areas are thenprocessed by the platform to identify similarities,
which results in subgroups with a high degreeof relevance (see color codes on the cluster
illustration, Image 1).
GROUPING STARTUPS FROM DIFFERENTSDG 11 AREAS
The illustration shows the clusters of startups(represented with dots) colored depending on
their projection area. Their proximity to otherstartups depends on how much their solutions
have in common.
The image lets us make simplified conclusions,but since the platform processes in 1024
dimensions, the insights we can draw from a 2D
illustration are limited. This is also why some dots
seem very distant from their projection areas.

Transport
Traffic optimization
Waste management logistics
Waste utilization
Affordable and modular housing
Energy-efficient buildings

Image 1:
Valuer platform's AI clustering of SDG 11-related startups
5

INTERESTING INSIGHTS AND STARTUP
TRENDS

FINDING THE MOST RELEVANT SDG 11
FOCUS AREAS

The platform can draw several insights from theclustering, including:Тhe platform uses four parameters to assess
the clusters’ relevance, importance, andinnovativeness:•“Affordable and modular housing” and“Energy-efficient buildings” are located in a
homogenous cluster, suggesting that bothsubsectors are addressing the “Sustainable
construction” market with similar solutions.

•

The main cluster within SDG 11 includes“Transport”, “Traffic optimization” and“Waste management logistics”, suggestingthat some “Smart mobility” solutions are
relevant for the “Waste management” area.

•“Waste utilization” is mainly detached fromthe rest of the cluster, but has similarities
with “Transport", suggesting a relationshipbetween mobility and the utilization of waste.

•

Success potential: The AI platform uses
historical data from each startup to evaluate
the group’s overall chance for future success.

•Market opportunity: The AI platform
analyzes the startups’ technology
descriptions to estimate the cluster’s overall
potential to generate profit and sustainablebusinesses.

•

Degree of fit: The AI platform uses Natural
Language Processing to grade how well acluster of startups aligns with the customer’s
challenges. (In this case, the information on
SDG 11.)•

Innovation: The AI platform looks for original
and previously unseen combinations ofbusiness models and technologies in order tograde how generally innovative is the cluster.

“Smart mobility” is the highest-ranked clusteron our AI platform, while “Waste management”
ranks the lowest. The clusters have a higher
than the average total score on the platform,
which suggests that the SDG 11 areas are infocus within the innovation ecosystem.
NEXT STEP: RUN THE PLATFORM TO FIND
THE BEST-MATCHING STARTUPS FOR YOUR
COMPANY
By using the Valuer platform, companies
can choose a focus area and find their bestmatching startups. The startups featured on
page 19 show the final format in which ourcustomers receive the companies that theplatform selected for them.

Transport

74

79

62

no
va
ti
To
on
ta
l

In

Su
cc
es
s
M
ar
ke
t
Fi
t

p
gr
ou
Su
b

gr
ou
n
M
ai

The platform then moves onto ranking theresults to find the most suitable area of focus
for our customers. In this case, it used the fourparameters (Success, Market, Fit, Innovation) torank the SDG 11 areas.

p

RANKING THE THREE SDG 11 FOCUS AREAS

87

Smart
mobility

Waste
management

Sustainable
construction

287
Traffic
optimization

60

63

73

76

Waste
management
logistics

48

54

73

74

Waste
utilization

63

67

77

62

Affordable
and modular
housing

55

39

83

56

Energyefficientbuildings

58

71

76

92

Image 2: Valuer platform’s evaluation and ranking of thestartups from different SDG 11 areas
6

259

265

INNOVATION:
KEY DRIVER IN BUILDINGA SUSTAINABLE FUTURE

We are moving too slowly and face great dangerof coming up short of the UN Sustainable
Development Goals. To keep pace with thegrowing societal needs, we need to embraceinnovation as the answer to reducing the timeand cost necessary to achieve results.
Technological breakthroughs and creativity are
critical to advancing the SDGs and facing thegrowing list of sustainability concerns. Disruptive
innovation is not a silver bullet but holds thehighest potential in addressing complex global
issues. Fortunately, transformative change issomething humans have done many times
throughout history.
The private sector, in this context, plays a crucialrole in advancing the UN global development
agenda. However, no single company canaddress such a demanding challenge alone. This
is why collaboration between industry players isessential to achieving the solutions we need—and the philosophy of the SDGs recognizes this.

REACHING CORPORATESUSTAINABILITY
THROUGHCOLLABORATION WITH
STARTUPS

41.902.039 USD
FROM THE VALUER PLATFORM:
AVERAGE FUNDING OF THE SDG 11
STARTUPS

By embracing collaboration with startups
and innovators, corporations can adopt
novel solutions and achieve more sustainable
operations and products. Such partnerships are
one of the promising ways to foster the future ofindustries, rapidly scale-up efforts, and support
the UN Global Goals.
The adoption of novel sustainability solutions
goes beyond society’s call for greatertransparency and accountability. Blending
purpose with profit promises a competitive
advantage that meets the expectations ofmodern customers, employees, and investors.
Working with innovative startups to make
operations sustainable can, among otherbenefits, generate new revenue, reduce costs inthe long-run, open the way to untapped markets,
increase supply chain resilience, and improve
brand image.
We’re already witnessing a wave of progressive,
profit-oriented companies and entrepreneurs
who are using innovative models to enter SDGrelated markets and ensure long-term businessgrowth. For instance, BMW is staying “aheadof the curve” by expanding operations andpositioning the brand as a provider of sharedmobility services.

7

ABOUT THE UNSUSTAINABLE
DEVELOPMENT GOALSTHE GOALS ARE
DESIGNED TO BE“The blueprint
to achievea betterand moresustainable
future for all.”

In 2015, the UN general assembly adopted
the 2030 Agenda for Sustainable
Development, which includes 17 Sustainable
Development Goals. Intended to beachieved by 2030, the goals are designed
to be “the blueprint to achieve a better andmore sustainable future for all.”Signed by 193 heads of state, each goal has
a list of targets whose progress is measured
with specific indicators. With data available
in an easy-to-understand form, the 17 SDGs
are broad-based and interdependent—
meaning that the action in one goal’s area
will affect the outcomes in others.
The SDGs build on the Millennium
Development Goals (MDGs) that wereagreed by governments in 2001 andexpired in 2015. Aside from being more allencompassing than the MDGs, which wereconsidered to be too narrow in focus, theconsultation process for the SDGs was much
more inclusive. The new goals tackle a wide
range of areas, from poverty and genderinequality to climate change.

