Sustainable Startup Destinations

Estonia has the highest number of startups per 100,000 people in the OECD, at 23.4. This gives the Baltic country the busiest startup scene in our study, showing it to be a thriving place for new and innovative businesses to call home. While the total number of startups might seem low at 282, the total population of Estonia is just over 1.2 million, which results in a very high rate per capita.

Hot on the heels of first-place Estonia, the United States has the second-highest number of startups per 100,000 people at 22.3. The United States has a vast number of startups, with 75,798 currently in the country, but the nation’s vast population of almost 340 million brings the overall rate under control. The United States is indisputably one of the world’s major economic powers. It is home to some of the leading centres of technological innovation, making it an attractive location for many startups.

The country with the third highest rate of startups is Luxembourg, with 11.7 per 100,000 people. Luxembourg is a tiny country between France, Germany and the lowland countries of Belgium and the Netherlands. Despite its small size, Luxembourg is a central European financial hub while also playing a significant role in the region’s politics, hosting the Secretariat of the European Parliament, which employs more than 4,000 people.

Luxembourg is the country with the best options for eco-friendly commuting at co-working spaces, with a score of 9.4. Six co-working spaces in the tiny nation provided charging points for electric cars, while 17 provided bicycle parking spots. Additionally, there were 39 co-working spaces within a five-minute walk of public transport, meaning it’s easy to commute to work without relying on private cars. These totals were combined and compared against the local population to create a normalised score.

The United Kingdom has the second highest Eco Commuting Provision Score in the OECD at 5.3. This high score means that people who use co-working spaces can often commute to work using more environmentally friendly methods. The UK has the sixth largest economy in the world, and the fourth largest in the OECD, so providing a high level of eco-friendly commuting options makes it an attractive choice for carbon-conscious startups.

Ireland has the third highest Eco Commuting Provision Score at 3.2. Ireland’s economy has historically been closely tied to the United Kingdom’s, although the two countries may become slightly less entwined following the UK’s departure from the European Union. Ireland is a popular choice for many businesses and startups due to its enticingly low corporate tax rate, access to the EU single market, and proximity to post-Brexit Britain.

Slovenia is the OECD country with the highest national recycling rate, which stands at an impressive 58.5%. One of the best ways to tackle climate change and improve sustainability is to reuse and recycle as much as possible rather than sending waste to landfill. This high recycling rate makes Slovenia an attractive location for companies that want to ensure as much of their waste can be recycled as possible.

South Korea has the second-best national recycling rate in the OECD at 56.5%. This highly developed economy in East Asia is the only non-European country to make the top ten list for recycling. South Korea offers startups and other businesses access to a highly skilled workforce, booming tech and automotive industries, and proximity to lucrative Asian markets such as China and Japan.

The OECD’s third-highest national recycling rate belongs to Germany and stands at 46.3%. Germany is the largest economy in Europe, with national GDP in 2022 standing at approximately $4.072 trillion, which gives startups plenty of opportunities to find a niche and grow their brand. The very high recycling rate in the country gives companies plenty of opportunity to make sure much of their waste is recycled, helping to build a respectable corporate ESG score.

People in Japan travel the furthest by rail out of all OECD countries, with 2,128 passenger kilometres travelled on Japanese railways per capita. Japanese rail services are known for being some of the most punctual in the world, almost always running on time. The country is also known for the Shinkansen, or “bullet train”, a super high-speed railway that reaches all major Japanese islands besides Shikoku and connects to the northern island of Hokkaido via the world’s longest undersea tunnel.

South Korea has the second highest railway usage, with 1,932 passenger kilometres travelled per capita. Like Japan, South Korea also benefits from a highly developed high-speed rail system with bullet trains, making travel in and around the country quick and easy. This is great for business connections and commuting and offers a reliable carbon-efficient alternative to driving or air travel.

Switzerland has the third most-used railways in the OECD, with 1,671 rail passenger kilometres travelled per capita. Switzerland is another country well-known for its highly efficient and punctual rail services, with a highly dense network that allows passengers to travel all across the country without using a car. Swiss trains also offer passengers one of the most scenic commutes imaginable, with breathtaking Alpine views visible from many services.

CO2 emissions from travel are one of the leading causes of climate change, and Mexico has the lowest such emissions per capita at just 0.84 tonnes. To put this into perspective, the OECD country with the highest transport CO2 emissions per capita is Luxembourg, where this figure sits at 7.41 tonnes.

Turkey has the next lowest CO2 emissions from transport at 0.94 tonnes per capita. This low level of CO2 emissions is a double-edged sword for sustainable startups, as it could indicate a largely immobile population and a less active economy. However, the low level of emissions also suggests that people don’t need to travel long distances in the country, which could mean shorter commutes for employees.

Hungary has the third lowest CO2 emissions from transport, with 1.26 tonnes per capita. This is the lowest level among European OECD countries and could be due to the lack of large cities outside of the capital, Bucharest, which is by far the largest and most populated city in Hungary.

According to a 2022 census, Budapest is home to 1.68 million people, approximately 17.42% of the total population. However, the wider Budapest metropolitan area is home to twice this amount, representing 34.47% of the population. With such a large concentration of its population in the city, annual travel distances in the county are probably relatively low, which is reflected in the lower level of transport CO2 emissions.

Iceland is by far the country with the best record of generating renewable energy, with as much as 99.8% of the country’s power coming from renewable sources. 73% of the energy in Iceland is generated from hydropower plants, while 26.8% is generated from geothermal sources. Iceland is uniquely positioned on a fault line between two tectonic plates, meaning it has incredible access to geothermal energy.

Norway is the OECD country with the second highest % of its energy coming from renewable sources at 71.6%. Renewable energy is the most environmentally friendly way of generating electricity, releasing no CO2 into the atmosphere and having a limitless supply.

Sweden has the third highest proportion of energy sourced from renewables in the OECD at 53.3%. This means that Nordic countries dominate the ranking for renewable energy, occupying all the top three spots, with Denmark in fifth and Finland in sixth, accounting for half of the top 10 countries for renewables.