For many businesses, sustainability is becoming part of their everyday decision-making. It can affect the materials a company uses, how it runs its operations, what happens to products at the end of their life, and even how it responds to changing regulations. That shift is pushing companies to look beyond simply reducing waste or cutting emissions and find new ways to build sustainability into their products, processes, and business models.

That can mean changing a production process, rethinking a supply chain, designing products to last longer, or using digital tools to track their environmental impact. Here are some of the key ways sustainable innovation is changing modern industry.

The Imperative for Green Innovation

Sustainable innovation means creating new products, services, and processes that offer environmental and social benefits alongside economic ones. It’s about rethinking how things are made, used, and disposed of to reduce negative impacts. This could involve developing new biodegradable materials, designing products that use less energy, or creating business models that prioritise reuse over disposal. The push toward eco-friendly business practices stems from real-world pressures such as resource scarcity, climate change, and changing consumer expectations. Companies that embrace this shift can build stronger brands, attract top talent, and discover new market opportunities.

Meeting New Environmental Standards

Governments and international bodies are introducing stricter environmental regulations to speed up the transition to a greener economy. These rules require transparency and accountability throughout the supply chain. For example, industries now face stringent new rules covering everything from carbon emissions to product lifecycle management. A clear example is the introduction of digital product passports. For certain sectors, such as the battery industry, new EU regulations require detailed information on a product’s origin, composition, and environmental impact to be digitally accessible. Understanding the specific battery passport requirements is now essential for manufacturers and distributors operating in this space. Compliance isn’t optional, and innovation can help businesses adapt to these requirements.

Innovation Beyond Products

While green products get a lot of attention, sustainable innovation goes much deeper, especially as the EU works to boost green industry. It involves re-evaluating entire operational systems. This can include:

• Process Innovation: Optimising manufacturing to reduce waste, water usage, and energy consumption. For instance, a factory might install a closed-loop water system that recycles and reuses water, significantly cutting its environmental footprint.
• Supply Chain Innovation: Working with suppliers that share a commitment to sustainability and using logistics that minimise transport emissions. This creates a more resilient and responsible value chain from start to finish.
• Business Model Innovation: Shifting from selling products to offering services. A company might lease and maintain equipment, taking responsibility for its end-of-life recycling. This can encourage the design of more durable and repairable goods.

Investing in Future-Proof Solutions

Adopting sustainable practices is an investment in a company’s future. Businesses that ignore environmental, social, and governance (ESG) factors face growing risks, including regulatory penalties, reputational damage, and loss of market share. Those that invest in sustainability can strengthen their position as environmental expectations continue to change. A strong environmental record can enhance brand loyalty and make a company more attractive to investors who use ESG criteria to guide their decisions. Sustainable innovation matters for long-term resilience because it helps businesses adapt to finite resources and increasing environmental scrutiny.

The Role of Digital Transformation

Digital technology is a powerful tool for sustainable innovation. The Internet of Things (IoT), artificial intelligence (AI), and data analytics provide the tools needed to monitor, measure, and optimise environmental performance with increasing precision. For example, IoT sensors can track energy consumption in real time, allowing companies to identify and eliminate inefficiencies. AI algorithms can analyse complex supply chain data to find more carbon-efficient logistics routes. Digital platforms also enable transparency, as seen with product passports that provide consumers and regulators with verifiable data about a product’s lifecycle. This blend of digital and sustainability goals is creating new possibilities for modern industry, bringing profitability and environmental responsibility closer together.

Sustainable innovation can give businesses new ways to solve problems and respond to changing expectations. It challenges companies to think differently and develop solutions that serve customers, shareholders, and the environment. As sustainability becomes a bigger part of how industries operate, innovation will continue to shape how businesses adapt.

Some familiar biscuit packets are losing their plastic trays as part of a packaging overhaul expected to remove around 2,200 tonnes of virgin plastic a year across Europe.

Mondelēz International, the company behind Cadbury, Oreo and several other major snack brands, has replaced rigid PET plastic trays with paper alternatives across more than 115 cookie and biscuit products sold in over 25 European markets.

For UK shoppers, the change includes Cadbury Crunchy Melts, Cadbury Chocolate Chip Cookies and LU Petit Cookies. The trays are made from FSC-certified paper, although the products will still retain other packaging, including their outer wrappers.

