The Innova Institute analyzes areas to develop sustainable entrepreneurship for the PostCovid-19 era.
The coronavirus has questioned the value of globalization by showing its fragility. "Global logistics chains are as weak as the weakest link," says Professor Yossi Shefi, director of the MIT Center for Transportation and Logistics. But not everything is danger and instability: the effects of the crisis are transformed, at the same time, into business opportunities. In PostCovid-19, the response to the renewed values and new perceptions of people will generate opportunities to undertake precisely those values. And sustainability, which must go hand in hand with globalization, will come to the center of business development strategies. The Innova Institute of La Salle-URL, specialized in research in the fields of technology management, innovation, and entrepreneurship, proposes ten areas in which sustainable entrepreneurship will have a place after the pandemic.
1. Agriculture and the food industry.
The world hiatus caused by COVID-19 is supplying a small truce that is allowing regeneration of the planet. Environmental awareness has grown, consumption of resources is more responsible, there has been a noticeable improvement in environmental quality, and people have realized that protecting the environment contributes to a healthier and more balanced life.
In Spain, there is an increase in the consumption of products similar to animal protein, which imitates both its flavor and texture. According to a study by Lantern (2017), 7.8% of the population over 18 years of age recognizes themselves as vegan. There is a general awareness of animal abuse, respect for the environment and health. In this sense, the Innova Institute considers that the PostCovid-19 will generate broad opportunities for entrepreneurship in this field.
2. Sustainable urban mobility
The high concentration of people in the means of transportation and its improvable health conditions have made urban mobility one of the main sources of infection, increasing the risk of contracting the virus by between 4% and 6%. Consequently, the authorities of many countries have been forced to minimize its use and consider developing sustainable ventures in this sector.
In addition to criticism of pollution and long travel times, traditional forms of transport add to the effects of the pandemic. The promotion of the development of sustainable proposals that generate less environmental impact and respond to the social needs and economic progress of the regions - such as the promotion of hybrid and electric vehicles and the use of shared vehicle platforms - will continue to grow. Also, the establishment of public policies that favor the use of electric or hybrid urban transport, the creation of bicycle routes and the use of ecological transportation, as occurs in Barcelona.
However, the crisis and the risks of contagion force us to rethink the need for displacement itself. Quarantine measures have accelerated the development of teleworking and distance education. This situation, observed by Innova Institute de La Salle-URL, can be kept in PostCovid-19. The sustainable urban transport plans that are developed must include measures to make the city denser and to reduce the frequency and distance of commuting.
3. Circular economy
Last Monday, amid the coronavirus crisis, the European Commission published the Action Plan for the Circular Economy. Proposed policies include increased product durability, the right to repair electronic devices, reduced use of plastics and, among others, more accurate eco-labeling. Following this path, the Innova Institute predicts that undertaking on issues related to the circular economy is a good opportunity for the PostCovid-19 scenario.
4. Integrated and efficient water management
Water scarcity already affects globally. What was once a problem for developing countries is now also a problem for developed countries. Water is not an infinite resource, but it is used as if it were. For this reason, the need for comprehensive water treatment has been evident throughout its generation, use and recovery cycle. Despite everything, in 2030 there will still be 60% of the countries in the world that will not carry out this necessary comprehensive treatment system.
As with the COVID-19 and other global challenges, it all starts with local action with a focus on global sustainability. In PostCovid-19, three aspects will help understand local action on water: social learning for a change of mind, technological innovation and business models associated with water management. The Agbar Water Museum, the VIDA project of the Water Alliance, the Canal Clima project in Colombia or the Israeli invention of Water-Gen are some of the examples in entrepreneurship around water. Classic monopolies are transformed into business models based on platforms that allow all stakeholders to participate in a quadruple helix perspective and that integrate users, entrepreneurs or startups. An example of this is the Safewater business project and also Manila Water.
5. Logistics and supply chain
The companies that have provided a fast, safe and reliable service during COVID-19, and are also committed to sustainability, are those that will be strengthened after the pandemic and will generate confidence in customers in the PostCovid-19 era. These companies focus on innovation and quality, acting locally, but under collaborative logistics management models with other companies in the network. Thus, they meet the needs of small batches, with fast service and ensuring quality and traceability in the process.
An example of all this is the Palibex company, which uses new technologies, clean operation with zero smoke emissions in its facilities and makes use of electrical equipment. With a social commitment to bring art to the streets, Truck Art Project exhibits works of art on the road in some of its trucks. Another example is the startup Cargobici, which rents and sells industrial electric cargo bikes as an ecological and sustainable means of transport for the distribution and delivery of goods in urban areas. In addition, it participates in Barcelona project with the objective of developing sustainable microcims —integral centers for small-sized goods—.
