Opinion

Opinion

Innovation for Sustainability

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In the contemporary business landscape, sustainability is an unavoidable necessity. Companies face unprecedented environmental and social challenges, and technology emerges as the key to driving sustainable practices across industries. The integration of technological solutions allows organizations to embed sustainability into their daily operations, creating value not only for shareholders but also for society and the planet. Climate and regulatory pressures compel companies to rethink their strategies, and often, only technological innovation can provide the solutions needed to meet new goals. Advanced systems for managing ESG (Environmental, Social, and Governance) data have been developed to accelerate the journey toward sustainability, with artificial intelligence providing actionable insights across all ESG dimensions. New forms of biotechnology are enabling the creation of innovative products and the reuse of waste. For instance, the company DSM-Firmenich employs approaches such as synthetic biology and precision fermentation, combined with digital technologies, to develop sustainable bio-solutions like algae-based omega-3 oil (Veramaris) and next-generation stevia sweetener (EverSweet). Similarly, Ericsson, in collaboration with Kiona, has demonstrated how 5G technology, combined with artificial intelligence, can optimize heating systems in buildings, leading to immediate energy savings and reduced greenhouse gas emissions. This technological integration offers a quick and efficient way to cut energy consumption without the need for extensive structural renovations. Digital integration and biotechnological innovation enable companies not only to meet environmental standards but also to establish new benchmarks for the future. Strategic collaboration is crucial to building a resilient and adaptable culture of sustainability. In Leiria, we are not immune to this reality. Many local companies have adopted advanced technologies and collaborated strategically to promote sustainability. InBfusion, for example, has developed a lifetime toothbrush, featuring a durable body and biodegradable, replaceable heads, aiming to reduce waste associated with disposable toothbrushes. TerraFarmers focuses on ecological restoration, using drone technologies for reforestation and ecosystem regeneration, while CO2Offset offers solutions for carbon offsetting, helping companies neutralize their ecological footprint. Companies like Plan4Sustain assist in rethinking business models, making them more sustainable. Only through deep collaboration, innovation, and business redesign can we pave the way toward a more sustainable future. Excerpt written by Vítor Ferreira. Published in Jornal de Leiria *Cover Photo by Riccardo Annandale on Unsplash  

Opinion

Sustainability Communication

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Communicating a sustainability program (which most companies should be working on today) has enormous benefits. A well-crafted communication strategy can be a powerful tool, allowing companies to engage employees and drive internal change towards sustainability, while also sparking stakeholder interest in major sustainable goals. On the other hand, communication can help companies gain a competitive advantage, as their position on social and environmental issues sets them apart from competitors. Sustainability communication also assists in addressing growing challenges, such as new reporting regulations, declining consumer trust in brands, and increased scrutiny from investors. Today, the standard for companies is to communicate their sustainability progress. Consumers increasingly prefer sustainable brands, with one-third of consumers choosing to buy brands they believe have a positive social and environmental impact. Regardless of where companies operate, it is likely that governments, financial regulators, or stock exchanges will establish sustainability reporting rules and recommendations that will affect all companies. This trend is unlikely to reverse, so it is essential to understand that every company should not only start sustainability programs but also communicate and report on their efforts. By meeting mandatory or voluntary reporting requirements today, the company will be better positioned to respond to new regulatory requirements tomorrow. This inevitability is even more evident in the context of the EU’s Green Deal, focused on a more sustainable world and European leadership in driving that change. Simultaneously, a sustainability story is an excellent way to engage employees. Sustainability helps build employees’ sense of purpose and pride in what the company collectively achieves, motivating them to pursue its overall strategy. Moreover, it enhances the employer’s value proposition, making it easier to attract top talent, as people increasingly want to work for companies with a purpose beyond profit. In the U.S., 75% of millennial workers, when deciding who to work for, consider the organization’s social and environmental commitments, and around 66% refuse to work for a company without sustainable practices. It is crucial that our companies recognize they must not only initiate genuine sustainability efforts but also communicate this commitment—otherwise, they risk compromising their own economic sustainability. Excerpt written by Vítor Ferreira. Published in Jornal de Leiria on December 13, 2021 *Cover Photo by Jeff Sheldon on Unsplash

