The fight against climate change has become a global priority, with the European Union being a leader of these efforts. Through comprehensive initiatives such as the European Green Deal, the European Union is actively working to achieve a clean, healthy and climate-neutral Earth, starting the change within EU member states. These changes are encouraged across various sectors, namely agriculture, finance, transportation, energy and industry. They are legitimised in member states through legislative principles and strict regulations that compel stakeholders to implement structural changes within their organisations. According to the CDP Carbon Majors Report from 2017, the 100 highest emitting companies have been responsible for 71% of global industrial greenhouse gas emissions since 1988. Therefore, it is unsurprising that their efforts would have an enormous impact in terms of reducing pollution and making the environment cleaner and healthier.
Eco-innovation is a recently coined term used to describe the development of products and processes that contribute to the reduction of pollution and waste while also contributing to sustainable development and responsible use of natural resources. Eco-innovations are achieved by implementing the latest technologies and innovative strategies into business-models and daily work routine. Examples of the most efficient eco-innovative practices include the circular economy model, resource-efficient machinery, biodegradable materials and packaging, Industry 4.0 technologies and digital transformation.
Eco-innovations are a win-win solution for companies since they contribute to the protection of the environment, while simultaneously having a positive impact on their economic performance. The growing awareness of issues related to climate change, pollution levels and the scarcity of natural resources has shifted consumer preferences. Consumers are becoming more eco-conscious and now prefer eco-friendly alternatives over companies that are high polluters. Strong values and contributions to efforts to make Earth a better place to live, enhance customer loyalty and positively influence brand image. Implementing eco-innovations has become less of an ethical obligation and more of a strategic instrument to increase business competitiveness in today’s dynamic economy landscape.
Considering the political landscape, it is foreseeable that the regulatory requirements will become stricter with each year. Fostering change within the organisation right now will prepare the business for the inevitably greener future. Companies which adopt eco-innovations will be also better prepared for the emerging risks such as resource scarcity, climate change disruptions that may cause interruptions in supply chains, or fluctuations in energy prices. In the long term, eco-innovation is also a great way to reduce costs due to better resource management and improved energy efficiency. Companies which have integrated eco-innovations in their business strategies, can distinguish themselves on the market and either obtain the EU Ecolabel for their products or apply for certification with EMAS.