Balancing the carrot and stick for transformation
When you’re drowning in disclosures, where does the conversation on competitiveness fit in?
A sustainability expert from a global MedTech company recently shared this concern with me: “Of course, we need to allocate resources to reporting and disclosures. But are we leaving enough space to use sustainability to gain a competitive edge?”
Don't lose sight of how sustainability drives competitiveness
That comment really struck a chord. As pressure on disclosure requirements intensifies, sustainable innovation risks being overshadowed by data-heavy disclosures. It’s time to move the needle on how sustainability can drive competitiveness—without this shift, progress in transforming value chains will stall.
MedTech Europe gives its two cents
This sentiment resonates across the MedTech industry. MedTech Europe, the industry organization, has called for a rethink of how to spark sustainable innovation. In its open letter today, #MedTechEurope's CEO Oliver Bisazza Bisazza emphasized the need for actions across four areas, two of them emphasized how we can trigger sustainable transformation:
Strategic investments in healthcare systems
Prioritize efficient and sustainable healthcare systems, leveraging digital health and medical technologies. These investments can lower care costs, and align with broader sustainability and digitalization goals.
Value-based procurement
Encourage procurement centered on value creation that combines decarbonization, innovation, competitiveness and value chain thinking.
To go beyond compliance, the dialogue has to shift. Corporate strategies should prioritize innovation that delivers both environmental and competitive advantages. Let’s not lose sight of what makes sustainability transformative: its potential to redefine industries and create long-term value.
Transformation requires a balance of push and pull, and one without the other will stall change. All too many companies are consumed by the push of disclosure regulation at the expense of using sustainable innovation to gain a competitive edge.