Awareness of a greener future is deeply rooted in the global business fabric and our region is no exception.
By Luis Solis
We have been talking for many years about the importance of businesses operating sustainably to protect the planet and the future of society. Within this framework, one concept that is gaining strength is that of eco-innovation.
What exactly is it? Also known as “green innovation,” it involves developing products and ways of working that contribute to sustainable development, that is, taking advantage of the resources that the planet gives us, but ensuring that they are regenerated to maintain them at an adequate level.
Eco-innovation promotes the constant development of ideas related to new technologies and their application to sustainable development in order to take advantage of all available resources without damaging the environment.
“It is much more than launching a new product or service taking into account the efficient use of resources and minimising the impact on the planet. Eco-innovation takes into account aspects such as strategy, process design and the relationship with suppliers and customers. Thus, many companies see this concept as a way of standing out from the rest, but also of reducing costs, avoiding wasting energy throughout the process or the use of certain raw materials,” says Sebastián Rovira, Economic Affairs Officer at the Economic Commission for Latin America and the Caribbean (ECLAC).
He cites as an example that using fewer materials in packaging generates a higher profit margin that allows for cost savings and even lower prices. “That, combined with a strategy of branding “Emphasizing the importance of the environment for the company can be a long-term business tactic,” he highlights.
What does it mean to be an eco-innovative company?
Regardless of their size, organizations committed to this business strategy focus on innovation, orienting it toward market differentiation and environmental sustainability. In this way, they manage to improve efficiency in the use of resources and satisfy production processes with fewer inputs of materials and energy; they minimize environmental deterioration thanks to less use of natural resources and less pollution; and they generate new demands for services and products that translate into new sources of employment and entrepreneurship, according to the CESA business school.
Eco-innovation proposes a more global vision of sustainability, including changes in the functionalities of new products and also in the business model. In this way, not only environmental impacts are reduced but also social impacts. In this sense, companies promote the use of environmentally friendly techniques (ecofriendy) and zero waste (zero waste). In addition, they usually select suppliers, preferably local, that offer quality organic and ecological inputs, which provides other economic benefits for the communities.
THE CHALLENGES FACE BY COMPANIES IN THE REGION
- Low awareness of environmental impact.
- Difficulties in accessing financing and investment.
- Uncertainty associated with the costs, execution times and long-term results of new processes related to mitigating environmental impact.
- Need to adequately train staff.
- Limited access to information, knowledge and technology.
- Low capacity to respond to stricter regulation.
- Barriers to participation in green goods markets and global value chains that have a high demand for financial resources.
