Building Sustainability into Your Product Innovation Process
Dr. Robert G. Cooper
kHub Post Date: January 21, 2025
Read Time: 10 Minutes
Introduction
The pursuit of sustainability offers organizations both opportunities and challenges in new product development (NPD). Sustainability can drive competitive advantage and spur innovation1, 2. However, achieving sustainability often involves navigating complex regulations, technical challenges, and customer preferences.
Artistic view of Eco-Stage-Gate: Created by R. Cooper© with help from ChatGPT
As a result, many companies are revising their NPD processes to effectively embed sustainability principles. Despite the growing emphasis, comprehensive frameworks for sustainable product creation remain limited.1
One promising development is the Eco-Stage-Gate model, a sustainability-focused adaptation of the Stage-Gate® NPD process. Stage-Gate, used by approximately 54% of firms globally3, is a structured, stage-based framework that guides NP project from ideation through commercialization—see Figure 14.
Figure 1: A standard Stage-Gate process for larger, higher risk new product projects
Key Features of Eco-Stage-Gate
Unlike traditional approaches, which often address sustainability considerations midstream, Eco-Stage-Gate integrates environmental goals, tools, and criteria from the outset, filling a critical gap5. Eco-Stage-Gate incorporates:
- Eco-design tools: Tailored methodologies for sustainable design embedded into each stage.5
- Lifecycle thinking: Holistic evaluation of the product’s lifecycle, from raw material extraction to end-of-life disposal or recycling.6, 6
- Supply chain integration: Close collaboration with supply chain partners to ensure sustainable sourcing and manufacturing.1
- Environmental screening: Criteria at every gate to assess the product’s sustainability and environmental impact.7
- Cross-functional collaboration: Engagement of diverse teams, including sustainability experts, designers, engineers, and marketers.6
Sustainability in the Front-End of Innovation
Leading organizations deliberately embed sustainability tasks into every stage of the NPD process, from ideation to post-launch. These tasks are in addition to the usual Stage-Gate tasks such as market, technical, and financial analyses.
Idea Generation: To effectively seek robust NP ideas that address sustainability, the business should conduct a strategic analysis to evaluate sustainability trends, needs, and regulatory requirements, and also perform a technological assessment to identify emerging, novel, or disruptive eco-technologies. Open innovation platforms and internal idea submission systems that solicit sustainable ideas further promote the submission of sustainability-focused ideas. Questions to address here are in Figure 2.
At Gate 1, ideas are screened based on ecological benefits, market demand for green products, cost implications, and customer value. Clear, well-communicated criteria guide both internal and external stakeholders.
Figure 2: Key sustainability questions to address at each stage of the Eco-Stage-Gate process, starting at the front-end
Stage 1—Concept: Besides the usual preliminary market, technical, and business assessments required in Stage 1, conducting an environmental assessment is also essential.
Establishing clear sustainability goals and targets for the product and project ensures alignment with broader environmental objectives. Additionally, identifying eco-risks related to product design, materials, and manufacturing helps mitigate potential issues early in the process. See Figure 2 for key questions to address.
Stage 2—Build Business Case: When conducting feasibility studies, integrate green criteria by focusing on eco-friendly materials, energy-efficient manufacturing processes, and supply chain sustainability. Establish a detailed baseline of environmental impact across the product’s life cycle by performing a preliminary Life Cycle Assessment (LCA as outlined in Table 1).7
Evaluate competitors’ efforts in sustainable design to gain insights and identify benchmarks. Reviewing the sustainability practices and performance of potential suppliers ensures alignment with your goals. Incorporate sustainability metrics directly into the feasibility analysis to guide decision-making.
Also, ensure compliance with environmental regulations and explore opportunities for eco-certification. Lastly, conduct an eco-cost-benefit analysis to weigh the benefits of using sustainable materials or adopting energy-efficient production methods. See Figure 2 for questions to address.
The Back End of the NPD Process
Stage 3—Development: To effectively integrate sustainability into development, embed detailed eco-design principles and environmental criteria directly into product specifications (outlined in Table 1). Incorporate Design for Environment (DfE) practices, focusing on recyclability, thoughtful material selection, and minimizing energy consumption throughout the product lifecycle.8
Table 1: Common Eco-methods & Tools Used in Eco-Stage-Gate

Leverage specialized eco-design tools and methods in Table 1 to guide decision-making. Collaborate with key stakeholders—suppliers, sustainability experts, and academics—to ensure access to the latest insights and innovations. Prioritize materials with a lower environmental impact and adopt eco-friendly manufacturing processes that enhance energy and resource efficiency while reducing emissions and waste.
