Lecture 4

Question 1

What is environmental value

creation?

Answer 1

When the environment IS seen as a stakeholder’ society and business can reduce
(even eliminate) negative externalities, a triple bottom line value proposition to:
• Reduce pollution (pre and post consumer)
• Reduce waste, reuse, find alternative resources and sources of energy
• Reduce material usage and energy consumption
• Decarbonization: reduce CO2 production and increase CO2 capture
• Protect and restore natural environments (on land and in water)

Question 2

What are the key sources of environmental degradation?

Answer 2

• Linear economy models –take, make, use, discard
• Industrial and agricultural pollution
• Societal driven pollution and consumption
• Deforestation
• Carbonization of the atmosphere

Question 3

Entrepreneurial business are often the most active change makers as they:

Answer 3

• are not constrained by legacy operational practices and infrastructure
• can design the business models to meet specific sustainability missions and
personal goals
• are willing to engage in radical innovation
• are wiling to act where there is much uncertainty
• are able to see societal and environmental challenges as sources of opportunities
• & sustainable entrepreneurs operate with a sustainability-oriented logic: the
“logic of empowerment” (Santos, 2012) and aim for sustainable advantage versus
competitive advantage

Question 4

What is the triple bottom line approach?

Answer 4

Value capture for owners and investors
Value creation for:
- Customers
- Society
- Environment

Question 5

BM innovations for sustainability goals

Answer 5

means of categorizing and thus explaining SBM innovation

generic mechanisms for actively assisting SBM innovation

examples to help de-risk the sustainable business model innovation process

research agenda for business models for sustainability

Question 6

The 8 BM architypes

Answer 6

1. Maximize material and energy efficiency
2. Create value from ‘waste’
3. Substitute with renewables and natural processes
4. Deliver functionality, rather than ownership
5. Adopt a stewardship role
6. Encourage sufficiency
7. Re-purpose the business for society/environment
8. Develop scale-up solutions

Question 7

What are some of the current macro trends?

Answer 7

• Consumer awareness
• Circular economy
• Corporate social responsibility
• Sharing economy and collaborative consumption
• Technological innovation - alternative sustainable fibers: bamboo,
increased durability, rapid make-to-order

Question 8

Orange Fiber Case?

Answer 8

Orange Fiber is an Italian company that has patented and

produces sustainable fabrics from citrus fruit by-products

Question 9

Alt Mat case?

Answer 9

AltMat is an Alternative Materials Science
company. One of our key technologies
upgrades agricultural residues into high
performing natural materials.

Focused on circular technologies