Sustainable Product Development

I was invited to speak to the Chief Sustainability Officer group at the World Economic Forum during climate Week. I urged us all to take control of the narrative. Here is a summary... Let’s shift the narrative. As sustainability leaders… Let’s not talk about decarbonization as emissions. Let’s talk about it as innovation that drives: ·    energy cost savings, ·    avoidance of energy pricing volatility ·    avoidance of carbon fees ·    reduced maintenance ·    increased productivity ·    sales lift Let’s not talk about tons of waste diverted from landfill and reused, let’s talk about it as innovation that reduces: ·    virgin input costs ·    waste disposal costs ·    exposure to geopolitical risk in supply chains ·    exposure to tariffs (e.g. Renault is putting 45% of used car components into new cars) Our research into the Return on Sustainability Investment (ROSI) shows that sustainability is just good management.   The methodology (developed with companies) has found nine value drivers associated with sustainability, including operational efficiency, risk reduction, employee retention and productivity, sales and marketing, and and innovation and growth. For example, innovation is about identifying a problem or an opportunity. It can be focused on process, product or service. It can be incremental or transformative. From a sustainability perspective, innovations fall into two broad buckets:  ·    innovating sustainability improvements in an industry or a category ·    innovating with a process, product or service that is needed by society. The first approach requires understanding the material ESG issues for the sector and designing solutions that tackle that issue, while also improving the underlying value proposition - -which sustainability can do. The second approach is tougher, but has more potential to go big: Innovating to solve broad societal problems such as water scarcity, plastic packaging pollution and health impacts, tackling the carbon transition, social inequity and so on. Here we might look at innovation such as 3D printing (e.g. on demand) using recycled inputs – tires, dresses, construction materials etc. We might look at bio-based plastic made from air and methane-based greenhouse gas dissolved in saltwater, recyclable through biological digestion. We might look at how to give immigrants and others with no credit history access to credit through tracking ontime rental payments. So as you work with your companies, help them understand that managing the material ESG issues for their sector and company is not a reporting and compliance exercise. It is a good management exercise that can drive everything from operational efficiency to sales and customer loyalty to innovation that will help the bottomline. Put in place methods such as ROSI with your finance team or ESG controller to track the financial benefits so you can get sustainability to the speed and scale you and the planet want and need. 

At Microsoft, central to our vision for #decarbonization is growing the carbon-free electricity resources serving grids around the world. To make progress towards this vision, our work strives to support expanding the carbon-free electricity resources serving grids around the world, modernizing and improving grid infrastructure, and ensuring an equitable energy future. I had the opportunity to share more about our clean energy journey on a panel alongside leaders from the United States, Ghana and Canada to discuss our roles in "Jumpstarting the Global Deployment of New Nuclear Energy”. I discussed how Microsoft is making progress on our goals as a leading clean energy buyer, technology innovator, and policy advocate. Our investments and actions have been, by design, the steps of a first mover to help broaden market availability of clean energy resources, and we are making progress all while our business continues to grow. ➡ We are one of the largest purchasers of renewable energy in the world: 19GW of contracted renewables capacity to date ➡ We manage a $1 billion Climate Investment Fund to accelerate technology development and deployment of new climate innovations. ➡ We advocate for energy and climate policies across the globe and innovate technology solutions for our customers, suppliers, and partners. We know that complete grid decarbonization will require a multi-technology approach that considers a range of carbon-free technologies. Facilitating the pace and scale of the deployment of carbon-free technologies is critical.  That's why I am proud to share Microsoft's new policy brief on advanced nuclear and fusion energy technologies. We published this because of these technologies potential, they are rapidly evolving, and they face a different set of regulatory considerations than other carbon-free technologies.    I encourage you to read this policy brief which outlines the role advanced nuclear and fusion energy play in a decarbonized energy future and the priorities that guide our policy advocacy, from advancing research, development, and demonstration projects; enabling safe deployment of technologies; and encouraging an efficient and effective regulatory process for new technologies to be deployed. Link to full paper here: https://lnkd.in/gAyQjN4U

