Organizations striving to integrate sustainability into their core strategies face a common challenge.

How can innovation be effectively connected with the Sustainable Development Goals (SDGs) in a structured and measurable way?

In a recent Innov8rs Learning Labs Session, Martijn Antonisse, Group Sustainability Director Portfolio Steering at dsm-firmenich, provided clear insights into how companies can steer their innovation portfolios toward sustainability without falling into the greenwashing trap.

Martijn Antonisse

Group Sustainable Director Portfolio Steering at DSM-Firmenich

A Structured Approach to Sustainable Innovation

Building a sustainable innovation portfolio follows a structured, multi-stage approach that ensures measurable impact at every step.

Stage 1: Implementing a Unified Project Management Approach

Standardizing project management practices across the company ensures that everyone speaks the same language. “Having a unified approach means project leaders truly take responsibility,” Martijn emphasizes. “It’s not just about planning; it’s about embedding sustainability into decision-making from day one.”

One key principle embedded into the project management process is an end-to-end approach. Sustainability is incorporated at multiple project gate stages:

  • Strategic Fit Gate: “How is this project contributing to our sustainability ambitions? This question should be answered right at the start,” Martijn advises. This gate is the foundation for assessing whether a project aligns with broader sustainability goals. By setting clear criteria at the outset, organizations can avoid misalignment and ensure sustainability is deeply embedded in their innovation processes.
  • Business Model Development:

    “If sustainability isn’t part of your business model, you’re missing a massive opportunity. It needs to be reflected in how you create value”, explains Martijn.

    Sustainable innovation goes beyond creating environmentally friendly products; it must be integrated into revenue models and value propositions. Companies that embrace sustainability as a core business function are better positioned to unlock market advantages and long-term growth.

  • Life Cycle Assessment (LCA): “LCA is not rocket science. It’s about making the right assumptions and ensuring you have data to back up sustainability claims,” he notes. LCA enables organizations to quantify the environmental impact of their products or services at every stage of their lifecycle, from raw material extraction to disposal. A well-executed LCA clarifies trade-offs and helps companies make informed evidence-based sustainability claims.

Stage 2: Establishing a Portfolio Management Tool

With project management in place, the next step is introducing a robust portfolio management process and tooling. This system tracks all innovation projects, integrating business case analyses with sustainability parameters.

“Our portfolio management tool isn’t set up to micromanage projects but to help us make smart, strategic decisions,” Martijn notes. “And that means having sustainability criteria right alongside financial ones.”

The tool is best designed for portfolio management rather than individual project execution. It allows for streamlined data collection and strategic oversight. However, having the tool is only part of the solution. The real challenge lies in ensuring data quality and consistency.

Stage 3: Leveraging Dashboards for Insights

“Data is everything,” Martijn stresses. “Without it, you’re flying blind. And bad data is just as dangerous as no data at all.”

A pivotal breakthrough in the sustainability journey is the creation of an innovation portfolio dashboard. Two key dashboards ensure decision-makers have the right insights:

  • Operational Portfolio Steering Dashboard: Offers a real-time overview of project phases, investments, and launch timelines.
  • Benefits Management Dashboard: Tracks whether business cases deliver on their financial and sustainability promises post-launch.

Sustainable Portfolio Steering

With a structured project management system, a comprehensive portfolio tool, and a data-driven dashboard in place, the next logical step is Sustainable Portfolio Steering (SPS). But before diving in, one fundamental question needs to be addressed: What does sustainability actually mean?

Martijn argues that the definition of sustainability goes beyond climate concerns, taking a multi-dimensional perspective. He advocates for a holistic approach encompassing:

  • Climate and Nature: “Reducing carbon footprint is crucial, but sustainability is more than just CO2.”
  • Health and Nutrition: “We need to think about well-being holistically, including mental health.”
  • Social Impact: “If we’re not considering fair labor and ethical sourcing, we’re missing half the equation.”

The SDGs are the natural starting point and offer broad guidance. However, Martijn also notes that they are primarily designed for governments and not for a business context. “SDGs provide a global benchmark but must be adapted for business applications. There are two other sources that are very nice.”

In addition to the SDGs, Martijn’s team refers to two other sustainability frameworks, each offering a unique perspective on sustainable development: Doughnut Economics and the Planetary Boundaries Framework.

The Doughnut Economics Model adds more depth than the SDGs, helping businesses balance economic progress with ecological responsibility. Martijn describes this approach as “finding the sweet spot between human well-being and planetary boundaries.” This model highlights the need to ensure that economic activities meet essential social foundations while staying within environmental limits.

