The Textual Representation of Double Materiality in ESG Reports: Developing a Content Analysis Codebook within a Business Model Perspective

Business model dynamics are key to the success of companies. This is particularly the case for sustainability-oriented companies that aim to tackle grand challenges by rethinking how companies create, deliver, and capture value, which can combine profit orientation with social and environmental purposes. However, understanding how companies transit towards sustainable business models through the change of company value logics remains unclear and current business model frameworks cannot capture such dynamics. Combining insights from the literature on sustainable business models and business model dynamics, our study proposed a comprehensive sustainable dynamic business model framework. The proposed framework takes into account the main elements of a sustainable business model and present the mechanisms that drive different sustainability-oriented values, and how their values change and are influenced by internal and external factors during the company development process. The framework is applied in multiple-case analysis of different PV companies in China. The application of the framework shows that it is able to present the mechanisms that drive different sustainability-oriented values and to capture business model dynamics in a comprehensive way and that it allows for case study comparison. The results of our research have significant implications for business model, both in theory and practice.

Purpose This study aims to explore how sustainable business models reshape, and are reshaped by, the boundaries of efficiency, power, competence and identity in the fashion industry. Moreover, it provides new insights into the challenges emerging from redesigning the fenceposts of existing business models. Design/methodology/approach The paper utilises an industry-level study from the Nordic fashion industry, drawing on primary and secondary data. Findings The findings demonstrate that sustainable fashion business models challenge the boundaries of power with the idea of production quotas to enhance sustainability and reduce waste. These quotas, aimed at improving environmental practices, might create uncertainty in recycling policies, impacting fashion industry environmental efforts and societal sustainability expectations. The paradox within the industry’s efforts to reshape its identity involves promoting responsible consumption through repair services while driving mass consumption with frequent seasonal releases. Research limitations/implications Managerial implications highlight the importance of prioritising sustainability to enhance efficiency, drive positive change, develop competencies and shape brand identity. This study contributes to the existing literature by introducing a novel boundary-oriented perspective for evaluating sustainable fashion business models. Practical implications This study contributes to the existing literature by introducing a novel boundary-oriented perspective for evaluating sustainable fashion business models. Originality/value This study offers empirical evidence based on an industry-level study from the fashion industry. It provides a new perspective by analysing the context of how sustainable business models reshape and are reshaped by organisational boundaries in the fashion industry.

Purpose of the paper: This paper aims to analyze how small-medium enterprises (SMEs) contribute to the development of a sustainable innovations in the energy sector such as geothermal heat pumps (GHPs) by implementing effective sustainable business models. Methodology: The study carried out an exploratory multiple case study with 8 SMEs operating in the Italian GHP market on the role of sustainable business models in supporting the development of sustainable innovations. Results: The analysis shows that sustainable business models exert a supporting function between sustainable innovation and sustainable value creation thanks to their ability to overcome the existing barriers to adopt sustainable innovations (i.e. GHP systems). This supporting role thus results from the firms’ capabilities and knowledge to assess and promote the peculiarities of selected sustainable innovation. Moreover, the analyzed business models foresee an ongoing support of customers before and after the adoption of sustainable innovation by communicating potential environmental benefits and providing additional services. Research limits: The main limitation is that the findings derive from a national case study with specific market conditions for GHPs which might influence the development of sustainable business models. Practical implications: The study supports firms aiming to develop and implement business models for boosting sustainable innovations through an effective assessment of selected sustainable innovation and dialogue with policy makers. Originality of the paper: The study opens the black box of unexplored relationships between sustainability innovations and business models by analyzing their main components (value proposition, supply chain and public institutions, customer interface and financial model).

As an approach to sustainable development, circular business models are increasingly being developed. However, many circular business models focus on environmental or technological contributions to sustainability rather than considering all dimensions of sustainability simultaneously. Based on existing sustainable business model archetypes, a hierarchical business model typology is developed that allows a stepwise exploration of sustainable business model innovation opportunities incorporating an environmental, social and economic dimension. An analysis of business model components generates a closer look on the six newly defined Sustainable Circular Business Models. Finally, a conceptual application for organic waste valorization technologies, supported by examples from literature, allows a practical view on the implementation of the business models in the bio-economy. The typology offers a guide toward sustainable business model design or innovation opportunities centered around technologies creating value from waste.

Sustainable business models, venture typologies, and entrepreneurial ecosystems: A social network perspective

We aim to understand how actors respond to field logic plurality and maintain legitimacy through business model innovation. Drawing on a longitudinal field study in the fashion industry, we traced how de novo and incumbent firms incorporate circular logics in business models (for sustainability) and uncover how the intersection between issue and exchange fields creates institutional complexity and experimental spaces for business model innovation. Our findings showed a shift in the discourse on circular logic that diverted attention and resources from materials innovation (e.g., recycling) to business model innovation (e.g., circular business models). By juxtaposing institutional complexity and external pressure to maintain legitimacy, we derived four strategic business model innovation responses—preserve, detach, integrate and extend—that illuminate how actors leverage shifting logics and innovate extant business models (for sustainability). We make novel contributions to the literature on organizational fields, business models for sustainability, and business model innovation.

