Companies that embrace sustainable innovations can establish a competitive edge in the market while building better brand equity
Sustainable innovation refers to the actions of companies in constantly improving products, processes and workforce performance to build a better, more sustainable future for consumers, employees and the environment.
Globally, the emphasis on promoting sustainable business practices and operations is growing louder each day as shareholders, staff, customers, board members and allied stakeholders expect enterprises to follow efficient processes that leave a lower carbon footprint.
Moreover, given the growing focus of investors on the ESG (environmental, social and governance) credentials of companies, the business case for deploying green and innovative practices in driving long-term enterprise growth is clear.
But do note that quality cannot be sacrificed at the altar of innovation and sustainability. A global survey of 60 brands by Bain & Company covering eight consumer goods groups found that the most successful firms were those addressing the twin consumer demands of quality and sustainability.
Therefore, companies providing products and/or services that are environment-friendly find myriad opportunities to innovate new technologies and service offerings, building a pathway for sustainable innovation.
As consumers and investors are more inclined to support such firms, it incentivises these organisations to look beyond bottom-line considerations to include social, cultural and environmental concerns. In turn, it creates a virtuous cycle and places these companies firmly on the path to emerging as champions of sustainability.
When companies prioritise sustainable innovation to drive long-term goals and growth, it opens doors to more innovation by highlighting new design limitations impacting how essential resources such as energy, water, materials and waste are used and managed in their products and processes.
Crucial Elements and Approaches
Another vital fact is that enterprises embedding sustainability in operations and processes do not need to change their overall business model. Instead, they can discover new ways of undertaking operations more efficiently to minimise the negative impact on the environment and local communities. This eco-efficient approach can be implemented by focusing on elements such as the use of renewable energy and recycled materials or by minimising packaging, etc.
Conversely, new products or services could be created that address consumer needs while being eco-friendly. Or work can be done in a more sustainable, efficient manner rather than merely attempting to reduce the environmental damage caused by the present operations.
However, acting in isolation is not the only option. For organisations seeking to promote sustainable innovations at scale, collaborating with other like-minded companies could help in creating a positive impact. The benefits of working in tandem for a common cause have given rise to the belief that there is strength in unity. Productive outcomes can be increased many times over if companies work as a cohesive unit in promoting a sustainable tomorrow rather than working individually.
The Circular Model
Coming back to in-house efforts, companies operating as per the traditional take-make-waste model could shift to a circular design. This approach is centred on the process of continuously reusing or repurposing resources to create a closed loop that reduces waste significantly or eliminates it. The circular design model aims at redesigning products and working towards reducing, reusing, repairing and recycling products.
The other sustainable approaches are lean design and clean design. The lean design strives to ensure more cost and time-efficient production, delivery and consumption. As a result, lead design processes are updated and improved continuously to make certain that the bare minimum resources are used.
In the case of clean design, systems linked to energy efficiency, negative emission technologies, pollution control and sustainable use of resources are prioritised. The end objective is a future with net-zero emissions along with investible opportunities to meet the rising demand for low-carbon items and infrastructure. To successfully implement this transition, it is imperative to establish an extremely sustainable relationship with nature alongside a reduction in emissions.
Companies that embrace sustainable innovations can establish a competitive edge in the market while building better brand equity and boosting their image among consumers, employees, investors and allied stakeholders. Consequently, this can generate greater goodwill within the industry, the market and society at large, promoting long-term viability and sustainability in operations.
Empirical evidence indicates that consumers are willing to pay a premium for environment-friendly products and services.
(Dheeraj Gupta is vice president, demand and growth, SuperBottoms.)