The article analyses the induction process of technological innovations that consider economic, social and environmental concerns throughout the supply chain, in accordance with the proposals of sustainable development. Specifically, it examines the role of focal companies as innovation inductors for their supply chains. The article presents a debate with regards to innovation, sustainability and supply chain management and analyses the concept of sustainable innovation, as well as management models that bridge the gap between these themes. A case study conducted with a cosmetics company of Brazilian origin and presence in Latin America, is presented. This case study demonstrates that sustainable innovation driven by the focal company requires the engagement of its suppliers in order to reduce the negative social and environmental impacts throughout the product’s life cycle. Moreover, it illustrates that is possible to implement innovations that generate net social and environmental benefits for all members of the supply chain.