Figure 3: Key sustainability questions to address in the back-end stages of Eco-Stage-Gate process
Additionally, design products with disassembly and recyclability in mind, enabling easy breakdown at the end of life and facilitating the reuse or recycling of components. Finally, undertake a comprehensive LCA to thoroughly evaluate environmental impacts—a detailed evaluation of the product’s environmental footprint, from raw material extraction to its end-of-life disposal (Table 1).8 Address questions in Figure 3.
Stage 4—Testing & Validation: Environmental performance testing is essential for evaluating prototypes’ performance and environmental impact. Conduct real-world tests, such as in-use evaluations and field trials, to assess environmental performance in practical conditions. Collect data and feedback on sustainability features and overall performance to refine your product.
Additionally, pursue third-party sustainability certifications, like Energy Star or Cradle to Cradle10, to validate your eco-friendly claims and enhance market appeal. These steps not only strengthen your product’s credibility but also align with growing consumer demand for sustainable solutions.
Stage 5—Launch: Green marketing strategies focus on communicating your product’s eco-friendly features through effective marketing communications. Use sustainable, eco-friendly packaging and materials to reinforce your commitment to sustainability.
Additionally, optimize distribution and transportation processes to ensure they align with sustainable practices. Finally, plan for the product’s end-of-life by providing options for disposal and recycling. These strategies not only demonstrate environmental responsibility but also resonate with consumers who prioritize sustainability. See Figure 3 for key questions in Stage 5, Launch.
Post-launch: Conduct an environmental impact assessment, comparing the actual environmental impact of the product against expectations or targets. Use the lessons learned from this evaluation to drive continuous improvement in eco-design processes.
Additionally, tracking the product’s environmental impact over time provides valuable insights to refine and enhance future product iterations, ensuring ongoing alignment with sustainability goals.
Making Smarter Go/No-Go Decisions on Green Projects
Deciding whether to invest in a specific green project with significant costs and many uncertainties can be daunting. Like any NP initiative, these projects are investments, and managing a NP portfolio effectively requires a structured approach akin to managing a financial portfolio of stocks and bonds.
Unfortunately, without a robust project selection framework, many management teams default to gut feel and intuition. While intuition can be valuable—especially for professionals like doctors who hone it through repeated exposure to similar challenges—it has its limits.11
Nobel laureate Daniel Kahneman’s research highlights that “in unfamiliar circumstances, a decision-maker’s intuition [System 1 thinking] can be misled surprisingly easily… Intuition must be supplemented with as much of a logical structure as possible.”12
This need for an improved go/no-go decision structure is underscored by the fact that roughly 70% of NPD project approval decisions result in unsuccessful outcomes.5, 13
A Structured Approach to Green Project Selection: Eco-Stage-Gate employs a systematic method for making go/no-go decisions by using a scoring model approach. NP scorecards provide a framework to promote rational, deliberate, System 2 thinking, which is essential for evaluating complex projects14.
Our VBS (Value-Based Scorecard) helps senior decision-makers assess NPD projects based on strategic alignment, business value, and sustainability.15 This green scorecard is designed specifically to foster eco-product developments.
Three main factors—S-R-W—determine the value of a NP project to your business (see Figure 4):
- Strategic Fit: Alignment with the business’s innovation strategy and its sustainability mission.
- Reward vs. Risk: The potential payoff if the project succeeds commercially (versus the downside costs).
- Likelihood of winning: The probability of success, that is, achieving the target outcome.
Figure 4: “Project Value” Depends on Three Main Factors, S-R-W, Strategic & Mission Importance, Reward vs. Risk, and Likelihood of Winning15
These three factors are combined to yield a Project Score that gauges project value, ensuring that weaknesses in one area (e.g., sustainability) cannot be masked by strengths in the other two. For a project to advance, it must demonstrate value, hence strength across all three dimensions.15
Each of the three factors in Figure 4 is determined by management gatekeepers who score the project on 12 evaluation questions, shown in the VBS Scorecard in Table 2.
Estimating the likelihood of winning is the toughest question due to many uncertainties and unknowns coupled with high NP failure rates. Six questions capture this winning dimension in Table 2. These questions and their weights have been derived from statistical research into why new products succeed or fail, including sustainability projects.15
The other six questions in Table 2 capture the NP’s importance to the business’ strategy and mission and also gauge financial payoffs versus risks. These six questions are company-specific and involve potential tradeoffs—for example between sustainability and profit—and their relative weights are decided in advance by senior management.