8

THE
SUSTAINABLE
DEVELOPMENTGOALS ARE:

1.
NO POVERTY

10.
REDUCING
INEQUALITY

2.
ZERO
HUNGER

11.
SUSTAINABLE
CITIES ANDCOMMUNITIES3.
GOOD HEALTH
AND WELL-BEING12.
RESPONSIBLE
CONSUMPTIONANDPRODUCTION

4.
QUALITYEDUCATION

13.
CLIMATEACTION

5.
GENDEREQUALITY

14.
LIFE BELOW
WATER

6.
CLEAN WATER
AND SANITATION

15.
LIFE
ON LAND

7.
AFFORDABLE
AND CLEAN
ENERGY

16.
PEACE, JUSTICE,
AND STRONG
INSTITUTIONS

8.
DECENT WORKAND ECONOMICGROWTH

17.
PARTNERSHIPSFOR THE GOALS

9.
INDUSTRY,INNOVATION, AND
INFRASTRUCTURE

9DEVELOPMENT
GOAL IN FOCUS
SDG 11:
MAKE CITIES INCLUSIVE,
SAFE, RESILIENT ANDSUSTAINABLE
Cities house more than half of humanity,
and the aim of SDG 11 is to make them
liveable, accessible, and sustainable. Targets
within the goal relate to urban planning that
supports adequate housing and accessible
public spaces, building infrastructure thatminimizes the environmental impact of cities
and improves resilience to disasters, anddeveloping safe transportation networks thatenhance urban-rural communication.

According to numbers published by UNDP,
cities take up only 3% of Earth’s surface
area, yet they account for 60-80% ofenergy consumption and more than 70%
of carbon emissions. Out of the 4.2 billion
people inhabiting urban areas, 828 million
are estimated to be living in slums. As cities
become more connected, road safety also
becomes a priority, with WHO numbers
indicating an incidence of 1.35 million roadside
deaths globally in 2016.
To improve the quality of urban life, theUN urges municipalities, governments, andbusinesses to take a collaborative approach inaddressing urban construction, environmental
impact and resource efficiency, and mobility.
In building the cities of the future, all sectors
are encouraged to pay special attention tovulnerable environments and populations.

+83
975

1000

2019

2020

+118
776

800
Number of startups

+1
1000

+116
892

900
+134
658

700
+110
524

600
+95
414

500
+63
319

400
300
200
100

+24
999

+17
17

+24
41

+19
60

+34
94

+50
144

+59
203

+53
256

0
2005 2006 2007 2008 2009

2010

2011

2012

2013

Founding year
From the Valuer platform:
The years when the affordable and modular housing startups were fоunded
10

2014

2015

2016

2017

2018

MARKET OPPORTUNITIESAND TECHNOLOGY TRENDSOPPORTUNITIESIN THE SMART
MOBILITY MARKET

30,454,908 USD
6 years (2014)

The UN estimated that by 2030 one in threepeople will live in a city with at least half a million
inhabitants. To ensure expanding cities are
humane living environments for all citizens, rapid
urbanization calls for sustainable development.

FROM THE VALUER PLATFORM:
AVERAGE FUNDING AND AGE OF
THE SMART MOBILITY STARTUPSTECHNOLOGY TRENDS:

For instance, transport is one of the segmentsthat are in dire need of innovation to ensuresmarter, faster, and safer travel between two
points in a large city. According to Markets andMarkets, the smart transportation market isestimated to grow from $55 billion in 2017 to$149.2 billion by 2023, at a CAGR of 14.7%.
Mobility-as-a-service (MaaS) is one of the models
that are gaining traction. According to Researchand Markets, the global MaaS market is expected
to grow from $38.76 billion in 2017 to $358.35
billion by 2025. The advancing technologicalinfrastructure and ease of access to dataworldwide are set to boost the adoption of MaaS
solutions.

•Last-mile transport: Convenient
alternatives for short-distance urban
transport, such as e-scooters.

•

Autonomous vehicles: Sharedelectric AVs to replace or augment
less efficient traditional bus lines andshuttles.

•Smart traffic and transport
optimization: Software solutions forreal-time data-driven improvement oftraffic and transport systems.

+87
959

1000

+108
872

900

+128
764

Number of startups

800
+133
636

700
+119
503

600
500

+99
384

400
300
200
100

+41
1000

+21
21

+21
42

+14
56

+20
76

2006

2007

2008

+23
99

+41
140

+67
207

+78
285

0
2005

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Founding year
From the Valuer platform:
A timeline depicting the increasing number of smart mobility startups
11

OPPORTUNITIESIN THE WASTE
MANAGEMENT
MARKET

32,629,012 USD
6 years (2014)
FROM THE VALUER PLATFORM:
AVERAGE FUNDING AND AGE OF THE
WASTE MANAGEMENT STARTUPS

The World Bank estimates that global waste
will increase by 70% on current levels by 2050.
Consequently, successful waste management isimperative for reducing the growing amountsof waste and promoting the use of recycled andupcycled materials in production.

TECHNOLOGY TRENDS:

Opportunities to capitalize on the immense
amounts of waste will keep expanding as theindustry is becoming more lucrative. According
to Statista, the global waste management
market will grow from $330.6 billion in 2017 to$530 billion by 2025, at a CAGR of 6%. Currently,
Europe dominates the market, followed by theUnited States.

•

Anaerobic digestion: Extracting
energy and nutrients from food waste,
expected to boost industrial growth forfood wastage disposal.

•

Automation and robotics: Automatedsystems for optical waste sorting andcollecting.

•

IoT smart waste management:
Connecting smart bins and central
facilities to optimize the waste disposal
and collection process (for instance,
via route optimization).

Today high-income countries generate morewaste than lower-income regions, but the tides
are expected to turn. The developing countries
are expected to make waste at an even more
accelerated rate, which further propels theurgent call for innovative waste management
solutions.

+90
965

1000

+102
875

900

+122
773

Number of startups

800

+113
651

700

+92
538

600

+102
446

500

+73
344

400
300
200
100

+35
1000

+9
9

+28
37

+42
79

+37
116

+33
149

+52
201

+70
271

0
2005

2006

2007

2008

2009

2010

2011

2012

2013

Founding year
From the Valuer platform:
A timeline depicting the increasing number of waste management startups
12

2014

2015

2016

2017

2018

2019

OPPORTUNITIES IN
THE SUSTAINABLE
CONSTRUCTION
MARKET

60,270,882 USD
6 years (2014)
FROM THE VALUER PLATFORM: AVERAGE
FUNDING AND AGE OF THE SUSTAINABLE
CONSTRUCTION STARTUPS

Deloitte estimates that the global constructionindustry’s revenue will reach $15 trillion by 2025,with an expansion rate of 3.6% per year between
2018 and 2022. As cities are growing, it’s hightime for the construction industry to adopt morereliable sustainability standards, promote resourceefficient practices, and ensure safe and affordable
housing for all.

TECHNOLOGY TRENDS:• 3D printing: Creating the exact amountof needed materials while minimizing
waste and unnecessary labor costs.
• Building-integrated photovoltaics:
Replacing traditional building materials
used for roofs or skylights withelectricity-generating solar panels.

Deloitte further stresses the importance ofadequate management of the massive amountsof waste generated during construction andof ensuring more efficient methods of cooling,heating, and lighting buildings.

• LCA software for buildings: Software
for analyzing the environmental
impact of an infrastructure life cycle
and identifying the costs during eachbuilding phase.

