Add “Green” into your Business Model

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I distinctly remember the day when I took up employment in Jakarta, Indonesia. It took many long conversations with my wife before I felt confident enough to accept the job. Months ago, I was trying to formulate my thoughts during my third year’s anniversary of living in Jakarta. 

As the 4th most populous country on earth, Indonesia estimated population today should have reached 255 million.

The world population has experienced rapid growth from approximate 2.5 billion in 1950 to 7.3 billion in 2015. According to the highest estimate, the world population may rise to 16 billion by 2100.

I have questioned on the sustainability of further world population growth, growing pressures on the environment, global food supplies, and energy resources to support the population.

There are so many threats to the world because of the increasing number of living humans on Earth. We as human being create problems to the mother nature! 

Climate change, depletion of natural resources, air pollution, water pollution (river, sea, lake & also underground sources, chemical used that impact our health, waste growth, natural disasters & man-made disasters (landslide, oil spill...), traffic jam, noise pollution, food & agriculture pollution with pesticides, deforestation and more.

In recent years, there are increasing uptrend that people emphasize about green business, bio-based product, use waste to create energy, renewable energy, and etc. Rapid research and development embark by institutional, university, government all over the world to promote the sustainability of the environment.

So, what is Green Business?

According to the definition from Green America, Green businesses adopt principles, policies, and practices that improve the quality of life for their customers, their employees, communities, and the environment.

Traditionally, economists and financiers have argued that the sole purpose of business is to make money, the more, the better. Therefore, the business model is created to generate sustainably profitable and sustainable revenue streams to the shareholders.

At the heart of the understanding of business models shall put into two perspectives, capture & create value. In my daily business development job, we always examine on the aspect in terms of value propositions with the target partner/ company to capture value.

On another aspect, we also regularly look at the resources for instance technology acquisition, market, human capital, financial strength and processes which able to create value.

By integrate the two i.e. capture & create value, we hope that able to generate the financial logic through feasibility study & financial analysis to shareholders.

I must say that it is critical to connecting the “green” aspect into any business model construction.  This dimension shall not be ignored. Believe that there are many opportunities for all walk of industries, regardless of size; small, medium or large multinationals companies to take the leadership role that help to preserve & protect the world environment.

In these days, we need business to continue innovate and develop Green Business Model. A business model that not only capture & create value for people but also for the environment ecosystem, for the mother world that we and our future generations live in.

Let me end this short article about green business model with several quotations, hope able to inspire us to think and act inventively green: -  

“Forward thinking companies that adapt positively to the sustainable business agenda will be at the forefront of resource productivity, reducing waste and of environmental reporting. They and their management teams make things happen ahead of their competitors.”- Michael Meacher, Environment Minister (UK).

“There is a simple rule about the environment. If there is waste or pollution, someone along the line pays for it.”- Lee Scott, chief executive, Wal-Mart

“Sustainable business is resource efficient, respects the environment and is a good neighbor.” - Phil Harding, an archeologist.

Hope you enjoy the reading! 

Welcome you to connect & networking with the author,

LinkedIn,  https://id.linkedin.com/in/darrelltanboonlai
Blog, https://aboutlearningcurve.wordpress.com
Twitter @alccurve

Darrell Tan is a Certified Professional Trainer (CPT) with Malaysian Institute of Management (MIM), Certified Train the Trainer registered with Malaysia Human Resources Ministry, Certified Business Analyst with corporate profession in Business Development & Strategic Planning field. He is believing & inspired by “Anyone shall be given a chance to learn hence transform learning into long-lasting growth!”