Green is the New Black: Identifying and exploring the drivers of eco-innovation and environmentally-sustainable product development in fashion companies in Sweden and Denmark

Abstract: Growing concerns and sentiment about the negative environmental effects of the fashion industry pressure fashion companies to adopt eco-innovation and pursue more environmentally-sustainable product development. This study explores and examines the drivers of eco-innovation and environmentally-sustainable product development in small- to medium-sized fashion firms in Sweden and Denmark, with the purpose of identifying and understanding the key factors that drive eco-innovation and sustainable product development in the fashion industry. Using a qualitative research approach, data was collected from key industry professionals including managers within sustainability, operations, and business development. The data was then analysed to identify the common drivers and catalysts of eco-innovation within the case study companies. The findings reveal three key drivers of eco-innovation and environmentally-sustainable product development in fashion companies in Sweden and Denmark. Firstly, environmental sustainability is found to be a core element of the company's identity and brand, acting as an ‘inner vision’ that drives eco-innovation and more sustainable practices. Secondly, internal policies play a vital role by providing ambitions and requirements to incorporate eco-friendly practices that the company is held accountable to. Finally, developing a unique product differentiation strategy that aligns with growing sustainability concerns from consumers, policymakers, and the industry in general acts as a driver for eco-innovation and sustainable product design. By understanding the drivers behind eco-innovation and sustainable product development, companies can understand the potential of effectively integrating sustainability into their business practices. Policymakers can utilise these findings to design supportive regulatory frameworks, and consumers can use the results to help make more informed purchasing decisions. Ultimately, this research contributes to facilitating a more sustainable and responsible fashion industry in Sweden, Denmark, and globally.