According to BIS Research, the global construction
sustainable materials market is expected to reach$523.72 billion by 2026, growing at a CAGR of
11.6% between 2017 and 2026. The market growthis driven by its potential for emission reduction,
lower energy consumption, and materials that are
more suitable for recycling and reuse.
Furthermore, modular construction is gaining
traction as an offsite and resource-efficient answer
to the challenges with affordable housing. Markets
and Markets estimates that the global modular
construction market will reach $157.19 billion by2023, growing from $106.15 billion in 2017, at a
CAGR of 6.9%.

+62
921

1000
+107
730

800
Number of startups

+1
1000

+84
837

900
+98
632

700

+74
558

600
+70
411

500
400
300
200

+17
983

+25
94

+19
119

+35
138

+38
173

+49
211

+72
260

+77
481

+79
332

100
0
2005 2006 2007 2008 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Founding year
From the Valuer platform:
A timeline depicting the increasing number of sustainable construction startups
13

ALIGNING BUSINESSSTRATEGIES WITH SDG 11
BUSINESS IMPLICATIONS
Some say we live in the “century of cities.”
Urban areas attract residents faster than everbefore, and the UN predicts that by 2050 they
will house two-thirds of the world’s population.
Without appropriate sustainable planning, thisintense growth can lead to extreme poverty andgovernments struggling to accommodate thegrowing population.
Rapidly expanding crowds mean higher
energy demands, more waste production,and challenges with traditional mobility andinfrastructure, which already calls for innovationin sustainable practices. From restaurant chefs
and soda manufacturers to city officials andreal estate developers—all sectors are now
responding to this imperative.

Businesses are core to the development of cities,
and as such, they’re not only well-positioned
to deliver on the SDG 11 promise, but can also
expect multi-faceted business opportunities.
More sustainable cities, among other perks,translate into a better operating environment,
lower running costs, and healthier, moreproductive citizens.
A concerted effort to improve communities’
sustainability will demand investment
across various sectors, including transport,
construction, and waste management. Thissection of the report inspects the three markets
and their technological trends that can help
companies keep pace with cities’ expansion.

+239
2906

3000

Number of startups

+1
3000

2019

2020

+294
2667

2500

+344
2106

2000

+357
2373

+285
1672

1500

1000

500

+93
2999

+55
148

+68
216

+91
307

+95
402

+105
507

+165
672

+216
888

+221
1109

+278
1387

0
2005 2006 2007 2008 2009

2010

2011

2012

2013

Founding year
From the Valuer platform:
The years when the SDG 11-related startups were fоunded
14

2014

2015

2016

2017

2018

ADVICEFOR CORPORATIONSSTART WITH YOUR IMMEDIATESURROUNDING
The first place most companies choose to look
into when considering an SDG 11 strategy is theenvironmental impact of their office buildings,
which is often very large. As a comparison,
according to the EU Commission, non-residentialbuildings are on average 40% more energyintensive than residential buildings.
TAKE INTO ACCOUNT YOUR ENTIRE
FOOTPRINT
A robust SDG 11 strategy takes into account acompany’s entire footprint, including operations,employees, the supply chain, and the community
where it conducts business.
Aside from their property, companies can also
deploy products and services that contribute to
the development of resilient communities.
DEFINE PRIORITIES AND FOCUS YOUREFFORTSThe number of tools designed to help companies
engage with the SDGs is continuously growing.
For instance, the SDG Compass offers businessindicators mapped against the 17 SDGs andtheir targets, which can help your company
understand where to concentrate its efforts.

Deciding to incorporate the SDGs into a
company’s operations can seem intimidating.
But a growing number of helpful tools andguidelines are becoming available, like the
SDG Compass, which helps organizations
choose which goals are most applicable tothem and how.
The following recommendations focus on
SDG 11: Sustainable cities and communities,
but can be easily modified to fit the otherSustainable Development Goals.

AVOID SHORT-TERMISMThe SDGs are intended to be achieved by2030 and to serve as “the blueprint to achievea better and more sustainable future for all.”
The fact that they can’t be achieved overnight
might seemdiscouraging but can serve as asimplification for organizations to make longterm sustainability programs that are alignedwith best practices globally.
COMMUNICATE YOUR AMBITION
Stakeholders in the sustainability field advisethat companies should publicly announce
their targets to stimulate accountability andmotivation. But even though ambitious goals
usually result in greater impact and drive internalinnovation and creativity, it’s important not tooverlook the risk of criticism your company
might face if it doesn’t meet the targets in time.
INNOVATE AND COLLABORATEThe SDGs can help scale up efforts and create
new business models and products when used
as a framework for innovation. By combining
their complementary skills with other companies
and startups in the value chain, corporations canidentify innovative and cost-effective solutions
to complex urban sustainability challenges.

OUTLINE SPECIFIC GOALS AND KPIS
Once you’ve assessed your current situation, you
can set specific, measurable, and time-boundgoals for your organization. Selecting several
KPIs for each area of prioritization is highly
advised as an essential step to monitoring yourprogress and avoiding goals that are too broad
and impossible to measure.
15

BENEFITS
FOR CORPORATIONS

Cities and metropolitan areas are powerhousesof economic growth. Companies that invest
in the sustainability of their communities can
expect numerous business opportunities, suchas an overall better operating environment,
lower running costs, and healthier, moreproductive citizens.

IMPROVED BRAND IMAGE

INCREASED FINANCIAL PERFORMANCEA PwC study found that 78% of consumers are
more likely to buy from businesses aligned to
the SDGs. Consequently, focusing on innovation
related to SDG 11 will not only help cities expand
more robustly but will also give brands acompetitive advantage over their competition.

Companies that invest in sustainability initiatives
can expect increased financial performance.
For instance, 86% of business owners in a2019 Deloitte survey said that taking a moresustainable approach to energy use gives thema financial competitive advantage.

INCREASED EMPLOYEE HEALTH AND
PRODUCTIVITYACCESS TO NEW MARKETS

Improved traffic safety, public transport, andair quality can enhance employee health andproductivity and minimize costs. Additionally,
employees, especially younger generations,prefer working with organizations withcorporate sustainability programs. Researchby The Manifest in 2019 showed that “nearly
75% of employees will not accept a raise from acompany that creates environmental problems.”
REDUCED LEGAL AND OTHER
BUSINESS RISKS
Regulations are becoming stricter as a response
to cities’ rapid growth, climate change, pollution,and decreasing natural resources. Aligning
operations with SDG 11 will help companies meetchanging regulations in a timely manner andavoid penalties under their state’s legislature.

16

A concerted effort to improve communities’
sustainability will demand investment
across various sectors, including transport,
construction, energy efficiency, air pollution, andwaste management. Furthermore, engaging with
SDG 11 promises to open the doors to nascentsectors related to “smart city” technologies.

CORPORATIONS THAT
DO A GREAT JOB ATTACKLING GOAL 11RAMBØLL

Infrastructure and development are thefoundation for sustainable cities, andDanish engineering company Rambøll
has identified SDG 11 as a focal point for
its business strategy. In 2017, Rambøll
carried out the engineering and designof the Dalston Works project in the UK, a
residential tower built from Cross LaminatedTimber (CLT). Compared to frameworks
made from concrete, the CLT building
carries 50% less embodied carbon. Due toits carbon storage capacity, the material
also locks in CO2 and is effectively carbonnegative for the first year.
Rambøll has also pinpointed climateresilient architecture as an important
opportunity for innovation. The company
currently runs the Kokkedal: Blue Green
Garden City project in Copenhagen, which
provides flood damage control and green
spaces for urban recreational activities.
Rambøll also collaborates with the New
York City Department of Environmental
Protection (DEP) for developing an
infrastructural plan to combat unpredictable
rainfall in the city.

