{"id":28225,"date":"2021-09-29T09:49:43","date_gmt":"2021-09-29T08:49:43","guid":{"rendered":"https:\/\/www.elixirr.com\/?p=28225"},"modified":"2025-10-31T10:50:13","modified_gmt":"2025-10-31T10:50:13","slug":"sustainability-is-the-new-innovation","status":"publish","type":"post","link":"https:\/\/www.elixirr.com\/en-us\/sustainability-is-the-new-innovation\/","title":{"rendered":"Sustainability is the new innovation"},"content":{"rendered":"\n

Sustainability – once deemed a nice company extra to signal a business\u2019 green sensibilities – is now a necessity for commercial success. If you\u2019re not sustainable, you\u2019re not competitive.<\/p>\n\n\n\n

This isn\u2019t breaking news, as more companies reflect on the question, why is sustainability important? The pressure is coming at businesses from all angles:<\/p>\n\n\n\n

    \n
  1. Consumers: almost 1 in 3 consumers<\/a> have stopped purchasing from particular brands due to environmental or ethical concerns.<\/li>\n\n\n\n
  2. Government: governments are taking action to combat climate change. Regulation and tax incentives<\/a> are being introduced to encourage the manufacturing and purchasing of environmentally friendly products.<\/li>\n\n\n\n
  3. Economic growth: sustainable practices boost profits; engaged corporate ESG correlates with profitability, enhanced share price performance, and lower operating costs.<\/li>\n<\/ol>\n\n\n\n

    Faced with the pressure of these sustainability drivers, why are so many businesses lagging behind?<\/p>\n\n\n\n

    They\u2019re neglecting the power of partnerships. Large corporates are missing out on potential accelerants to innovation by not partnering with fast-moving sustainability startups. So why should larger corporations partner with startups?<\/p>\n\n\n\n

      \n
    1. Startups allow large companies to maintain BAU but also engage with an agile team that can move faster than the parent corporation<\/li>\n\n\n\n
    2. Spinouts \/ startups allow for multi-party cooperation. This leverages innovation and resources from multiple companies resulting in shared risk<\/li>\n\n\n\n
    3. The lead time and costs of developing game changing technology is dramatically reduced. Corporations can gain instant access to cutting-edge products without the need to develop from scratch<\/li>\n<\/ol>\n\n\n\n

      How do we know this? Through example. In this article we\u2019ll explore some key case studies which exemplify what companies should and shouldn\u2019t do to drive their sustainability practice, including the importance and potential of partnership.   <\/p>\n\n\n\n

      What not to do \u2013 H&M<\/h5>\n\n\n\n

      First let\u2019s tell the story of retail giant H&M \u2013 the case study of what not to do. H&M made the mistake of using sustainability as marketing strategy alone, positioning themselves as an eco-conscious brand with sustainable practices. They launched a Conscious Collection<\/a>, where at least 50% of each product was made from sustainable materials such as organic cotton or recycled polyester. They also established in-store recycling bins, encouraging customers to recycle old clothes.<\/p>\n\n\n\n

      It\u2019s a sound growth strategy in theory. Why then did it backfire, with H&M becoming the pin-up for corporate greenwashing? H&M neglected that the sustainable consumer is not like the standard consumer. Sustainable consumers are well-informed and investigate the truth in brands\u2019 eco claims. Consumers discovered that only 1%<\/a> of the clothes collected from H&M\u2019s recycling bins were made into new clothes. The brand\u2019s reputation suffered even more when it emerged<\/a> that H&M used child labor in Myanmar.<\/p>\n\n\n\n

      H&M is a key example of the lack of tolerance for half-baked eco policies in today\u2019s market.<\/p>\n\n\n\n

      The power of partnerships – Patagonia<\/h5>\n\n\n\n

      Large organizations have a long way to go on embedding sustainability into their business strategy. Some companies are doing a better job than others. Enter outdoor-clothing company Patagonia.<\/p>\n\n\n\n

