By Rituj Sahu
Biotechnology involves using living organisms, like plants, animals, or bacteria, to develop new products and processes that can benefit industries, healthcare, and the environment. India’s newly introduced BioE3 (Biotechnology for Economy, Environment, and Employment) policy is a significant move towards transforming the nation’s industrial processes. At its core, the policy promotes the adoption of biotechnology to create sustainable, environment-friendly manufacturing methods that mimic biological processes found in nature. This initiative aims to reduce environmental impact, boost economic growth, and generate new employment opportunities through biomanufacturing hubs focused on producing bio-based chemicals, smart proteins (India’s terminology for alternative proteins: new plant, fermented and cell-based), functional foods, and other cutting-edge products.
While the policy lays the groundwork for a more sustainable industrial landscape, its success hinges on how well companies integrate these innovations into their operations. The policy presents a clear opportunity for businesses to not only meet regulatory expectations but also position themselves as leaders in a global shift towards sustainable production.
Corporate Engagement: A Key Driver of Success
Corporate leaders stand to benefit enormously from engaging with the principles of the BioE3 policy. The integration of biotechnology offers several competitive advantages—reduced operational costs through more efficient production methods, improved environmental footprints, and enhanced resilience in supply chains. But to fully unlock these benefits, companies must go beyond compliance. They need to engage actively in reshaping their strategies, and embedding sustainability into their business models in alignment with evolving investor expectations.
Through structured corporate engagement platforms, companies gain access to actionable insights, tools, and regional benchmarking that help them move closer to investor-expected sustainability practices, disclosures, and commitments, and leverage future growth opportunities For instance, the Asia Protein Transition Platform, representing more than USD 3 trillion, offers companies guidance on global animal welfare standards, decarbonisation pathways, responsible antibiotic use principles, and much more for their animal protein supply chains. This engagement helps businesses make informed decisions about capital allocation, product development, and governance frameworks, ensuring that they are well-positioned to thrive in the evolving landscape created by the BioE3 policy.
What Corporates Stand to Gain from BioE3
The BioE3 policy presents several tangible benefits for companies willing to embrace biotechnological innovations:
- Cost Efficiency and Sustainability: By adopting bio-based manufacturing methods that use renewable natural resources, like plants or microbes, to produce materials and products, businesses can reduce their dependency on resource-intensive and polluting traditional processes. For example, in 2021, Procter & Gamble (P&G) introduced its Lenor fabric softener bottles made from 100% recycled and plant-based plastic as part of its sustainability efforts. This shift to bio-based and recycled materials helps P&G reduce its reliance on virgin petroleum-based plastics, lowering carbon emissions and contributing to its long-term sustainability goals. This innovation not only supports environmental stewardship but also offers potential cost efficiencies in the long run, particularly in industries like food production, chemicals, and materials where renewable resources play a key role in meeting sustainability targets.
- Innovation and Competitive Edge: Biotechnology-driven innovations—such as smart proteins (eco-friendly alternatives to meat, made from plants, microbes, or lab-grown cells, offering similar taste and nutrition), and functional foods (foods that provide additional health benefits, such as boosting immunity or improving digestion, beyond basic nutrition)—allow companies to tap into emerging markets. For instance, Impossible Foods, a leader in plant-based meat, uses biotechnology to create its plant-based burgers that closely mimic the taste and texture of real meat. By leveraging biotech, Impossible Foods has tapped into the rapidly growing global market for sustainable food alternatives, becoming a competitive force in both domestic and international markets. As global demand for sustainable alternatives rises, businesses that leverage biotechnological solutions will find themselves at the forefront of these new markets, creating a competitive edge in both domestic and international arenas.
- Risk Mitigation: Companies face increasing pressure from investors, regulators, and consumers to demonstrate sustainability. Engaging with biotechnological solutions helps mitigate risks related to environmental impact, supply chain disruptions, and shifting consumer preferences. For example, in 2020, Unilever partnered with biotech company Algenuity to incorporate microalgae—a sustainable, protein-rich alternative to traditional agriculture—into its food products. This reduces Unilever’s environmental footprint while meeting consumer demand for plant-based, eco-friendly options. Businesses that align with the BioE3 policy will be better positioned to navigate future regulatory changes and market expectations.
- Access to Capital and Resources: Companies that actively engage with sustainability initiatives, like those outlined in the BioE3 policy, will find greater support from investors and stakeholders. For example, in 2021, PepsiCo issued a $1.25 billion green bond to finance projects aimed at reducing plastic waste, promoting sustainable water use, and improving the sustainability of its supply chain. This green bond issuance demonstrated strong investor confidence in PepsiCo’s environmental goals. Investors are increasingly prioritising sustainability in their portfolios, and businesses that can demonstrate a strong commitment to the BioE3 objectives may attract more favorable financing and partnerships.
Supporting Shifts Through Investor-Backed Engagement
Corporate leaders, now more than ever, must respond to the combined forces of government policy and investor expectations. The BioE3 policy serves as a catalyst, but investors play a crucial role in ensuring that companies take the necessary steps to implement meaningful transitions. With the support of structured engagement programs, companies can better navigate the complexities of adopting biotechnological solutions and align their strategies with long-term sustainability goals. These platforms also empower investors to influence corporate governance, capital allocation, and operational decisions, ensuring alignment with long-term financial and environmental goals. For companies, this engagement equips them with tools to develop internal cases for change, learn from peers, and implement effective transitions, making sustainability integral to business continuity. Corporate stewardship thus becomes an essential driver of success in an evolving world, not just a response to external pressures.
Seizing the Opportunity: A Path Forward
The BioE3 policy marks an important milestone in India’s journey toward integrating biotechnology into its economic development strategies. However, the real impact of this policy will be realised only when businesses and investors come together to drive systemic change. For companies, the BioE3 policy is not just a regulatory framework—it is an opportunity to lead the way in sustainability, innovation, and growth.
Other nations are taking similar steps. Singapore’s 30 by 30 initiative, for instance, aims to produce 30% of the country’s nutritional needs locally by 2030 through investments in food technology and urban agriculture, along with dedicated funding to support the development and scaling of alternative proteins. Similarly, China’s 14th Five-Year Plan (2021-2025) highlights the promotion of biotechnology, renewable energy, and green technologies to boost sustainability and innovation within its industries. This also includes a mention of alternative proteins, otherwise known in China as ‘novel proteins’. These policy examples demonstrate a regional push toward integrating biotechnological solutions into national growth strategies.
But to realise these benefits, businesses need to take proactive steps. Corporate engagement with biotechnology and sustainability principles will enable companies to remain competitive and resilient, as they navigate the challenges and opportunities of the future.