41,541,791 USD
6 years (2014)
FROM THE VALUER PLATFORM: AVERAGE
FUNDING AND AGE OF THE AFFORDABLE
AND MODULAR HOUSING STARTUPS

Community partnerships have been key
to Rambøll’s sustainability strategy. In
2016, the company partnered with Finnish
startup MaaS Global to create the Whimapp, which integrates information aboutpublic transport and ride-sharing services.
In Helsinki, more than 70% of Whim users
use public transport, and other European
cities like Antwerp and Birmingham havelaunched their own version. In 2019, Rambøll
launched a digital SDG 11 dashboard inpartnership with the Danish Architecture
Centre and Statistics Denmark. On theplatform, Danish municipalities can track
their progress across the SDG 11 targets.
17

SIEMENS

IBM

Siemens has recognized the role of ICT in creating
sustainable cities and works within the areasof climate change, mobility, and community
engagement. Maintaining urban air quality is
one of the key targets of SDG 11, and in linewith this target, the company has built the City
Performance Tool (CyPT). Municipalities can use
the CyPT software to test different scenarios
for reducing greenhouse emissions fromtransportation, buildings, and infrastructure. So
far, 45 cities around the world have used the tool
to enhance their climate strategy. San Francisco, a
metropolis particularly vulnerable to the effects ofclimate change, has used CyPT to create a model
for reducing emissions by 80% by 2050.

American technology giant IBM has taken theapproach that sustainable cities are connected
cities, and that collaboration is crucial toachieving them. The company has leveraged its
comprehensive Watson IoT platform to build
solutions in support of the 11th SDG.

Together with the Economist’s Intelligence Unit,
Siemens has created the Green City Index. The
database spotlights the performance of more than
120 cities across 31 quantitative metrics, including
CO2 emissions, land use, and water management.

In 2014, IBM launched Green Horizons, a decadelong global initiative to curb air pollution throughdata. Based on IoT, the solution uses advanced
sensors and software to monitor, model, andforecast air pollution in cities. The main researchlaboratory of IBM in China has collaborated with
the Beijing Environmental Protection Bureau toanalyze the sources of emissions and predict theeffect of weather on pollutant dispersion. Using
the tool, the city of Beijing was able to reduce
particulate (PM2.5) emissions by 35% between
2013 and 2017.

Within the mobility sector, Siemens has formed
the Intelligent Traffic Systems (ITS) group, whichdevelops advanced cloud-based algorithms
for traffic and road network management.
Products within this line include the CONCERTtransportation management solution for regionaland state-wide applications, as well as the SCOOT
city traffic control software. After the deploymentof SCOOT, the city of Seattle witnessed a 21%
reduction in travel times during peak hours. With
the Railigent® solution, Siemens uses IoT and big
data to aid rail operators in making transportation
more energy-efficient and in digitizing operations,such as ticketing and maintenance.

As centers of human activity, cities are facing
challenges when it comes to waste disposal. IBM
has identified the underlying business opportunity
and in 2016, the corporation partnered with
Israeli startup GreenQ to develop an IoT
solution for waste management. Based on the
IBM cloud, the GreenQ solution uses data from
hardware monitoring of garbage truck weight,
capacity, time, and location. Given that singleuse packaging significantly contributes to urban
waste, IBM has implemented a program to reduce
it in its own production operations. By sourcing
recyclables and redesigning packaging tominimize the materials used, in 2017 the company
saved approximately 141 metric tons of materials,
at a cost-saving of $983,000.

37,427,290 USD
6 years (2014)

22,760,463 USD
6 years (2014)

FROM THE VALUER PLATFORM: AVERAGE
FUNDING AND AGE OF THE TRAFFIC
OPTIMIZATION STARTUPS

FROM THE VALUER PLATFORM: AVERAGE
FUNDING AND AGE OF THE WASTE
MANAGEMENT LOGISTICS STARTUPS

18

THREE STARTUPS
THAT COULD HELPCORPORATIONS ALIGNWITH GOAL 11
This publication demonstrates the way that
Valuer helps corporations find solutions fortheir sustainability goals. For this purpose,
we’ve included a selection of three startups
that can help corporations become sustainable
in regards to SDG 11.
The format of the startup features resembles
the one our customers receive once theirstartup search is finalized. But, with one verysignificant difference—the selection here is a
general example that doesn’t take into accounta corporation’s unique needs.

TIER IV

PAGE 20Tier IV is a Japanese company offering opensource software for the development ofautonomous vehicles.

AUTOFLEET

PAGE 24

Autofleet has created a sustainable Vehicle asa Service layer, providing an elastic supply ofvehicles to serve any source of demand.

CIRECO FINLAND

PAGE 28

Cireco is a construction project managementcompany that operates on the principles ofcircular economy.

19

TIER IV
Tier IV is a Japanese company offering open-source software forthe development of autonomous vehicles.

BUSINESS LOGIC:SUMMARY:

PRODUCT CONCEPT• Tier IV was founded with the purposeof building a collaborative platform foraccelerating the research, development, andcommercialization of autonomous vehicles.

The core product of Tier IV is Autoware*
software. Available through the Apache 2.0
license, the software has a modular, open-source
infrastructure. Autoware is based on deterministic
AI technology and incorporates all aspects ofautonomous driving. These include vehicle andsurroundings sensing and localization, motion
planning algorithms, and trajectory actuation.

BUSINESS MODEL
Tier IV operates with a combined B2B and B2Gmodel, targeting clients such as automakers,
OEMs, government bodies, and mobility-asa-service providers. The startup has two main
revenue streams: NRE services and a cloudservice subscription. Main geographical markets
include the USA and the APAC region.

*Autoware is a registered trademark of the Autoware Foundation

20• The company develops Autoware, dubbed
the world’s first open-source software forautonomous vehicles.
• Autoware has already been used by more than
100 companies in over 10 countries.
• Markets and Markets predicts that the global
automotive software market will grow from
$16.9 billion in 2020 to $37 billion by 2025, at
a CAGR of 16.9%.

Tokyo, Japan

FOUNDED:

01/12/2015

FUNDING:

141,000,000 USD

1

T R A N S P O R TAT I O N
S O F T WA R E

M ATC H

L O C AT I O N :AUTOMOTIVEE M P L O Y E E S : 150+
AUTONOMOUS VEHICLESWEBSITE:

tier4.jp
OPEN SOURCEIDEAPRODUCT/ PROTOTYPEGO TO MARKETGROWTH & EXPANSIONESTABLISHEDMEET THE TEAM:SHINPEI KATO
FOUNDER & CTO

Shinpei Kato is an academic with extensive
experience in computer architectures andoperating systems. He obtained his PhD in
Engineering from Keio University, followed
by several postdoctoral research programs atvarious academic institutions, including Carnegie
Mellon University, University of California, andNagoya University, among others. Currently, heis an associate professor at the Graduate Schoolof Information Science and Technology at the
University of Tokyo and also serves on the Boardof Directors of the Autoware Foundation.

