By Jorge Vinicio Murillo. The environmental problems we face today are undeniable and pressing. Climate change, caused mainly by greenhouse gas emissions, has reached alarming levels. There is a 50% probability that in the next four years the average annual temperature will exceed pre-industrial levels by 1.5°C. This figure indicates the point at which climate change is likely to occur. This figure indicates the point at which the effects of global warming will worsen and is approaching the 2 °C limit set in the 2015 Paris Agreement [1]. Currently we have begun to experience extreme temperatures in different regions, a large number of costly fires and rising sea levels that threaten to affect Latin American cities located in the Caribbean, the Gulf of Mexico, Central America, Colombia, Brazil, Uruguay and Argentina.[2] The current climate change is also affecting the region of the Americas and the Caribbean, as well as the Caribbean, the Gulf of Mexico, Colombia, Brazil, Uruguay and Argentina.
Overuse of natural resources is another urgent symptom of the planet's seriousness. By 2023, humanity had exhausted the Earth's annual ecological budget in just over seven months.[3] This means that we are consuming resources at an unsustainable rate and endangering the regenerative capacity of our planet. In addition, environmental pollution is also a cause for concern. The proliferation of plastics and toxic chemicals is damaging biodiversity, polluting water and affecting human health. Just to give an example, between 9 and 14 million tons of plastic enter the oceans each year, threatening marine life and coastal ecosystems [4] and with it, life on the planet.
With the planet getting sicker and the actions of governments and big business to heal its ailments seemingly not enough, entrepreneurs could join the search for a cure to avert climate disaster. Green entrepreneurship in Latin America is experiencing an exciting boom, with increased investment and adoption of sustainable solutions in several key sectors. Ventures such as Negawatt [5] in Guatemala or Penseed [6] in Costa Rica are just two examples of the many green entrepreneurship initiatives that INCAE Business School has supported in its academic programs. As the planet continues to face environmental challenges that deteriorate its health, these ventures play a crucial role in the search for innovative and sustainable solutions that contribute to its cure.
Green entrepreneurship is recognized as the creation, development and management of businesses that seek to generate positive economic and environmental impacts. These ventures are rooted in the idea that profitability should not compromise the sustainability of the planet. Therefore, green entrepreneurs strive to address environmental challenges by identifying opportunities for innovation in traditional and emerging sectors, which benefits the environment, but in turn, can be a source of differentiation and competitiveness for new businesses in an increasingly conscious marketplace.
Entrepreneurs can move faster than sluggish governments to address the environmental challenges facing the planet. Their contribution could be in creating sustainable solutions through renewed approaches in which business is a driver of positive change. Thus, green entrepreneurship is not just a fad, but a necessary and valuable response to the environmental challenges we face.
Here it is important to note that sustainability has also found its way into the corporate entrepreneurship activities of many large companies. Corporations such as Cargill, Adidas and Volvo have implemented sustainable corporate entrepreneurship strategies with successful results. These companies are reinventing the way they do business with a real impact on the long-term health of our planet. By partnering with promising startups, corporations are turning sustainability challenges into opportunities for growth, product development, increased financial returns and positive impact on our planet.
Thus, green entrepreneurship in Latin America transcends borders and sectors. From precision agriculture that optimizes the use of water and fertilizers to sustainable mobility that reduces congestion and emissions in cities. The possibilities are vast, but it is worth noting that an innovative mindset committed to sustainability is key to harnessing the potential of green entrepreneurship in creating a more environmentally and economically balanced future. Such a mindset has grown strongly in the Latin American context and must be fostered with resources, knowledge and growth opportunities. Green entrepreneurship has the potential to transform the region towards a more resilient and sustainable future and thus contribute to the cure for the ailment facing our planet.
Each individual undertaking may have only a small impact, but put all those impacts together and they will begin to make a real change in the health of the planet. Will this be enough to cure it? Only time will tell, but it's a start.
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