The 4 Steps to a Triple Value Business Model
In a world where pressure on natural resources is increasing and the call for social justice is growing louder, the importance of sustainable business has never been greater. Sustainable business design, also known as impact entrepreneurship, offers a path to a future where organizations not only make a profit, but also have a positive impact on the planet and society. We call this Triple Value. In this blog, we highlight the importance of sustainable business design. We also share four concrete steps that organizations can take to transform their business model into a Triple Value business model.
The importance of sustainable business design
Sustainable business design is crucial for organizations as it enables them to take responsibility for their impact on the environment and society. By integrating sustainability into all aspects of the business model, negative environmental effects can be minimized, resources can be used more efficiently and social justice can be enhanced. Moreover, sustainable business practices can provide organizations with a competitive advantage, as consumers and investors increasingly value sustainability.
Step 1) Sustainability assessment
The first step towards a Triple Value business model is conducting a thorough sustainability assessment. This involves identifying the organization’s key environmental and social impact areas. The Stay Future Proof Triple Value scan can assist you with this. Click here to gain insight into how well your organization scores on Triple Value.
It also entails setting goals and measuring progress. Having a clear understanding of the current situation allows organizations to take targeted actions to reduce negative impacts and foster positive change.
Step 2) Circular economy and sustainable supply chain
A vital aspect of sustainable business design is reconsidering the linear economy and embracing the circular economy. In a linear economy, the production and consumption of goods follow a linear pattern: extract raw materials, produce, consume and then discard. In doing so, we throw away increasingly valuable – because scarcer – materials. In a circular economy, we no longer speak of waste but of material flows. Here, once extracted raw materials remain in the product chains. Organizations can transform their business model by reusing, recycling and repairing products and materials. Additionally, it’s crucial to develop a sustainable supply chain, where suppliers are selected based on their sustainability performance and ethical standards
Step 3) Innovation and technology
Innovation and technology play a crucial role in transforming a business model into a Triple Value business model. Firstly, organizations should contemplate the relevance of their products and services. Are they truly necessary? After all, allocating resources, time and energy to products and services that don’t make a genuine positive impact is a form of waste. Moreover, organizations can invest in research and development to create sustainable products and services that minimize environmental impact. New technologies, such as renewable energy sources and intelligent systems, can also be integrated to enhance efficiency and promote sustainability.
Step 4) Collaboration and stakeholder management
Transforming a business model into a Triple Value business model requires collaboration and engagement from all stakeholders. Organizations are best positioned when collaborating with suppliers, customers, governments and civil society organizations to develop sustainable solutions and achieve shared goals. Involving diverse stakeholders in the process enhances the legitimacy and impact of sustainability initiatives.
Sustainable business design is essential for organizations aiming to make a positive impact on the planet and society. By transforming their business model into a Triple Value business model, organizations can integrate sustainability into their core activities and contribute to a sustainable future. By following the four steps outlined in this blog, companies can pave the way to a more sustainable and fairer world.
Would you like to know more about sustainable business design? Or are you ready to transform your current business model into a Triple Value business model? Join our Sustainable Business Design Masterclass. You can register here. Prefer to have a coffee chat instead? Click here to schedule a meeting.“