In the quest to reduce carbon emissions, companies are exploring growth opportunities in electric vehicles, energy storage, heat pumps, recycling solutions, and plant-based products. However, achieving success in these markets poses challenges, with some companies struggling to find the right balance between supply and demand. In a recent article published in strategy+business titled "Ten Questions for a Winning Climate-Transition Business Strategy," I present an analytical framework to aid senior leaders in executing strategic initiatives. The focus is on how businesses can effectively transform to align with climate objectives while meeting customer demands with innovative products. Key insights from the article include: - Companies enhancing their product portfolios with climate solutions typically see a 2–3% revenue growth premium, despite facing initial cost hurdles. - Success hinges on addressing five critical challenges: understanding customer behaviors, timing product adoption, utilizing data-driven decision-making, managing value chain complexities, and balancing legacy and new business priorities. - By utilizing data effectively, engaging employees, and forming strategic partnerships, organizations can overcome obstacles and capitalize on opportunities in the low-carbon economy. What strategies have you discovered to effectively integrate climate innovation with financial returns? Read the full article here: https://lnkd.in/eFJXbE_4 #ClimateStrategy #Sustainability #Innovation #BusinessGrowth #EnergyTransition #Technology

Sustainability = Innovation 🌍 Environmental and social pressures are reshaping how companies approach growth, risk, and competitiveness. When strategically integrated, sustainability becomes a framework to identify operational inefficiencies, anticipate future demands, and respond to evolving market conditions. The starting point is recognizing how sustainability issues reveal opportunities for innovation. Rising input costs require rethinking material choices and supply strategies. Climate risk drives the need for resilient product design. Regulation, customer expectations, and resource constraints all point toward reconfiguring business models and value chains. Each business function faces specific triggers. Operations teams respond to inefficiencies in energy or water use. Procurement can reduce exposure by transitioning to circular sourcing. Product development must address the growing demand for low footprint design. Sales and marketing teams face increasing pressure from clients and regulators to demonstrate real, measurable impact. Several innovation pathways are already proving effective. These include redesigning products with lower impact materials, modular components, and take back systems. Business model shifts such as repair programs, resale strategies, and service based delivery models can extend product value. Digital tools enable smarter operations and transparency for customers. Functional teams require clear prompts to connect sustainability to their daily work. Operations can identify areas where reducing emissions also cuts costs. R&D teams should explore how to design for circularity from the beginning. Sales teams can develop solutions that align with client ESG targets. Finance can evaluate payback periods and risk adjusted returns. HR can focus on building a culture of sustainable problem solving. Impact measurement is essential to validate innovation efforts. Metrics may include revenue from sustainable offerings, product carbon intensity, emissions avoided, client retention linked to ESG solutions, and time to market for low impact products. Implementing innovation at scale requires specific tools. These include life cycle assessment platforms, circular design processes, materiality assessments, innovation accelerators, and sustainability linked finance instruments to fund new initiatives. Sustainability driven innovation is a strategic process embedded across the business. It enables long term value creation by aligning environmental and social imperatives with product, process, and business model development. #sustainability #sustainable #business #esg #innovation

Fantastic report out from The Nature Conservancy and Bain & Company on the near term market potential of seaweed. Most notably: 🔁 Carbon crediting isn't viable to drive production growth at this time, but seaweed products as alternatives to more carbon intensive products should be given more attention as a climate solution. 🌿 Bioplastics and Biostimulants have very promising growth potential in the near term, and increased seaweed production for these markets could create a variety of environmental and social co-benefits. These findings pair nicely with a recent report from The World Bank and Hatch Innovation Services, which predicts that global seaweed markets could surpass $11B by 2030, and points to seaweed products displacing fossil fuels in sectors such as fabrics and plastics as key emerging markets. For seaweed to be a true climate solution, production must increase. I'm confident it will, but it is imperative that this growth protects smallholder livelihoods and the coastal ecosystems they depend on. Excess wild harvesting and poor farming practices contribute to marine pollution, ecosystem degradation, biodiversity loss, and other adverse impacts which much be minimized going forwards. Conservation International Ventures LLC is committed to supporting enterprises that 1) optimize farming practices to maximize climate, ecosystem, and socioeconomic benefits (such as Coast 4C) ; and 2) promote novel seaweed applications that advance decarbonization efforts in food, feed, and bioplastics supply chains (such as Sway and SEADLING). Looking forward to continuing this conversation at NY Climate Week - let me know if you'll be there too :) #seaweed #impactinvesting #aquaculture Karlotta Rieve #conservation Bjorn Stauch

