In the pursuit of sustainability-related targets, such as reducing water, net-zero carbon emissions, and minimizing nature/biodiversity impact; innovation and R&D leaders hold pivotal positions as agents of change within enterprises. While many companies have pledged to achieve net-zero emissions and reduce their water footprint and nature impact, turning these commitments to tangible actions require sustained effort and collaboration across various fronts.
Previous reports such as the ‘Sustainable Product Policy’ from the European Commission Science Hub as well as the ‘Introduction to Circular Design’ report from the Ellen MacArthur Foundation indicate that nearly 80% of a product’s environmental impact is influenced by decisions made during early-stage research and development phase. This highlights the high importance of R&D and innovation in stirring companies’ sustainability agendas in the right direction to maximize positive material impact [1, 2].
Although taking a sustainable by design approach is notoriously necessary, a recent study by L.E.K. Consulting surveying 400 C-suite and senior executives indicated that there is a gap in innovation investments. They identified that over 70% of companies take a proactive to sustainability in general, but less than 20% take an innovation-led approach to sustainability [3]. One could argue that this gap can be one of the one of the reasons many companies are not advancing their sustainability agendas at the pace previously anticipated.
A recent forum convened by the Science Group brought together R&D leaders and CTOs from prominent companies like Amcor, Bayer, Mars, PepsiCo, Procter & Gamble, Solvay, and Stepan Company. The aim was to identify practical strategies for translating net-zero ambitions into meaningful progress. Although their focus was primarily on carbon emissions and net-zero commitments, these principles can be easily transferred and applied to other sustainability and nature-related areas such as water, biodiversity, and ecosystems. Here are some key insights from the ‘Growth and Sustainability playbook’ as an outcome of this forum [4]:
- Making carbon reduction and nature impact a core business value: For net-zero and nature positive pledges to be more than words, companies must integrate carbon reduction and nature-related targets into their core business values. This entails aligning all functions towards clearly defined goals, with innovation leaders playing a central role in crafting strategies for carbon reduction. They must ensure that their departments are actively involved in the process, considering the long-term implications of their actions, and advocating for adopting sustainable practices across the organization.
- Building collaborative networks: R&D and innovation leaders should explore collaborations within their own companies and with external stakeholders such as suppliers, customers, regulators, and even competitors. Engaging in a collective effort is essential for addressing the universal challenge of climate change. By building collaborative networks, companies can leverage diverse expertise and resources to accelerate progress towards net-zero emissions.
- Embedding net zero into R&D practices: Net-zero success hinges on incorporating carbon reduction goals into every aspect of the R&D/innovation process. This entails evaluating existing project portfolios to ensure alignment with sustainability targets and prioritizing initiatives contributing to GHG emission reduction. By embedding net-zero principles into R&D practices, companies can drive innovation and develop climate-friendly technologies, contributing to a sustainable future.
- Navigating commercial realities: While there may be perceptions of a trade-off between profitability and sustainability, shifting consumer preferences, evolving regulations, and reputational concerns are reshaping commercial dynamics. R&D leaders can capitalize on market opportunities for carbon-friendly products and seek synergies that align with environmental goals and business objectives. By embracing innovation and collaboration, companies can pave the way for a sustainable future while driving market growth and competitiveness. Through concerted efforts and strategic initiatives led by R&D leaders, companies can accelerate progress toward a carbon-neutral economy and mitigate the impacts of climate change on a global scale.
The insights outlined above, rooted in net-zero commitments, possess a versatility that extends seamlessly to various nature-related spheres, including water, biodiversity, ecosystems, and land use. Take, for instance, the realm of consumer goods. Here, water emerges as a critical focal point in the manufacturing processes and throughout the product lifecycle, encompassing considerations such as usage phase impacts. Moreover, the strategic reduction of ingredients with substantial adverse effects on nature paves the way for a shift towards more nature-friendly alternatives. This transition is ripe for innovation, research, and development efforts to catalyze sustainable transformation. By harnessing the power of these insights across diverse environmental domains, we can chart a course toward a more harmonious relationship between industry and nature.
“Achieving net zero emissions ultimately demands courage and proactive leadership from innovation teams. By embracing research, development, and collaboration as an opportunity to propel sustainable solutions, companies can pave the way for a sustainable future while driving market growth and competitiveness.”
In a study investigating R&D actions to promote sustainable innovation, Sarpong et al. propose that talent development, scientific infrastructure, and innovation ecosystems are the three areas that can drive boost sustainable solutions. They emphasize that upskilling R&D communities on sustainability topics such as carbon and nature impact is essential effort to ensure innovations are sustainable by design, so scientist can consider environmental impact implications during the product development phase, and not as an add on [5].
In closing, innovation and R&D leaders are beacons of progress in achieving net zero emissions and nurturing nature-positive impacts. By championing the integration of carbon reduction, water conservation, and biodiversity preservation into our core business values, fostering robust collaborative networks, embedding net-zero principles deeply within our R&D practices, and deftly navigating commercial realities, we unleash the power of innovation and propel ourselves towards a sustainable future.
Integrating sustainability into research and innovation poses challenges, requiring us to redefine design paradigms, but the rewards—environmental preservation and corporate prosperity—are immense. The trailblazing companies of tomorrow are those that boldly embrace sustainability from inception, weaving it seamlessly through every phase of product development until it reaches the market. Let’s lead the charge towards a sustainable economy and forge a legacy of resilience and prosperity for future generations.
References
[1] EU Science Hub, “Sustainable Product Policy” (2023).
[2] Ellen Macarthur Foundation, “An introduction to circular Design” (2022).
[3] Madannavar, H. and Roberts, D. “To Make Products More Sustainable, Incorporate Sustainability Fully Into R&D” (2023).
[4] Science Group, “Net Zero Playbook”, CTO Forum (2022).
[5] Sarpong, D. et al. “The three pointers of research and development (Ramp;D) for growth-boosting sustainable innovation system”, Technovation (2023).
