Sustainable business is a way for companies to deal with the challenges of climate change and scarcity of resources. It can also be used to create a successful competitive positioning. Achieving sustainable business means developing an individual strategy for green transformation. This essentially involves identifying and evaluating the opportunities and threats throughout the value chain.
Green transformation is a far-reaching process of change: new yardsticks must be defined, introduced and anchored at all levels and in all business units of a company.
One of the key tasks within green transformation, when developing new products and services, is to align innovation management to climate change and scarcity of resources. Essentially, sustainable innovations aim first and foremost to reduce carbon emissions and increase resource efficiency in all stages of the product lifecycle. This results in two main directions: first, designing a sustainable supply chain and producing services within the company; second, considering the environmental effects of a product or service with the end customer. When a company offers solutions that sustainably improve its customers' energy and resource efficiency and help cut carbon emissions, this creates springboards into new markets and competitive new products.