Sustainability: Key Prof.

Muneza Kagzi,
driver of Innovation
Session contents

• Recap of previous session

• Concerns of companies
• Sustainability- driver for innovation (Framework)
• Summary

2
How can you include sustainability in the
business to promote innovation?
3
 Sustainability is
now the key
driver of
Innovation

4
 Framework for Sustainability as
innovation*

Stage-1
Stage- 3
Viewing Stage-2 Stage-5
Designing Stage-4
compliance/ Making value Creating next-
sustainable Developing new
economic chains Practice
products and business model
situation as sustainable Platforms
services
opportunity

Nidumolu, R., Prahalad, C.K. and Rangaswami, M.R., 2009. Why sustainability is now the key driver of innovation. Harvard
5
business review, 87(9), pp.56-64.
Stage-1
Viewing compliance/ economic situation as opportunity

• Compulsory vs voluntary disclosure

• Enterprises focus on meeting the emerging norms get more time to experiment with
materials, technology and process
• Company with global operation (MNC)- follow toughest norm
HP example
• 1990- company realized that lead is toxic and Govt. will ban it one day
• 2006- successfully developed alternative metal- tin, silver and copper to produce
solders
• European Union’s restriction to use hazardous inputs for production (July-2006)
BS III vehicles banned in India
• One month notice was given to companies
• Heavy discount on vehicles- BS 6 vehicles launched

6
Stage 2-Sustainable Value Chain
• Corporate works with suppliers to use eco friendly raw materials
• Reducing consumption of non renewable energy (Coal, Petroleum and
natural gas)
1. Tesco working with tomato farmers in Spain to cultivate organic tomato
2. FedEx- Deploys fleet of 700 aircraft and 44,000 motorized vehicles.
• Company is replacing old aircraft with new Boing777 to save energy cost by 36% and increase
capacity by 20%.
• FedEx also developed new software to optimize the schedule of aircraft

• Unilever committed for sustainability- Value chain example

• https://www.youtube.com/watch?v=cpYhgqPRivw

7
 Unilever’s Strategy- Sustainability in tough times

• Unilever’s performance
• Stock prices declined by 35%
• History- 2009- Paul Polman’s appointment as CEO
• First time outsider CEO
• In 2010, launched the Unilever Sustainable Living
Plan (USLP) – our blueprint for sustainable
growth.
• https://www.youtube.com/watch?v=utSYAkQi5hY

8
9
Stage- 3
Designing sustainable products and services
• Sizable number of customers prefer
eco friendly products
• Customer retention
• Bio degradable materials

11
Stage-4
Developing new business model
• A plan for the successful operation of a business
• Identifying sources of revenue,
• Intended customer base,
• Products,
• Details of financing.

• Project Shakti (HUL)- Delivering products in rural India

• Rural distribution- Shakti Amma

13
Stage-5
Creating next- Practice Platforms
• Question the status quo
• Can we develop waterless detergent?
• Can we breed rice that grows without water?
• Internet and energy management
• Smart Grid
• https://www.youtube.com/watch?v=JwRTpWZReJk

14
Initiatives for Sustainability
• Support from Top management
• Right culture and workforce
• Effective collaboration
• Govt, NGO, Stakeholders

15
References
1. Nidumolu, R., Prahalad, C.K. and Rangaswami, M.R., 2009. Why
sustainability is now the key driver of innovation. Harvard business
review, 87(9), pp.56-64.
2. https://www.unilever.com/sustainable-living/our-approach-to-repor
ting/reports-and-publications-archive/
3. https://www.unilever.com/sustainable-living/our-approach-to-repor
ting/

16
Thank you

17