Entrepreneurship Key to Solving Mexico’s Environmental Issues

Q: How did Impact Hub first arrive in Mexico, and why do you think Mexico needs spaces like Impact Hub CDMX?

A: The first Impact Hub was founded in London in 2005, so this year marks our 20th anniversary operating worldwide. Impact Hub CDMX was founded in 2014 with the specific goal of strengthening the social entrepreneurship ecosystem in Mexico. The country needed a player like Impact Hub to generate spaces where different actors within the entrepreneurial ecosystem could come together, particularly those interested in fostering a global impact. One of our main objectives was to create greater opportunities for entrepreneurs, and to generate a pipeline of projects that addressed demand for sustainable solutions in both Mexico and abroad. For 11 years now, we have been working to create these success stories, fostering entrepreneurship with an impact and strengthening justice, inclusion, and sustainability. 

Q: What types of projects are you focusing on, and what criteria or metrics do you use to determine which ones receive priority?

A: What defines our approach is the focus on social entrepreneurship with an impact. We aim to create and scale solutions to critical issues through a financially sustainable model. Our priorities must be closely aligned with the interests of different stakeholders, allies, and sponsors to determine where each project can have a tangible, positive impact at the local, regional, or national level. We have a broad range of projects, including ones focused on sustainable materials, the circular economy, inclusive design, climate mitigation, and water treatment. Despite this variety, what unites all of these projects is that they must have a defined and measurable impact, one that we can identify and support. 

Q: How do you balance the sustainability of the projects you support with their long-term profitability?

A: We primarily focus on projects that already have a financially sustainable model. Impact is key, but there is no point in having a positive impact if it cannot be sustained or scaled. Environmental sustainability and financial sustainability go hand in hand. Despite this, a project’s financial sustainability does not necessarily have to relate to the product or service that it generates. In those cases, we help find alternative ways for that project to be profitable. 

All the projects we support focus on creating a positive impact, either environmental impact, social impact, or development impact. From there, the impact can be further broken down. For example, it could increase access to services or reduce the carbon footprint. 

Q: How has the sustainability startup sector changed in recent years? 

A: We have seen an evolution. There is a growing understanding of the market, and more financial support, but there is still a long way to go compared to other markets. The United States or the European Union, for example, have much stronger environmental laws and much greater regulatory and financial support. Mexico has not seen a major green or sustainable startup that is making a significant difference. Some are moving forward, but the big green unicorn that has been expected for several years has not emerged. 

Emerging entrepreneurs, particularly those working on sustainability and environmental issues, face a context that is somewhat against them. There are no regulations, there is no institutional support, and the Mexican market still does not value whether a product or a service is green or not. Due to this lack of investment, there is still a long way to go before a project can reach the point of scalability. 

We have seen successes in other industries where regulations were able to drive demand and cause market growth. This was the case with the fintech sector in Mexico. The country now has a developed fintech ecosystem, with key startups receiving investment and penetrating the market. This has happened largely thanks to government regulation, such as the 2018 Fintech Law, which created market opportunities and access. When it comes to the sustainability sector, this type of regulation is sorely lacking. 

Q: How does Impact Hub help entrepreneurs overcome these challenges? 

A: Impact Hub helps startups develop and consolidate themselves. This can include direct training, consulting, mentoring, and access to exhibition spaces. However, the most important support we provide is connecting them with potential partners, allies, and investors. Although the green startup market in Mexico is not yet mature, there are many organizations, institutions, and companies that are looking to support these startups, both globally and locally. We help them take advantage of these opportunities by developing their projects, ensuring they have all the prerequisites needed to attract investment, and making the initial connection to potential partners. 

We also engage with the global Impact Hub network to find opportunities abroad that do not exist in Mexico. Many of the startups we support have found partnership opportunities in the European Union and the United States, as our global network of partners and companies are always seeking innovative sustainability solutions.

Q: One of Impact Hub’s most important annual initiatives in Climathon Mexico. How has this event impacted Mexico’s sustainability sector, both quantitatively and qualitatively? 

A: Climathon is central to the impact we seek to make in Mexico. It helps us create awareness about the opportunities that exist for sustainable, climate-related entrepreneurship, especially in localities outside of Mexico City with less developed sustainability ecosystems. We hold Climathons in cities like Merida, Campeche, Hermosillo, and Saltillo. The value of Climathon is not only in generating ideas and identifying innovative projects, but also in democratizing opportunity and the generation of solutions across the country. 

Nine Climathons have been held in the past two years, with an average of 270 entrepreneurs participating and developing solutions for specific challenges ranging from emissions reduction to water treatment approaches. One of those success stories is Kova, which created a technology that allows mezcal distilleries to treat their wastewater, which contains waste products inherent to mezcal distillation that could not be properly treated prior. After winning Climathon Oaxaca, Kova won another Impact Hub competition, earning the opportunity to go to Madrid for two months to further develop its technology. It now works with major distillers in Oaxaca. 

Q: How will Impact Hub CDMX’s OLA México harness the economic opportunities provided by the 2026 World Cup to reduce inequality and labor informality?

A: The World Cup 2026 will generate a lot of consumption and product movement in Mexico. We want to take advantage of this immense economic opportunity to generate a positive impact. The goal is to channel this opportunity toward local businesses, particularly around the Azteca Stadium in Mexico City. We wanted to bring these local businesses closer to the market generated by the World Cup. 

We took a closer look at projected consumption and production chains, aiming to generate an impact on sustainability, inclusion, and justice. The key point is to ensure that the competition generates a positive impact on communities, cities, and the entire country. We do not want a World Cup that deepens Mexico’s environmental and social issues, which future generations will have to address.

Q: What role does the public sector play in advancing Impact Hub’s initiatives?

A: The public sector has always been our key ally. In any project we undertake, we always seek to collaborate with all the stakeholders involved, and the public sector is one of those stakeholders. As part of OLA México, we reached collaboration agreements with the three main Mexico City municipalities that will see the most economic activity: Coyoacan, where the Estadio Azteca is located; Cuauhtemoc, which has the largest number of hotels; and Miguel Hidalgo, which has the largest tourism appeal. 

We also work with local governments for our Climathons to define the challenges we hope that entrepreneurs will tackle. This year, we worked with the governments of Monterrey, Merida, Hermosillo, Tlanepantla, Saltillo, Campeche, and Guanajuato. 

Q: How does Impact Hub establish the private sector partnerships necessary to fund its initiatives? 

A: While the private sector is a big part of the problems we face, it is also a big part of the solution. The private sector is eager to contribute to the communities where its offices, factories, and companies are located. It understands the relationship of shared value that exists between their products or services, their operations, and the rest of society. 

We always have open dialogues with companies and corporations, looking to fully understand their objectives and how they align with a given social impact issue. From there, we are able to establish relationships of long-term value for both parties. The private sector knows that we all have a role to play, and that alone we will not be able to solve the problems that affect us all. 

Q: How has the mindset of companies over their social responsibilities changed in recent years? 

A: We have seen that companies increasingly seek to generate an impact beyond catchphrases and slogans. Companies no longer talk about social responsibility, but rather about social investment. They genuinely seek to create a positive impact, going beyond running media campaigns that can seem superficial. 

There is still a long way to go. But there are companies that already understand the internal transformation they must make, and they recognize the economic, social, and environmental benefits of adopting a more sustainable approach to business.