In many places Sustainable business models We have heard a lot of talk about sustainability, but very few take the steps to reorganise existing business models for sustainability in their own company or even to develop new business models for sustainability in parallel. What we often see are smaller or larger ecological or social improvements to the existing business model. However, sustainability usually remains an on-top and is often more expensive or even unprofitable in the long term. However, companies that truly integrate environmental and social responsibility into their core business ensure resilience, future viability and economic growth. But what does it really take to transform a business model sustainably - beyond greenwashing and symbolic measures? In this article, we present eight effective strategic approaches for sustainable business models - and four examples that achieve measurable impact in practice.
Table of contents
Why it takes more than just "sustainability on top"
Many companies have implemented initial measures for CO₂ reduction, the circular economy or supply chain transparency - that's a good start. However, in order to create real change, it is not enough to make what already exists a little more sustainable. It requires a realignment at a strategic level. Sustainability must become part of the business model - integrated into value creation, supply, pricing logic, partnerships and operational processes.
The good news is that those who rethink now can not only give something back to the environment and society, but also open up new markets, strengthen customer loyalty and promote innovation. We have identified over 30 strategies that companies can use to align their business models with sustainability and have organised them into 8 categories. We present these 8 categories and take a closer look at 4 specific strategies for sustainable business models.
The 8 strategy categories for sustainable business models
Sustainable business models usually don't work by simply greenwashing the existing business model. We need a fresh perspective and often have to think a little out of the box. The eight strategy categories help companies to transform in an effective and economically viable way. It absolutely depends on the industry, products, markets and existing structures of the company which category and underlying strategy works.
Here are the eight strategy categories for sustainable business model transformation:
- Value chain strategies: With a view to the entire upstream and downstream value chain, it identifies where responsibility can be distributed differently, where old, established structures can be bypassed or where resources can be saved through smart logistics and good marketing.
- Circularisation strategies: Existing product strategies are completely scrutinised and circularity is thus deeply integrated into the business and made economically attractive.
- Platform strategies: Platforms are relatively new business models and can still turn many business models and markets upside down and be more sustainable both in terms of the sharing economy and the saving of resources through the digitalisation of products.
- Pricing strategies: Traditional pricing models are being scrutinised and modern, e.g. impact-oriented pricing models can generate a native change towards more impact.
- Production strategies: Today, global networking and new production processes allow for completely different, e.g. decentralised, flexible or locally anchored production options, but these are still not given enough thought.
- Longevity strategies: We know that product longevity goes hand in hand with enormous resource savings, but many companies find it difficult to implement this profitably. These strategies can help.
- Material strategies: The acceptance of sustainable alternatives to existing products is increasing and a switch is worthwhile for more and more industries. However, this is not just about bio-based materials, for example, but about questioning how the actual product benefits can be brought to customers.
- Co-operation strategies: Co-operations can have a huge leverage effect for greater sustainability and profitability. Various strategies with competitors, other market participants and the value chain make this possible.
Methods and best practice for sustainability in your mailbox
Four examples of sustainable business models with real impact
Strategies are only good if they work in reality. That is why we present four tried-and-tested models that show how companies can integrate sustainability economically - and achieve a measurable impact:
1. shifting responsibility upstream: fair value creation at the beginning of the chain
Category: Value chain strategies
Many sustainability efforts start at the end of the supply chain - with recycling or offsetting. But if you want real fairness, you have to start earlier. With this strategy, companies actively shift responsibility to the beginning of the value chain. As a result, a greater proportion of the added value remains in the supplier countries, jobs are created, greater income can be generated locally from the processed products and the local industrial infrastructure is supported. For material products, for example, this can mean that not only the raw material extraction but also the production takes place in the supplier countries. Or, in the case of international service providers, administrative units can be created there.
Entrepreneurial benefit: Cost savings, e.g. through wage differences, security of supply through stable, locally anchored partnerships, image enhancement through comprehensible social responsibility, access to new markets and funding.
Practical example: The chocolate manufacturer fairafric processes cocoa beans directly in the country of origin. This creates jobs, secures local income and enables genuine participation.