6. Fashion, the second most polluting industry
The coronavirus has caused a huge widespread halt in the fashion industry, either by closing stores or factories to protect its workers, by voluntarily turning to the production of garments for medical use, or because its production depended largely on China or Italy. Fashion produces more than 10% of total CO² emissions on the planet and is the second most consuming water industry. Plastics have replaced natural fibers, and polyester is used in 60% of production, generating two to three times more carbon than cotton without degrading in the ocean. Greenpeace indicates that washing clothes throw the equivalent of 50 billion microfiber fragments into the sea.
Aware of all this, the industry begins to promote another way of making fashion. Although changing materials is an optimal option, it is nevertheless insufficient. Since 1991, the People Tree company has invested in sustainable practices in its supply chain: planting organic fibers, fair manufacturing practices, and design considerations so that its brand becomes, until now, the only one accredited by the World Organization Fair Trade (WFTO). The pressure of sustainable consumption makes that even large fast-fashion companies, such as H&M, have reinforced their interest in a sustainable fashion. In this way, H&M Conscious offers garments made of organic cotton and recycled polyester and aims for the exclusive use of sustainable materials by 2030.
7. Packaging: replacing petroleum derivatives
The Ellena MacArthur Foundation points out in a study that 40% of plastic packaging ends up in landfills, a third in the ocean and only 14% is recycled. This draws a critical scenario. Therefore, the search for substitution from plastics to biopolymers and the implementation of 100% functional strategies for recycling is a must for the industry. The startup Oimo, located in La Salle Technova, the La Salle-URL innovation park, is dedicated to the design of new ecological materials in Spain and the United Kingdom. With the intention of reducing the 14 million tons of plastic that end up in the ocean, the initiative has developed a water-soluble material as an alternative to plastic packaging. In this sense, the Innova Institute believes that sustainable entrepreneurship in alternative packaging to plastic will be reinforced in PostCovid-19.
8. Energy efficiency
The COVID-19 crisis has revealed that transformative changes are possible overnight. In terms of energy, it is demonstrated that there is no reason not to phase out fossil fuels and deploy renewable energy and energy efficiency technologies. It is in line with this concept that the European Union has developed a series of proposals to lead the economy towards energy savings.
Thus, measures are being taken on heating and cooling, starting with new high-performance boilers and the effective installation or modernization of district heating or cooling systems. Also, on insulation and ventilation, generating insulation systems for the air or roof chamber, double or triple glazed windows, and passive heating and cooling, among others. In relation to hot water, new devices for direct and efficient use are being installed for heating rooms and washing machines. On aspects related to lighting, new inexpensive fluorescent bulbs and lamps, digital control systems and the use of motion detectors for lighting systems are being developed. Likewise, the installation of new efficient devices and heat recovery systems in kitchens is being promoted. Finally, the generation of renewable energy sources for domestic use will be reinforced with solar thermal installations, sanitary hot water, heating and cooling using solar energy.
9. Telecommunications
During the confinement of the COVID-19, the traffic on online platforms that allow the organization of meetings, the development of virtual classes and the establishment of communications and conversations has increased considerably. Some were already known —such as Zoom, Hangout, and Whereby— and others have taken the opportunity to make themselves known or to implement complimentary services.
The use of these platforms raises an interesting debate about how effective and sustainable the working modalities that we use on a daily basis are. Are frequent work trips involving the use of a car, train or plane really necessary? The new habits, observes the Innova Institute de La Salle-URL, will open new business opportunities for all these communication and meeting platforms, so that they are more dynamic, have better features and improve their connectivity.
10. The built space
The COVID-19 has promoted the development of teleworking but has also shown that this option has minimal conditions for its development. Previous experience allows us to recognize the collaborative economy models associated with these proposals as shared offices, shared garages and cowork places. The strength of these movements has led communication companies such as ETB, Movistar, and Mapfre Seguros to present coworking spaces to their users. However, minimum conditions must be ensured to optimize results, both the separation of environments between family and work, facilitating innovation when interacting with companies in the same sector, the transfer of knowledge or when creating alliances and complements when spaces are given with companies from different sectors.
Viviendea, a startup that participates in the Barcelona Meeting Point acceleration program organized by La Salle Technova, has created a platform that brings together people looking for a new construction home to create their dream home and form user groups with the same preferences. When the number of users is sufficient to launch a promotion, they themselves contact architects, developers or real estate agents capable of making it happen. Thus, according to the Innova Institute, the built space is the tenth sector that will experience growth in sustainable entrepreneurship in the PostCovid-19 era. Society has seen that the 'use and throw away' has definitely come to an end, and it is time to look for sustainable solutions to succeed when the pandemic passes.