1. Eco-innovation for SMEs September, 2013

2. What do we mean by Eco- innovation? Eco-innovation is the development and application of a new business strategy that entails a combination of a significantly improved or new product (good/service), production process, organisation and business model that will lead to improved sustainability performance.  Eco-innovation operates at the level of a company strategy  It mainstreams a holistic life-cycle approach throughout all company’s operations  Aimed at enhancing company’s positive sustainability impacts, gaining reputational benefits and access to new markets = competitive advantage

3. Eco-innovation applies life cycle thinking to products and processes to increase the sustainability of the entire value chain. How to implement Eco- innovation? Innovation is implemented in a combination of: Product, including product design Production process Organizational methods Marketing Business model Life-cycle thinking means considering the ENTIRE process, including: Raw material extraction Manufacturing processes Packaging and distribution Use and maintenance End-of-life/reusability

4.  Build and retain expertise Eco-innovation is a STRATEGIC BUSINESS APPROACH Companies applying Eco-innovation can:  Enhance their sustainability performance  Create competitive advantage vis-à-vis competitors  Achieve growth through access to expanding markets  “Read” standards and regulations evolution and benefit from the first mover advantage  Increase profitability and efficiency in the way resource are used along the value chain  Attract sustainable investment

5. Enabling environment for Eco-innovation  National and regional policy framework: provide a conducive framework to promote / recognize sustainable consumption and production practices  Willingness and readiness of company – supply chain - market  Market requirements/demands of strategic positioning as sustainable enterprises (SMEs)  R&D capacity in country and company: Existence of service providers with the skills and capacities to support companies

6. Eco-innovation Project 1.Small and medium sized enterprises (SMEs), focusing on priority sectors: a.Agri-food processing b.Chemicals production and management c.Metal processing 2.National SCP-related policies, programmes and strategies  Including technology related policies and strategies. The Project will be promoting SCP through Eco- innovation with an intervention focusing on:

7. Scope of the Eco-Innovation Project Policy Mainstreaming & Planning Conducive policy frameworks: Practical engagement for SCP policy integration Drawing on lessons learned from adoption of eco- innovation technologies Making the Business Case Engagement with the private sector: Highlighting financial, market and social benefits of eco- innovation to industries Demonstration of best practice at regional and national level Facilitating synergies between public & private sectors Strengthening RECP services portfolio Strengthening companies and service providers on eco-innovation ‘know-how’ Technical (integrated) guidance through the eco- innovation manual Regional and national training and demonstration projects

8. Information on the Eco-innovation project: www.unep.org/ecoinnovationproject