The alarming levels of pollution, reckless consumption of natural resources, and adverse climatic conditions have led to environmental damage across the globe. The Ozone layer is on the verge of getting depleted due to the emission of harmful gases into the atmosphere. One of the primary causes being unsustainable business practices and industrial methods. Be it dumping of hazardous pollutants into the rivers or unscientific treatment of waste, all these factors have contributed to the existing environmental changes. To attain sustainability, people need to embrace healthy lifestyles and aim at reducing pollution. The ideas promoting green business and sustainability allow the amalgamation of commitment towards the environment and intent to run a business. Apart from that, it also generates revenue and profit.
Nielsen’s study disclosed that 66 percent of customers across the globe are willing to pay more for eco-friendly products. Thus, indicating consumers are also inclined towards Corporate Social Responsibility (CSR) as much as in the products and services of a company. And the key to the same is designing and investing in green or environment-friendly business notions. A green business deploys sustainable resources to manufacture its products. The objective is to use less water, energy, and raw materials to reduce carbon footprint. And by exploring ways to utilize these resources in environment-specific ways. Such kind of business approach helps the company to reduce the strain on natural resources and contribute positively to climate change. In certain cases, the waste is regenerated and recycled as energy or raw resource.
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While novel sustainable means are being designed, many companies are increasingly recognizing the ecologically compatible frameworks. It could mean either by formulating novel products and services based on advanced technologies or by altering the conventional business models. These modifications are referred to as Green Business Model Innovation by the companies. The emphasis on green business models ensures that good notions are transformed into eco-friendly projects and products. The current green revolution results in many economic, structural, and regulatory changes that affect several industries. The execution of a green business framework ensures that business is well-prepared for future legal requisites, consumer requisites, energy distribution, resource scarcity, and waste management.
The notion of sustainability tends to appeal to an increasing number of industrial sectors. Several emerging and established companies are opting to work collaboratively with waste and recycling management organizations to offer a green workflow and sustainable edge. The two types of Green Business Model Innovation are Incentive and Life-Cycle model as illustrated below:
- Incentive Model: This model focuses on productivity-operative sales or systemization of product services, in an eco-friendly way. The examples for the same are ESCOs (Energy Saving Companies), WASCOs (Water Saving Companies), MASCOs (Material Saving Companies), CMS (Chemical Management Systems), and DBFOs (Designing, Building, Financing, and Operations), and such others.
- Life-Cycle model: Also, termed as Circular Economy Model, it is based on green supply chain management strategies and industrial interaction. The companies applying this model try to eliminate maximum waste at the end of the PLC (Product Life Cycle).
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Market Potential and Scope of Sustainable Products:
With the emerging trend of Green Consumerism, the potential market for eco-friendly products is on the rise. The current study by New York University revealed that the sale of products promoted as sustainable has almost 5.6 times faster growth than those not labelled as so. According to the survey findings of the global web index, the number of customers willing to pay for eco-friendly products has increased from 49% in the year 2011 to 57% in the year 2018 as demonstrated in the figure below.
According to the impact report of TSC (The Sustainability Consortium Report) – 2017, sustainability has become the need of time across the globe. It points out that 48% of the consumers are likely to buy a particular product or service if the company is careful of its environmental and societal impact.
How to start a Green Business?
Resuming with a green business requires the execution of the following steps:
- Exploring and researching the existing green business opportunities,
- Making a gap-analysis/ SWOT analysis of the market,
- Identifying environmental issues and possible solutions for the same or,
- Selecting an appropriate business opportunity and,
- Creating a business plan
You are not too far from starting your green venture!
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NIIR PROJECT CONSULTANCY SERVICES (NPCS) offers various market research analytics on several eco-friendly products/projects business ideas such as:
- Bio-plastics made from cassava & corn starch granules,
- Bio-degradable sanitary pads/napkins,
- Bio-degradable bowls and plates made from areca tree leaf,
- Disposable tableware made from rice and wheat straw,
- Disposable nitrile gloves,
- Bio-degradable plastic cutlery,
- Bio-degradable bags,
- Polyester fiber from corn/starch,
- Bio-degradable disposable cups and plates made from Sugarcane bagasse, and
- Bio-plastic carry bags and garbage bags.
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