Sustainability as a key value proposition - a literature review and potential pathways

Abstract

This paper presents an academic exploration of the shifting landscape of business models toward greater sustainability, considering the environmental, social, and economic dimensions. The United Nations has emphasized the need for companies to prioritize sustainability, leading to scholarly discussions on the topic. While economic sustainability remains important, decision-makers must now navigate the transformation of their business models to incorporate environmental and social sustainability, driven by emerging regulations such as the European Union's Green Deal. This transition may initially appear as an additional task accompanied by potential investment costs and reduced profits. However, it also presents opportunities for economic growth through the creation of new value propositions, entry into untapped markets, access to novel customer segments, the provision of innovative services, and the facilitation of data-driven supply chains. This paper provides a comprehensive literature review on sustainability as a pivotal future value proposition for companies and identifies potential pathways that can leverage its transformative potential.