Organizations and Sustainable Innovation
Published: 2023-04-30 18:15:51


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Sustainable innovation is the ability of a company to make intentional organizational changes to its products, services, and processes to result in long-term social and environmental benefits while leading to economic profits. It entails the creation of something new that enhances performance in social, environmental, and economic sustainable developments. Previously, there has never been a greater push for sustainable industrial innovations than there is today. We have reached a perilous point concerning climate action. As a result, businesses and innovators are stepping up to the plate to build a greener future. The adoption of business behavior integrates the goal of sustainable development strategically and systemically.

#### Pillar of Sustainable Innovations

1. Changing Organizational Operational Processes
This aspect involves integrating the organizational culture and operational strategies aspects of environmental Sustainability and Governance. Sustainable innovation in social development is not limited to technological change but includes the organizational change of processes, operational practices, business model thinking, and business systems. A company can have a unit that monitors the operations if they meet the ESG principles. In other cases, Small and Medium Enterprises (SMEs) company can consult during project, product, or service establishment for guidance. Process changes can occur in Design, Human Resources, Production, and Marketing just to name a few. A case example is the Fairphone company which changed the smartphone production process to make it more responsible and sustainable. The company uses recycled and responsibly mined raw materials to offer their workers fair wages besides ambient working conditions. Considering 80% of emissions come from the smartphone production process, the company established a modular design to make repairs and upgrades easier. The approach leads to a significant e-waste reduction.

2. Developing Novel Company Products and Services
Companies invent and offer novel products and services through sustainable innovation. In this manner, they directly contribute to realizing sustainability. Sustainable innovation entails changing the company's strategic and systemic attitude regarding economic, social, and environmental aspects like the development of responsible processes and products. A case example is the Bio-bean startup company and the certified B Corp which developed eco-friendly biofuel from coffee waste to facilitate powering of London’s double-decker buses. It is worth noting that Bio-bean upcycles spent coffee grounds into eco-friendly products like coffee pellets and logs. The company uses material previously considered waste, contributing to a circular economy while making huge revenues.

#### Features of Sustainable Innovation

1. Sustainable Innovation Involves Innovative Technology Systems Thinking
Sustainability-oriented innovations are wider than eco-innovation. Organizations look broadly into their technology systems besides organizational structure. In their systems, they factor social dimensions, the natural environment, communities, and stakeholders to evaluate how they affect each other. The approach is a multilevel phenomenon that requires three major stakeholders for promotion.

- Macro level - this is government administrative policies and actions that overcome immense risks involved in radical innovations.
- Company level - in the development of new business models, business owners ought to promote sustainability in their strategy development.
- Individual level – this entails a change in people’s cognitive mechanisms, attitudes, and behaviors.

2. Sustainable Innovation Contributes to Sustainable Businesses
This characteristic entails innovating sustainably for current business needs without compromising the future generation’s needs. It requires business management to incorporate issues of human rights, environment, and climate change into their innovation strategic processes. Companies that integrate sustainable innovations go beyond short-term profits to think of long-term and holistic approaches in technology and people investment. This strategic approach attracts a competitive advantage that helps to sustain economic shocks. Social problems are reduced when companies participate in promoting sustainable lifestyles through their Corporate Social Responsibility – this leads to low social and ecological crises.

3. Sustainable Innovation Ought to be embedded into Organizational Culture
Unlike traditional innovations which are mostly performed within a Research and Development unit, sustainable innovations are likely to succeed when deeply embedded in the organizational culture. Sustainable innovation includes internal and external customers and the entire market segment to create a positive value in the firm’s global capital. This presents a bigger challenge for an organization to innovate in consideration of sustainable development by adding value to products, and processes while contributing to positively impacting social-environmental factors.

#### Why Sustainable innovation matters to Business
Sustainable innovation contributes to business sustainability, because of its potential to positively influence a company’s financial, social, and environmental performance. The relationship between sustainable innovation and business performance strengthens day-by-day. The adoption of sustainable innovation practices has adverse importance on industrial performance. By building sustainability into innovation, companies can create products, services, and processes that are good for both society and the organization. It is possible to address consumer demands for sustainable products while limiting costs and reducing the chances of price shocks. For instance, UPS, amazon, and other freight companies spend billions on fuel their business. Such can be saved by transiting to e-mobility. Electric businesses and plains have already started like Bolt and Harbour Air’ e-plane completed a successful tested of its' first direct all-electric point to point flight. The results will be cleaner, fairer, healthier, and even more stable world – a higher tide that propels economic growth across the board. Sustainable innovation contributes to business sustainability because it potentially and positively affects a company’s financial, social, and environmental performance.

#### Remarkable Sustainable Innovations

- Public e-mobility
- Plastic Recycling
- LED light efficiency
- Accessible Solar Power
- Carbon Capture and Storage
- Green Hydrogen in Energy Transition
- Industrial defossilization
- Circular Business Models

#### Challenges in Sustainable Innovation
Companies face the challenge to innovate through perspectives of sustainable development by adding value to products and processes and contributing to reducing socio-environmental impacts that result from industrial activities. Most firms’ sustainable innovations are incremental however it is challenging because of the limited market for sustainable products and services. Social changes are necessary to value sustainable products and services.
Sustainability and Innovation are natural partners because Innovation considers improvements in the long term.