The aim of this chapter is to identify the concept of sustainable business models (SBMs) bridging from traditional business models (BMs) to sustainable business models (SBMs) while using value creation in exploring the characteristics of SBMs. The literature review of the chapter provides the platform to assess and to map, discuss, and develop the SBM pyramid framework. The SBM pyramid provides a framework and tool for how to identify, understand, develop and evaluate the level of sustainability of BMs and the BM dimensions—theoretically and empirically. A case example is offered to provide an illustration of the concept empirically and to explore the use of the framework in exploration and assessment of the levels of sustainability of the overall BM, the individual BM dimensions and the value proposition, delivery, creation and value capture of a company/business in practice. The three-dimensional framework can be applied by theorists and practitioners in identifying, developing and evaluating the level of sustainability in the value creation, value delivery, and value capture of any existing (sustainable) BM and it's BM dimensions and in designing new SBM innovations.

Currently, banks are facing challenges in fulfilling the interests of stakeholders, not only from an economic point of view, but also in terms of environmental, social, and governance (ESG) aspects. This is due to the increasing concern for sustainability issues, including lending activities. Lending activities constitute the largest portion of bank assets and are the largest contributor to bank revenues. Thus, banks need certain business models and strategies to encourage sustainable lending growth; otherwise, it will be difficult for banks to fulfill stakeholder’s interests and support sustainable development goals. This study aimed to build a sustainable business model and select sustainable lending strategies in state-owned banks in Indonesia using a value chain approach. The development of a sustainable business model utilizing a triple-layer business model canvas (TLBMC) is based on the results of previous research and sustainability report data of the three state-owned banks. The formulation of strategy selection as the key driver of sustainable lending utilized the analytical hierarchy process (AHP) based on expert respondent data collected through questionnaires. This research showed that the lending distribution business model at state-owned banks in Indonesia, which was built using the TLBMC framework, can realize sustainability goals in the form of a sustainable lending business model. Furthermore, this sustainable business model can be used as a basis for selecting sustainable strategies. In addition, the AHP results yielded alternative strategies in the form of the market development and penetration of green loans and micro, small, and medium enterprises (MSMEs) as the key drivers of sustainable lending growth.

This chapter addresses the sustainability and sustainable innovation means for the business model of nonprofit organizations. A definition of sustainable nonprofit organizations (NPO) business models is given and related to methods for analyzing the NPO's sustainable business models and investigate sustainable innovation. The literature review provided the description of how sustainable NPO business model and how sustainable innovation can be described for NPOs. The literature review provided the theoretical answers to the research questions as well as a framework that can be used to analyze a NPO's sustainable business model. Research in sustainable business model is growing and is expected to supersede the business model research. A sustainable NPO is defined as an organization that is able to fulfill its commitments to its clients, its donors, and the community in which it operates. The Doughnut Economy developed by Raworth is a tool which can be used to analyze the state of sustainability on a regional, national and international level.

The circular economy is used as a concept to advance and push the green and sustainability transition process in businesses to a more circular, green, resource effective economy. However, it has turned out to be much more complex to innovate, develop, implement, operate and not least measure Circular and Sustainable business models for businesses – especially for SME’s and Startups – although the approach – by many – is emphasized as “easy” strategies and implementation. Achieving Circularity and Sustainability (environmentally, economically and socially parameters) – at the same time – related to business models has not yet been clearly defined, shown, proven and measured. Achieving environmental, economic and social goals – equal to sustainability – at the same time – the ”triple bottom line” approach – in a circular perspective is a great dilemma to many businesses because the parameters often conflict each other. Advanced sensor technologies, 5G and 6g technologies gives great hope to be able to make it more visual and transparent to what businesses are really doing and strategically want to do. Advanced technology could help to visualize the process and the dilemma – in close to real time. Advanced sensor, 5G, 6G technologies imbedded in Business Model’s (BM) and Circular Sustainable Multi Business Model Innovation and Development processes gives hopes for a new leadership and management era together with better measurement tools, practice, and approaches. It also gives hope to a higher speed on circular and sustainable transition – visualizing and thereby hopefully preventing greenwashing. The EU project Greenbizz II A and B’s vision is to speed up the Circular and Sustainable Multi Business Model Innovation and Development (CSMBMID) process in SME’s and Startups together with their business value network. The aim is to achieve and implement Scope 3 – but under the goal to also create at the same time effectiveness, efficiency and sociality in CSMBMID. By reengineering AS IS BM’s – and designing Circular and Sustainable Business Models (CSBM) – the vision of Greenbizz II A and B are however very complex by nature. It requires a manifold of activities, different network constellations and not least further research, innovation and development of sensors, 5G and 6G technologies, learning and traning and a CSMBMID Brain. Greenbizz II A and B build on top of EU Greenbizz 1 project, as Green, Economic and Social parameters are seeked measured and achieved together with circularity at the same time in a new “Circular Sustainable Triple Bottom Line” measurement framework. A new advanced monitoring smartboard using advanced sensors and wireless technologies prototyped in SMEs/Startups – and their business value networks – will be prototyped and tried to be implemented from 2024 – 2026 in 96 SME and Startup businesses. The paper discuss through 3 case examples in different Business Model ecosystems contexts, challenges to do CSMBMID and how advance sensor, 5G and 6G technologies is expected to help and support circular sustainable BM transition in businesses. It points to how CSBM’s can be innovated, developed and implemented supported by advance sensor, artificial intelligence, deep learning, persuasive technologies, Multi Business Model Innovation pattern analysis and libraries of BM archetypes.

