E-commerce is increasing faster than ever, which brings with it a number of sustainability challenges but also opportunities, for the whole of society. In order to reach the global goals, there is no doubt that we need to develop e-commerce into a sustainable system. We know that innovation and knowledge development are crucial to tackling this complex societal challenge.
The retail sector is undergoing a thorough system change, with increased e-commerce being the main engine of the change. The development of e-commerce has led to an increased availability of goods and services within and outside metropolitan areas, where digital commerce is the key and creates new opportunities for a number of actors. E-commerce has also been a door opener for a larger second-hand market and enabled the introduction of circular services. Overall, the development of e-commerce has led to a large increase in deliveries of smaller packages and goods, fragmented transport flows and the emergence of new actors and supply chains. Which leads to the development of e-commerce having a number of challenges and opportunities with regard to the environment, people and the economy.
Sometimes e-commerce can therefore be described as a necessary evil in the social debate. An example is the discussion around returns, increased amount of packaging material and packaging, as well as dying city centers and the reduction of physical stores.
Vinnova finances Plattformen ASTER - Alliance for sustainable e-commerce, which brings together organizations from society, business and academia to ensure that trade in Sweden is efficient, competitive and sustainable. ASTER is run jointly by Lund University and Lindholmen Science Park. In order to effectively bring about sweeping system changes, there is a clear need to gather strength around several different perspectives in e-commerce and supplement this effort with an open the call for proposals. This is the second the call for proposals that is carried out on the theme of climate-neutral e-commerce, and you can read more about previous call for proposals here: Climate-neutral e-commerce
With this the call for proposals we want to contribute to trade reducing its total environmental impact and making it more resource efficient, as well as creating conditions in the physical environment for sustainable trade. Based on this background, a number of key areas in the transition to sustainable e-commerce have been selected.
These areas of innovation are as follows:
- Sustainable packaging solutions and packaging systems
- Sustainable return systems
- Sustainable delivery locations of the future
Sustainable packaging solutions and packaging systems
Sustainable packaging initiatives can provide significant funding for carbon dioxide reduction throughout the e-commerce chain. Packaging initiatives can take into account transport and consumer packaging and should be assessed for its total impact throughout the e-commerce chain based on material utilization, transport efficiency, product waste, customer experience and recycling. In this area, it is particularly interesting with methods and processes that can contribute to reduced (or completely avoid unnecessary) packaging waste, increased volume efficiency, and circular packaging flows.
Sustainable return systems
The possibility of being able to return is a legal requirement for e-commerce and creates basic security for consumers. E-merchants have long seen returns as an important part of their offer but which are usually associated with high costs. In the transition to circular trade, the return system is an essential key component in e-commerce in order to make the best use of both new and reused products in order to increase resource utilization. Today's systems are inefficient and limited, which highlights the need to improve the handling of returns and ensure a more sustainable returns management system.
The sustainable delivery location of the future
The place of delivery constitutes how and where e-sold goods and services meet the customer and has a significant impact on e-commerce's total environmental impact. The growth in e-commerce in terms of e.g. product range and consumer groups means that the delivery locations of the future must be developed and explored from several different aspects, for example in terms of function, design and location. In this there are challenges to optimize the delivery locations based on the customer's needs, but also take into account the city's conditions and minimization of unnecessary transportation, and not least to streamline the flows in the delivery chain to and from the delivery locations.
System innovation
The projects must clearly demonstrate the potential in creating system change that contributes to a sustainable transition in line with the global sustainability goals and contributes to a climate-neutral e-commerce. In order to reduce the climate impact of e-commerce, innovation is required based on a system perspective, so-called system innovation.
The projects should consider at least three of the five dimensions of system innovation described below:
- Technology, products and processes – can for example be about various technical aspects that need to be developed to enable innovation or processes that need to be improved.
- Business models, investments and procurement - can for example be about blockages in procurement processes, development of business models or increased need for cooperation between different actors.
- Policy and regulations - can for example be about identifying legal obstacles or the need to change policies at various public actors.
- Behaviour, culture and values – can for example be about behaviors or cultural aspects that make the implementation of the innovation difficult.
- Infrastructure - can be about, for example, physical or digital infrastructure that needs to be developed to enable innovation.
These dimensions must be used to identify obstacles and shortcomings and to create an understanding of what can hinder the implementation of the innovation.
Focus on climate and gender equality in all our investments
Vinnova is tasked with promoting sustainable growth and community development. Genom Agenda 2030, the countries of the world have agreed on a global agreement and understanding of what characterizes sustainable development. Through our efforts, we contribute to the global commitment to reach the goals.
In Inom Agenda 2030, Vinnova has particularly singled out climate and gender equality as two central sustainability perspectives to which our funded investments should contribute positively. Project financed by Vinnova are therefore expected to take special account of the climate and gender equality aspects.
One aspect that Vinnova follows up on and assesses is whether both women and men equally share in the contribution, participate in and have influence over the project.
Another aspect involves analyzing and deciding whether there are gender aspects that are relevant to the project's problem area, solutions and utilization. In this the call for proposals that aspect is also assessed.
Our work to contribute to the goals of Agenda 2030
Equal innovation - what it means for you who seek funding from us