How businesses are leveraging their IP protection to drive ESG performance, development and innovation

Consumers are becoming more conscious of the impact that their purchasing decisions have on the environment and society. As a result, they’re prioritising socially and environmentally responsible brands and more businesses are adopting sustainable practices. That’s why it’s so important that businesses have an Environmental, Social, and Corporate Governance (ESG) strategy in place, as it gives them a competitive advantage over businesses that are solely focused on their financial measures. An ESG strategy also drives innovation by incentivising the development of new, sustainable technologies and products. IP licensing further drives development and ESG performance by promoting the wider adoption of innovative technologies and protecting the positive, sustainable brand reputation of a business.

Protecting Innovations with IP

Sustainable innovation has the potential to yield tangible benefits for businesses, particularly for those experiencing ESG challenges. For example, to further its ESG strategy, a business might come up with a new emissions policy that reduces the use of technology and increases the use of more sustainable materials in its production line. Alternatively, a business might come up with a new medical device or medical intervention that improves the quality of life for its consumers. As businesses develop new and innovative technologies in line with their ESG goals, IP issues are likely to arise, so it’s important that their assets are appropriately protected.  

An Example: Electric Vehicle (EV) Manufacturing 

In response to the increasing consumer demand for environmentally friendly transport solutions, more car manufacturers are adding a range of electric vehicles (EVs) to their lineups. Emission reducing technology is now one of the leading innovations in the manufacturing industry.

Here are some IP rights to consider in the context of EV manufacturing:

• Patents that protect innovations and how they work may be used to protect the battery technology used in an electric vehicle. 

• Designs that protect the aesthetic features of a product may be filed to protect the overall look of the EV. 

• Trade marks that protect the sign, design or expression of a product may be filed to protect the name and badge that appears on the EV. 

There’s no doubt that extensive research and development is involved in the manufacturing of products as part of a business’s ESG strategy. IP can be used to protect and leverage R&D efforts by allowing businesses to recoup their investments and develop sustainable solutions. As such, IP is a critical component in furthering a business's ESG strategy and should not be overlooked.  

Protecting Innovations with IP Licensing

IP Licensing is another important consideration for businesses seeking to further their ESG strategy.

Businesses can use IP Licensing to:  

• Create new revenue streams by licensing ESG-friendly technology to other businesses (particularly, in other territories) or governments. This revenue generated through IP Licensing can be reinvested into ESG initiatives.

• Collaborate with other businesses to leverage their combined resources and expertise and tackle social and environmental challenges with greater effectiveness.

Both examples illustrate how IP Licensing can help businesses safeguard their R&D efforts while allowing for the further development and adoption of technologies that benefit the environment and society.

Protecting a positive brand image

Consumers are increasingly favouring brands that are making a positive impact on the environment and society. This allows businesses to prioritise their ESG objectives and create a positive brand image that resonates with their target audience. 

Here’s how an ESG strategy can positively impact a brand image:  

• Businesses that prioritise the use of sustainable materials in product lines are seen as environmentally friendly. 

• Businesses that prioritise ethical supply chain management and fair labour practices are seen as socially conscious. 

• Businesses with strong corporate governance implement ethical decision-making and transparent reporting, are seen as trustworthy and accountable. 

It’s important that businesses utilise their IP to build and protect any trade marks, logos and slogans that consumers perceive as ESG-friendly. 

By protecting their IP, businesses can control the use of their trade marks, logos and slogans by preventing others from using similar marks, which can lead to consumer confusion and damage their brand reputation.

Additionally, by registering an IP, businesses can reduce the risk of infringing a third party’s IP rights which can have a negative impact on a business's ESG performance. 

Overall, IP protection is a valuable tool for any business that wants to safeguard a positive brand image and develop its ESG efforts. 

Conclusion  

IP protection can be used to further your ESG strategy by:

• Incentivising the development of innovative technologies for businesses wanting to achieve their ESG goals.

• Creating additional revenue streams for businesses by furthering the development, promotion and wider adoption of ESG-friendly technologies and products that have a positive impact on the environment and society.

• Protecting a business's sustainable and ethical brand image and gives them a competitive edge in the context of changing consumer trends. 

If you’re interested in increasing your IP protection to achieve your ESG goals, don’t hesitate to get in touch with our team