Sustainable business models for companies

Business models are said to be sustainable if they enrich stakeholders and produce/distribute benefits along the entire value chain without depleting the human, economic and natural capital on which a company's success rests. The choice to adopt this type of business model allows increasing the company's positioning through sustainability performance and innovative business modelling strategies. By integrating the digitisation of services, extended producer responsibility with result-oriented models and product-as-a-service models, numerous advantages and business opportunities will be realised, gaining additional revenues, accessing new markets and improving the company reputation.

Public opinion, institutions, suppliers and investors are increasingly attentive to the issues of environmental sustainability and corporate social responsibility. The pressure on organisations to embark on a path towards a green transition of care for the environment and society pushes them to adopt the stakeholder theory. The aim of the company must be to meet the expectations of stakeholders and to do this, new sustainable business models must be added to the old economic strategies. Today, the term 'responsibility' is closely linked to the concept of business as is that of 'accountability'. In this context, it is necessary to rethink corporate initiatives and procedures in order to create a path to sustainability.

All sustainable business models involve a strategic methodology aimed at sustainability that is innovative and customised. Initiatives must be set on long-term objectives that take into account the positive impact to be generated for society and the environment as well as for the organisation itself. If the company wants to structure itself through an approach focused on the wellbeing of its people and territories, it will have to choose the Well-being Business model. Wanting to adopt environmental sustainability and respect for the ecosystem the model to adopt is the Green & Circular Business model. This makes it possible to follow regulatory guidelines and various institutional programmes such as theEuropean Green Deal.

A third business model is the Fair-trade business model, which is based on ethics, sustainability, innovative strategic partnerships to promote social and environmental innovation as well as sustainable development. 3Bee presents itself as an ideal partner for land protection having developed unique technologies to defend biodiversity. Among the most advanced sustainable business models is the Social need business model. It allows companies to create products, models and services that effectively address social needs. Finally, organisations can choose the Society intimacy business model if the intention is to prioritise the relationship with the local area and community. They choose to actively promote a corporate culture based on environmental and social sustainability.

To be sustainable, a business model must take into account the three Ps, namely profit, people and planet. Three principles that must be followed to create strategies to be successful and demonstrate one's focus on sustainability. Profit refers to the economic orientation of organisations that must promote a sustainable development in line with European directives in order to innovate and remain competitive in the market. The second P refers to the effects of the company's activities in the social context in which it operates. A context that involves many actors, from employees to suppliers to investors. We come to the third P, the planet or the principle of protecting the environment, ecosystems and biodiversity. Business plans must point in the direction of sustainability by actually implementing actions to defend the planet.

A company that wants to sustain a long-term vision needs to consider the impact of ESG, Environmental, Social and Governance factors. Three criteria to qualify a business as sustainable. "E" to assess the company's behaviour towards the environment. "S" to examine the organisation's social impact and relationship with the territory and stakeholders. "G" for business management inspired by ethical principles and good practices. A sustainable business model enables companies to take concrete action in the direction of sustainability in the three aforementioned dimensions, environmental, social and governance.

Enterprises aiming for success must build a business model in the ESG key. As they are called upon to make the green transition, organisations must integrate sustainability into their operations and governance as well as embed sustainable development goals in every business function. And they must also accept a transformation of the operational aspects of the business. From service and product offerings to supply chain management to the selection and use of raw materials. Changes that are necessary to demonstrate that they have truly embraced sustainability andimprove their impact on the environment. There is a need for clear and transparent reporting to stakeholders.

Integrating ESG issues into the corporate business model means achieving several benefits. Legitimising the company's operations by actively involving stakeholders, improving the ability to attract young talent and retaining key employees, facilitating access to the credit market, increasing the ESG rating and developing a responsible and sustainable supply chain. In addition, risk and problem management as well as cost and resource management will be improved and there will be a marked improvement in corporate reputation. Indeed, more and more investors are rewarding organisations that are committed to integrating environmental, social and governance principles into business decisions. At the same time, consumers appreciate companies that adopt behaviour with positive effects on the environment and people.

The adoption of new sustainable business models may seem like an opportunity for companies but in reality it is a need to be met as soon as possible. The opportunity is a key element, in fact, of the European Green Deal that aims to makeEurope the first climate-neutral continent by 2050 and the European Environmental Agency with the goal of reducing emissions by 2030. Sustainable business models can facilitatethe transition to the circular economy, a priority issue in Europe. Companies, but also EU Member States, need to understand what actions to take to become more circular both economically and environmentally.

The current context requires companies to start transforming their business model to generate a positive environmental and social impact and use targeted stakeholder engagement strategies to confirm their competitive position in the market. Corporate sustainability is about reconciling the three aspects of doing business - environment, society and governance - and reducing impacts on the territory. To respond concretely and dynamically to market needs, 3Bee has created the Oasis of CSR, the network of sustainability professionals. An exclusive community of sustainability professionals united by a common goal: continuous ESG education and sharing of best practices and experiences in the field of sustainability. A real Sustainability Hub for businesses, conceived to offer concrete, daily and continuous support, thanks to 3Bee's technical team.

Article by Valentina Trogu