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More than 7 out of 10 organizations who have implemented sustainable product design have seen increased revenue growth, customer satisfaction and employee engagement
But only 22% of organizations have made sustainability a key consideration
of their product design strategies
Paris, September seven2022 – Organizations must integrate sustainability into their product design processes if they are to encounter net zero Goalsnotably those related to scope 3 broadcasts1. According at Capgemini The latest report from the Research Institute, “Rethinking: why sustainable product design is the need of the hour”, 67% of organizations have seen a reduction in carbon emissions due to the I amimplementation of sustainable product design strategieswhile seven3% have saw a improvement in increase in income. Research highlights critical need to scale up action: organizations box start by making sustainability a key strategic priority for product design teams.
Design decisions have a profound impact on the environmental and social consequences of products. Around 80% of the environmental impact of products can be attributed to decisions made at the design stage2. Fundamentally, designing sustainable products is a key lever that can help organizations successfully transition to net zero. Product emissions3 can account for a significant portion of organizations’ overall emissions and sustainable design strategies are key to mitigating them. Yet only 22% of organizations have made sustainability a primary consideration in product design, and only about a quarter of organizations regularly perform environmental impact assessments.4 (26%) and social impact5 (25%) reviews when creating new products.
“In command to meet their carbon reduction targets and ensuring global sustainable development Goalsorganizations need to think beyond isolated design issues and consider the system as a whole, from the early stages of product design to material selection and end-of-life management. Eit requires a series of different approaches throughout the product life cycleincluding systems thinking, circular design thinking and regenerative approachessaid Roshan Gya, Global Head of Smart Industry at Capgemini. “Organizations should also keep in mind that many sustainability initiatives are characterized by short-term pain followed by long-term gain, such as upfront investments to avoid greater costs in the future.”
Regulatory pressure is a main motivator
The report found that the top motivating factor for 61% of organizations currently adopting sustainable product design practices or planning to do so in the future is pressure from regulators. With regulations expected to tighten in the future, particularly with regard to product life extension and recycled materials used in products and/or packaging, companies that are not yet implementing sustainable design need to reconsider their decision to protect themselves from the risk of future regulatory non-compliance.
Ssustainable design does not always lead to increased costs
Sustainable design is often seen as too expensive, and this perception represents a major barrier to implementation. However, Capgemini found that across all industries, 23% of companies that implemented at least one sustainable design strategy experienced a decrease in costs, while 37% of organizations say costs stayed the same.
Sustainable design practices offer a host of long-term benefits
According to the report, organizations should consider investments in sustainable product design with a long-term perspective. For many companies, these investments are already paying off; Among organizations that reported an increase in costs, 51% say it was offset by an increase in benefits. Organizations experienced increased revenue growth (73%), improved customer satisfaction (70%) and improved employee engagement (79%) alongside reduced carbon emissions (67%). %).
Sustainable design also offers opportunities for cost reduction throughout the value chain through strategies such as “digitalization” and “lightweighting,” which aim to reduce the amount of materials used in a product. Other benefits include increased manufacturing efficiency, for example, by reducing energy and water consumption and reducing assembly time; and reduced transportation costs through optimized product and packaging design.
The report concludes by emphasizing that to reap the benefits, companies must make sustainability a fundamental design priority and highlight the need for systems change. Adopting a data-driven approach is essential and organizations need to assess product impacts holistically – measuring environmental and social impacts throughout the product life cycle. They should also collaborate with stakeholders across the value chain to jointly determine sustainable design decisions, based on impact and feasibility, and invest in partnerships to develop new skills. Investments are also needed in services to facilitate product life extension and end-of-life management, close the loop of product and material flows, and ensure that products are truly sustainable throughout their lifetime. their life cycle. Additionally, advancements in technology open up many opportunities for sustainable product design, and organizations need to ensure that they use technology more effectively and broadly to support their sustainable product design initiatives.
In April-May 2022, the Capgemini Research Institute surveyed 900 senior product design and engineering executives from large organizations across a variety of industries, including consumer products, automotive, industrial manufacturing, aerospace and defence, high technology and medical devices. 15 senior industry executives and academics were also interviewed. In this report, the Capgemini Research Institute focused on organizations that primarily manufacture physical products. Some of these products may incorporate software elements or be accompanied by applications. Therefore, sustainable product design strategies for digital products are also covered.
For more information or to download the report, visit: https://www.capgemini.com/insights/research-library/sustainable-product-design/
Capgemini is a global leader in partnering with businesses to transform and manage their business by harnessing the power of technology. The Group is guided daily by its goal of unleashing human energy through technology for an inclusive and sustainable future. It is a responsible and diverse organization of more than 350,000 team members in more than 50 countries. With 55 years of experience and deep industry expertise, Capgemini is trusted by its clients to meet all of their business needs, from strategy and design to operations, fueled by the changing world fast and innovative cloud, data, AI, connectivity, software, digital engineering and platforms. In 2021, the Group achieved worldwide sales of 18 billion euros.
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About the Capgemini Research Institute
The Capgemini Research Institute is Capgemini’s internal think tank on all things digital. The Institute publishes research on the impact of digital technologies on large traditional businesses. The team relies on the global network of Capgemini experts and works closely with academic and technological partners. The Institute has dedicated research centers in India, Singapore, UK and USA. It was recently ranked #1 in the world for the quality of its research by independent analysts.
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1 Scope 3 emissions are all indirect emissions (not included in Scope 2) that occur in the reporting company’s value chain, including upstream and downstream emissions. The greenhouse gas protocol initiative. (nd) Retrieved from https://ghgprotocol.org/sites/default/files/standards/Product-Life-Cycle-Accounting-Reporting-Standard_041613.pdf
2 European Commission. (nd) “EU Science Hub”. Retrieved from https://ec.europa.eu/jrc/en/research-topic/sustainable-product-policy
3 Product emissions refer to emissions generated during the life cycle of a product, i.e. the stages of acquisition and pre-processing of materials, production, distribution and storage, use and end-of-life treatment.
4 Environmental impact assessments refer to life cycle assessments (LCAs) comprising an analysis of all environmental impacts associated with a product throughout its life cycle (e.g. carbon emissions, pollution, waste, biodiversity loss, soil erosion/degradation).
5 Social impact assessments refer to an analysis of all social impacts associated with a product throughout its life cycle (eg forced labour, hazardous working conditions, gender discrimination).
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