Couverture de #21A - No Green Premium – Sustainability Needs Innovation to Win Customers (Part 2)

#21A - No Green Premium – Sustainability Needs Innovation to Win Customers (Part 2)

#21A - No Green Premium – Sustainability Needs Innovation to Win Customers (Part 2)

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 {PART 2} A conversation with IMD professors Frédéric Dalsace and Goutam Challagalla on “no green premium” and the shift from sustainability compliance as a right to play toward innovation as a right to win. Real-world business cases and insights from their HBR-published book Clean Winners, launched in Davos during 2026 World Economic Forum week. Part 1 focussed on compliance related benefits, Part 2 talks about Sustainability 2.0. The central idea behind Clean Winners is that sustainability becomes a competitive advantage only when it drives innovation, guides resource allocation, and creates new value for the customer. As long as it is treated mainly as a compliance and reporting exercise, it remains a cost of doing business — necessary, but not differentiating. Most companies begin with “right to play”: reporting, risk reduction, and reputation. The next step is efficiency — saving energy, reducing materials, improving processes. But real strategic impact starts when sustainability becomes a growth platform. That is the moment when companies understand how customer needs are changing and develop new solutions and business models in response. This shifts the key management question. It is no longer “How do we become compliant?” but “Where do we invest our scarce resources so that sustainability creates future growth?” The real opportunity is close to the customer: understanding how their processes are transforming and what new capabilities they will need. That is why the principle is to start from the customer, not from the footprint. Measuring and optimising internally is essential, but differentiation comes from helping customers succeed in their own transformation. For companies working with CSRD, the implication is clear. Sustainability creates value only when it is embedded in the core processes of the business — in strategy, innovation, marketing and sales, purchasing, manufacturing and delivery, the after-market, and capital allocation. If it is managed as a parallel reporting stream, it stays compliance. If it is integrated, it becomes a driver of innovation, growth, and resilience. The real risk is to consume sustainability in a purely compliance logic. That generates a lot of activity, but little strategic effect. The leadership challenge is to meet the regulatory requirements while preserving the resources and the focus needed to turn sustainability into future value creation.
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