Building A Sustainable Business Model

Julie Starr • April 27, 2021



One indication that sustainability is becoming more important to consumers is a growing campaign opposing plastic goods and excessive consumption. But what does this mean for your company, and how do you build – or move to – an environmentally sustainable business model?

Let’s take a closer look at what we mean by sustainability and how to build a business model that is sustainable.

Sustainability: what is it?

Sustainability is a corporate strategy for generating long-term value by considering how a company works in terms of the environment’s ecological, social, and economic factors. The premise behind sustainability is that developing such policies promotes business longevity.

Organizations are discovering the need to act on sustainability as demands for corporate responsibility rise and accountability becomes more prevalent. Good PR and intentions are no longer sufficient – it is all about the actions that you take.

Examples of sustainable business models and practices

It can be difficult to envisage what we mean by a sustainable business model if you are new to the concept, so let us look at some household brands who have moved to this strategy t o give you an idea of what is meant by it.

Leading sports brands Nike and Adidas are key players in sustainability . Nike has stepped up its efforts to lower the carbon footprint they leave and reduce the waste that they produce while Adidas has focused its efforts on greening its supply chain and removing plastic bags and artificial dyeing practices.

Car manufacturers have also stepped up in sustainability measures. Of course, it goes without saying that Tesla has made huge strides in the industry with its innovations , but BMW and Toyota have worked to reduce energy emissions and pollution.

The one thing that these companies have in common is their commitment to the issues at hand and their transparency with consumers and other stakeholders. This is something that all businesses, regardless of the industry or scale or age, should be striving for now and in the future.

Empty promises are not enough

There is often some disparity in knowing that sustainability needs to be embedded within every aspect of the business to actually following through and doing it. As we mentioned above, knowing about it and making empty promises is no longer good enough; as a business, you must be seen to be doing it. Greenwashing is something that consumers are aware of, and if they suspect you are greenwashing issues – pretending to do something but not quite doing it – it makes you look inauthentic and untrustworthy.

How do you go about building sustainability into your business model?

Ensure company values and sustainability practices are aligned
The company’s policy and sustainability activities must be aligned. Disparity between the two is common, which makes sustainability initiatives vulnerable due to a lack of real engagement and prioritization.

Ensure complete transparency
Transparency is essential for evaluating and strengthening sustainable practices.  You simply can’t judge without transparency. Transparency builds on the premise that an open platform in the business as well as with the community would boost results.  Companies can only achieve transparency by maintaining clear lines of communication with all key stakeholders based on high standards of information access, clarity, and accuracy – as well as a willingness to admit mistakes and improve practices.

Allow it to infiltrate every aspect of your business
Whether you are looking to renew your general liability insurance or assess your recruitment procedures, down to decisions as to what meals to serve in the staff cafeteria, sustainability should be considered at every level of the business. Only then can you say you are truly embracing sustainability, although consumers do appreciate that even a small step is better than nothing – as long as you are communicating and following through with your intentions.

Consider alternative forms of business ownership
The conventional top-down business model will result in unjust pay disparities between those at the top (CEOs, other C-level executives, entrepreneurs, and managers) and those at the bottom (the laborers tasked with creating raw materials or carrying out the manufacturing processes). Including others in your sustainability objectives will help you stay on track and give those who work with you a sense of accomplishment.

Communicate with your customers
It’s fine if your commitment to sustainability means higher prices for your customers. In an informative blog post, series of posts, or dedicated brand page, explain why your consumers are paying more for your goods. One way to engage the clients and give them more control over their money is to include them in decision-making.

What are the benefits of building a sustainable business model?
There are several ways to address the topic of sustainability, but the most straightforward one that can bring all stakeholders together is this: nicer companies attract more customers.

Use your environmental sustainability as a selling point. According to a 2019 report, telling online shoppers that other people were purchasing eco-friendly goods increased their likelihood of making at least one sustainable purchase by 65 percent.

It is fine to be transparent about your sustainability objectives – in fact, it is good to be so, Customers will inquire, and the more open you are about it, the more likely they will tell their peers.

However, it is possible that money is not your sole motivation. Perhaps you are motivated by a desire to make a positive difference in the world. and  After all, the bigger a company expands, the greater its effect on the environment and the people around it – and it is safer to start out on the right foot than to make the move ten years later, or when customers begin to object to unfair business practices.

If you are thinking of adopting a sustainable business model, bear in mind the costs you will incur in the short term. It is, however, not only for a sustainable future but also for a powerful brand image for today’s environmentally aware customers. To put it another way, sustainability is a good investment.

By Julie Starr July 17, 2025
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By Julie Starr July 14, 2025
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