Opinion – Why? Economês in good Portuguese: The importance of innovation for the green recovery

Impossible to ignore the alarming evidence about planetary boundary markers. The concept of planetary boundaries was proposed by an international group of scientists, led by Sweden’s Johan Rockström, from the Stockholm Resilience Center, who measured the risk we run by breaking the Earth’s natural balance and resilience. Scientists have proposed nine safe environmental boundary markers related to the impacts of human activities on planetary ecosystems. Current estimates indicate that six thresholds — climate change, loss of biodiversity, biogeochemical flux, plastic pollution and changes in freshwater use — have already been exceeded.

The maintenance of planetary boundaries in safe zones for survival on Earth presupposes investments in innovation. In a country where less than 1% of GDP is directed to public investment in innovation, as is the case in Brazil, the role of organizations becomes even more relevant to address critical problems in our society. In practice, organizational strategies aimed at generating shared value depend on sustainability-oriented innovation (IOS). IOS involves making intentional changes to products, services, processes and business models in order to generate lasting environmental and social benefits, while at the same time generating financial returns for the business.

In general, IOS incorporates issues related to climate, waste and pollution, human rights, diversity, inclusion, among other global sustainability objectives, in the innovation process. The potential for generating shared value is significant. A recent study by WRI Brasil indicates that sustainable and low-carbon practices can generate significant GDP growth, with a total accumulated gain of BRL 2.8 trillion by 2030 compared to business as usual.

There are several examples of IOS in new social or impact business models, such as Pantys and VerBem. Pantys is a Brazilian B company that developed a reusable absorbent panty. The idea behind the product is to combine technology, sustainability and design for the comfort and health of women during their menstrual cycles. The pieces have biodegradable and antimicrobial fabric with odor blocking, high absorption capacity and durability of two years (50 washes). The use of Pantys reduces the use of 400 disposable absorbents in one year, which is equivalent to an annual savings of R$ 300 and 4 kg of garbage. Pantys also has a positioning that refers to the freedom and empowerment of women and combating menstrual poverty through the panty donation program, which involves publications on Instagram and the active action of consumers. The two entrepreneurs who founded Pantys have already been recognized in Brazil and around the world for the positive impacts generated by the innovation of the business model and product.

VerBem is an unconventional optician whose main objective is to make the optical market more accessible and democratic without losing style and quality. They offer the GoodVisionGlasses model (low cost) as well as conventional glasses at competitive prices. In addition, the brand manages to donate glasses to those who cannot buy them, through the NGO Renovatio. Renovatio travels Brazil, in the most distant places, with adapted buses, trailers and vans, taking free eye care and donations of prescription glasses for people in situations of social vulnerability. In 2021, it was the largest ophthalmological consultation NGO in Brazil, with more than 200,000 consultations in 23 states of the country. VerBem has already shipped around 60,000 prescription glasses to countries such as Mozambique, Haiti and India.

IOS in traditional businesses has also generated several positive impacts. Ambev, for example, has made several adjustments to its production process and supply chain management to have an eco-efficient operation. The company invested in water resources management, energy management, waste management and reverse logistics. In the case of water, the data published by the company in the sustainability reports show that in 2020 consumption was 4.7% lower than in 2019. Compared to water consumption in 2002, the reduction was 55%. The company also anticipated the water efficiency target set for 2025 and has already reached an average of 2.5 liters of water for each liter of beer produced, which in the past was something around five liters of water for each liter of beverage. One of the main innovations to improve the water savings rate was the installation of meters at all stages of the production process, which makes it possible to analyze the indicators for each of the stages. Another effective action to save water is the standardization of processes and the replication of good practices that arise on the initiative of the employees themselves.

These three examples of innovation in the business context are only possible because managers develop and apply systems thinking based on the use of robust evidence in decision making and invest in innovation ecosystems. Systems thinking assumes that parts of a system can best be understood in the context of their relationships to one another. This is relevant as natural and social systems are increasingly interconnected and any change in one of them can cause a tipping point in another. Climate change, for example, affects the amount and severity of rainfall and floods, which can lead to landslides and deaths in suburban neighborhoods in urban centers. It is necessary to understand more broadly the entire system of which the organization is a part – including other companies, the environment, suppliers, competitors, surrounding communities, governments, researchers and universities.

How to make IOS on a global scale? Is it possible to reverse planetary limits in critical zones through IOS? Currently, researchers argue that the only safe boundary is the ozone layer. For those who don’t remember or don’t know the story, in 1985 the ozone layer had its safe limit marker exceeded. Scientists have discovered a hole in the ozone layer in Antarctica and called attention to the need for effective action in order to avoid a global catastrophe. To stop the hole from advancing, different countries agreed to ban the use of chlorofluorocarbon (CFC) gases. The agreement was formalized in the Vienna Convention for the Protection of the Ozone Layer in 1985 and in the Montreal Protocol in 1987. In addition to restrictive global governance, it was thanks to science and innovation in the chemical sector, especially in the refrigeration and air conditioning sectors. conditioning, that we were able to efficiently ban CFC gas from the market without causing a great economic loss to sectors and companies.

This success story shows that it is possible to solve complex societal problems through systems thinking, collaboration and IOS. Help will not come from another planet. If economic development is based on IOS with a focus on renewable energy, forest protection, regenerative agriculture, nature-based solutions, social inclusion and the like, it will be possible to increase jobs, income, reduce inequality, improve health and well-being. This will give us more time to live in harmony with nature and with our loved ones.

This column was written for the #scienceinelections campaign, which celebrates Science Month. In July, columnists give up their space to reflect on the role of science in the reconstruction of Brazil.