A disc in three parts with symbols for money, people and nature, linked by arrows around an orange centre

Business model and financeSustainable business model

Sustainability as a source of growth, not just an obligation

Sustainability only pays off when it is part of your business model, not an add-on. A sustainable business model creates value on three layers: economic, social and environmental. The Next Organization helps you connect those layers, so that sustainability makes economic sense too.

Sound familiar?

  • Customers and supply chain partners ask for data on your sustainability performance
  • Customers say sustainability matters, but still pick the cheapest option
  • Sustainability is a collection of separate initiatives with no plan behind them
  • Sustainability is the first thing to go when times get tough
  • Nobody can say what sustainability actually brings in financially

What is a sustainable business model?

Your business model describes how your organisation creates, delivers and captures value. A sustainable business model starts at the core: why you exist, how you work and what value you create for customers, for society and for yourself. Our framework is based on our own research with universities on the transition to sustainability.

Three layers of value

This is what each layer covers:

The three layers overlap, and that is where the gains are.
  1. Economic

    What it covers

    Staying profitable and managing resources well, so your organisation can keep operating

    Examples

    • Proposition
    • customers
    • stakeholders
    • capacity to innovate
  2. Social

    What it covers

    The wellbeing of people, inside and outside your organisation

    Examples

    • Employee engagement
    • ethical conduct
    • community
    • product responsibility
  3. Environmental

    What it covers

    Keeping nature intact with products and processes that protect the environment

    Examples

    • Energy and emissions
    • reuse
    • raw materials and water
    • biodiversity

The gains lie in the links between the layers. Using less energy also lowers your costs. Engaged employees stay longer. That is how your contribution to society shows up in your business case.

The European reporting obligation now only applies to large companies. Even so, customers, supply chain partners and public buyers still ask for data. With a sustainable business model, you answer those questions on the basis of your own strategy.

What you get

You get a business model in which sustainability contributes to your results, with a roadmap that takes you from separate initiatives to a structural approach. You answer questions from customers and supply chain partners with consistent figures. And because sustainability sits at the core, it is not dropped at the first setback.

Frequently asked questions

What is the difference between sustainable business practices and a sustainable business model?

Sustainable business practices are often about individual measures, such as solar panels or less waste. In a sustainable business model, sustainability is built into your proposition, your revenue model and your choices. That way it adds to your results instead of only costing money.

How do you make sustainability profitable?

Translate every social and environmental effort into economic value. Think of lower energy costs, lower staff turnover or better financing terms. Start with visible, practical steps and build on them one at a time.

How does sustainability fit into your strategy?

Start with your vision, mission and ambition: what contribution do you want to make, and why? Translate that into choices in your proposition, your offering and your processes. That way sustainability becomes a permanent part of your direction rather than an afterthought.

Curious what this means for your organisation?

Book a no-obligation sparring session. We will think through your challenge with you and show how we would tackle it together.