How Environmental Readiness Level (ERL) Accelerates and De-Risks Innovation
Addressing the many global challenges we face requires innovation. However, for innovation to succeed beyond initial conceptualisation and the lab, it must be commercially viable. Organisations, entrepreneurs and innovators have already benefited from the synchronisation of the now universally known technical readiness level (TRL) and the more recently developed commercial readiness level (CRL) (more on that here), but there is a critical and newly developed third tool (or level) which needs to be considered to de-risk and ensure the viability of innovation projects: Environmental Readiness Level (ERL).
This tool, which works hand-in-glove with TRL and CRL, is designed to assess the environmental readiness of new technologies, ensuring they are not only commercially viable but also demonstrate environmental benefits. ERL is also critical in connecting the innovation to the interests and drive of the modern market, and it does so through methodical assessment and guidance that meets social and community expectations – something that is every bit as critical to the commercial viability of innovation in the current landscape with emphasis on environmentally responsible business.
What is ERL?
ERL is a decision-making tool that assesses, guides, and tracks the maturity and credibility of environmental claims associated with technical innovations, required by the identified commercial opportunity.
It focuses on environmental value proposition and compliance with environmental regulations, integral to competitive advantage and commercial success. It begins with identifying environmental opportunities (ERL 1) and progresses on a ten-point scale to validated environmental benefits when the products are mature and operating in the market (ERL 9), managing risks and optimising resource allocation.
ERL prioritises embedding environmental considerations early and consistently throughout the innovation process, including lifecycle and circularity assessments, and the measurement of the environmental footprint of innovation. The outcome is the creation of economically viable innovations with demonstrable environmental benefits.
Why ERL Matters
ERL needs to be a core step in the innovation journey for several reasons. Firstly, it ensures that technologies are developed with a clear focus on the environmental benefits of the innovation. This alignment is crucial for organisations aiming to prove environmental benefits and contribute to global sustainability efforts. As governments apply increasingly strict regulations around environmental impacts, those that don’t undertake an ERL assessment exercise could find themselves out of compliance as product development continues, misappropriating resources along the innovation journey, and ultimately in a commercially risky situation.
Essentially, by exploring the ERL of a product in line with the TRL and CRL analysis, the organisation behind an innovation will increase the likelihood that the innovation finds social acceptance, resulting in stronger market adoption and long-term profitability.
A good example of the positive impact of ERL can be seen in the work that Scimita has done with lithium-ion battery recycling. With the sheer number of lithium batteries being manufactured set to increase exponentially in the coming years, and a notoriously toxic and high-risk process to manage them at end-of-life, there was a deep need to develop end-of-life battery solutions.
By using ERL, we have been able to validate the environmental benefits of one such innovation in battery recycling, and then confirm that it was also commercially and technically viable to scale. Another example is the implementation of ERL in product development, such as creating pens with bamboo casings. Bringing this product to market required validating the environmental impact at every stage, ensuring that the final product is eco-friendly and meets customer expectations and regulatory standards.
How To Build ERL Into The Innovation Journey
To effectively implement ERL, organisations should develop innovation governance competence in their teams that covers ERL, its importance, and how to apply it in various stages of product and technology development. Engaging with partners with expertise in ERL, such as Scimita, is also crucial, as it allows for a fresh set of eyes to undertake an independent analysis. Scimita’s Innovation Governance Framework (IGF) is an integrated system designed to guide and streamline the development and commercialisation of technology through the coordinated application of the tools: TRL, CRL and ERL.
This framework synchronises these tools to steer technological innovations ensuring technical feasibility, commercial viability, and environmental sustainability. By defining clear maturity stages for each aspect of development, Scimita’s IGF enables organisations to manage risks effectively, optimise resource allocation, and ensure compliance with relevant standards, thereby optimising overall innovation effectiveness and aligning with strategic business goals.
The integration of TRL, CRL, and ERL provides a holistic approach to technology development. For example, a new technology might be at TRL 6, indicating a prototype has been demonstrated in a relevant environment. At the same time, it might be at CRL 4, meaning the market potential is being validated, and ERL 3, where preliminary assessments of environmental impact are conducted. The findings of those assessments of environmental impact should then feed back into the work being done across both technical development and commercialisation to ensure that the entire TRL/CRL/ERL synchronisation is complementary and cohesive.
By this synchronisation, organisations can set clear targets, measure progress, and make informed decisions such as those for resourcing, at each stage of development. This approach not only increases the likelihood of successful innovation but also ensures that new technologies contribute positively to society and the environment.
Technology development must not solve a problem at the expense of creating another detrimental problem to the environment, even as the need to find more sustainable ways of using resources reaches a critical point. Consumption, be that in batteries, manufacturing processes, the application of AI, and more, is increasingly resource-heavy as the impact of what can be achieved escalates in kind.
This is why ERL is going to grow as such a critical consideration. The days of developing innovation without concern for the environment are numbered, and consequently how solutions are commercialised, and even whether they can be brought to market, will come down to more than analysis of the market and technical maturity. The environmental benefits and impact that innovations have are going to also make or break their commercial success.
The future of innovation lies in a balanced approach that considers the synchronisation and convergence of technical feasibility, commercial potential, and environmental impact. By embracing ERL, along with TRL and CRL, organisations can lead the way in developing sustainable technologies that address pressing global challenges and drive positive change.