While taking the Sustainable Business Strategy course at Harvard Business School, one thing became very clear: sustainability isn't a side project anymore. It's becoming a core business strategy, and those who don’t adapt may not survive the next decade.
The course outlines four business models companies are already using to align profit with purpose:
1. The Cost-Cutting Model
This one’s deceptively simple: do more with less. When companies implement energy-saving technologies or reduce material waste, they don’t just lower their environmental impact; they also improve margins. It’s a win-win. Think of companies streamlining operations by using less packaging, reducing water usage, or switching to renewable energy.
2. The Premium Price Model
Some consumers are willing to pay more for sustainability. Brands that authentically invest in better sourcing, transparency, or ethical practices can often justify a higher price point. But it has to be real. Greenwashing won’t hold up for long in an era of informed buyers.
3. The Market Share Growth Model
Here, companies use sustainability to attract a larger customer base even without changing prices. A good example? When a sustainable product performs just as well as its traditional competitor, but with a lower footprint, many consumers will make the switch. Sustainability becomes a competitive edge.
4. The Disruptor Model
This is where things get bold. Some companies are building entirely new industries offering products or services that didn't exist before, or replacing outdated, polluting ones. Think Tesla. Or even companies replacing cement, leather, or meat with low-carbon alternatives.
What I’m learning is that these aren't “nice to haves.” They're strategic tools. The smartest companies are using climate pressure as a reason to reinvent. And in many cases, they're getting ahead of regulation, consumer demand, and investor scrutiny all at once.
Business doesn’t need to wait for permission to act; it just needs a better playbook. This course is helping me build one.
— Morena