Business model patterns of sustainability pioneers - Analyzing cases across the smartphone life cycle

Digital sustainable entrepreneurship: A business model perspective on embedding digital technologies for social and environmental value creation

The Business Model Canvas (BMC), originally developed by Osterwalder and Pigneur, has become a well-established and widely utilised tool for the development, modification, and visualisation of business models. While the Business Model Canvas provides an effective framework for designing business models, there remains a need to enhance the understanding of cause-and-effect relationships within the system, as well as to establish a holistic perspective on its impacts. This is particularly relevant for entrepreneurs and start-up advisors, as start-ups typically have fewer financial resources to mitigate or adapt to unsuitable decisions taken than established companies. Furthermore, many of today’s start-ups operate in highly complex and dynamic sectors, such as the digital economy, and often strive for a holistic view of sustainability, balancing economic, environmental, and social impacts. This paper reviews the traditional Business Model Canvas and explores sustainable business models grounded in the Triple Bottom Line approach. It then introduces a Systems Thinking based Sustainable Business Model framework (STSBM) that offers a robust methodology for designing sustainable dynamic modern business models. Specifically, impact networks are proposed to align mental models, while scenario simulation and evaluation are presented as tools for managing complexity. The paper outlines the process of model development, details the structural elements of the proposed framework, and suggests its practical application. By integrating these principles, the proposed framework aims to support the creation of sustainable business models that effectively address the intricate challenges faced by start-ups.

Purpose The growing imperative for sustainable business practices has led to a recognition that companies must transform their business models to encompass economic, social, and environmental value. At the heart of this transformation is the triple bottom line framework, which evaluates business success in the three dimensions of profit, people, and the planet. Simultaneously, design-driven innovation embraces future-oriented approaches that include people and the ecosystem as stakeholders, while evolving the lenses of innovation, namely desirability (planet), feasibility (network), and viability (prosperity). This evolution offers a new perspective that extends the triple bottom line in business model design by considering the feasibility of achieving impactful, original, and useful innovations. We explore a potential method for designing a business model anchored in the conceptualization of design-driven innovation and a tool to support the creative exploration and coherence assessment of more sustainable (than those currently in use) business models. Design/Methodology/Approach We built on previous knowledge of design, design-driven innovation, and business model design, and merged with insights from our direct experience as design-driven innovation practitioners, including in applying the tools in different instances with client companies. Findings We propose the Design-Driven Innovation Business Model Canvas, and provide initial anecdotal evidence from its potential to support the creative exploration and coherence assessment of sustainable business models. Originality/Value Our tool is designed to merge the design-driven innovation perspective with business design requirements to generate more sustainable business models than those currently in use. We also propose a new conceptualization of the three lenses of innovation, which we then relate to the triple bottom line.

PurposeThe demand for resources for development also increased corporate pressures for sustainability. Consequently, it is necessary for organizations to adopt measures addressing the need to implement a new business model, which allows a management team concerned about the economy and the optimization of resources to make sustainable business models a strategic interest of the organization. The purpose of this paper is to analyze sustainable business models and the applied practices to operationalize them.Design/methodology/approachThis study was conducted through a systematic review of the literature to identify the sustainable business models addressed in the literature, and what practices are applied to operationalize these models.FindingsThe data show that sustainable business models have an approach centered on the direct participation of stakeholders, especially the user, in the process of creating sustainable value. Overall, they offer a high level of technology-based business models that prioritize the use of clean energy, material maximization and energy efficiency, with an emphasis on repair and maintenance rather than on disposal and scheduled obsolescence, as well as an emphasis on natural and renewable processes, the reuse of waste, environmental stewardship, product transformation into technological artefacts for users, and products for services and results.Research limitations/implicationsThe study’s contributions provide a more detailed understanding of sustainable business models and what practices can be adopted by companies to make the business truly sustainable. This paper contributed to the discussion of the research on sustainable business models and their operational practices.Originality/valueThe analysis promotes insights into new opportunities for companies to integrate their traditional business models with sustainability, contributing to the application of sustainable practices within the managerial scope. Companies that operate sustainable business models need to be aware that collaborative, sharing and networking models can deliver positive results for sustainable business models.