21

TIER IV

OPEN-SOURCESOFTWARE DRIVESTHE DEVELOPMENT OFAUTONOMOUS VEHICLES

D

riverless cars are no longer a matter ofscience fiction. In the last decade, theboom in artificial intelligence has madeautonomous vehicles a possibility for thenear future. A KPMG report on the future of cars
underscores that, because of their automatic andconnected technology, AVs are predicted to bring
substantial social and economic value. For one, fastand smart coordination between vehicles in traffic
can reduce the risk of traffic accidents and resulting
roadside deaths. In addition, citizens who are unable
to drive, such as children or the elderly, can enjoy
improved mobility and access to more remote areas.
In turn, improved connectedness and reduced risk
can drive economic growth, especially in urban areas.

“I started the Autoware project inorder to enable as many individuals
and organizations as possible tocontribute to open innovations inautonomous driving technology.
With a baseline reference design, we
wanted to provide (i) an open-source
software platform for production,
education, and R&D and (ii) business
opportunities and schemes using theopen-source software platform,”

Undoubtedly, coordinating complex vehicles in traffic
is a hefty task, and technological advances in thefield need collaborative action. Tier IV, a Tokyo-based
startup founded in 2015 by Professor Shinpei Kato, hasdesigned Autoware, a complete open-source software
stack for autonomous driving technology. Kato was
first introduced to the technologies for autonomousvehicles while he was a visiting research scientist at
Carnegie Mellon University in the US. Impressed by
the possibilities of the field, he started the Autoware
project for the development of AV software at Nagoya
University in Japan. The first Autoware platform waslaunched in August 2015 as part of the university
project, and the spinout company, Tier IV, was foundedin December of that year.

SHARES DR. KATO.

22

Motivated by the potential of an open-source
ecosystem that everyone can access, in 2018 Tier
IV transferred all rights for Autoware to the newly
formed Autoware Foundation (AWF). Along with TierIV, founding members of the AWF include partnercompanies Apex.AI and Linaro. The non-profit
organization now counts almost 50 members fromaround the world.

M AT C H 1

AUTOWARE MEETS THE CHALLENGES OFCOMPLEX MOBILITY NETWORKSTIER IV ENJOYS AN ABUNDANT NETWORKOF PARTNERS AND INVESTORSCurrently, Autoware is available through the
Apache License, Version 2.0. Because of its modular
infrastructure, different features can be easily
added or removed, a characteristic that supports
its open-source design. At the core of Autoware ismature, deterministic AI technology, which meansthat simulations run on the platform can be exactly
reproduced in the behavior of live vehicles. For
perception and localization of vehicles and theirsurroundings, the software collects data from avariety of sensors, including cameras and LiDAR
devices. Then, Autoware incorporates planningalgorithms that coordinate the vehicle’s response
to its surroundings. Based on vehicle dynamics, thesoftware generates control signals for the vehicle tofollow a specific trajectory.

Although the software has already gained
considerable traction, Tier IV continuously
works to hone the Autoware algorithms throughinternational partnerships. Just in 2020, the startup
announced several key collaborations to improveupon different aspects of Autoware. Together with
AutonomouStuff, Tier IV is working on expanding a
thriving ecosystem through Autoware. Tier IV has
also concluded partnerships with DeepMap to codevelop high-definition 3D mapping technology for
Autoware, and with LG Electronics for cloud-based
simulations and testing.

Autoware is applicable in a range of mobility contexts,
and it has already been implemented in several
products. In 2019, the startup began field tests with
Milee, an electric vehicle connected to Web.Auto,an Autoware-based web platform. Another last-milemobility product announced by Tier IV is the Postee
EV, which can be used for unmanned delivery anddistribution. On top of Milee and Postee, the company
has developed small, turnkey units to connect lowspeed vehicles to the platform, as well as the Logiee
logistics robot. In terms of geographical scope, thetechnology is suitable for urban areas, as well asprivate or depopulated areas.
Part of the reason why Autoware is so widely
applicable lies in its advanced deep learningtechnology. In complex, dynamic mobility networks,
such as urban traffic, even small details about vehicle
motion can have an impact. The open-source structureof the software allows for a multi-party approach
to solving these challenges on a granular level. Аs a
result, Autoware is currently used by over a hundredcompanies globally, with field operational tests run atabout 50 locations across Japan.

Throughout its journey, the startup has received
substantial financial support from investors. In
July 2019, Tier IV completed a Series A roundworth approximately $74 million. The list ofinvestors comprises Sompo Japan Nipponkoa
Insurance, Yamaha Motor, KDDI, JAFCO, and AISANTECHNOLOGY. This brings the total funding of Tier IV
to circa $141 million.
Given its current track record, Tier IV is set to compete
in the global market for automotive software solutions.
Markets and Markets predicts that the size of themarket will grow at a CAGR of 16.9% between 2020
and 2025. At this pace, the market will grow from $16.9
billion in 2020 to $37 billion by 2025. Government
regulations related to automotive safety and fuelefficiency, as well as the increased use of electronicsbased driving comfort & safety systems, will boost themarket’s growth. The APAC region is expected to holdthe largest share of the market in the coming period.
Within these conditions, the outlook for Tier IV iscertainly promising.

“Tier IV is dedicated to sharing
technology for safe intelligent vehicles
that will benefit all of society byenabling as many individuals andorganizations as possible to overcome
the barriers of time and space tocollectively bring autonomous vehicles
into reality. In the coming period, Tier
IV and its global partners will continue
to evolve Autoware and provide turnkey solutions for commercialization ofAutoware-based autonomous vehicles
all over the world,”
CONCLUDES THE TEAM FOR VALUER.
23

AUTOFLEETAutofleet has created a sustainable Vehicle as a Service layer, providing anelastic supply of vehicles to serve any source of demand.

BUSINESS LOGIC:SUMMARY:

PRODUCT CONCEPT• Autofleet aims to bridge the gap between
inefficient on-demand ride services and existingunderutilized fleets.

The Autofleet platform enables fleets to maximize
efficiency through automation and optimizationof existing fleet operations and logistics, while
also opening new and complementary on-demandbusiness models. The platform centrally optimizes
the fleet operations, eliminating the dependence on
manual decision making. It uses machine-learningalgorithms to optimize fleet allocation to balance
supply-demand rations, match orders to vehicles andcreate efficient routes, and automate servicing andoperational tasks. With Autofleet’s Ride & Vehicle
simulator, fleets can quickly test different variations toplan and design upcoming deployments.

BUSINESS MODEL
The startup works with a B2B model, charging a SaaS
platform fee per vehicle or per order managed by theplatform. Autofleet’s clients include businesses that
require managing large fleets of vehicles, such as car
rental companies, car-sharing operators, automakers,
public transport operators, taxi fleets, and delivery
services, among others. Its main geographical targets
are the European and US markets, with increasing
traction in the Latin American and APAC regions.

