Sustainability as a Core Pillar of Product Innovation

In a May 2025 article, Puneet Anand, a sustainability expert, argues that sustainability must be a core pillar of product innovation to meet consumer demand and regulatory pressures. As businesses face increasing scrutiny over environmental impacts, integrating sustainability into product design is transforming industries like automotive and consumer goods. Anand’s perspective highlights India’s growing role in sustainable innovation, aligning with global trends.

Sustainability is reshaping product innovation as companies respond to consumer preferences for eco-friendly products and stricter regulations like the EU’s Corporate Sustainability Reporting Directive. In India, where environmental awareness is rising, businesses are embedding sustainability into design, production, and supply chains. Anand emphasizes that sustainable innovation drives competitive advantage, reduces costs, and aligns with India’s net-zero emissions target by 2070.

In the automotive sector, companies like Apollo Tyres are leading with tyres made from 75% sustainable materials, earning an EcoVadis Gold Rating. These innovations reduce emissions and waste, appealing to consumers and meeting global standards. Similarly, Tata Motors has integrated recycled plastics into EV components, cutting production emissions by 20%. In consumer goods, PepsiCo’s use of bio-based packaging and water-efficient manufacturing reflects a broader trend, with its sustainability strategy targeting net-zero emissions by 2040.web:previous

India’s policy environment supports this shift. The Production Linked Incentive (PLI) scheme incentivizes green manufacturing, while the ethanol blending program, with 193 new distilleries, promotes biofuels as a sustainable alternative. These policies align with the Atmanirbhar Bharat initiative, encouraging local production of eco-friendly products. However, challenges include high R&D costs, with sustainable materials often 30–50% more expensive, and a lack of skilled talent in green design, with only 10,000 engineers trained annually in sustainability-focused fields.web:previous

Economically, sustainable innovation is creating opportunities. The green products market in India, valued at ₹50,000 crore in 2024, is projected to grow at 15% annually, driven by demand for EVs, solar panels, and biodegradable packaging. This growth supports 500,000 jobs, particularly in MSMEs adopting sustainable practices. Environmentally, innovations like low-carbon cement and bio-based plastics could reduce India’s industrial emissions by 10 million metric tons annually by 2030, supporting global climate goals.

Globally, India’s efforts align with initiatives like Japan’s methanol-powered tanker, which cuts maritime emissions by 40%. However, the U.S.’s cancellation of $3.7 billion in decarbonization grants highlights the risk of policy reversals, underscoring the need for stable frameworks. In India, inconsistent state-level regulations and supply chain gaps, such as limited access to recycled materials, pose barriers. Companies are addressing these through partnerships, like Virgin Atlantic’s AI-driven sustainability solutions with TCS.web:previousweb:previous

Anand advocates for a lifecycle approach to innovation, from sourcing to disposal, to minimize environmental impact. For example, circular economy models, such as tyre recycling programs, recover 80% of materials, reducing waste. Consumer education is also critical, as 60% of Indian consumers prefer sustainable products but lack awareness of options. Digital platforms and certifications like EcoVadis are helping bridge this gap by providing transparency.

Conclusion

Sustainability as a core pillar of product innovation is driving India’s industrial transformation, supported by policies and consumer demand. While cost and skill gaps pose challenges, the economic and environmental benefits position India as a leader in green innovation, provided policy consistency and investment continue.

Source: Outlook Business,