Leveraging Sustainability in Product Design and Manufacturing to Drive Revenue Growth, Fuel Innovation and Reduce Risk

Research confirms that embracing sustainability in product design and manufacturing not only yields environmental improvements, but offers key business benefits as well

Sustainability is a subject that has received a great deal of attention over the past several years, but it isn’t always well-understood. The definition that is most commonly used is taken from The Brundtland Commission’s 1987 report, Our Common Future, which states that “sustainable development seeks to meet the needs and aspirations of the present without compromising the ability to meet those of the future.” But what does that actually mean? And, in particular, what does it mean for manufacturers?

What is sustainability? Essentially, sustainability in design and manufacturing has a lot to do with “doing better with less,” and embracing a broader view of product development – looking at the full lifecycle of the product and the impact that its design, manufacture, use, and retirement can have across the triple bottom line – that is, its impact not only on business, but on the environment and society, as well.  

That said, sustainability isn’t just about “doing the right thing” for the environment or for society. It’s also about doing the right thing, financially. In other words, environmental and/or societal benefits must be paired with financial benefits in order to truly succeed. The good news is that manufacturers are increasingly finding that there are key business benefits associated with “going green.” 

 source: Four Winds Research (copyright 2012)

Figure 1. Key Performance Metrics – Sustainability in Product Design and Development  Organizations that are actively engaged  in sustainable product design and development cite impressive levels of improvement over their poorer performing peers in  product innovation, quality, safety and revenue growth alongside anticipated environmental and energy gains. (Research findings are based on interviews and survey responses from over 125 organizations, worldwide.)

Why is sustainability in product design and manufacturing important? Concerns about rising energy costs and efficient use of resources; availability of, access to, and/or price volatility of critical materials; and the potential risks, opportunities and costs posed by industrial and consumer waste, are just a few of the reasons that manufacturers may want to begin thinking more seriously about sustainability. Sustainability truly isn’t just for “treehuggers” anymore.

A common view among engineering, design and manufacturing executives alike is, “I believe sustainability is important, but how can our company justify supporting a more sustainable approach to product design and manufacturing?” (especially if my company isn’t even involved in the development of a sustainable or “green” product line?) The short answer is, “because designing with sustainability in mind can yield many benefits – not just environmental ones.”

Unfortunately, a common misconception is that profitability must be sacrificed in order to achieve sustainability-related goals and objectives. Yet for a growing number of organizations, sustainability has served as the catalyst to drive both greater innovation and revenue.

What are the benefits of more sustainable product development? Research based on in-depth interviews and survey responses from product designers, engineers, manufacturing executives, and sustainability experts from over 125 organizations worldwide, reveals that embracing sustainability in product design and manufacturing not only yields anticipated environmental improvements, but drives greater innovation, quality improvement, energy savings, and revenue growth, as well. (see Fig. 1)

Moreover, a company doesn’t have to be expressly involved in the development of “eco-friendly” products to reap these benefits. The sustainable product design and manufacturing process itself is where many of the opportunities to improve business and environmental performance reside – and where significant savings and benefits can be realized. For example, eco-efficiency efforts can result in lower production costs and greater operational efficiencies, as well as reduced shipping and transportation costs.

Taking a more sustainable approach to product development also lowers risk (i.e. less threat of a product recall posed by the “hidden” presence of toxic materials in the supply chain) and reduces uncertainty (i.e. more sustainable sourcing results in less exposure to potential supply chain disruptions due to resource scarcity or materials shortages). Furthermore, the process of rethinking a product’s design so that it is more durable or more easily recycled; or so that it contains fewer parts, less packaging or more recycled content – also drives innovation and quality improvement.

How can manufacturers most effectively tackle the sustainability challenge? So, if sustainability is good for the environment – and good for business, the question then becomes, how can organizations most effectively incorporate sustainability in their business efforts? With respect to sustainable product development, the application of sustainability principles, tools, and strategies during the product design phase is critical, since it is during this early phase of the product lifecycle that decisions can have the greatest impact on cost, performance and sustainability.

It’s all part of next-generation product design, a topic that is explored in greater detail in our current research study, “Sustainable Product Design and Manufacturing: What’s Happening Now… and What’s Ahead?”