CUSTOMERS

24• Using advanced machine learning algorithms,
the Autofleet platform predicts ride demand,
determines prices based on demand dynamics, andoptimizes demand-supply matching.
• Autofleet has already secured key partnerships
with Suzuki, Zipcar, Avis Budget Group, andKeolis.
• According to Allied Market Research, the market
for smart fleet management will grow at a CAGR of
8.9% between 2018 and 2025.

Tel Aviv, Israel

FOUNDED:

12/02/2017

FUNDING:

7,500,000 USD

2

T R A N S P O R TAT I O N
S O F T WA R E

M ATC H

L O C AT I O N :CAR SHARINGE M P L O Y E E S : 20
FLEET MANAGEMENTWEBSITE:

autofleet.io
RIDE SHARINGIDEA

PRODUCT/ PROTOTYPEGO TO MARKETGROWTH & EXPANSIONESTABLISHEDMEET THE TEAM:DOR SHAY
CO-FOUNDER & CTO

Dor Shay brings substantial expertise in machinelearning, artificial intelligence, web/mobile
development, and mobility. He has worked asa Software Engineer at Gett and as the cofounder and CTO of Poob, a profitable B2Bstartup in the restaurant industry. Shay has
experience bootstrapping R&D teams in overfour companies.

KOBI EISENBERG
CO-FOUNDER & CEO

Kobi Eisenberg is an entrepreneur passionate
about software applications in the mobility sector.
Before co-founding Autofleet, he had worked
as Head of Product Management at Gett, VP of
Product Management at Bidgely, and R&D and
Product Manager at HP. Eisenberg holds a BSc
in Computer Science and an MBA in Business
Management from Ben Gurion University.

25

AUTOFLEETAUTOFLEET AUTOMATES
THE FUTURE OF MOBILITY

G

rowing urbanization and a decrease in car
ownership have contributed to a boom inthe on-demand mobility industry. Ridesharing companies like Uber and Lyfthave popped up everywhere, promising to solve thesupply and demand gap by offering online matching
platforms and employing drivers on a gig-basedmodel. However, despite their scale, platforms ofthis type have not managed to reduce the cost-perride, since independent drivers continue to pay thesame amount for fuel, maintenance, and insurance.
Because drivers have full autonomy in selecting therides they will take, the movement and distributionof vehicles connected to the platform are somewhat
haphazard and suboptimal, leading to increased
pollution and costs, as well as unfulfilled ride
requests during peak hours. At the same time, large
fleet owners, such as car rental companies, havea high percentage of unutilized vehicles at central
urban locations.
In recent years, regulatory pressure has stirred amovement away from gig-based ride-sharing. This
environment has created an opportunity for fleet
operators to become Vehicle as a Service providers,
dynamically operating vehicles in any mobility service
while employing a more centralized and unified
approach to fleet management. Israeli entrepreneurs
Dor Shay, Kobi Eisenberg, and Avi Hauben identified
this opportunity. In 2017, the trio co-founded Autofleet,a Tel Aviv-based startup that develops a centralized
platform for optimizing fleet operations.
26“Autofleet comes to solve theexisting market gap, bridging
between the unutilized vehicles ofglobal fleets and the suboptimal
operational model of on-demand
services, to enable fleets toactivate their vehicle supply
as on-demand service for any
platform. The platform provides
an end-to-end solution to enable
this innovation, first working withfleets to optimize existing business
operations, and seamlessly
launching new on-demand services
from the same vehicle supply,”
SHARES THE TEAM FOR VALUER.

“Our mission is to create the first
truly sustainable Vehicle as aService layer providing an elastic
supply of vehicles to serve any
source of demand.”M AT C H 2

A DYNAMIC MACHINE LEARNING PLATFORM
TO OPTIMIZE FLEET MANAGEMENTA SCALABLE VAAS SOLUTION FOR A
BURGEONING GLOBAL MARKET

To solve the challenges posed by fleets under dynamic
conditions, Autofleet takes a data-driven approach. The
Autofleet platform uses advanced machine learningalgorithms to predict demand, provide dynamic pricesthat reflect the demand-supply balance, and optimize
demand-supply matching in real-time. For input, theplatform uses a variety of data sources, including
historical data from the client, traffic information, driver
shifts, telematics devices, and others. Fleet managers
can get a real-time, consolidated overview of this data
through the Autofleet dashboard.

Because its solution boasts global coverage, Autofleet
has successfully secured customers from multiple
international markets, including Europe, USA, APAC, andLatin America. Currently, Autofleet has activity in overten countries, including the UK, USA, Germany, France,
Thailand, Japan, and Chile.

The core logic underlying the startup’s product isthat automatically assigning rides to drivers basedon the state of the entire fleet is considerably more
efficient than letting drivers make those decisions
independently. As opposed to the traditional ridesharing driver app where drivers can see potential
rides and choose to accept or forego them, Autofleet
offers an app where drivers can receive notifications
about the requests that the algorithm has automaticallyassigned to them. In addition to ride assignments, thealgorithm can determine the appropriate schedules forvehicle servicing, fueling/charging, cleaning, etc. The
Autofleet team says that businesses can reduce thecost-per-ride and the downtime of each vehicle basedon this automated model, thus extracting the mostpotential from a given fleet.
Notably, the platform can find use both in making
existing business models more efficient and inlaunching new, innovative layers. Based on its
proprietary algorithms, Autofleet offers three different
tools that address the unique challenges of their clients.
Through the Ride & Vehicle Simulator, businesses canplan and optimize operations before any live vehicle
deployments. The tool can use historical and realtime data to simulate different mobility operations
and analyze their performance against more than 20
KPIs. The Autofleet team shares that Japanese car
manufacturer Suzuki has already used the simulator to
streamline its corporate transportation operations.

Autofleet’s increasing traction has been eyed by multiple
investors. In April 2020, the startup completed a Series
A financing round, led by MizMaa Ventures and joined by
Maniv Mobility, Liil Ventures, and NextGear Ventures. The
round brought Autofleet $5.5 million to advance its R&D
efforts and expand to international markets. A year prior,the startup raised $2 million in seed funding from Maniv
Mobility and NextGear Ventures.
With its comprehensive fleet management toolset, thecompany is carving out a place in the global market
for smart fleet management. According to a reportpublished by Allied Market Research, the market wasworth $276.56 billion in 2017. Based on the agency’s
projections, it is expected to grow at a CAGR of 8.9%
until 2025, touching a value of $537.53 billion by
the end of the forecast period. The report pinpoints
the development of real-time technologies for fleet
monitoring and the rise in operational costs for fleet
owners as some of the primary market drivers.
In the coming period, Autofleet plans to achieve new
deployments with both existing and new fleet partners.
Other plans include the expansion of Autofleet’s
applications to other verticals, such as the micro-mobility
sector. The team has secured collaborations with leading
micro-mobility operators, with several deployments
in Paris underway. Finally, the platform is already inuse for planning and optimizing autonomous vehicle
deployments, and the team predicts those deployments
to continue expanding with the adoption of AVs.

