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What Does Eco-Innovation Mean For Your Business?

Eco-innovation can generate important benefits for your business

5Dec

According to reports on eco-innovation, the regions of the world that have a higher index of well-being and sustainability are those that bet more on innovation and are home to 41% of the world's most sustainable companies.

Eco-innovation generates important benefits, in terms of cost savings, access to new markets, differentiation, and positioning with respect to competition.

The most advanced companies have long been confirming something that seems obvious: improving competitiveness is not just the valuation of a customer or user in their final purchasing decisions. It also entails a clear reduction of costs, and therefore, of price, due to the smaller use of materials that incorporate the product and its packaging, or the increase in the efficiency of the transport, and later distribution of it.

The context of Eco-Innovation

The current global problems are the projected increase in population to 12.3 billion by 2100, demand for the increase in energy production by 37% through 2040, and the increase in raw materials by 150% between 2020 and 2100. These numbers reveal a panorama in which we would require 1.5 planets to generate all the necessary resources.

In this context, eco-innovation is presented as a safe bet to generate new business opportunities for companies, with important environmental benefits, such as access to new markets, development of business models more adapted to global debris, independence of raw material price volatility, and cost savings among others.

There are several trends in the field of eco-innovation that will have a greater impact on businesses in the coming years.

The circular economy is one of these eco-innovation trends which are booming. The re-manufacturing is one of the ways to implement this trend, in which, the report shows, a product is re-manufactured at the same price. This is not only great because fewer resources are used, but also, because it creates more jobs. It’s a way of recycling for big businesses.

Another major trend presented in the report is the industrial symbiosis, which allows differentiation of income sources and increases efficiency and productivity. Sustainable logistics can reduce the overall cost of companies which are responsible for 5% of global emissions of greenhouse gasses, and finally, the challenges associated with the development of smart and sustainable cities, which will provide a major challenge for companies.

If you aim to identify business opportunities that have the environment as a driving factor, increase the competitiveness of companies and anticipate future needs of eco-innovation in the industry. You only need to look at companies such as Biboo which contribute greatly in lessening the environmental impact of transportation. Such companies are flourishing right now as eco-innovation is greatly valued.

One of the biggest difficulties when it comes to eco-innovation is access to financing. It’s a fundamentally present problem, especially during transitions between the development phase of eco-innovation, design, and the initial and final phases of product/service marketing.

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