ENVIRONMENTAL INNOVATION MANAGEMENT AS A TOOL FOR IMPROVING THE PERFORMANCE OF INDUSTRIAL ENTERPRISES

Abstract

Against the backdrop of intensifying global environmental challenges, Ukraine’s European integration commitments, and growing demands for corporate social responsibility, environmental innovation management is becoming increasingly strategic for industrial enterprises. This article explores the theoretical foundations and practical aspects of environmental innovation management as a tool for enhancing the operational efficiency of industrial enterprises in the context of digital transformation and the implementation of ESG principles.

The article systematizes approaches to defining the concept of ‘eco-innovation’ and substantiates its typology, encompassing four interrelated categories: product, process, organizational, and marketing innovations. It is demonstrated that these types of eco-innovations function most effectively in a complementary relationship, forming a cyclical model of environmentally oriented enterprise management. Based on an analysis of contemporary empirical studies, the role of ESG principles and digital transformation as key factors enhancing the innovative performance of industrial enterprises is revealed.

A four-stage system for building eco-innovation management has been developed, comprising diagnosis and audit, justification of the choice of eco-innovation types, implementation, and monitoring of results. It is demonstrated that Industry 4.0 digital technologies are not merely supporting elements but a system-forming component of the proposed system. It has been demonstrated that the eco-innovation management system generates dual value: environmental value through reduced resource intensity and improved environmental performance indicators, and economic value through increased profitability, improved ESG ratings, and expanded access to ‘green’ financing. The results of the study can be used by managers of industrial enterprises to formulate sustainable development strategies and develop programs for environmental modernization of production.

In summary, the value of an eco-innovation management system lies in its capacity to deliver twofold benefits: on the environmental side, through lower resource consumption and reduced ecological impact; on the economic side, through greater profitability, enhanced ESG standing, and a more robust competitive position. This dual contribution elevates environmental innovation management to a genuine strategic instrument for industrial enterprises navigating the shift toward a sustainable economic model.