Green Technology for OEM/ODM will need Sustainable Investment

Technology that addresses the increasing concerns on environment, reduces fossil fuels and demonstrates less damage to the human, animal, and plant health are loosely termed as green technology.

In the current business scenario when one of the primary focus of all companies is developing a sustainable business that is least environment disruptive, reduces the amount of waste and pollution that are created during production and consumption, it is pertinent that the use and demand for Green technologies are on a rise.

The demand of sustainable technology is such that, worldwide, green technology investments reached $755 billion in 2021, a sharp rise from the previous year, according to research by BloombergNEF.

The sectors that saw maximum investments in lieu of green technology are energy (alternate energy sector) and transportation (electric vehicle), followed by significant focus also on developing sustainable materials, carbon capture, and energy storage, although these figures were dwarfed by the investment in energy and transportation.

However, like all investments, in the face of covid challenge and increasing financial pressure during the economic downturn in recent years, Green technology is also facing the challenge of investments and financing. More so because green investments have become a case of business survival as compared to sustainable business line.

Original Equipment Manufacturers (OEM) and Original Design Manufacturers (ODM) mostly led small and medium businesses are facing the brunt of limited investments.

As design, product specifications and demand for customized products increase with digital adaptions, the requirement for OEM & ODM line of products, research and development, integration of green features is also equally important.

However, to maintain the line of research and product offerings, it will need structured investment commitments. Managing green innovation investment in a Co-opetitive supply chain under capital constraint is a challenge of modern day and government together with private manufacturers need to create dedicated financial instruments to get over the roadblock and attract green technology innovators (GTIs), who are committed in making the world a better place.

The challenge of investing in green technology is twofold– while the objective of the investor is to increase personal wealth, and to make the world a better place through socially responsible investing. While this is a challenging task, there are enough opportunities today that are rewarding enough to protect the investor’s portfolio and the environment together.