      Patagonia identified unique business opportunities through leveraging the power of innovative start-ups. In 2013, Patagonia launched venture capital fund $20 Million & Change<\/a> (now Tin Shed Ventures), offering early-stage investment to environmentally and socially responsible companies. In 2015, Tin Shed Ventures invested in Beyond Surface Technologies<\/a> (BST). BST work to reduce the impact of textile chemicals on the environment by developing sturdy textiles made with natural raw materials. Part of what makes BST unique is that their effort includes the reduction of PFCs (man-made perfluorinated chemicals), that are commonly used for water-resistant clothing, and are a potent greenhouse gas.<\/p>\n\n\n\n

      In 2017, Patagonia partnered with Trove<\/a> (a logistics startup) to power their \u2018Worn Wear<\/a>\u2019 website. Worn Wear buys pieces customers no longer want, repairing and cleaning them, before reselling. It only took six months for Patagonia to generate $1 million in sales from this initiative. It has remained profitable since launch.<\/p>\n\n\n\n

      There is clearly much to learn from Patagonia. Its focus on social responsibility has allowed the company to become a market leader in product innovation, increased the brand\u2019s awareness and sales, and created new markets and opportunities to fuel its success.<\/p>\n\n\n\n

      Game changing product innovation – Pulpex<\/h5>\n\n\n\n

      Pulpex<\/a> is a startup spun out by Diageo in 2019, that has since brought together a consortium of companies including Unilever and PepsiCo. Pulpex makes bottles using pulp that are fully recyclable (unlike some of the \u2018reusable\u2019 coffee cups that we see on the high-street). These are already being used for alcoholic beverages and laundry detergent, are will soon be adapted for carbonated beverages and car oil. Pulpex\u2019s success lies not only in developing a disruptive product that changes the world, but also in bringing together such big players in the FMCG industry. This highlights the opportunities that present themselves when such partnerships are struck. Likewise, it is evident that no one wants to miss out on being the first-to-market with truly sustainable products.<\/p>\n\n\n\n

      Lessons learnt<\/h5>\n\n\n\n

      The above case studies may seem unrelated, but the key reasons for the failure of H&M\u2019s \u2018green\u2019 initiative are exactly why Patagonia engaged startups in the first place. Consumers are now better educated than ever before and will put in the leg work to determine whether a company is truly sustainable or not. So now is not the time to run half-hearted initiatives. With the number of truly forward-thinking sustainability startups around, the possibilities for large corporates to drive actual change through their organizations are endless.<\/p>\n\n\n\n