The company estimates the switch will cut the amount of virgin plastic used in the affected packaging by around 80% compared with the previous combination of plastic trays and outer wrapping. That calculation is based on projected production volumes for the 2026 financial year.

More than 115 products are getting new trays

The change stretches well beyond the UK. Products sold under LU, Milka, Granola, Cadbury, Marabou, Chips Ahoy!, Lacta and Freia are included, covering markets such as France, Germany, Spain, Poland and Ireland as well as the Nordic countries.

Together, the affected lines account for roughly 28,000 tonnes of biscuits and cookies produced annually, according to Mondelēz.

This isn’t the company’s first attempt to reduce the amount of virgin plastic in its packaging. Some trays used for brands including Oreo, Cadbury, Milka and Chips Ahoy! already contain around 80% recycled PET, while Cadbury trialled paper Heroes tubs in the UK in 2025.

Food companies face growing pressure over plastic use

The move comes as manufacturers face both consumer and regulatory pressure to reduce their reliance on new plastic.

In the UK, the Plastic Packaging Tax applies to plastic packaging containing less than 30% recycled plastic. Since April 2026, the charge has been £228.82 per tonne, giving manufacturers a direct financial incentive to increase recycled content or move away from plastic altogether.

Recent HMRC figures show the scale of the issue. Of the plastic packaging manufactured or imported into the UK in 2025/26, 37% was declared taxable, while 51% met the threshold of containing at least 30% recycled material. The tax raised £250 million during the financial year.

The European Sustainable Energy Week (EUSEW) 2026 opens in Brussels this morning, marking the start of the event’s landmark 20th edition. Policymakers, industry leaders, researchers, innovators and civil society groups are converging on the Belgian capital for three days of debate, with a programme built around the theme “A clean, secure and competitive Energy Union”. More than 50 policy sessions, an Energy Fair and the annual EUSEW Awards are among the highlights of this year’s event, which will run until 11 June.

Milestone 20th Edition Focused on Europe’s Energy Future

EUSEW 2026 marks two decades of Europe’s flagship clean‑energy event. Since its inception, the week has grown into the continent’s largest annual gathering dedicated to renewables and energy efficiency. This year’s edition is hybrid, taking place both in Brussels and online, with sessions hosted at the European Commission’s Charlemagne building and the NH Brussels EU Berlaymont hotel.

The opening day features a panel bringing together former European Commissioners Andris Piebalgs, Günther Oettinger, Miguel Arias Cañete and Kadri Simson, alongside the current Commissioner for Energy, Dan Jørgensen. And over the coming days, themes such as energy efficiency, affordability and decarbonisation are set to ignite discussions.

Key Speakers and Programme Highlights

2026’s programme brings together a wide range of speakers shaping Europe’s clean‑energy transition. Alongside the Commissioners’ panel and keynote contributions from senior EU policymakers and leading industry voices, the agenda also features specialised debates. One of the 20 panels scheduled for the second day will examine how AI‑powered grids can secure Europe’s energy future. The momentum continues on Thursday, 11 June, when another full day of 20 panels will tackle some of the week’s most technical questions, including a session on how fair electricity taxation can support SMEs as they navigate the energy transition.

The EUSEW Awards Ceremony takes place on 9 June at 10:00 CET, celebrating outstanding achievements in three categories: Local Energy Action, Women in Energy and SMEs Driving Energy Efficiency. These awards recognise individuals and organisations driving meaningful progress in energy efficiency and renewable technologies.

A Europe‑Wide Celebration of Clean Energy

Although the main conference runs from 9 to 11 June, EUSEW extends far beyond Brussels. Sustainable Energy Days, held between March and June, bring the clean‑energy conversation to communities across Europe and beyond. These locally organised events allow citizens, businesses and public bodies to engage directly with the energy transition, making EUSEW a truly continent‑wide initiative.

The 2026 edition also marks the start of the mandate for the new cohort of 30 Young Energy Ambassadors, selected from across Europe to represent the next generation of clean‑energy leaders. Their involvement underscores the EU’s commitment to ensuring that young professionals play an active role in shaping the future of the energy transition.