What Is Sustainable Innovation and Why It Matters for Organizations
Today, sustainable innovation is a strategic goal of many companies. Organizations are innovating not only for profit but also for the benefit of people and the planet.
That’s not just the case with small brands or startups. Enterprises as big as Apple also invest in sustainable and innovative products and services. It is currently designing products using 100% recycled aluminum and rare earth elements. Apple’s Daisy Robot can disassemble 200 iPhones per hour, resulting in the recovery and efficient reuse of valuable materials.
This shows how important sustainable innovation is for organizations today. Let’s get into more details.
Sustainable Innovation: A Brief Overview
Sustainable innovation is described as the creation of services, products, or processes that aim to deliver economic, social, and environmental benefits. The concept integrates sustainability with the traditional principles of innovation.
Here are some common characteristics of sustainable innovation:
It helps reduce environmental impact
It supports long-term economic growth
It is designed to elevate social stability
Why Is Sustainable Innovation Important Today?
According to the Paris Agreement, global warming should be limited to below 2°C above pre-industrial levels, with a target of 1.5 °C preferred. However, according to the United Nations Environment Programme, the current climate situation places the world on a trajectory for a 2.5 to 2.9°C temperature increase by the end of the century, significantly above the 1.5°C mark.
This increase can lead to a catastrophe. To overcome this challenge and save the planet from climatic destruction, urgent innovation in sustainable technology is required.
Similarly, governments are now introducing strict laws on waste and emissions. They are also pressuring companies to disclose their sustainable practices.
A notable example is the European Union’s Green Deal, which aims for net-zero emissions by 2050. This deal is crucial to encourage businesses to innovate with sustainability or risk potential failure.
Sustainable innovation is also a crucial step in attracting the right customers. According to the Blue Yonder Survey, sustainability remains a top priority for consumers globally.
Around 78% of respondents report that sustainability concerns are important when selecting a product or brand. This implies that consumer demands are evolving over time, with some individuals willing to pay a premium price for sustainable products.
Sustainable Innovations- Different Types
Sustainable innovation is not limited to products only. There are many different categories.
Product Innovation
This process involves designing eco-friendly products that utilize minimal resources. While creating such products, experts also consider the durability of the item to support its extended life and usability.
If you are an Adidas fan, you may know that the brand partnered with an environmental organization, Parley for the Oceans, to create running shoes made entirely from recycled plastic waste. This waste was collected from beaches to stop it from being dumped in the ocean.
Adidas produced more than 30 million pairs of these sustainable Parley shoes by 2023.
Process Innovation
Process innovation involves redesigning a procedure to create a product/service by reducing waste emissions or energy consumption. Many brands develop innovative processes to achieve their sustainability goals.
For instance, Patagonia is a brand renowned for its strong commitment to sustainability. The company focuses on ethical supply chains, sourcing products only from sustainable brands. Additionally, it utilizes recycled materials, such as polyester.
Patagonia also has a strong emphasis on product durability and repair services.
Business Model Innovation
This innovation involves using a model to deliver and monetize a product or service with the aim of benefiting society.
Here is an example. Instead of selling light bulbs, Philips offers “Lighting-as-a-Service” to multiple companies, such as Schiphol Airport, located in Amsterdam. This business model enables customers to pay for the lights they use while Philips remains the owner of the invention.
Social Innovation
A social innovation is designed to enhance the quality of life for customers. For instance, solar panels installed at most homes today provide solar energy while helping people reduce their energy bills.
Sustainable innovation has a lot to offer. Whether it is a product or a process, such an innovation helps reduce environmental impact while also supporting companies’ financial goals.
But why do most brands fail to invest in sustainable innovation strategies? Why is achieving sustainability through innovation considered a challenging task for many?
Sustainable Innovation- A Challenge for Many
Sustainable innovations come with their fair share of challenges.
High Investment Requirements
Most sustainable inventions require a high initial investment. This makes it difficult for small ventures to invest their limited funds in them.
Lack of Experience and Knowledge
Unfortunately, many companies don't have a capable workforce specialized in sustainability.
Most ventures avoid holding training or workshops on important topics such as lifecycle analysis, renewable materials, or emissions accounting. This makes their employees incapable of understanding the true purpose of sustainable innovation.
Profit Mindset
Many companies prefer to earn short-term profits rather than save the planet. This mindset makes it quite challenging for them to invest in sustainability.
Poor Leadership
Sustainability can’t be achieved without top-down support from the leaders of a company. If sustainability isn't embedded in the mission and vision of a venture, it is unlikely that it will be followed by anyone until someone knowledgeable takes the lead.
How To Overcome These Challenges
To encourage sustainable innovation, it is smart to start from the ground level.
Begin by developing your company’s vision and mission, keeping sustainability in mind.
Offer continuous training and workshops on sustainability to everyone working at your organization. From CEOs to interns, everyone should be made aware of this cause.
Encourage cross-functional collaboration among various departments. Innovation comes to life when people from various experiences come together.
If possible, invest in green R&D (Research and Development).
Look at the bigger picture. Instead of focusing on short-term profits, appreciate the long-term benefits of your efforts for both your company and the planet.
Wrapping Up
If you think that sustainable innovation is just an option, you may be wrong. It is a necessity now.
With a significant rise in environmental and social problems, it is imperative for companies to integrate sustainability into their innovation strategies.
However, this isn't easy to achieve without a plan. You need to work on responsible design and technological breakthroughs, while practicing ethical leadership to create innovations that can benefit everyone.
For more insights, check out Sheri Jacobs’ talks on sustainable innovation and change leadership.
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