A Fit-For-Purpose

21st Century Business Model … And Its Companion Knowledge-For-Action Dashboard

bobwillard@sustainabilityadvantage.com

Agenda

• 20th century business models

• 21st century business models

• Impact points mapped to business model

• Knowledge-for-action dashboard

http://www.greenspec.co.uk/life-cycle-assessment-lca/

Life Cycle Business Model

GovernancePurpose / Vision / Mission / Values / Strategies

THE BUSINESS

Customers

Human Resources

Financial Assets, Facilities,

Equipment, Intellectual Property

Suppliers

20th Century Business Model

Products &

Services

Activities &

Processes

Lenders &

Investors

Agenda

• 20th century business models

• 21st century business models

• Impact points mapped to business model

• Knowledge-for-action dashboard

New Corporate Purpose

“Statement on the Purpose of a Corporation,” Business Roundtable (BRT), August 2019.

The new purpose of a corporation is to:

• Deliver value to its customers

• Invest in its employees

• Deal fairly and ethically with its suppliers

• Support communities where it operates and protect the

environment by embracing sustainable practices across its

businesses

• Generate long-term value for its shareholders

From: Maximize shareholder value

To: Maximize stakeholder wellbeing

• Shows the nested interdependencies: It makes visible that the company is

nested in society, which is nested in the environment on a finite planet.

21st Century Business Model Design Criteria

https://drive.google.com/drive/folders/0B30i3w7ZW4ZMcnk0UEtncG5HaW8?usp=sharing

THE BUSINESS

21st Century Business Model Template

SOCIETY-

AT-LARGE

ENVIRONMENT

• Shows the nested interdependencies: It makes visible that the company is

nested in society, which is nested in the environment on a finite planet.

• Shows traditional flows: It shows the overall input‒process‒output flow

between the environment, suppliers, the business, customers and society.

• Shows stakeholder impact points: It makes visible where the business

impacts stakeholders, including the environment and society.

• Shows how the company creates value: It provides context for how the

company delivers value to stakeholders.

21st Century Business Model Design Criteria

THE BUSINESS

Suppliers

Community

Channels

Customers

Employees

SOCIETY-

AT-LARGE

ENVIRONMENT

Lenders &

Investors

Products &

Services

Activities &

Processes

GovernancePurpose / Vision / Mission / Values / Strategies

Community

Other

Stakeholders

Financial Assets, Facilities,

Equipment, Intellectual Property

21st Century Business Model Template

• Shows the nested interdependencies: It makes visible that the company is

nested in society, which is nested in the environment on a finite planet.

• Shows traditional flows: It shows the overall input‒process‒output flow

between the environment, suppliers, the business, customers and society.

• Shows stakeholder impact points: It makes visible where the business

impacts stakeholders, including the environment and society.

• Shows how the company creates value: It provides context for how the

company delivers value to stakeholders.

• Can accommodate new risks: If desired, it can show new 21st century

environmental and social risks that the company may need to mitigate.

• Can accommodate reputation, savings and income flows: If desired, it can

show sources of value that flow back into the business.

21st Century Business Model Design Criteria

GovernancePurpose / Vision / Mission / Values / Strategies

THE BUSINESS

Lenders &

Investors

21st century

environmental

risks

Reputation

$ Savings

Reputation

$ Savings

Reputation

$ Savings

SuppliersProducts &

Services

Activities &

Processes

$ Returns

Reputation

Community

Other

Stakeholders

Channels

Customers

Social licence

$ income

Reputation

$ Revenue

Employees

Financial Assets, Facilities,

Equipment, Intellectual Property

SOCIETY-

AT-LARGE

ENVIRONMENT

21st Century Business Model Template

Future-Fit Business Model

Future-Fit Business Benchmark Methodology Guide

Agenda

• 20th century business models

• 21st century business models

• Impact points mapped to business model

• Knowledge-for-action dashboard

Stakeholder Impact Points

Core ESG Issues at Impact Points

Wages

Water

Concerns process

Energy

GHG emissions

Encroachment

Health & wellbeing

Community impacts

Discrimination

Employment terms

Lobbying

Taxes paid

Business ethics

Waste

Non-GHG emissions

Materials, goods

and services

Investments

Governance

EnvironmentEmployees

Community / SocietyEnvironment

SDGs Mapped to Impact Points

Wages

Water

Concerns process

Energy

GHG emissions

Encroachment

Health & wellbeing

Community

impacts

Discrimination

Employment terms

Lobbying

Taxes paid

Business ethics

Waste

Non-GHG emissions

Materials, goods

and services

Investments

EnvironmentEmployees

Community /SocietyEnvironment

Governance

Wages

Water

Concerns process

Energy

GHG emissions

Encroachment

Health & wellbeing

Community

impacts

Discrimination

Employment terms

Lobbying

Taxes paid

Business ethics

Waste

Non-GHG emissions

Materials, goods

and services

Investments

EnvironmentEmployees

Community /SocietyEnvironment

Governance

Capitals Mapped to Impact PointsN

atu

ral

ca

pit

al

Hu

ma

n

ca

pit

al

So

cia

l

ca

pit

al

Na

tura

l

ca

pit

al

• Financial capital

• Manufactured capital

• Intellectual capital

Agenda

• 20th century business models

• 21st century business models

• Impact points mapped to business model

• Knowledge-for-action dashboard

Business Model Centerpiece Graphic

for Dashboard

Customers

OR

Society

Environment

Community

Employees

Company

$

Dashboard - ESG Scores

Concerns

Discrimin…

Terms

Wages

Health

Impacts on Employees

78% 67%

$5.6M $0.6M

Revenue Profit

$xxxx

(Other)

Financials

0% 50% 100%

Materials, goods and…

Energy

Water

Impacts of Inputs

0% 20% 40% 60% 80% 100%

GHG emissions

Non-GHG emissions

Waste

Encroachment

Impacts of Operations and Products

0% 20% 40% 60% 80% 100%

Community impacts

Taxes paid

Business ethics

Lobbying

Investments

Progress on impacts on Communities

75%

70%

3-in-1 Sustainability Assessment Toolkit https://sustainabilityadvantage.com/frameworks/science-based-reporting-tools/

53%

Dashboard - SDG Scores

Impacts on Environment

by Inputs

Impacts on Employees

Impacts on Society, Communities

and Customers

Impacts on Environment

by Operations and Products

60% 36%74% 68%68% 68%

68% 68%

70% 72% 61%

72%82%

61% 70%85%

82%

$5.6M $0.6M

Revenue Profit

$xxxx

(Other)

Financials

3-in-1 Sustainability Assessment Toolkit https://sustainabilityadvantage.com/frameworks/science-based-reporting-tools/

Dashboard - <IR> Capitals Scores

Natural Capital

Progress on adding more value

than subtracting value through

inputs53%

Human CapitalProgress on adding more value than

subtracting value

78%

Social and Relationship CapitalProgress on adding more value than

subtracting value

70%

Natural CapitalProgress on adding more value than

subtracting value through operations

and products 75%

+15%

+5%

+12%

FINANCIAL CAPITAL

Value change

MANUFACTURED CAPITAL

Value change

INTELLECTUAL CAPITAL

Value change

3-in-1 Sustainability Assessment Toolkit https://sustainabilityadvantage.com/frameworks/science-based-reporting-tools/

Agenda

✓ 20th century business models

✓ 21st century business models

✓ Impact points mapped to business model

✓ Business model centrepiece for dashboards

A Fit-For-Purpose

21st Century Business Model … And Its Companion Knowledge-For-Action Dashboard

bobwillard@sustainabilityadvantage.com