Building A Business Model Around Sustainability Dr Eva Collins 30 March 2011 SBN Forum

16 December 2015© THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO2 Does Business Have a Role in Sustainability?

16 December 2015© THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO3 Traditional Business Model

16 December 2015© THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO4 What’s needed is to turn conventional markets – and conventional business thinking – on their heads. (Elkington 1997) Does Business Have a Role in Sustainability?

16 December 2015© THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO5 Ecopreneurs and Social Entrepreneurs Using commerce to change the world

16 December 2015© THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO 6 Collaboration Dr Helen Tregidga Auckland University of Technology Professor Kate Kearins Auckland University of Technology Dr Eva Collins Waikato University Dr Steve Bowden Waikato University

16 December 2015© THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO7 Professor Mike Pratt Waikato University

16 December 2015© THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO8 What are the challenges for business related to sustainability? Finite resources The paradox of growth Consumerism New Zealand issue Scale 100% sustainable?

What is a Sustainable Business Model? A sustainable business model has an overall positive effect on the natural environment and contributes positively to the social fabric, moving us toward a sustainable future. Examples: Driven by values Closing the loop Redefining “the product” and who needs to own it Adding to the social fabric 16 December 2015© THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO9

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16 December 2015© THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO12 Top Five Guidelines for a Successful Sustainability Strategy 1.There is a margin for sustainability features, but it’s small so you must be creative 2.Typical starting strategy is developing a niche market with loyal customers willing to pay more for sustainability features

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Top Five Guidelines for a Successful Sustainability Strategy Cont. 3. Don’t ask your customers for your sustainability vision, but do engage stakeholders 4. Sustainability features are no excuse for a lack of performance 16 December 2015© THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO14

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Top Five Guidelines for a Successful Sustainability Strategy Cont. 5. Importance of reputation and embedded sustainability 16 December 2015© THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO16

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Creative Destruction 16 December 2015© THE UNIVERSITY OF WAIKATO TE WHARE WANANGA O WAIKATO18 “You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete” (Richard Buckminster Fuller, philosopher, futurist and global thinker, ).