- ✔️ Fair income for local producers
- ✔️ Strengthening the regional economy
- ✔️ Positive social impact
2. as-a-service instead of product sales: more benefits, fewer resources
Category: Circularisation strategies
Offering products as a service - e.g. machines, lighting or clothing - changes the economic logic: the physical products remain in the possession of the manufacturer and they remain responsible during the utilisation phase. This automatically leads to these products being made more durable, repairable and efficient - with a positive effect on resource conservation and take-back rates.
Entrepreneurial benefit: Stable and recurring revenue, long-term customer loyalty, cost savings through improved resource utilisation and innovation boost through monitoring of the entire usage phase.
Practical example: Kaeser Kompressoren offers its compressed air systems in the "Sigma Air Utility" model as a service. Instead of buying machines, customers pay for the compressed air they actually use. Kaeser takes care of maintenance, energy efficiency and system optimisation - including taking back and modernising the systems. Resources remain in the cycle and the costs are predictable and transparent for customers.
- ✔️ Greater resource efficiency
- ✔️ Less waste through take-back & recycling
- ✔️ Long-term customer relationships
3. pay-from-savings: payment via savings
Category: Pricing strategies
This model focuses on performance rather than product: customers only pay if savings are actually achieved - for example in electricity, water or materials.
Entrepreneurial benefit: Faster market entry due to lower entry barriers for customers, shared risk, differentiation from traditional providers, sales growth with proven effectiveness.
Practical example: With its Energy Performance Contracting business model in which investments in energy efficiency measures - for example in buildings or production infrastructure - are financed by the savings achieved. Customers only pay if the contractually guaranteed savings are achieved. Siemens takes care of planning, financing, implementation and monitoring - including long-term maintenance and optimisation. This minimises risks and creates planning security for companies.
- ✔️ Low investment risk for customers
- ✔️ Incentive for efficiency & impact
- ✔️ New revenue models for providers
4. decentralised micro-fabrication: local & scalable production
Category: Production strategies
Instead of centralised mass production, companies rely on locally distributed microfactories - e.g. in urban neighbourhoods or containers. This allows products to be manufactured in a customised, low-emission and resource-saving manner.
Entrepreneurial benefit: Shorter supply chains and lower transport costs, increased delivery reliability, faster responsiveness to local demand, proximity to the customer as a USP.
Practical example: The British Car manufacturer Arrival relies on a network of decentralised microfactories for the production of electric transport vehicles. These smaller, locally based factories enable the company to produce closer to its sales markets, reduce transport emissions and respond more quickly to regional requirements. At the same time, production processes can be organised more efficiently and scaling costs can be reduced.
- ✔️ Low transport emissions
- ✔️ Regional added value
- ✔️ High adaptability
Conclusion: Sustainable business models need the courage to transform
Sustainable business models are not a static goal - they are a dynamic process. The eight categories presented and four specific examples of strategies show how companies can not only minimise environmental risks, but also strengthen their innovative power, customer loyalty and resilience. Whether through fair supply chains, usage-based pricing models or decentralised production, the key lies in the strategic realignment of the business model.
For decision-makers with ESG responsibility, now is the right time to set the right course - and to be economically successful with a clear conscience.
[glossary_exclude]
Do you want to get out of your comfort zone and into the transformation?
Ask me for a free information meeting.
I am ready with advice and pleasure.
Toni Koç
Sustainability strategy and reporting topics
Frequently asked questions about sustainable business models
A sustainable business model integrates environmental and social responsibility directly into value creation - not as an add-on, but as the economic core of the company. It aims to be effective and profitable in the long term.
Strategies with high leverage include the circular economy, performance-based pricing models (pay-from-savings) and the decentralisation of production. These create measurable impact and economic benefits.
Service models such as "as-a-service", local production or durable products can even turn resource efficiency into a competitive advantage. At the same time, risks in the supply chain are reduced.
In addition to an improved brand image, companies benefit from more stable supply chains, local availability, potential subsidies and access to new markets.
A central one. Repairability, reuse or take-back systems can save material, strengthen customer loyalty and create a scalable system.
Instead of a fixed purchase price, models such as pay-per-use or pay-from-savings are performance-based. This lowers the barrier to entry for customers and honours actual impact.
One comment
Comments are closed.