Why Sustainability Is Now the Key Driver of Innovation

by Ram Nidumolu, C.K. Prahalad, and M.R. Rangaswami

THERE’S NO ALTERNATIVE TO sustainable development.

Even so, many companies are convinced that the more environment-friendly they become, the more the effort will erode their competitiveness. They believe it will add to costs and will not deliver immediate financial benefits.

Talk long enough to CEOs, particularly in the United States or Europe, and their concerns will pour out: Making our operations sustainable and developing “green” products places us at a disadvantage vis-à-vis rivals in developing countries that don’t face the same pressures. Suppliers can’t provide green inputs or transparency; sustainable manufacturing will demand new ...

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