The risk of not innovating for sustainability...

In a world increasingly aware of the importance of sustainability, companies face growing pressure to align their strategic and business objectives with the well-being of the planet and its people.

Right now, the imperative of sustainability and positive impact is clearly associated with ideas of responsibility and ethics - it's the right thing to do. However, this premise has not guaranteed us the speed, scale and impact we need to tackle the major social and environmental challenges that still lie ahead.

More is needed. The awareness challenge has been won, but the business challenge hasn't yet, and until we are able to find the right business cases, we won't be able to convince companies to adopt - by default - sustainable products, services, processes and business models geared towards positive impact.

Sustainability is still perceived as expensive, impossible to scale up or inconvenient. It is therefore treated in companies as a compliance issue or left under the domain of social and environmental responsibility.

It may be my professional bias, but I only see one way to overcome this kind of dilemma between protecting the planet or the company and its workers and shareholders: innovation.

Innovation is the most powerful catalyst for sustainability. If we don't know whether customers are willing to pay more for sustainable value propositions, then we have to find new ways, technologies and processes to lower that cost. To do this, we need to innovate.

If we are afraid of moving towards more sustainable products, services, processes or business models because we might jeopardize our market share, then we need to find a strategy that can guarantee a balanced, fair and economically sustainable transition. To do this, we need to innovate.

If we don't know whether the talent we have is ready to make this transition, then it's crucial that we are able to retrain our people and be attractive to new talent. To do this, we need to innovate.

If we are afraid of all the standards, regulations and obligations that the government and the European Commission are developing for our industry, then we need to be able to anticipate their impact and ensure that we speed up our adaptation. To do this, we need to innovate.

In our country, we have countless examples of companies - large, medium-sized, small and start-ups - that have been able to understand the importance of innovating in order to find the economic viability of sustainability and positive impact.

Valerius, which, through a 360-degree project, is addressing textile waste during production; Miranda Bike Parts, with its sustainability initiative, which makes it the most sustainable cycling company in the world; Adalberto, for its participation in the European circular economy mega-project, or Sogrape, with its investment in digital transformation and precision agriculture, tackling the impact of climate change and ensuring more efficient management of natural resources.

The Reef Company, with its eco-reefs capable of regenerating life in the oceans, is another example of success, as is Noocity, which promotes urban agriculture through organic gardens in companies; Nãm, which creates mushrooms that feed on coffee waste in a circular economy model; Amorim, with its Korko toys and its negative carbon balance (among several other innovations), and Bondalti, with massive investments in technologies and areas of sustainability - water, hydrogen, lithium.

And many, many other examples I could mention...

Innovation has been the most important accelerator of sustainability and positive impact. Through research and development, new strategies, technological development and new business models that are truly transforming the way value is created for society and the planet. Of course, there are no perfect cases yet. The perfect balance between viability and sustainability has yet to be found. Consumer behavior still shows traces of inconstancy and volatility and ecosystems still can't survive without new natural resources.

But this is the way. And there's no turning back.

This year (where the watchword seems to be "stagnation"), in which companies have been preparing by contracting their investments, it is important not to disinvest in innovation for sustainability. Disinvestment in 2024 will have significant impacts - delays in technological development, energy transition, carbon neutrality, inclusion, and social justice - which will be irrecoverable.

In short, those who know how to maintain smart investments in innovation for sustainability in 2024 will, in the short, medium and long term, be at the forefront not only in protecting the planet and creating a fairer society, but also in creating new businesses and value propositions that will generate greater profitability and longevity in the medium and long term.

Is innovating for sustainability too risky in 2024? And isn't not doing so an even greater risk?

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This text is a republication of an article published in Exame - read it here.