Table 2: The VBS "Green" Scorecard for Rating the NP Project's Value to the Business Gates15

The Process Is as Vital as the Score: The process followed by decision-makers or gatekeepers at the gate meeting is just as critical as the Project Score itself in making the go/no-go investment decision. By leveraging a structured approach—such as using this VBS Scorecard, scoring projects independently, reviewing results collectively on a large screen, and openly discussing differing perspectives—gatekeepers shift toward a more rational, thoughtful decision-making process (System 2).
This VBS method also leverages the proven principle that group-level decisions are more accurate than individual ones, minimizing biases and blind spots inherent in single-person judgment.16 That is, two heads really are better than one: The average decision-maker is optimal, but the likelihood of any one manager being that “average person” is zero. The VBS integrates the data to create that optimal average evaluator.
This structured approach has a proven track record. Some NP scorecards have achieved up to 80% “correct decisions”, a nearly threefold improvement over more common management intuition-driven methods.17 Adopting such processes ensures better outcomes and greater alignment with organizational goals.
A Warning: Be cautious of “greenwashing” where a project team becomes overzealous about seeking project approval, and thus exaggerates the sustainability claims of their project.
Implementation Considerations
To adopt Eco-Stage-Gate effectively, your business should consider:
- Cross-functional collaboration, deploying diverse teams to bring sustainability expertise into every stage.
- Early integration, addressing sustainability from the outset.
- Specialized tools—eco-design methods and advanced software, such as AI-driven LCAs, to streamline evaluations.
- Supplier partnerships to ensure sustainable sourcing and practices throughout the supply chain.
- Customer focus, aligning the product’s design with customer values around sustainability.
- Continuous improvement, using insights from the post-launch review to refine processes.
The Benefits of Eco-NPD
Integrating eco-friendly practices into NPD delivers strategic advantages for your business. It ensures compliance with environmental regulations, avoiding fines and legal issues. Beyond compliance, eco-NPD drives long-term cost savings by cutting waste, energy use, and material costs. It also positions your company to capitalize on the rising demand for sustainable products, creating a powerful market differentiator. Proactively managing environmental risks reduces liabilities, while many countries offer tax breaks, credits, and subsidies for sustainable initiatives.19 Adopting eco-NPD isn’t just responsible—it’s a smart, competitive move.
Acknowledgements:
The author thanks the following who contributed their knowledge and expertise as inputs to this article: Siobhán Hennessy, Head of Experience Design, Insight & Innovation at Musgrave Group, Ireland; Dr. Anita Sommer, Head of Sustainable Operations (former) at the LEGO Group, Denmark; and Benoit Poulin, Directeur Général, Institut de Développement de Produits, Canada.
About the Author
Dr. Robert Cooper, Professor Emeritus, McMaster University, Canada ISBM Distinguished Research Fellow at Penn State University A world expert in the field of management of new-product development and product innovation, Dr. Cooper has written 10 books on the topic and more than 170 articles. Bob is the creator of the globally-employed Stage-Gate (trademarked) process used to drive new products to market; a Fellow of the Product Development & Management Association; ISBM Distinguished Research Fellow at Penn State University. He is a noted consultant and advisor to Fortune 500 firms, and also gives public and in-house seminars globally.
LinkedIn: Dr. Robert G. Cooper
Website: www.bobcooper.ca
References
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DOI: 10.3390/su12083450
[2] Joanine F. Urnau and Osiris C. Junio. “Discussion of New Product Development Process Sustainability Based on the Supply Chain in the Context of Industry 4.0,” in: Walter L. Filho, Ubiratã Tortato, and Fernanda Frankenberger (eds). Integrating Social Responsibility and Sustainable Development (2021): 161–174. Switzerland: Springer International. DOI: 10.1007/978-3-030-59975-1
[3] Mette P. Knudsen, Max von Pedowitz, Abbie Griffin, and Gloria Barczak. “Best Practices in New Product Development and Innovation: Results from PDMA’s 2021 Global Survey,” Journal of Product Innovation Management 40, (2023): 257–275. DOI: 10.1111/jpim.12663.
