How and why future-thinking organizations leverage the Innovation – sustainability nexus to develop new products, services, processes, and technologies.

December 29, 2022

How and why future-thinking organizations leverage the Innovation – sustainability nexus to develop new products, services, processes, and technologies.

TMCG is profoundly diving into understanding how future-thinking organizations could channel their net zero ambitions to address our generational global climate and sustainability (C&S) challenge while enhancing innovation capabilities. Surveys by Mckinsey and BCG of global multinational companies executives rated Innovation and sustainability among their top priorities. In the 21^st century, Innovation and sustainability must be seen as compatible rather than conflicting goals. Innovation and sustainability can be linked and used to create new products, services, and processes that are both innovative and environmentally friendly. For future-looking organizations, Innovation and sustainability are inextricably linked to developing new products, services, and processes. This innovation output is achieved  through a variety of approaches, including the following:

1. Designing products with sustainability in mind: This involves considering the environmental impact of a product throughout its lifecycle, from raw material extraction and production to disposal or recycling.
2. Designing for reuse and recyclability: Consider designing products and packaging that can be easily reused or recycled rather than thrown away after a single use.
3. Using sustainable materials and implementing sustainable production processes: Look for materials and production processes that have a lower environmental impact. For example, you might use recycled materials, reduce waste, minimize the use of harmful chemicals or materials, or adopt energy-efficient technologies and manufacturing processes.
4. Offering sustainable services can involve providing services that help customers reduce their environmental impacts, such as offering car-sharing or public transportation options.
5. Incorporate sustainable features: You can also incorporate features that make a product or service more sustainable, such as energy-efficient features or water-saving technologies.

By linking Innovation and sustainability, companies can create new products, services, and processes that are both innovative and environmentally friendly, helping to drive positive change in the world. Innovation output (products, services, processes, etc.) is superior when C&S is at the core of Innovation. For example, today’s household fluorescent bulb is 8.5X more energy efficient than a standard “primitive” incandescent bulb, and a fluorescent bulb shines brighter, conserves electricity, and reduces energy bills. The comfortable lives of humans are mainly made possible by some energy sources (wind, solar, nuclear, fossil, chemical, etc.). The raw materials in the batteries that power today’s EVs come from mineral extraction (mining). Mineral extraction is ecologically degrading, negatively impacting C & S. We can significantly reduce the number of battery cells/modules/packs powering a typical EV without materially reducing its range and performance. Is the suggestion a pipe dream, or is it today’s reality? It is not a pipe dream or Utopia, but it is definitely a reality. How? Innovate extended-range hybrid battery-solar EVs that require charging only 1-2X a month. This infant/future EV technology is relatively expensive for the mass market in this decade. There is a handful of engineering designs of this future’s most eco-friendly vehicle and there is only one production model lightyear priced at a minimum of $267,695 (as of Dec 30, 2022).  I guess this is a toy for only the very affluent eco-friendly enthusiasts who can afford this luxury. However, technological advances in semiconductor manufacturing and scaling this new EV technology for mass production will lower costs and eventually make this innovation output affordable for the average consumer in 25-30 years. Another practical example wherein sustainability can be literally “woven” into clothing is to innovate novel “affordable” phase change materials that control temperature. The basic idea is to create, develop, and fast-to-market materials/fabrics/clothing that automatically cools the body in hot weather conditions while warming up the body in cold weather conditions. Imagine the net-zero emission effect on the global climate as it would dramatically reduce HVAC costs all over the planet. This is not a pipe dream but a reality at NASA and is certainly not available to the mass market with today’s technology. However, digital technology advances in quantum computing, AI, and other radical innovations in material science, manufacturing processes, and chemistry can make phase-change materials/fabrics/ clothing a reality in the not-too-distant future.