The Planetary Boundaries Framework offers a scientific perspective on Earth’s limits and where human activity exceeds them. As Martijn emphasizes, “Understanding where we’re overshooting natural limits is essential for making responsible decisions.” Recognizing these thresholds enables companies can make more informed choices that align their innovation portfolios with sustainability while avoiding long-term environmental risks.

By integrating these three frameworks, Martijn’s team ensures that sustainability-driven innovation is strategically aligned with global goals and deeply rooted in ecological and social realities.

The Power of Data in Sustainable Decision-Making

Data quality remains a significant hurdle in sustainability-driven innovation. As Martijn emphasizes, data is critical in three ways:

  1. Availability: “The biggest challenge? Often, the data just isn’t there.”
  2. Transparency: “Customers and regulators demand clarity, and businesses must be ready to deliver.”
  3. Assumptions: “LCA relies on many assumptions, so make sure they’re the right ones.”

One approach is to collaborate with suppliers to improve data collection. “We actively work with our suppliers to improve their LCA capabilities because, without good data, our decisions suffer,” Martijn notes. As new regulations, such as the EU’s Corporate Sustainability Reporting Directive (CSRD), mandate better transparency, supply chains must align more with sustainability standards.

However, even with better data, businesses still need a structured approach to interpret sustainability metrics effectively and integrate them into decision-making. This is where methodologies like the Portfolio Sustainability Assessment (PSA) come in.

Applying the Portfolio Sustainability Assessment (PSA) Methodology

Martijn highlights PSA as a best-practice example from the chemical industry, where companies have already implemented rigorous assessment frameworks to steer their innovation portfolios toward sustainability.

The PSA methodology, developed by the World Business Council for Sustainable Development (WBCSD), ranks projects based on their sustainability contributions and risks. This method helps businesses assess the true impact of their innovations and ensures sustainability is embedded in decision-making rather than treated as an afterthought. PSA categorizes product-application combinations in three groups:

  1. Negative Impact: Martijn notes that sustainability must be assessed holistically, and businesses cannot compensate for harmful practices with unrelated positive actions.

    “If your product pollutes the oceans, it doesn’t matter how many trees you plant elsewhere—it’s not sustainable.”

    This principle ensures that companies address the root causes of environmental harm rather than masking them with surface-level sustainability efforts.

  2. Neutral Impact: Projects in this category neither create significant sustainability benefits nor cause substantial harm. While they may comply with regulations and industry standards, they lack a transformative impact. Such projects present an opportunity to be reworked or improved with sustainability considerations in mind to contribute meaningfully to long-term environmental and social goals.
  3. Positive Impact: These innovations actively contribute to sustainability and align meaningfully with the SDGs. Whether through reducing carbon footprints, enhancing circularity, or improving social well-being, projects with a strong positive impact demonstrate a clear commitment to sustainability. By prioritizing these initiatives, companies ensure that their portfolios drive long-term value for both business and society.

Balancing priorities is tough, but it’s essential.

“If you only look at the carbon footprint, it’s easy. But the picture might change if you also consider water scarcity, deforestation, and other angles. Then, you have the dilemma of how to make a trade-off. In an ideal world, you don’t want to make a trade-off at all,” emphasizes Martijn.

The PSA methodology pushes businesses to make fundamental changes that align their innovation strategies with true environmental and social responsibility instead of relying on trade-offs.

Structured assessments like PSA are essential for identifying risks early and making necessary adjustments before it’s too late. “It’s a tool that helps identify risks early and adjust product development to remove negative effects.”

Martijn shares that dsm-firmenich is actively involved in adapting the methodology for broader industry use, ensuring it remains relevant beyond the chemical sector and can guide businesses across industries in making sustainability-driven innovation decisions.

Ultimately, Martijn emphasizes “Safe and Sustainable by Design” principles, where companies proactively assess risks, anticipate regulatory changes, and prioritize transparency.

Driving Meaningful Change Through Innovation

The path to sustainable innovation is complex, but the rewards are substantial. Innovators must embrace strategic thinking and leverage structured methodologies to create real impact. Martijn’s message to companies looking to embed sustainability in their innovation portfolios is clear: start with structured project management, build robust data systems, and apply rigorous assessment methodologies.

By doing so, organizations can drive meaningful change while ensuring long-term success in a sustainability-driven world.