Designing for tomorrow: call for CEOs to integrate sustainability into their strategy, particularly SMEs and micro-enterprises
This article encourages CEOs of SMEs and micro-enterprises in the industrial sector to incorporate eco-design into their strategy. A study shows that the impetus for eco-design often comes from the personal convictions of the CEO, highlighting the importance of their commitment to the transition to more sustainable practices within their company.
Date : 10/27/2023
This article aims to draw the attention of CEOs who run SMEs and micro-enterprises, particularly in the field of industrial production, to encourage them to integrate eco-design into their strategy. Eco-design is an approach that reduces environmental impact while generating tangible benefits.
A study conducted by Pôle éco-conception reveals that the desire to undertake an eco-design initiative often stems from the personal convictions of the company's CEO, who is generally highly committed to sustainable development. In fact, nearly 75% of respondents to the study indicated that the impetus for eco-design came from the CEO.
Eco-design: A way to reduce environmental impact and increase profitability
We wish to highlight the importance of eco-design for managers of SMEs and micro-enterprises operating in the industrial sector. This approach not only minimises environmental impact, but also significantly increases profitability.
CEOs of SMEs and micro-enterprises: Key players in change
We call on the chief executives of SMEs and micro-enterprises to incorporate eco-design into their strategy for the following reasons:
Sustainability for a better future
By adopting eco-design, CEOs of SMEs and micro-businesses can contribute to preserving the environment, thereby offering a more sustainable future for generations to come. According to a study conducted by the Eco-Design Cluster, between 2008 and 2018, the number of companies committed to eco-design rose from 30 to 90. The approach mainly concerns small and medium-sized enterprises, with more than 80% of them employing fewer than 250 people, and more than 75% of companies committed to eco-design maintaining or increasing their profits over the last three years.
Proven profitability
Eco-design is not limited to environmental considerations; it also offers concrete financial benefits: reduced production costs, increased profit margins and stimulated growth. According to a study by the Eco-design Cluster, more than 80% of companies engaged in eco-design have maintained or increased their research and development (R&D) spending, underscoring their commitment to innovation. More than half of these companies have been recognised with awards or certifications for the quality of their management or products.
At Paramétrique, we led the Kami Vision project from 2019 to 2023, and we continue to follow it with enthusiasm. We are delighted to contribute to improving the economic model of this project, making it more profitable and positioning it as a high-end product. The selling price of the products has risen from an average of £20 to £170, which has significantly increased profitability. Profit margins have risen from 3% to 45%. It is important to emphasise that eco-design is a long-term process, but that the financial results and sustainability are well worth it.
Market differentiation
Sustainably designed products stand out in the market, enabling SMEs and micro-enterprises to attract the attention of environmentally conscious customers and set competitive prices. As part of their eco-design approach, many companies have succeeded in improving the functional aspects of their products. On average, these companies have identified two functional benefits (out of a possible seven). The four most frequently cited benefits include improved quality of life (53%), greater savings on purchase (28%), greater ease of use (28%) and greater durability (28%).
Preparation for regulations
Eco-design prepares companies for future environmental regulations, thereby avoiding unexpected costs and penalties. According to Article L 541-10-12 of the AGEC law promulgated in February 2020: ‘All producers are required to develop and implement a prevention and eco-design plan aimed at reducing the use of non-renewable resources, increasing the use of recycled materials, and increasing the recyclability of their products in treatment facilities located on national territory.’
Strengthening Brand and Customer Loyalty
Consumers are becoming increasingly aware of sustainability. Eco-design improves brand image, increases customer loyalty and opens up new business opportunities.
For example, following the success of the Kami Vision project, Kami expanded its new brand, Kami Care, which specialises in providing IoT services in the healthcare sector, thereby significantly improving its public reputation. Consumers now have a positive image of the brand, which strengthens their loyalty. This also opens up new business opportunities for the company.
Attractiveness as an employer
A focus on sustainability can also make SMEs and micro-enterprises more attractive to talented individuals, thereby strengthening their recruitment potential.
Take Action
Eco-design is much more than just a trend. It is a real revolution for SMEs and micro-businesses, propelling them to the forefront of sustainability while boosting their profits.
The implications of these findings are manifold. For business leaders, eco-design offers not only financial benefits, but also the opportunity to stand out from the competition. To launch an eco-design initiative, it is essential that senior management fully embraces this approach, thereby sending a strong signal to the rest of the organisation.
The involvement of various administrative units, including senior management, R&D and manufacturing, is essential. A structured and systematic methodology is required to successfully implement the eco-design process.
By obtaining awards or certifications for management or product quality, a company can strengthen its credibility in the market, thereby facilitating the adoption of its eco-designed products.
Finally, when eco-design also improves the functional aspects of the product, it becomes even more profitable. So now is the time to take action and make eco-design a driver of success for your business.
We call on CEOs of SMEs and micro-businesses to embrace eco-design and integrate it into their business strategy. It is a way to preserve the environment while generating substantial profits. The future of industrial products is undeniably geared towards sustainability. By adopting eco-design, CEOs can pave the way for a prosperous future for their businesses, while contributing to a more environmentally friendly world.
Paramétrique is here to support you in this process, helping you to comply with environmental obligations while thriving economically. Please do not hesitate to contact us to implement eco-design within your company.