Companies, governments and people are paying more attention to the sustainability impact of individual products and broader solutions. As scrutiny increases, the industry is relying on standardized measurement tools such as lifecycle assessment and product carbon footprint to assess and improve the sustainability performance of those products and solutions. However, methods to assess the sustainability impact of a company’s entire portfolio are still limited.
The adoption of multiple evaluation criteria, methodologies and benchmarks can cause confusion among customers and external stakeholders and lead to competition on methodology instead of performance. Companies need a common framework to evaluate their product portfolios internally, so that they can understand the embedded risks and opportunities and steer product innovation decisions towards sustainability.
Business case will be outlined in the framework draft, scheduled for publication later this year.
Our Product Portfolio Steering Framework project seeks to address these challenges through the development of a common framework. We aim to reach a common definition of what is considered “sustainable” within product portfolios; reduce the complexity in the market by developing a set of baseline criteria that are consistent across approaches; and create more confidence and comparability in the information communicated to customers and stakeholders. The framework will find a balance between consistency and flexibility, enabling companies to have their own detailed methodologies.