      Elixirr has experience in helping organizations develop innovation partnership capabilities, so please get in touch<\/a> if you\u2019d like to find out more. We would love to work together.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Sustainability – once deemed a nice company extra to signal a business\u2019 green sensibilities – is now a necessity for commercial success. If you\u2019re not sustainable, you\u2019re not competitive. 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https:\/\/www.elixirr.com\/en-us\/wp-content\/uploads\/sites\/2\/2021\/09\/website-2-1640x984.jpg 1640w\" sizes=\"(max-width: 2501px) 100vw, 2501px\" \/> <div class=\"wp-component-card__preview-icon\">\n <span class='edwp-svg '><svg width=\"47\" height=\"47\" viewBox=\"0 0 47 47\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<g>\n<path d=\"M23.4141 0.539062C36.1232 0.539183 46.4258 10.8416 46.4258 23.5508C46.4257 36.2599 36.1231 46.5624 23.4141 46.5625C10.7049 46.5625 0.402465 36.2599 0.402344 23.5508C0.402344 10.8415 10.7048 0.539062 23.4141 0.539062ZM23.4141 1.68945C11.3606 1.68945 1.55273 11.4974 1.55273 23.5508C1.55286 35.6041 11.3607 45.4111 23.4141 45.4111C35.4673 45.411 45.2743 35.604 45.2744 23.5508C45.2744 11.4974 35.4674 1.68957 23.4141 1.68945Z\" fill=\"currentColor\"\/>\n<path d=\"M19.2841 33.6992C18.9579 33.6986 18.6374 33.6111 18.3543 33.4454C17.7167 33.0759 17.3203 32.3585 17.3203 31.5797V15.8189C17.3203 15.0379 17.7167 14.3227 18.3543 13.9531C18.6442 13.7827 18.9735 13.6951 19.3078 13.6994C19.6421 13.7037 19.9692 13.7998 20.2548 13.9776L33.4237 22.0406C33.6981 22.2166 33.9244 22.461 34.0812 22.751C34.238 23.0409 34.3203 23.3668 34.3203 23.6982C34.3203 24.0295 34.238 24.3555 34.0812 24.6454C33.9244 24.9353 33.6981 25.1798 33.4237 25.3558L20.2527 33.421C19.9604 33.6017 19.6256 33.6979 19.2841 33.6992Z\" fill=\"currentColor\"\/>\n<\/g>\n<\/svg>\n<\/span> <\/div>\n <\/figure>\n <div class=\"wp-component-card__content edwp-row-load\">\n <p class=\"wp-component-card__eyebrow\">\n Articles <\/p>\n <a href='https:\/\/www.elixirr.com\/en-us\/sustainability-is-the-new-innovation\/' class='wp-component-card__title'>\n <h2>\n Sustainability is the new innovation\n <\/h2>\n <\/a> <div class=\"wp-component-card__description\">\n Sustainability – once deemed a nice company extra to signal a business\u2019 green sensibilities – is now a necessity for commercial success. If you\u2019re not sustainable, you\u2019re not competitive. This… <\/div>\n <div class=\"wp-component-card__meta\">\n <p class=\"wp-component-card__date\">\n 29 September 2021 <\/p>\n <div class=\"wp-component-card__terms\">\n <div class=\"wp-component-tags edwp-component\">\n <div class=\"wp-component-tags__tag\">\n Retail <\/div>\n <div class=\"wp-component-tags__tag\">\n Sustainability <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"wp-component-card__button-wrapper\">\n <button class=\"btn btn--link arrow wp-component-card__button\">\n Read more <span class='edwp-svg '><svg width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<g id=\"Lg\">\n<path id=\"Vector\" d=\"M1.12509 9.50162H15.8648L9.43259 3.06941C9.374 3.0113 9.3275 2.94216 9.29576 2.86599C9.26403 2.78981 9.24769 2.70811 9.24769 2.62559C9.24769 2.54307 9.26403 2.46137 9.29576 2.38519C9.3275 2.30902 9.374 2.23988 9.43259 2.18177C9.54971 2.06535 9.70814 2 9.87328 2C10.0384 2 10.1969 2.06535 10.314 2.18177L17.8151 9.6829C17.8737 9.74101 17.9202 9.81014 17.9519 9.88632C17.9837 9.96249 18 10.0442 18 10.1267C18 10.2092 17.9837 10.2909 17.9519 10.3671C17.9202 10.4433 17.8737 10.5124 17.8151 10.5705L10.314 18.0717C10.1975 18.1871 10.0404 18.2522 9.87641 18.2529C9.79414 18.2534 9.71259 18.2376 9.63643 18.2065C9.56027 18.1754 9.491 18.1296 9.43259 18.0717C9.374 18.0135 9.3275 17.9444 9.29576 17.8682C9.26403 17.7921 9.24769 17.7104 9.24769 17.6278C9.24769 17.5453 9.26403 17.4636 9.29576 17.3874C9.3275 17.3113 9.374 17.2421 9.43259 17.184L15.8711 10.7518H1.12509C0.959309 10.7518 0.800312 10.686 0.683084 10.5687C0.565857 10.4515 0.5 10.2925 0.5 10.1267C0.5 9.96093 0.565857 9.80193 0.683084 9.68471C0.800312 9.56748 0.959309 9.50162 1.12509 9.50162Z\" fill=\"#1D0F25\"\/>\n<\/g>\n<\/svg>\n<\/span> <\/button>\n <\/div>\n <\/div>\n<\/article>\n","_links":{"self":[{"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/posts\/28225","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/comments?post=28225"}],"version-history":[{"count":2,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/posts\/28225\/revisions"}],"predecessor-version":[{"id":58494,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/posts\/28225\/revisions\/58494"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/media\/28260"}],"wp:attachment":[{"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/media?parent=28225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/categories?post=28225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/tags?post=28225"},{"taxonomy":"related_service","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/related_service?post=28225"},{"taxonomy":"related_industry","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-us\/wp-json\/wp\/v2\/related_industry?post=28225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}