ABSTRACT
This chapter will discuss the market drivers that are requiring companies to develop more sustainable products. A 2015 global survey conducted by Nielsen found that 66% percent of respondents are willing to pay more for sustainable goods. Of those respondents willing to pay more, a majority were influenced by several key sustainability factors: being made from fresh, natural, and/or organic ingredients, products from a company known for being environmentally friendly, and products from a company known for its commitment to social value.
Retailers have put pressures on companies: the greatest driver for developing greener products is when the marketplace demands it. This is especially true when it’s your largest customer. Walmart and Tesco have developed significant sustainability requirements for their suppliers, as has home improvement companies Lowes and Home Depot. There has been a greener hospital movement that requires medical product suppliers to provide more sustainable products; Kaiser Permanente has developed a scorecard to judge a product’s sustainability. Eco-innovation is a value driver, and instructions on how to run an eco-innovation session are presented. Product rating systems for determining the sustainability performance have been developed and are discussed: Environmental Working Group and Good Guide.