🌍 Accelerating Industry Decarbonization: Collaboration Is the Key The World Economic Forum's latest report, United for Net Zero: Public-Private Collaboration to Accelerate Industry Decarbonization, outlines a roadmap for tackling industrial emissions, which account for 30% of global greenhouse gases. The report highlights the urgent need for collaboration between governments and businesses to overcome barriers like insufficient funding, regulatory fragmentation, and slow technology adoption. 8 key opportunities to accelerate progress: ✨ Understand and leverage public financial mechanisms: Governments must provide tailored incentives like tax breaks and subsidies to make decarbonization projects financially viable. ✨ Engage your sector to co-develop financial mechanisms: Industries should work with stakeholders to design financing models that align with sectoral needs and drive innovation. ✨ Facilitate carbon tracking adoption within your value chain: Promoting standardized carbon measurement tools and tracking systems can improve transparency and drive efficiency. ✨ Contribute to harmonizing carbon accounting standards: Aligning global standards for carbon reporting will reduce costs and improve accountability. ✨ Proactively support net-zero solutions across value chains: Companies must help decarbonize supply chains, particularly by supporting SMEs with knowledge and funding. ✨ Collaborate with governments on value chain decarbonization policies: Businesses should actively shape policies that accelerate emissions reduction while ensuring fairness. ✨ Co-invest in climate technologies and market creation: Joint investment in technologies like green hydrogen and renewables will be key to achieving net-zero goals. ✨ Help create enabling policies for climate technology adoption: Governments and industries must design policies that reduce risks and boost demand for climate innovations. 🌱 My Reflections 💭 1. Mobilizing Consumer Influence Consumers hold untapped power to drive change. A globally recognized "carbon-neutral certified" label could transform purchasing habits. Transparent certifications and awareness campaigns could accelerate demand for sustainable products. 💭 2. Ensuring Equity Across Borders Global supply chains must help developing economies transition fairly. Capacity-building, knowledge-sharing, and financial support can ensure all regions—not just wealthy ones—meet net-zero goals. 💭 3. Fast-Tracking Green Innovation Regulatory bottlenecks remain a major hurdle. An international fast-track mechanism for green projects could streamline approvals and accelerate innovations like green hydrogen and carbon capture technologies. The challenge is immense, but so are the opportunities. What do you see as the most critical steps toward net-zero industries? 🌟 #NetZero #Sustainability #ClimateAction #Decarbonization #Innovation #Collaboration

Four major barriers stand between emerging climate technologies and adoption at scale. My fantastic colleagues at BCG offer a thoughtful take on how earlier pioneering technologies—wind, CCGT, renewables, LNG, and solar—overcame them. These lessons can be really insightful as we consider how to commercialize and scale the many other technologies needed for the energy transition. Some of what they highlight include: 👉 To succeed, emerging technologies must find effective solutions that address four categories of challenges: technical problems, offtake issues, market complications, and policy constraints. 👉 Today’s mature climate technologies met and overcame these challenges in various ways, including through standardization, modularization, government and third-party R&D support, demand aggregation, tolling agreements, and consistent government incentives and regulations. 👉 Critical stakeholders—private industry, early-stage entrepreneurs, financial intermediaries, and policymakers—can help emerging climate technologies accelerate at-scale commercialization by taking effective, tech-specific action along proven pathways. https://lnkd.in/gDPs8WJW Thomas Baker, Karan Mistry, PhD, Vinoj Pillai, Bahar Carroll, and David Cotton #ClimateTech #EnergyTransition #NetZero #Sustainability #Innovation #NetZero #CleanTech

