Christian Arno, founder of the Edinburgh-based startup Pawprint, often reflects on how businesses can contribute to solving global challenges. His company, launched in 2020, helps individuals and organisations measure and reduce their carbon footprints. With clients like BrewDog, which uses Pawprint to integrate sustainability into its operations, Arno’s approach demonstrates that businesses don’t have to sacrifice profitability to prioritise purpose.
This ethos reflects a broader shift in the UK’s startup scene. Entrepreneurs are increasingly building ventures that don’t just focus on financial growth but also tackle pressing social and environmental issues. Startups like Tandem Bank and Oddbox exemplify this new wave of ethical entrepreneurship, where purpose and profit coexist.
When Emilie Vanpoperinghe and Deepak Ravindran founded Oddbox in 2016, their mission was straightforward: address the staggering levels of food waste in the UK. Supermarkets often reject perfectly edible produce for being too small, too large, or cosmetically imperfect. Oddbox steps in, working directly with farmers to rescue this “wonky” produce and deliver it to households across the country.
Since its inception, Oddbox has prevented over 30,000 tonnes of produce from going to landfill. But the impact extends beyond just saving food; it’s also about consumer education. Each Oddbox delivery includes a report detailing the environmental savings, such as the amount of water preserved or CO₂ emissions avoided. In 2023, the startup reported a 60% growth in subscriptions year-on-year, showing that their transparency and ethical mission resonate deeply with consumers.
Oddbox’s success has also sparked conversations about sustainability in the food industry, challenging larger corporations to reconsider their supply chains. By making sustainability both convenient and tangible, Oddbox is changing how Britons think about food waste.
In the fintech world, Tandem Bank is proving that financial services can be environmentally conscious. Relaunching in 2021 as a “green bank,” Tandem’s new focus includes offering green mortgages, which encourage homeowners to invest in energy-efficient upgrades like solar panels or heat pumps. According to the UK Green Building Council, homes account for nearly 20% of the country’s total carbon emissions, making Tandem’s approach a timely and necessary intervention.
Tandem’s CEO, Susie Aliker, has been vocal about the need to align financial success with sustainability. “We believe banking can be a force for good,” she said in a recent interview. The bank’s renewed mission has not only attracted environmentally conscious customers but also improved loyalty among existing ones. In 2022, customer retention rates increased by 25%, a clear indicator of the trust Tandem’s ethical focus has generated.
While Oddbox and Tandem focus on industry-specific challenges, Pawprint targets behaviour change at an individual level. The app, designed for both consumers and businesses, provides detailed insights into users’ carbon footprints, breaking down contributions from energy usage, transport, diet, and other activities. This granular approach helps users identify actionable steps to reduce their impact.
Pawprint’s business partnerships are also noteworthy. BrewDog, for instance, integrated the app into its employee engagement programme, using it as a tool to encourage sustainable practices among staff. Such collaborations illustrate how startups can influence broader cultural shifts within larger organisations.
While the rise of ethical startups is promising, their journey isn’t without obstacles. One of the biggest challenges is securing funding. Traditional venture capital often prioritises rapid growth, which doesn’t always align with the slower, more deliberate expansion typical of mission-driven companies.
However, alternative funding sources are gaining traction. Organisations like Big Society Capital and Bethnal Green Ventures specialise in impact investing, providing capital to startups committed to social or environmental change. These investors recognise the long-term value of ethical businesses, even if their returns aren’t as immediate as those of more conventional ventures.
Transparency is another critical factor. Accusations of “greenwashing” have damaged the reputations of companies that exaggerate their environmental achievements. Ethical startups, therefore, must back their claims with hard data—whether it’s Pawprint’s measurable carbon savings or Oddbox’s detailed reports on food waste reduction.
The rise of ethical startups also mirrors changes in consumer priorities. A 2022 PwC survey found that 88% of UK consumers want businesses to demonstrate stronger commitments to sustainability and equity. This shift is particularly pronounced among millennials and Gen Z, who are increasingly aligning their purchasing decisions with their values.
For startups, this trend represents a significant opportunity. By embedding ethics into their business models from the outset, they can build trust and loyalty in ways that larger corporations often struggle to replicate. Oddbox, Tandem Bank, and Pawprint exemplify how this strategy can lead to not just social impact but also financial success.
As the UK continues to grapple with issues like climate change, inequality, and resource scarcity, ethical startups will play an increasingly important role in shaping solutions. These companies are proving that profit and purpose don’t have to be mutually exclusive. More importantly, they are showing that ethical entrepreneurship isn’t just a trend—it’s the future of business.
By challenging traditional norms and prioritising long-term impact, startups like Pawprint, Oddbox, and Tandem Bank are redefining what it means to succeed in the modern world. And for consumers, investors, and employees alike, their message is clear: doing good and doing well can go hand in hand.