Opinion

The Urgency of Sustainability

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One of the biggest difficulties in management is managing change. We live in times of climate urgency. The last 14 months have successively broken the record for the hottest months of all time, on a global scale. On the other hand, it increasingly seems evident that less attentive consumers are beginning to worry today, joining the voice of political entities and economic agents more actively involved in environmental concerns. Sustainability is no longer a nice word in annual reports to become a daily imperative to ensure economic and social permanence. In the business world, this transition is no longer a choice, but a matter of survival. Companies that resist the call of sustainability risk being consigned to history. Let’s get to the facts: the UN Sustainable Development Goals (SDGs), the ISO 14001 environmental management standard and the ESG (Environmental, Social, Governance) principles are today inescapable standards. These are not mere acronyms to decorate speeches, but structural pillars that shape the future of business. ESG criteria offer an integrated approach. Talking about sustainability without considering social impacts and governance is covering the sun with a sieve. Global investors are increasingly looking at these criteria (and financing itself now depends on ESG criteria – so-called green finance). And for good reason, companies that integrate environmental, social and governance concerns are more resilient and profitable in the long term. Of course, the transition to more sustainable practices remains strangely difficult despite everything. There are internal resistances, implementation costs and the inertia of the status quo. One of the biggest difficulties in management is managing change, and yet, as Resource Theory tells us, companies that prosper are those that learn and reconfigure their skills to create product and process innovations. The benefits far outweigh the challenges, as companies that invest in sustainability not only improve efficiency and reduce costs, but also increase employee satisfaction and customer loyalty. It is no coincidence that so many companies in Leiria are taking great steps in this direction. Our region is showing that it is possible to combine profit with purpose. From the adoption of renewable energy to the development of ecological products, we are witnessing a true green revolution (as proven by some initiatives of which the PRR’s mobilizing agenda – “packaging of the future” is an example). In times of climate crisis and increasing regulation, sustainability has gone from being a niche to becoming mainstream. Companies that fail to realize this risk being marginalized and those that lead this change will be building a lasting legacy. Excerpt written by Vítor Ferreira. Published in Jornal de Leiria on July 13, 2024 *Cover Photo by Yaniv Knobel on Unsplash

Opinion

What is Slow Fashion?

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Increasing awareness of environmental and social issues in society leads to changes in every sector. In connection with this, new efforts are observed in the fashion industry as well. A concept that has come to the fore in recent years is the slow fashion approach. In this article, we discuss the concept of slow fashion. What exactly is Slow Fashion? Slow fashion is a production approach in which environmental and social aspects are at the forefront of all processes in the supply chain. Thus, it proposes the production of products with long-term use. It is a concept that includes design and production activities carried out in line with this purpose. While fast fashion always offers the aim of selling more products for less, slow fashion adopts the philosophy of less is more. In short, we can say that it is the opposite of fast fashion. However, it is not such a simple approach, in fact, it is a philosophy that deals with the entire supply chain with a very holistic and systematic approach. It includes reducing the carbon footprint and increasing the benefits of workers in the supply chain. All stages of the product’s life cycle, from design to disposal, are evaluated. Slow Fashion Movement Sustainability concerns in the fashion industry began to take hold in society. Now people are aware of the wide-angle impact of the fashion industry. In fact, it is becoming a trend to avoid consuming more than necessary. In case of need, consumers prefer certified products. Besides, they research the brands they shop for on social media beforehand and evaluate their ethical values. In this way, this production approach turns into a movement in society. As a result, many sustainable brands have already taken action to meet consumer demands in this regard. In summary, the environmental and social impacts of fast fashion are now apparent. Especially in countries that stand out in textile production such as China, India and Bangladesh, there are environmental problems related to toxic waste from the fashion industry. There are also concerns about unethical social issues within supply chains. But it is hopeful that we hear the term slow fashion more often now. With the changing consumer behaviours, the presence of thematic brands focusing on slow fashion is increasing in the market. At the same time, major players in the market are focusing on sustainable products in order to compete. Thus, we can say that the slow fashion movement accelerates the change in the fast fashion industry. Apparently, we will hear the term slow fashion more often in the near future. *Cover Photo by Priscilla Du Preez on Unsplash  

Opinion

What are Nature-based Solutions (NbS)?