[4] Robert G. Cooper, 2022. “The 5th Generation Stage-Gate Idea-to-Launch Process,” IEEE Engineering Management Review 50(4), (2022): 43–55. DOI: 10.1109/EMR.2022.3222937
[5] Daniel Jugend, Marco A.P. Pinheiro, João V.R. Luiz, Angelo V. Junior, and Paulo A. Cauchick-Miguel. “Achieving Environmental Sustainability With Eco-design Practices and Tools for New Product Development,” in: Charis M. Galanakis, (ed). Innovation Strategies in Environmental Science, Ch. 6. (2020): Elsevier. DOI: 10.1016/B978-0-12-817382-4.00006-X
[6] Debbie Kalish, Susan Burek, Amy Costello, Lawrence Schwartz, and John Taylor. “Integrating Sustainability into New Product Development,” Research-Technology Management 61(2), (2018): 37–46. DOI: 10.1080/08956308.2018.1421379
[7] Science Direct. Life Cycle Assessment (a collection of 9 articles), (2024). Link: Life Cycle Assessment - an overview | ScienceDirect Topics
[8] For DfE practices, see: GDRG (The Global Development Research Center). Guidelines for the Design for Environment, (2024) Link: Guidelines for the Design for Environment (DfE). Also see: EPA (United States Environmental Protection Agency). “Sustainable Materials Management Tools,” EPA, (2024). Link: Sustainable Materials Management Tools | US EPA
[9] For eco methods, see Table 1. Also see: Santan Kumar Chaurasiya and Gurraj Singh. “Exploring Sustainable Manufacturing: A Comprehensive Review of Literature and Practices,” in: V.S. Sharma, U.S. Dixit, A. Gupta, R. Verma, and V. Sharma (eds). Machining and Additive Manufacturing. CPIE 2023. Singapore: Springer. DOI 10.1007/978-981-99-6094-1_2. Also see: Seunghyuk Choi, Karel Eloot, Denise Lee, Spenser Liu, and Karsten von Laufenberg. Building Sustainability into Operations. McKinsey & Company, (Oct 19, 2022). Link: Building sustainability in manufacturing operations | McKinsey. Also see: Vincent Rutgers. “Sustainable Manufacturing: Fixing the Factory Floor,” Forbes, (April 21, 2022). Link: Sustainable Manufacturing: Fixing The Factory Floor
[10] James F. McClister. “9 Ecolabels (Other Than Energy Star) to Guide Healthier, More Sustainable Product Selections,” ProBuilder, (August 4, 2021). Link: 9 Ecolabels (Other Than Energy Star) to Guide Healthier, More Sustainable Product Selections | ProBuilder
[11] Rick Mitchell, Rob Phaal, Nikoletta Athanassopoulou, Clare Farrukh, and Christian Rassmussen. “How to Build a Customized Scoring Tool to Evaluate and Select Early-stage Projects,” Research-Technology Management, 65(3), (2022): 27–38, DOI: 10.1080/08956308.2022.2026185
[12] Daniel Kahneman. Thinking, Fast and Slow, (2011). New York. NY: Farrar, Straus and Giroux. ISBN 978-0141033570
[13] Robert G. Cooper, “Expected Commercial Value for New-Product Project Valuation when High Uncertainty Exists.” IEEE Engineering Management Review 51(2), (June 2023): 75–87, DOI: 10.1109/EMR.2023.3267328.
[14] Robert G. Cooper and Anita F. Sommer. “Value-based Strategy-Reward-Win Portfolio Management for New Products,” IEEE Engineering Management Review 51(1), (March 2023): 172–182. DOI: 10.1109/EMR.2023.3260319.
[15] Robert G. Cooper, “New Products—What Separates the Winners from the Losers and What Drives Success,” in: Ludwig Bstieler and Charles H. Noble (eds). The PDMA Handbook of Innovation and New Product Development, 4th ed., Chapter 1, (2023): Hoboken, NJ: Wiley. The PDMA Handbook of Innovation and New Product Development: Bstieler, Ludwig, Noble, Charles H.: 9781119890218: Amazon.com: Books
[16] Cheng-Ju Hsieh, Mario Fifić, and Cheng-Ta Yang. “A New Measure of Group Decision-making Efficiency.” Cognitive Research 5(45), (2020). DOI: 10.1186/s41235-020-00244-3
[17] J.J.A.M. Bronnenberg and M.L. van Engelen. “A Dutch Test With the NewProd Model,” R&D Management 18(4), (1988): 321–332. Link: [PDF] A Dutch test with the NewProd‐Model | Semantic Scholar
[18] Supercharge Lab. “AI for Sustainable Product Development: Innovating With Environmental Impact in Mind,” Supercharge Lab, (2024). Link: AI for Sustainable Product Development: Innovating with Environmental Impact in Mind
[19] Heather A. Cooper, Carl J. Fleming, Philip Tingle, Edward Zopelke, and Chris Benedik .”What the Inflation Reduction Act of 2022 Means for Renewable Energy Developers, Investors and Manufacturers,” The National Law Review XIV(299), (Oct. 25, 2022). Link: How the Inflation Reduction Act of 2022 Impacts Renewable Energy