On top of the simulator, Autofleet offers two othertools to support Vehicle as a Service (VaaS) andRide as a Service (RaaS) models. The startup’s VaaS
solution aids businesses to consolidate and enhancetheir existing logistics operations, including rental,
leasing, car sharing, vehicle allocation, and servicing.
The startup has used the VaaS solution to help the
car-sharing company Zipcar improve its operations andincrease the utilization of its fleet.
Finally, the RaaS turnkey solution can help Autofleet’sclients launch new, on-demand layers.

“In COVID-19, we are working with fleets
to leverage their existing driver andvehicle supply to offer on-demanddelivery services to meet the surging
demand for delivery from retailers,
grocery stores, etc.,”
COMMENTS THE TEAM.
27

CIRECO FINLAND
Cireco is a construction project management company that operates
on the principles of circular economy.

BUSINESS LOGIC:SUMMARY:

PRODUCT CONCEPT• Cireco implements regional development andinfrastructure projects in accordance with theprinciples of the circular economy.

The startup's core offering consists of project
design, planning, and construction services,
all of which are based on the European Built
Positive framework for circular and sustainable
construction. Cireco provides tools for tracking
the lifecycle and compliance of construction
projects, as well as for the procurement and reuseof sustainable building materials.

BUSINESS MODEL
By promoting the principles of the circular
economy, Cireco's main value proposition for
its clients is cost-effectiveness and compliancewith the new regulatory environment. The
startup earns revenue charging service fees
for its consulting, project management, andconstruction services. Cireco operates on a
combined B2B and B2G model, with cities,municipalities, and private construction
companies/developers as target customers.

28• The startup’s core objective is to track, reuse,
and reclaim materials used in construction
projects.
• In 2020, Cireco’s Northbank project received a
Green Good Design Award from the Chicago
Athenaeum Museum of Architecture and Design.
• According to Accenture Research, the circular
economy could generate $4.5 trillion of
additional economic output by 2030.

Tampere, Finland

FOUNDED:(FIBERVALVE): 05/14/1999

B U S I N E S S C O N S U LTA N C Y(CIRECO FINLAND): 03/20/2019
FUNDING:3S U S TA I N A B I L I T Y

E N V I R O N M E N TA L C O N S U LT I N G

650,000 USD
E N V I R O N M E N TA L E N G I N E E R I N G

M ATC H

L O C AT I O N :E M P LOY E E S: 5
GREEN BUILDINGWEBSITE:

cireco.fi

IDEA

PRODUCT/ PROTOTYPEGO TO MARKETGROWTH & EXPANSIONESTABLISHEDMEET THE TEAM:PERTTU KETOLACHAIRMAN OF THE BOARD &CONSTRUCTION MANAGER
Perttu Ketola is a trained engineer with a BSc in
Construction Engineering. He is passionate about
implementing sustainability models in construction,
which he has demonstrated throughout his
extensive experience in the industry.

29

CIRECORETHINKING THE
CONSTRUCTION INDUSTRY
ON A TRASH-TOTREASURE MODELThe construction industry is responsible
for generating vast amounts of waste.
Transparency Market Research sharesthat the amount of construction waste
generated worldwide is set to double to 2.2. billion
tons by 2025. In recent years, the industry has also
been heavily scrutinized for its contribution to theglobal carbon footprint, a result of both unsounddevelopment practices and the use of harmful
materials. Regulatory pressure, especially prominent
in the EU, has led players in the construction sector
to innovate with new models based on minimizing
material waste and implementing eco-friendly
building operations.
The movement toward a circular and sustainableeconomy in construction is imminent, and a Finish
startup is working to accelerate the transition.
Based out of Tampere, Cireco Finland works toprovide design and construction solutions tocreate sustainable, carbon-neutral, and waste-free
infrastructure in its home country. Perttu Ketola,
the engineer behind the startup, had witnessed thechallenges that the construction industry faces whenit comes to material use and building practices. As aresult, he decided to wield his expertise to lead thefield in a more sustainable direction.

Cireco was originally founded back in 1999
under the name Fiber Valve Oy to provide civilengineering services to the private and the public
sector. In 2019, under the leadership of its newowner Ketola, the startup amended its businessmodel to align with the principles of circular designand economy. The idea behind the restructuring of
the company was that circular economy solutions
could make more efficient use of resources in theconstruction industry, lower the operating costs,
and significantly reduce the environmental impact
of construction, such as waste, emissions, andenvironmental load.

SUSTAINABILITY ACROSS THE ENTIRECONSTRUCTION LIFECYCLE
In line with its pivot, Cireco’s vision is to help
customers effectively align their existing businessmodel with the circular economy. To do so, thecompany takes into account the environmental
impact and the recycling process at every stage ofa building or development project. Boasting witha comprehensive approach, the company offers
end-to-end services, from consulting and project
design to concrete construction solutions andproject management. Cireco focuses on fostering
joint private-public innovation in construction, withclients including private construction companies
and developers, municipalities, and cities alike.
From the very beginning of every project, theCireco method of construction design and planningis rooted in the Built Positive framework, launchedby the Dutch Cradle to Cradle Product Innovation
Institute (C2CPII). The framework outlines
several fundamental principles of designinga sustainable built environment, including
circular design, material health, a collaborative
approach, and others. Cireco implements the Built
Positive practices, guided by the pan-European
commitment to carbon neutrality by 2030.

“The circular economy issomething that needs to happen,
and we at Cireco have a realopportunity to have an impact
on its development,”
SHARES KETOLA FOR VALUER.
30

For the startup, tracking the entire lifecycle of a
project is crucial. As part of its service offering,
Cireco implements a comprehensive ERP
software that keeps track of a project’s progressand regulatory compliance. More importantly,
the startup uses the tool to make sure thatmaterial procurement, use, and disposal are done
sustainably. In this way, building site materials thatwould otherwise be disposed of can be identified
and used in another project or site.

M AT C H 3

When it comes to its construction services, Cirecoemphasizes a careful assessment of the functionalityof the existing infrastructure, as well as the local
characteristics surrounding a construction site that will
determine the kinds of materials and designs that are
best suited to the area. Within these constraints, Cireco
designs solutions that minimize the construction’s
carbon footprint in areas such as city planning,regional development, and road construction.

“Conventional construction pollutes
the environment enormously and isjust ignored. There is no recycling ofmaterials and no attempt to control
emissions,”
COMMENTS PERTTU KETOLA.
For example, for road construction, the company uses
reclaimed asphalt and soil that have been discarded
from nearby areas. On top of reusing materials,
the team is also committed to green design andincorporating eco-friendly, non-toxic materials.

