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In the last decade the discussion on green innovations has gained in importance, both in practice and in academia. This chapter builds on the idea that performance in innovation capturing environmental aspects doesn’t depend only on inputs but also the synchronization of different stakeholders, firms and policy-makers that make an innovation-driven society. In disruptive periods, green adaptive ability which refers to ability to comply with environmental regulations is based on corporate environmental commitments and their social responsibility as well as on green human capital. Based on corporate environmental commitments, companies seek business opportunities by changing their business models as well as by integrating, building and reconfiguring competences to comply with environmental standards. Green human capital, on the other side, builds organizational culture that supports green innovation. The aim of this chapter is to present a conceptual model that stimulates green innovations at the company level and discusses the proper governance structure supportive of innovation and effective strategies of policy-making.

European Union (EU) as a whole has made modest short-term progress toward sustainable development goals (SDG). Only in one goal (ensuring healthy lives and promotion of well-being) out of 17, the progress was substantial. The most problematic goals, which show movements away from sustainable development objectives, are goals that are focused on building resilient infrastructure, promotion of inclusive, sustainable industrialization, fostering innovation, and the goal that takes urgent action to combat climate changes. The analysis between old and new EU members revealed that median new EU member has made bigger progress in the last five years. For 11 SDGs, the average score is lover for median new EU member compared to median old EU member. However, the last available level of the indicator is in general still more favorable for median old EU member compared to median new EU member.

The chapter describes the milestones at the global and European level on the path toward sustainable development. The first steps toward a different growth agenda were made in 1970s when the “Limits to growth” highlighted the divergence with the increasing needs of the growing population, the limited supply of resources, the planet can provide and the growing pollution. In 1980s the Brundtland report defined sustainable development as a three-dimensional one: economic, social and environmental, stressing not only the interplay between the goals, but also the global interdependence and the need for joint action to achieve the goals. Several ambitious strategies were prepared, most notably the Kyoto protocol, the Millenium Development Goals and Sustainable Development Goals (SDG), which are shaping global policies at the moment. The European Union has always been at the forefront of the efforts toward sustainability with its ambitious goals, which includes not only achieving SDGs, but also moving further, for example, toward a circular development approach.

Outsourcing of business-logistics services is a well-established business practice that allows an outsourcer to obtain the services or products from a logistics-service provider (LSP). The outsourcer can order a range of logistics services, including but not limited to warehousing, transportation, and forwarding. The outsourcers had traditionally focused on service-provider selection criteria such as costs, quality, and responsiveness while having devoted considerably less attention to how sustainably the practices are carried out. Past research identified different external and internal motivators that facilitate consideration of sustainability in selection of the service providers, whereas the current study investigates the outsourcers’ perception of importance of environmental sustainability in adoption of green logistics practices and selection of LSPs. We use a vantage point of outsourcers (“buyers”) to conduct the quantitative research based on a survey conducted on large manufacturing companies. The findings reveal a (mis)match between the perception of importance and realized inclusion of environmental-sustainability criteria. Ultimately, this study finds a link between the levels of perception and rate of adoption, and provides recommendations for the future adoption of environmental-sustainability criteria in the selection of the LSPs.

Affordable and clean energy as well as regulation and decrease in emissions are in the heart of sustainable development goals. In order to achieve these goals, cleaner technologies together with responsible consumption and production need to be adopted. Therefore, the knowledge, skills and habits – the human capital and increased awareness of its importance, play an important role. The relationship between sustainability and human capital has been addressed only recently. There had been two streams of literature, investigating either (i) the relationship of human capital and the economic growth, or (ii) the nexus of economic growth and sustainability, without realizing the interconnectedness of these concepts. In this chapter, the authors add contribution to this scarce, yet growing body of literature by investigating the relationship between human capital (measured by Index of human capital) and two measures of sustainability: electricity use and CO₂ emissions for a panel of European Union Member States. The authors show that the increase in human capital is associated with the decrease in energy consumption and CO₂ emissions and therefore is associated with the increase in sustainability. This chapter bears important policy implications since it shows that the human capital, its stock and quality, should be included in the sustainability discussions and is important for achieving the sustainability goals.

This chapter provides comments and suggestions to the lawmaker, and especially to economic policy-makers in the field of the optimal regulatory framework and implementation of sustainable practices. The main findings are as follows: (1) degradation of the rule of law in several European Union (EU) Member States and constant political undermining of the legal institutions represent the main threat for the implementation of sustainable practices and development; (2) the golden regulatory rule of thumb provides that regulatory intervention is suggested merely in cases of market failures under the condition that the costs of such intervention do not exceed the benefits; (3) over-regulation might impede implementation of sustainable practices, distort the operation of the market, undermine productivity, diminish growth and social wealth and consequently also sustainability; (4) efficiency and wealth maximization should be the lawmaker’s leading normative principle in designing the legal framework that will enable effective implementation of sustainable practices; (5) the efficient level of harmonization or subsidiarity of decision-making in the EU urges for a rigorous investigation of costs and benefits of the EU top-down harmonization policies which should lead to a better, efficient vertical allocation of sustainability agenda between EU and the Member States; and (6) The Reflection Paper on Sustainable Development Goals – “Towards a Sustainable Europe in 2030” – represents an effective institutional framework in pursue of the overall sustainability targets.

This chapter discusses the evolvement of the sustainability concept and its importance in the strategic management context. First, the authors review the development of the concept over the last century and presents the most commonly used sustainability definitions. Then, the three pillars of sustainability (economic, natural and social) are reviewed, highlighting the sustainability aspect of each pillar individually and the problems of their non-substitutability, irreversibility and non-linearity. Based on the literature review, this chapter discusses the main motives for integration of sustainability concept into the overall strategy of the company, namely compliance with regulation, response to public concern, expected competitive advantage and top management commitment. Furthermore, important distinctions between reactive and proactive approaches are presented, and the results and benefits (such as cost reductions, differentiation and added value) of proactive approaches to corporate sustainability are analyzed. Nevertheless, such benefits can only be achieved if corporate sustainability is understood and treated as a holistic concept, which is deeply embedded in the company’s strategy and is approached proactively from the interdisciplinary viewpoint, looking at all three dimensions simultaneously.