BlogPost by
Dr. Ronnakorn Vaiyavuth faculty member at CSII.
As I sat in my office at the Chulalongkorn School of Integrated Innovation, I pondered over the traditional Business Model Canvas (BMC) and its limitations in addressing the pressing environmental and social challenges we face today. My new quest was to evolve the BMC into a tool that not only aids startups and corporates in achieving financial success but also steers them towards contributing positively to society and the environment. This led to the creation of a new version of Sustainable BMC infused with Environmental and Social Governance (ESG) and Sustainable Development Goals (SDG) elements. Instead of nine core elements, we now have 12 core elements with which to implement a sustainable version of BMC.
The journey began with the Sustainable Value Proposition, where I reimagined the core offering of businesses to inherently include sustainable benefits. The idea was to encourage companies to innovate products or services that contribute to environmental preservation, social welfare, and ethical governance. For instance, a startup in Thailand developing biodegradable packaging solutions directly addresses the global issue of plastic pollution, aligning with SDGs on responsible consumption and production.
Next, I considered Impactful Customer Segments, focusing on identifying and engaging with customers who prioritize sustainability. This shift is evident in Thailand’s growing market for organic and locally-sourced food products, where consumers are willing to support businesses that align with their values of environmental stewardship and social responsibility.
For Sustainable Distribution, I envisioned channels that minimize their environmental footprint such as digital platforms for service delivery or eco-friendly logistics. A case of such a practice could be a Thai e-commerce platform that prioritizes green logistics, reducing carbon emissions, and promoting sustainable urban living.
Stakeholder Engagement became another cornerstone, emphasizing transparent and ethical interactions with all stakeholders, including employees, customers, suppliers, and the community. For example, a Thai startup engaging local communities in sustainable tourism initiatives fosters mutual respect and long-term benefits.
The concept of Sustainable Revenue then emerged from the need to align financial success with sustainability while advocating for pricing and revenue models that reflect the true cost of sustainability. In Thailand, the premium pricing of eco-friendly products in sectors such as fashion and hospitality reflects this trend. For their part, Sustainable Resources highlight the importance of using renewable, recyclable, or sustainably sourced materials. A Thai startup using upcycled materials for creating fashion items serves as a perfect example, promoting a circular economy.
Under Sustainable Operations, I emphasized operational practices that enhance ESG goals, such as energy-efficient manufacturing processes or fair labor practices. A Thai manufacturing firm adopting green technologies showcases this commitment. Sustainable Partnerships is about forging alliances with like-minded entities to amplify the common impact on sustainability. A collaboration between Thai startups and NGOs focusing on coral reef restoration is an illustrative case of such partnerships. Sustainable Investmentsreflect the need for investments in sustainable practices, balancing short-term costs with long-term benefits, much like Thai businesses investing in renewable energy sources.
From nine simple elements of BMC, my journey evolved a series of key ESG elements. But something is still missing. We do also need elements to ensure that our efforts are visible and demonstrate the impact our actions are having. In response, I incorporated three newly-created elements into the BMC. The ESG Metrics and Reporting section was designed to ensure that businesses track and communicate their sustainability performance transparently, fostering a culture of accountability and continuous improvement. Understanding the Impact of our actions on the SDGs was crucial for aligning business activities with global sustainability targets, in particular by encouraging startups to contribute meaningfully to these global goals.
Lastly, ESG Risk Management is about anticipating and mitigating risks related to environmental, social, and governance factors, ensuring business resilience and long-term sustainability.
This journey of redefining the BMC through a sustainability lens was not just about creating a tool but about inspiring a move towards sustainable innovation within the Thai ecosystem. By integrating ESG and SDG elements into the BMC, I aim to encourage future entrepreneurs to build businesses that thrive economically while contributing positively to our world.
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