By Ms Pallavi Utagi
At the beginning of the new millennium, sustainability and green technology were not such popular terms as they are today. A couple of decades later, the accelerating impact of global warming and climate change consequences have made it clear that sustainability is the need of the hour.
As a result, the rise of start-ups with an operating model based on sustainability has been disrupting traditional businesses. The advent of cab aggregators and the ride-hailing industry are one example of this trend. Through ride-hailing smartphone apps, travellers can now book cabs and pay for the rides through their phones. In India and overseas, such cab start-ups have emerged as some of the world’s most valuable companies, recording phenomenal growth within years that took traditional taxi firms decades.
Driving Greater Competitiveness
Similarly, there are sustainable start-ups in other domains that have made their presence felt within a short period. Thereby, sustainable start-ups have been steadily and dramatically changing the business landscape, making it more competitive than ever before.
In such a scenario, traditional enterprises have only one choice – change or run the risk of becoming irrelevant. This is the case because sustainability is no mere buzzword but a global clarion call. As customers, employers, investors and other stakeholders turn increasingly conscious and concerned about lowering their carbon footprints by promoting sustainable operations, all companies, big and small, must prioritise sustainability.
In these situations, companies with the first-mover advantage or those at the forefront of sustainable innovations are usually the first to be rewarded. In most instances, the use of technology offers start-ups or first-movers an inherent advantage.
Besides, sustainable operations provide other benefits. Nowadays, traditional entities and companies with a high carbon trail may find investor sentiments relatively unfavourable in comparison to green firms. Also, as the price of polluting fuels keeps rising every year, green energy costs have been falling progressively. The products and services of sustainable start-ups also tend to find more favour among the public and other stakeholders.
Challenging Conventional Companies
Moreover, by prioritising environmental responsibility and weaving it into their operational fabric, firms driven by sustainability are attracting more capital, unlike old-world players. Additionally, there are other reasons why sustainable start-ups pose a big challenge to conventional companies.
To begin with, since sustainable start-ups are essentially tech-savvy, they tend to be agile, adapting swiftly to dynamic consumer demand and evolving market trends. Second, such start-ups generally have much lower operating costs than traditional enterprises. This makes it easier for them to invest more in R&D to develop novel products and services.
What’s more, sustainable start-up founders have a better understanding of the latest tech trends and innovations, which helps them use these elements to create novel products and services. In itself, this offers a major competitive edge over old-school enterprises, which are often slow and unsure about adopting new technology tools.
Furthermore, given their modern outlook, start-up enterprises are better placed to attract the best talent. An exciting work environment helps employees optimise their output, directly benefitting the start-up through more productive outcomes. Also, since start-ups are much smaller in size and have a non-bureaucratic mindset, they move faster, adapting more easily to ongoing changes. On the other hand, traditional businesses still have hierarchies that stifle the spirit of innovation and creativity.
Sustainability in the Domestic Diapers Segment
Apart from other sectors, the influence of sustainability is seen in the domestic diapers segment. To elaborate, by deploying sustainable means during its production processes, a start-up company has been making diapers that are safe for both a baby’s soft skin and the environment.
Mother’s have always been conscious of harmful chemicals and allergens used in synthetic or conventional goods for their babies while also being unsafe for the planet. Conscious parenting has been driven by a shift in the buying behavior of parents and other family members who seek to make choices that do not leave a long-lasting impact on human or environmental health.
Conscious parenting is important because popular disposable diapers require centuries to decompose, unlike the environment-friendly ones made in ways that ensure relatively quick biodegradation. Responsible parents are also concerned about the carbon trail of modern manufacturing practices. This includes the amount of resources needed to produce baby care items and the resulting emissions generated during the production process.
However, conscious parents contribute to lower carbon footprints by choosing green products and supporting brands utilising environment-friendly production processes. Empathetic parents realise that although synthetic, one-time-use diapers are convenient products, these come at the cost of the environment. Driven by acute awareness and concerns about the risks to their little ones, conscious parents willingly sacrifice short-term convenience for long-term gains.
Be it e-commerce, food, financial services, healthcare, education and other spheres, start-ups have gained prominence in diverse segments by driving transformative change across industries through processes and practices focussed on sustainability. Consequently, sustainability is no longer a mere catchphrase. Instead, it signifies a fundamental shift to reshape the future of industries globally, benefitting both people and the planet.
(The author is Ms Pallavi Utagi – CEO and Founder of SuperBottoms, and the views expressed in this article are her own)
