1. Innovative market niches
By offering new green products or services, a business is more likely to cater to an emerging trend or niche market, which can make it more competitive. Frugalpac, a UK-based company that makes paper-based packaging for liquids that cut carbon footprints, received a £2 million investment during the pandemic – a time when most other companies were struggling for finance.
Already seeing widespread success for their recycled paper coffee cup, Frugalpac’s innovative paper wine bottle, also made from 94% recycled paper, has led to new opportunities and partnerships.
Companies focused on sustainability can rapidly expand by catering to new niche markets internationally. Consider D’light, a company that offers innovative lighting solutions for people who do not have access to electricity. The company has transformed the lives of more than 100 million people across 70 countries through its green product offerings while raising US$197 million (£150 million) in investment.
Earlier this year, the Danish energy supplier Ørsted, formerly known as Danish Oil and Natural Gas, was named the most sustainable company in the world. This success followed from its transformation to a green energy supplier – which went hand in hand with accelerated profits.
By catering to new niche markets using green products and services, these businesses have emerged as future leaders in their sectors. Of course, not all companies are suited to finding such niches. But sustainability can be promoted in other ways like green working practices and processes, for example.