When Doing the Right Thing Is Too Expensive: Why Sustainable Startups Still Struggle to Scale

Listen to the full podcast episode on YouTube, Spotify, and Apple Podcasts.
Kate Chilton, Chief Sustainability Officer and Chief of Staff at BamCore, has experienced both the corporate and startup sides of sustainability. After starting her career at Accenture and working her way into the core of climate startups, she now finds herself in the thick of itโcaught between investor expectations, startup survival, and the uncompromising realities of planetary boundaries.
In this episode of The Responsible Edge, Kate takes us on a journey through the messiness of real-world sustainability: the idealism, the disillusionment, and the flickers of optimism that still make the fight worth it.
ย
What Happens When Net Zero Becomes โToo Expensiveโ?
The catalyst for the conversation is Bloombergโs recent report on the Net Zero Banking Alliance (NZBA), a group of major banks committed to aligning their lending with the Paris Agreement. One by oneโU.S. banks, Canadian banks, and then Japanese banksโhave stepped away from the group.
Why? According to Kate, the answer is chillingly simple:
โBy exiting NZBA, these banks have sought greater autonomy to set and adjust their environmental strategies without being bound by a commitment to stay aligned to the Paris Agreementโwhich they now view as a fictitious world.โ
Put bluntly: NZBA is aligned with a future thatโs becoming increasingly unlikely. And the market will punish banks for focusing on decarbonisation if they are perceived to be giving up earnings potential.

ย
โSustainability Only Works If It Makes Business Senseโ
Having worked at a corporate giant like Accenture and now at a bio-based building materials startup, Kate sees the problem from both ends of the spectrum.
โThe sustainable decision needs to be the right business decision. We can’t just expect businesses to do the altruistic thing when they are fundamentally mission-driven to turn a profit.โ
Startups may be mission-first, but theyโre not immune either. Even companies like BamCore, which manufactures climate-positive building products, must navigate a system where clean energy and low-carbon materials still struggle to competeโon cost, supply, and capital access.
ย
Built-In, Not Bolted-On
Kate wears two hatsโChief Sustainability Officer and Chief of Staffโwhich gives her a unique view across the entire organisation.
โSustainability shouldnโt be an afterthought. It needs to be built in, not bolted on.โ
This dual role allows her to connect sustainability to every departmentโfrom marketing and product development to sourcing and manufacturing. It’s a model that makes sense for startupsโbut itโs rare in larger organisations, where ESG still too often sits in a silo.
ย
The Capital Gap No One Wants to Talk About
One of the sharpest insights comes when Kate breaks down the climate finance landscape for startups:
-
๐ฅ Seed-stage: Government grants, angel investors, climate-focused VCs.
-
๐๏ธ Growth-stage: A funding valley between VC and private equity.
-
๐ฆ Mature-stage: Shift from equity to debtโoften inaccessible for physical solutions that need massive CapEx.
โWe’re not playing in electronsโwe’re playing in atoms. In order to combat climate change, this is a physical problem. We need physical solutions.โ
When capital dries upโparticularly for manufacturing-heavy solutions like BamCoreโthe transition stalls, no matter how compelling the climate case is.

ย
Realism vs. Idealism: Can We Still Be Optimistic?
Kate doesnโt sugar-coat it:
โThereโs always a little flame of eco-anxiety driving me. But Iโve moved from being an optimist to an optimistic pessimist.โ
And yet, thereโs still hope:
-
The next generationโGen Zโis taking climate seriously.
-
Clean energy is reaching cost parity with fossil fuels in more regions.
-
The appetite for systemic changeโfrom carbon pricing to Doughnut Economicsโis growing.
โOur financial system is intertwined with emissionsโฆ We need to unwind them such that we can make decisions that are still good for our economies but that also drive down emissions.โ
ย
๐ฌ Kateโs Magic Wand Moment
If given a magic wand, what would Kate change?
โMake it easier for companies that want to be sustainable to succeed.โ
Itโs a simple askโbut behind it lies a radical truth. We know what to do. We just havenโt made doing the right thing easyโor profitableโenough.
ย
Integrity in Action
๐ Join The Anti-Greenwash Charter and be recognised for your commitment to responsible sustainability communications.
Want to be a guest on our show?
Contact Us.
The Responsible Edge Podcast
Queensgate House
48 Queen Street
Exeter
Devon
EX4 3SR
Recognition.
Subscribe Now.
Subscribe below to receive a monthly email featuring all new episodes of The Responsible Edge Podcast.
ยฉ 2025. The Responsible Edge Podcast
Created by The Anti-Greenwash Charter
ยฉ 2025. The Responsible Edge Podcast