By aligning purpose with profit, businesses can ensure they are not only meeting consumer demands but also fostering environmental responsibility
In recent times, the climate crisis has become an issue of crucial importance and for many, it has become increasingly important to make responsible and conscious choices to combat these environmental problems. This has led to a significant shift and rethinking of processes across various industries, particularly in the rapidly growing consumer durables sector. Driven by rising disposable incomes, real estate expansion, and technological advancements, India's Consumer Electronics and Appliances Industry is projected to be the world's fifth largest by 2025. According to the India Brand Equity Foundation, the Indian Appliances and Consumer Electronics (ACE) market is expected to nearly double in the next three years. Consumers are now more mindful of bringing eco-friendly products that offer long-term value into their homes. Consequently, businesses are increasingly focused on innovation, relying on technologies to create energy-efficient, durable products that integrate best practices right at the production stage.
Supply chain sustainability
Supply chain sustainability is paramount for ensuring that raw materials and components originate from ethical sources and trusted suppliers. Optimising logistics to reduce transportation distances and utilising eco-friendly packaging, including biodegradable materials, water-based inks and QR code scanners on the packaging that direct consumers to a website providing information on the material and its proper disposal, helps minimise the carbon footprint and environmental impact. These sustainable packaging practices not only demonstrate a commitment to environmental stewardship but also enhance transparency and consumer trust. Additionally, leveraging technology to monitor and manage supply chain operations can further enhance efficiency and sustainability, ensuring continuous improvement and responsible resource management throughout the production process.
Sustainable manufacturing practices
Introducing environment friendly practices at the production stage is crucial. Investment in technological interventions that can be powered by renewable sources of energy, such as solar and wind, can be a game changer for industries. Establishing battery backups to utilise excess energy instead of relying on diesel generators and redirecting treated wastewater for domestic purposes such as cleaning machinery or watering in-house plants. Additionally, ensuring that finished appliances and production materials are sourced locally minimises transportation emissions, thus contributing to a more sustainable production cycle. By incorporating these practices, companies significantly mitigate their environmental impact right from the start.
Aiding the booming circular economy
The consumer durables industry is already making strides in designing products with their entire lifecycle in mind. This approach, which includes creating appliances that are easy to repair, refurbish, or recycle, is the need of the hour. Increasing the availability of spare parts is also crucial, as it ensures that consumers can easily maintain and extend the life of their products. Continuing to implement take-back programmes and use recycled materials will further minimise waste and promote resource efficiency.
Design and Technology
Technological advancements in product features and design, with consumer centricity at the core, play a significant role in sustainable contributions. For instance, dishwashers now adjust water levels based on the load for an eco-friendly wash cycle. Similarly, iDos technology in washing machines adjusts water and detergent amounts, preventing waste and enhancing energy efficiency. Converting refrigerators and freezers to halogen-free gases for insulating foams and using propane as a natural refrigerant further reduces environmental impact. Additionally, smart technologies such as remote monitoring help consumers track energy usage, promoting sustainable living. These innovations collectively demonstrate how the focus on sustainable design and consumer-centric technological advancements can lead to more environmentally responsible living.
Research and Development
Identifying the right pain points and creating tailor-made products to meet consumer needs and situations is crucial. Companies should focus on making strategic investments in sustainable technologies and materials. By aligning purpose with profit, businesses can ensure they are not only meeting consumer demands but also fostering environmental responsibility. This proactive approach helps companies deliver lasting value and drive industry-wide progress towards a more sustainable future.
(Dr. Rakesh Desai, CTO and Chairman of Board at BSH Home Appliances India)