The most climate-aligned AI infrastructure isn’t in #SiliconValley. It’s in cold, quiet towns across the #Nordics... Where waste heat from data centers now warms 100,000+ homes. This isn’t a theory. It’s already happening: - #Finland: Microsoft’s data center will heat 40% of the city - #Norway: STACK is warming 5,000 homes with server exhaust - #Sweden: 30,000 apartments heated by Open District Heating How does it work? - Liquid cooling captures 90–95% of server heat - Heat pumps boost temps to 115°C - Heat flows into citywide district heating networks Why the Nordics lead: 1. Cold climate = natural cooling 2. Cheap, clean energy = fewer emissions 3. 70+ year-old district heating systems = instant circularity This model isn’t just about sustainability. It’s about resilience, energy security, and infrastructure ROI. And it’s the future of #AI infrastructure. Especially as power demand from data centers is set to double by 2030. The Nordics aren’t just storing data. They’re designing systems where compute powers communities. #datacenters

#AI technologies can be powerful #sustainability accelerators, which I believe are necessary for the world to achieve our climate and nature goals. But they are not a guarantee. Good governance is essential. This is the motivation behind our new comment out in 𝘕𝘢𝘵𝘶𝘳𝘦 𝘚𝘶𝘴𝘵𝘪𝘯𝘢𝘣𝘪𝘭𝘪𝘵𝘺 where we outline what we call the 𝗘𝗮𝗿𝘁𝗵 𝗔𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲 𝗳𝗼𝗿 𝗔𝗜. "𝘈𝘵 𝘢 𝘵𝘪𝘮𝘦 𝘸𝘩𝘦𝘯 𝘵𝘩𝘦 𝘸𝘰𝘳𝘭𝘥 𝘮𝘶𝘴𝘵 𝘤𝘶𝘵 𝘨𝘳𝘦𝘦𝘯𝘩𝘰𝘶𝘴𝘦 𝘨𝘢𝘴 𝘦𝘮𝘪𝘴𝘴𝘪𝘰𝘯𝘴 𝘱𝘳𝘦𝘤𝘪𝘱𝘪𝘵𝘰𝘶𝘴𝘭𝘺, 𝘢𝘳𝘵𝘪𝘧𝘪𝘤𝘪𝘢𝘭 𝘪𝘯𝘵𝘦𝘭𝘭𝘪𝘨𝘦𝘯𝘤𝘦 (𝘈𝘐) 𝘣𝘳𝘪𝘯𝘨𝘴 𝘭𝘢𝘳𝘨𝘦 𝘰𝘱𝘱𝘰𝘳𝘵𝘶𝘯𝘪𝘵𝘪𝘦𝘴 𝘢𝘯𝘥 𝘭𝘢𝘳𝘨𝘦 𝘳𝘪𝘴𝘬𝘴. 𝘛𝘰 𝘢𝘥𝘥𝘳𝘦𝘴𝘴 𝘪𝘵𝘴 𝘶𝘯𝘤𝘦𝘳𝘵𝘢𝘪𝘯 𝘦𝘯𝘷𝘪𝘳𝘰𝘯𝘮𝘦𝘯𝘵𝘢𝘭 𝘪𝘮𝘱𝘢𝘤𝘵, 𝘸𝘦 𝘱𝘳𝘰𝘱𝘰𝘴𝘦 𝘵𝘩𝘦 ‘𝘌𝘢𝘳𝘵𝘩 𝘢𝘭𝘪𝘨𝘯𝘮𝘦𝘯𝘵’ 𝘱𝘳𝘪𝘯𝘤𝘪𝘱𝘭𝘦 𝘵𝘰 𝘨𝘶𝘪𝘥𝘦 𝘈𝘐 𝘥𝘦𝘷𝘦𝘭𝘰𝘱𝘮𝘦𝘯𝘵 𝘢𝘯𝘥 𝘥𝘦𝘱𝘭𝘰𝘺𝘮𝘦𝘯𝘵 𝘵𝘰𝘸𝘢𝘳𝘥𝘴 𝘱𝘭𝘢𝘯𝘦𝘵𝘢𝘳𝘺 𝘴𝘵𝘢𝘣𝘪𝘭𝘪𝘵𝘺." 𝗧𝗵𝗶𝘀 𝗽𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲 𝗶𝘀 𝗻𝗼𝗻-𝗯𝗶𝗻𝗮𝗿𝘆. 𝗪𝗲 𝗶𝗱𝗲𝗻𝘁𝗶𝗳𝗶𝗲𝗱 𝙩𝙝𝙧𝙚𝙚 𝙘𝙧𝙞𝙩𝙚𝙧𝙞𝙖 𝗳𝗼𝗿 𝘀𝘁𝗿𝗼𝗻𝗴 𝗮𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁: 1️⃣ AI systems should help to accelerate the transition to sustainable production and consumption in ways that respect planetary boundaries, or at least do not obstruct these objectives. 2️⃣AI systems should be developed, deployed, and used in ways that ensure equitable access to AI tools for global sustainability and avoid concentrations of power 3️⃣AI systems should be developed, deployed and used to support greater societal cohesion, build trust and provide access to reliable information for planetary stewardship 𝐘𝐨𝐮 𝐜𝐚𝐧 𝐟𝐢𝐧𝐝 𝐭𝐡𝐞 𝐟𝐮𝐥𝐥 𝐚𝐫𝐭𝐢𝐜𝐥𝐞 𝐡𝐞𝐫𝐞: 👉https://lnkd.in/gw3CKkQn Thank you to all our co-authors for many discussions, debates, and explorations that started all off during a workshop that National Academy of Sciences, The Nobel Prize Outreach and Microsoft co-hosted on ‘Global Sustainability and Science Integrity in the Age of Generative AI’ Optimist Gaffney (aka Owen) Franklin Carrero-Martínez, Felix Creutzig, Victor Galaz, Francesca Larosa, PhD, Berna Oztekin-Gunaydin Virginia Dignum, Naoko Ishii Maria Leptin, Ken Takahashi

