Recent years have seen a dramatic increase in the creation of impact-oriented companies. Alongside this, investments in the field have grown as well. Thus, for example, according to a 2020 report by US SIF Foundation, sustainable investing assets in the US totaled $17.1 trillion, a 42% increase over 2018. US SIF has published a report on this area every two years since 1995, when sustainable assets totaled $639 billion. Since then, sustainably invested assets have grown at a compound annual growth of 14%, with the most rapid growth happening since 2012.
Over the past few years, Israel, which many have called "The Startup Nation" has seen a surge in the development of impact and ESG companies in areas such as Healthcare, Foods and Climate, which are poised to make a positive impact on the world. Israel has a rich history of innovation and entrepreneurship, with a focus on education, research, and a culture that values risk-taking and innovation.
The emergence of these impact and ESG companies in Israel is a testament to the country's focus on creating innovative and sustainable solutions that are good for the planet and society as a whole. Four of the most disruptive companies coming out of Israel recently are: Steakholder Foods, Eco Wave Power, InnoCan Pharma and CollPlant.
Steakholder Foods (NASDAQ: STKH):
Steakholder is a company that aims to transform the meat industry. Established in 2017, Steakholder's goal is to enable the production of high-quality meat using its advanced 3D bioprinting and tissue engineering technology. They seek to offer a sustainable alternative to industrialized animal farming and reduce the environmental impact of livestock farming. As the world's first publicly listed cultivated meat company, Steakholder's 3D printing and biology technology will play a critical role in the growth of the cultivated food industry.
Eco Wave Power (NASDAQ: WAVE)
Eco Wave Power aligns perfectly with The UN's seventh Sustainable Development goal: affordable and clean energy. Eco Wave Power (EWP) has developed an innovative technology that produces clean electricity from ocean and sea waves. The company is pioneering in its sector by operating the only grid-connected wave energy array floaters in the world, which is operational under a Power Purchase Agreement (PPA) in Gibraltar.
InnoCan Pharma Corporation (CSE: INNO):
InnoCan Pharma is a pioneer in the field CBD-Pharma delivery systems. The company is focused on developing and bringing to market innovative cannabinoid-based products for the treatment of various medical conditions. InnoCan has a unique global research and license agreement leading Israeli academic institutions to develop a drug delivery platform that delivers long-lasting, significant levels of CBD in the body, to achieve effective and ongoing therapeutic benefits. InnoCan is dedicated to making a positive impact on the world by advancing the next generation of pharma through the use of cannabinoids.
CollPlant Holdings (NASDAQ: CLGN):
CollPlant is an Israeli biotechnology company that specializes in the development and commercialization of regenerative medicine products. The company's technology is based on the use of genetically engineered human collagen, which is a key component in the development of tissue-engineered products for a range of therapeutic applications, including wound care, orthopedic and spine, and aesthetics. The company is relatively less known, but it is focused on developing innovative solutions in the regenerative medicine space, which is a growing and important area of medicine with significant growth potential.
Given Israel's strong track record as a global leader in innovation, it is likely that the country will continue to be a breeding ground for companies that eventually change the world for the better. Israel is home to many startups and established companies that are working on cutting-edge technologies in a variety of fields, and the government has been proactive in supporting these efforts through investments and favorable policies. The companies introduced above are just a few examples of Israeli companies with significant growth potential. These companies operate in a wide range of industries and are well-positioned to benefit from the growing demand for their respective products and services.
