In the Sustainable Strategies and Business Models class, we were introduced to Nancy Bocken’s 9 Sustainable Business Model Archetypes. These models aren’t just academic; they’re actionable frameworks that businesses can use to create long-term value while contributing to a circular economy.
Key Archetypes to Watch
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Deliver Functionality Instead of Ownership
Companies like Philips are leading the way by offering “light as a service,” which allows businesses and consumers to pay for the function of light instead of owning the physical bulb. This model reduces waste, lowers costs, and improves resource efficiency. -
Encourage Sufficiency
Patagonia’s "Don't Buy This Jacket" campaign disrupted the fast-fashion industry by encouraging consumers to buy less and repair more. This campaign not only reduces waste but builds loyalty by aligning the brand with social values that resonate with their customers. -
Create Value from Waste
TerraCycle has pioneered a business model that turns non-recyclable waste into new consumer products. This "waste-to-value" approach not only contributes to the circular economy but also generates revenue by recycling hard-to-recycle materials. -
Change to Renewables, Natural Processes
IKEA is investing heavily in renewable energy, sustainable sourcing of materials, and bio-based products like sustainable cotton. This model helps reduce dependence on finite resources while meeting consumer demand for greener products. -
Adopt a Stewardship Role
Companies like The Body Shop take a proactive approach by embedding social and environmental responsibility into their core business strategy. From fair-trade sourcing to ethical governance, stewardship drives long-term trust and brand value. -
Repurpose the Business for Society/Environment
Grameen Bank, for example, focuses on financial inclusion, particularly for women in rural areas. Their model directly addresses social equity and poverty alleviation while creating a positive impact on communities. -
Develop Scale-up Solutions
Tesla’s goal of transforming the automotive industry with electric vehicles is an example of how businesses can scale-up solutions that drive systemic change in industries. Tesla’s innovation in clean energy products and electric mobility is shaping the future of sustainable transport. -
Revalue Traditional Knowledge and Skills
Lush Cosmetics draws from traditional plant-based remedies to create beauty products that are natural, ethical, and sustainable. By using cultural wisdom, Lush ensures its practices are context-sensitive while contributing to environmental sustainability. -
Encourage Long-Term Sustainable Consumption
By promoting product longevity and repair, businesses like Patagonia and Fairphone encourage sustainable consumption rather than fostering a throwaway culture.
Why It Matters
These sustainable business archetypes challenge traditional business models by emphasizing long-term value over short-term profits. Whether it's adopting circular processes, scaling innovations, or leveraging local knowledge, these models can redefine industries and create lasting value.
Final Thought:
Business leaders and entrepreneurs need to think beyond profits. These archetypes offer actionable insights to integrate sustainability into the heart of business operations. It’s not just a strategy for the future—it’s a strategy for business resilience and growth.
— Morena
To see how sustainability integrates into business strategy, read about the Triple Bottom Line (TBL) and Sustainable Business Strategy.