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Friday, August 19, 2005

Trends in Sustainability Innovation For Enterprises

(Via CSRWire) Arthur D. Little recently surveyed 40 technology companies in Europe, the US, and Japan on what they call "sustainability driven innovation"
The report finds increasing corporate commitment to sustainability innovation, though it demonstrates room for more growth.
The study finds
- 95 percent of companies surveyed believe that sustainability-driven innovation has the potential to bring new business value,
- 25 percent feeling this will definitely happen,
- 90 percent of respondents cite reputation as likely to benefit from sustainability innovation, and 80 percent anticipating brand value gains,
- 60 percent of respondents already see improvements to their top line (or the income statement line devoted to total revenues),
- 43 percent expect to see future bottom-line benefits (or the income statement line devoted to net income),
- 72 percent Of respondents already generating sustainability-driven innovation are doing so through new products and services,
- 80 percent through process innovation,
- 60 percent entering new markets or developing new business models.

In comparing the degree to which corporations integrate sustainability innovation as business strategy to doing so through product and process design, the report dubs four types of corporate actors: leaders, laggards, dabblers, braggers. Leaders integrate sustainability innovations into both business strategy and product and process design, while laggards do neither. An interesting report, though some comments on the methodology may dilute the result veracity -Overall a timely report on an important business driver - its amazing to see that enteprises across continents share common concerns.

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Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld
"All views expressed are my personal views are not related in any way to my employer"