What is Eco-Innovations? – Benefits, Motivations, and More
What is Eco-Innovations?
Eco-innovation includes all forms of technological innovation and non – technical to create development opportunities for organizations and businesses and care for the environment. In this way, they prevent or reduce their impact and optimize the use of resources.
An essential thing in Eco-Innovation
The eco-innovation must drive new economic models toward more sustainable consumption and production patterns. So, the objective is to study the relationship between the different drivers of eco-innovation and the adoption and generation of innovation activities in companies.
Benefits of Eco-Innovation
Starting from innovation as the action of generating something new, eco-innovation or ecological innovation refers to the process of production and development of new products, new processes or business models, with the help of technology, contributing to the sustainable development of the environment. That is, taking advantage of natural resources for the benefit of current generations without abusing them, allowing them to regenerate without putting future generations at risk.
Any company that wishes to commit to eco-innovation can do so, regardless of the sector or its size. And also, it is only essential to have decisions and leadership to make the change. To begin with, you must be aware of the challenges that sustainability can present and objectively achieve, transforming these challenges into opportunities.
In addition to helping to care for and preserve the ecosystem, joining the change naturally can bring benefits for an organization.
Firstly, the transition positively within the company and its reputation in the face of the competition.
Salaries advantage of business opportunities related to the sustainability of the planet, while in turn, thanks to these occasions, increasing the competitiveness of organizations.
Reduce costs thanks to optimizing resources, And also, avoiding wasting energy and raw materials.
However, it allows adding value to a company by accessing new markets and new customers and increasing the price of existing products or services.
Put organizations ahead of regulatory standards, always one step ahead of them, and obtain a competitive advantage.
The human being is increasingly sensitive to the effects it causes on the environment, which is why we now have more conscientious consumers. With people willing to invest in projects and businesses that help the environment in which we live. Innovating is key to business success. In this way, it is possible to obtain competitiveness and sustainability simultaneously, thus reducing the impact on the environment.
What are the Motivations of Companies to Eco-Innovate?
After having analyzed in-depth two hundred cases of eco-innovative companies from different sectors, sizes, and countries, four of the primary motivations for companies to initiate eco-innovation processes have been identified:
- Customer/market demand for Eco-Innovation
- Also, Cost savings/efficiency of Eco-Innovation
- Need for innovation
- And also, Improved market positioning of Eco-Innovation
10 Tips on Eco-Innovation
Before starting, it would be convenient to clarify what we understand by eco-innovation. With this term, we will refer to the conception and development of any new product, process, or business model that reduces the impact on the environment throughout its life cycle.
Now, we are going to list some ideas and critical data to understand the scope of this concept:
- Eco-innovation provides more competitive business models in less vulnerable markets and more efficient societies.
- An illustrative data of the magnitude that can be achieving eco-innovation: 100 billion pounds of an annual increase in productivity in the United Kingdom derived from innovations whose focus was sustainability in its three aspects: economic, social, and environmental.
- Secondly, eco-innovation has the capacity and is the facilitator to produce the systemic changes necessary to combat current global problems.
- Population: some estimates raise the world population from 2100 to about 12,000 million inhabitants.
- Consumption: we currently need the capacity of 1.5 planets to generate the resources consumed and absorb the CO2 emitted for a year.
- Energy: Global energy demand will grow by almost 40% until 2040
- Raw Materials: In 2003 – 2010, raw materials became practically 150% more expensive.
- The consumer is raising awareness and demands leadership from companies to make the current consumption system sustainable.
- There is a clear correlation between innovation and greater well-being in the regions that show themselves as more innovative.
- It is the nexus union between competitiveness and sustainability.
- The companies leading the paradigm shift use sustainable business models that benefit their shareholders, society, And also, the environment.
- The benefits of it are many and spread to all activity sectors. Toward the future, it is critical to identify these opportunities.
- Public administrations must promote change strategies in the areas established as priorities. Mobilizing the necessary resources for it to take effect.
- This requires fleeing from short-termism and implementing a lasting vision with incentives for private investment. Commitment to innovative public procurement. And shared leadership towards an eco-intelligent horizon.
Some international evidence shows that eco-innovation leads to lower or ongoing costs, the development of companies, increased turnover, and competitiveness. In conclusion, eco-innovation positively affects one or more external dimensions of sustainable development.