A CIRCULAR APPROACH THAT SUPPORTS
BOTH BUSINESSES AND THE ENVIRONMENTThe Cireco circular approach has already been put
to use in the Northbank project, a collaboration led
by Cireco and joined by several Finish sustainablearchitecture and consultancy firms. Northbank is ascalable urban development located in the district of
Hiedanranta, Tampere. The project combines smart
living technology and ecological construction forresidential, commercial, and community buildings.
Although the construction phase is ongoing, theproject has already received a Green Good DesignAward from the Chicago Athenaeum Museum ofArchitecture and Design. A year prior, the startup
was also featured on Sitra’s list of "Most Interesting
Companies in the Circular Economy in Finland."For the Cireco team, sustainability, circularity, and costeffectiveness in construction are tightly intertwined.
According to Accenture Research, the circular
economy could generate $4.5 trillion of additional
economic output by 2030. The report further identifies
that volatile commodity prices and unreliable raw
material supply will render traditional take-make-waste
business models less profitable, opening up an avenue
for new waste-to-wealth models that enjoy supply at alower cost.
With the economic value of the circular economy
approach on its side, the Finish startup is competingin the market for civil engineering services. A recently
published report by Grand View Research states thatthe global market for these services will register a
CAGR of 5.4% between 2020 and 2027. Just in 2019,its estimated value was $8.73 trillion. An expanding
real estate sector, a rapidly growing urban population,and infrastructural development as part of publicprivate partnerships are expected to drive themarket’s growth.

“In our projects, we recognize theeffects of climate change, such as
extreme temperature fluctuations,heavy rainfall, and floodwater
management. We strive to prevent therelease of chemicals into surrounding
soil and water, as well as to protect
the surrounding nature and utilize
it in greenspace engineering andlandscaping in ways that not only
contribute to efficient construction,
but also blend seamlessly into thesurrounding nature,”“We are trying to speed the systemicchange, and a holistic regional
development approach is the key.
Sustainable cities will likely be thewinners in the future,”

SHARES THE TEAM.

CONCLUDES KETOLA.

In the coming years, Cireco will focus on developing
its circular model and securing additional projects tobring its model to scale.

31

CONCLUSION:KEY TAKEAWAYS AND
WHAT WE EXPECT IN
THE FUTURE

The 17 UN Sustainable Development Goals were
explicitly designed to engage the business sector
in addressing some of the greatest challenges
humanity is facing. This publication was created
to promote the idea that organizations canbecome more environmentally-conscious in a
way that lowers costs and opens the doors to
new business opportunities.
Focusing on SDG 11: Sustainable cities andcommunities, this report stresses the benefits
that can emerge when large organizations aligntheir operations with the goal by adopting
innovative technology.

THESE ARE SOME OF THE REPORT’S KEY TAKEAWAYS:
Technological innovation is imperative toachieving the SDGs: We’re moving too slowly
and struggling to keep pace with the growing
societal needs. In this regard, technologicalbreakthroughs and creativity hold the highest
potential for reducing the time and cost
necessary to achieve results.
Startups can help corporations become moresustainable: Since startups are inherently
innovative, large organizations can benefit fromcollaborating with them. This is one of the mostpromising ways of finding new sustainabilityrelated technologies that work for a company.
Urban areas attract residents faster than everbefore: Businesses are not only well-positioned
to deliver on the SDG 11 promise but can also
expect multi-faceted business opportunities.
More sustainable cities, among other perks,translate into a better operating environment,
lower running costs, and healthier, moreproductive citizens.
A growing number of companies areannouncing SDG 11 strategies: Rapidly growing
cities mean higher energy demands, morewaste production, and challenges withtraditional mobility and infrastructure, whichcalls for innovation in sustainable practices.
From restaurant chefs and soda manufacturers
to city officials and real estate developers—all
sectors are now responding to this imperative.
There are steps companies can take to makealigning with SDG 11 easier: To make aligningeasier, corporations are advised to analyze theenvironmental impact of their office buildings,
take into account their entire footprint, define
priorities, outline specific KPIs, announce theirplans, and achieve business growth throughinnovation and collaboration with othercompanies.
32

Companies can expect numerous benefits
from aligning with SDG 11: By investing in thesustainability of their communities, companies
can benefit from an improved brand image, ahigher employee retention rate, and an increasein their financial performance. Moreover, they will
be able to meet changing regulations in a timely
manner and avoid penalties under their state’s
environment legislature.
The smart transportation market is estimated toadvance at a CAGR of 14.7% between 2017 and2023: The market is expected to grow from $55
billion in 2017 to $149.2 billion by 2023. Someof the market’s currently trending technologies
are last-mile transport solutions, autonomousvehicles, and smart traffic optimization software.
The global waste management market will reach$530 billion by 2025: The market will be growing
from an estimated $330.6 billion in 2017 at a
CAGR of 6%. Some of the technology trends
within the market are anaerobic digestion ofwaste, automated systems for optical wastesorting, and IoT solutions for smart waste
management.
Modular construction is gaining traction as an
offsite and resource-efficient answer to thechallenges with affordable housing: Markets
and Markets estimates that the global modular
construction market will grow at a CAGR of 6.9%
between 2017 and 2023. Moreover, the global
construction sustainable materials market is
expected to grow at a CAGR of 11.6% between
2017 and 2026.
Organizations are approaching sustainability
from different angles that make the most sense to
their ambitions: The report includes the stories ofRambøll, Siemens, and IBM as some of the largeorganizations that are successfully engaging
with SDG 11.

THE COMPANY OF
THE FUTURE ISSUSTAINABLE

VALUER HELPSCORPORATIONSBLEND PURPOSE
WITH PROFIT

As the Harvard Business Review once put
it: There’s no alternative to sustainable
development. The increasingly evident climatechange (and stricter regulations), coupled withthe modern needs of the informed customer,
mean that business-as-usual won’t cut it
anymore. Fortunately, this new reality doesn’t
only bring threats, but also numerous new
business opportunities to those that embrace iton time.

There’s no one-size-fits-all approach tocorporate sustainability. This is why it’s
essential that each organization addresses thechallenge from a perspective that makes themost sense to its strategies.
By finding startups with innovative solutions
that complement a corporation’s unique needs,
the Valuer AI platform helps organizations
adopt the most compatible sustainabilityrelated technologies.
The platform’s data-driven approachempowers companies to find previously unseen
opportunities, enabling a move from cost-cutting
to opportunity-driven profit generation.

IN SUPPORT OF OUR CONCLUSION,A STUDY CONDUCTED BY HBR POINTSOUT THAT:

Learn more about how the Valuer AI platformworks on page 5.

“ Sustainability is a motherlode of organizational andtechnological innovations thatyield both bottom-line andtop-line returns. [...] In fact,
because those are the goalsof corporate innovation, we
find that smart companies
now treat sustainability as
innovation’s new frontier.”
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ACTIVATE THE
VALUER RADAR
Use our AI platform to find the startups that will help you
become sustainable and gain competitive advantage

SET YOURSUSTAINABLE
DEVELOPMENTAGENDAACTIVATE YOUR RADAR
THROUGH THE VALUER
PLATFORM

GET MATCHED WITH
ACTIONABLE SDG
CANDIDATES

Write to us and findout how we empowerorganizations to adopt
new creative solutions
and modernize theiroperations

contact@valuer.ai
www.valuer.ai

Valuer.ai • Kristiniagade 7 • DK-2100 Copenhagen • Denmark • contact@valuer.ai
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