A new pan-European research study called “Sustainovation” has revealed that 81% of European CEO’s are combating shortages in raw materials such as oil and water through focusing their efforts on sustainability.

Conducted by management consultants brands & values, the 100-page emissions-free report presents comprehensive examples of companies creating industry-innovative solutions to environmental challenges. They identify four key trends in their business models:

- Environmental Technology Innovation – (Proctor & Gamble, Henkel) – How translating the environmental side of the sustainability agenda into new products and services can complement regulatory efforts and move beyond compliance.

- Bottom of Pyramid Innovation - (Deutsche Bank and Vodafone)- How innovations in technology, business models, and ways of thinking create profit and meet pressing social needs in underserved markets. They seek to alleviate poverty by increasing the purchasing power of customers at the bottom of the population pyramid.

- Cradle to Cradle Innovation - (Herman Miller) – How to change the linear flow of the cradle-to-grave paradigm into a closed-loop system with zero footprint. To create products that are 100% recyclable and can be broken down and circulated infinitely in industrial cycles.

- Catalytic Innovations – (betterplace.org) – How to combine successful social entrepreneurship by harnessing the power of the Internet.

Of the 1200 CEO’s surveyed across every industry in 14 West European countries, 86% view ecological and social challenges as motivators of innovative products and business models. Further, 90% believe that global threats are a challenge for the long-term success of their companies.

However, most of these companies concentrate primarily on their own supply chain, procurement policies, and logistics, even though the majority of them are well aware of the effect sustainable consumerism has on their agenda. Further still, only half actually encourage the responsible lifestyle.

Martin Blumberg, managing partner of brands & values, reflects: “Up until now only a few companies have opened up new sales markets through sustainable innovation . . . but as we seem to be coming to the end of the financial crisis, the awareness of business opportunities brought by sustainable innovation is growing among the responsible parties.”

With the price of raw materials high and tight budgets, companies are coming up with ever-efficient methods for improving their operational efficiencies. It makes financial sense, but helps the environment too.

Reprinted with permission from Sustainable Life Media