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  An innovative approach to environmental management: Nature-based Solutions (NbS) The negative effects of human activities on nature are now at an unacceptable level. Thus, in recent years, studies have been carried out on a global scale in order to reduce these negative effects. Institutions, companies, and individuals are making a collective effort to tackle global challenges such as biodiversity degradation and global warming. Among these activities, nature-based solutions are a concept that is gaining more and more attention. IUCN has defined nature-based solutions as actions to protect, sustainably manage, and restore natural or modified ecosystems. Nature-based solutions offer a significant opportunity today due to their potential to contribute to all environmental, social, and economic aspects of sustainability at the same time. Nature-based solutions show many successful examples. In particular, green cities are an innovative approach that stands out. Green cities include nature-based solutions approaches such as urban parks, green roofs, and green walls. These green infrastructure systems provide many ecological contributions from flow management to reducing the heat island effect in cities. A second example is the flooding protection. It has been observed that the risk of flooding is reduced with the applications made in the riverbeds or the coastal areas. These practices include activities such as the cultivation of suitable plants in flood zones. Many good practice examples have shown that nature-based solutions are helpful for environmental management. However, it should be noted that nature-based solutions are not the only solution. Global warming and biodiversity loss are holistic problems that concern many interconnected areas. It is not possible for there to be a single and simple solution to solve such problems. For successful environmental management, nature-based solutions and other existing approaches should be applied together. *Cover Photo by CHUTTERSNAP on Unsplash  

Opinion

Sustainable Business Models

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  The first question that emerges when we talk about sustainability is the question of “value”. Companies and business schools talk a lot about value, but what is value?   Value can mean a quantity or number, but in finance it is often used to determine the worth of an asset, a company, and its financial performance. Companies can be valued based on the amount of profit they generate per share, and the value of a good or service can be derived from its “exchange value” (a concept that dates back to Adam Smith). However, more recent debates have shifted away from Smith’s “value in exchange” to thinking more about “value in use”, as manufacturers move towards more service-based business models, with a stronger focus on the customer.   More recently, Michael Porter and Mark Kramer have written influentially about the concept of ‘shared value’, suggesting that economic value should be created in a way that also creates value for society by addressing its needs and challenges. In this way, sustainable value is the well-being, improvement, continuity and preservation of the individual (human life), company, society and the environment, in a way that meets the needs of the present without compromising generational equity.   So when we talk about sustainable value, it can be sustainable economic value which includes growth – profit, return on investment, financial resilience and long-term business viability and stability. Sustainable social value which includes poverty alleviation, social justice, equality, well-being, community development, long-term employment, secure and meaningful livelihoods, labour standards and practices, wages, code of conduct, career development, health and safety and diversity and also sustainable environmental value which encompasses the use of resources at a rate at which they can be renewed, ensuring that emissions and waste are at a level that can be safely metabolised by the environment, protecting biodiversity and creating positive benefits for the environment over time. We therefore need business models that can reconcile how a company can create and add value for its various stakeholders, while capturing value for itself. In this sense, companies must analyze block by block, how to predict how their actions will affect the value they create, taking into account the impacts on the various stakeholders. In other words, there is no point in selling a recycled product if we have activities and partners that are not concerned with sustainability (environmental, social, economic). Companies need to review the sustainability of the fit between their value proposition and the target audience. But also the way we reach the customer (our logistics are sustainable), our operations, resources, partners and suppliers. But to do this, it is necessary to manage network information. At the same time, all business relationships include not only formal contractual activities, but also informal exchanges of information and benefits. Identifying the entire value flow in a network can reveal opportunities for innovation and improvement. The challenge, then, is how to conceive and design the right future business model.  

Opinion

Sustainability: The mantra for retailers and consumers

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The search for sustainable products was the subject of a study by the International Trade Center, with funding from the European Commission Directorate General for Commerce. This is a sector that, in 2018, sold over 40.7 billion euros in the European Union. (FiBL Statistics, 2020) The study focused on eight retail product groups: food, beverages, clothing, computers, furniture, mobile phones, printed materials, and toys and games.   The results show that: To improve the supply of sustainable products to consumers, the study recommends 12 measures to be implemented by retailers, suppliers and policymakers: Retailers Suppliers