I talk to a lot of Climate Investors on what's exciting. It's always different than what you think 👇 Most people think: → Cool climate solution, with impact, and much needed. Investors think: → Impact, disruption, leverage, market size. So when I heard about this company…. I had to share it. 👉 Imagine if protective packaging could disappear like a banana peel - leaving behind only healthy soil, not permanent pollution? Cruz Foam delivers commercial-scale, fully compostable bio-foam made from upcycled food waste, designed to seamlessly replace expanded polystyrene (EPS) and EPE in shipping. That sounds boring. But is huge. Why? Because they enable global supply chains to cut plastic and emissions - without missing a beat. Following the biz model of: Circular, Frictionless, Scalable. Here’s more detail: → Their Tech: Converts shellfish and recycled food waste into chitin-based pellets, which run on existing foam manufacturing equipment. No new CapEx, no supply chain drama. Just swap in, scale up, and ship. → Distribution: Partners with established converters (AMC Industries, Bay Cities, Atlantic Packaging, UN1F1ED2) for instant global reach without owning all the plants. → Circularity: Products compost in around 100 days, closing the loop and helping brands hit zero-landfill sustainability targets. → Market: B2B sales to brands in seafood, meal kits, pharma, and CPG - a market hungry for a cost-effective, greener alternative. → Economics: As a platform material company, revenue comes from both sale of foam (direct and through partners) and IP licensing to converters. ❓But are they causing a dent❓ You bet. Here are some Results & Impact: Cutting down landfill: 70%+ upcycled content, turns food and seafood waste into new value. Easy switching: Brands convert with “zero friction”—using current machinery. Circular economy playbook: Compostable, circular, Lomi-approved, championed by giants (LVMH accelerator alumni, Whirlpool adopter). Traction: $23M+ raised, scaling production, partnerships with global converters. Big shout out to the co-founders @John Felts and @Marco Rolandi for what they’re doing 🙌 —— PS. Want more company with impact breakdowns? Get my Free Climate Economy email Crash course to learn what else is out there. (Link in first comment)