Putting the Environmental Dimension into the Business Model Canvas

The Business Model Canvas, as described in Business Model Generation by Osterwalder and Pigneur (2010), presents an easy and general usable business model framework. I have been working on expanding the Business Model Canvas to describe and include the Environmental impact factor of a Business Model implementation.

This canvas does not change the core concepts or the language of Business Model Generation, but extends the canvas and introduces the concept of “Design for Environment” or DFE to be included in the Business Model. See figure below:

This ensures that the Business Model to be implemented will make sure to take into consideration the three concepts of DFE, which are summarized below:

• Design for environmental processing and manufacturing: This ensures that raw material [Resource extraction] (mining, drilling, etc.), processing (processing reusable materials, metal melting, etc.), manufacturing are done using materials and processes which are not dangerous to the environment or the employees working on said processes. This includes the minimization of waste and hazardous by-products, air pollution, and energy expenditure, among others.

• Design for environmental packaging: This ensures that the materials used in packaging are environmentally friendly, which can be achieved through the reuse of shipping products, elimination of unnecessary paper and packaging products, efficient use of materials and space, use of [Recycling|recycled] and/or recyclable materials.

• Design for disposal or reuse: The [End-of-life (product)|end-of-life] of a product is very important, because some products emit dangerous chemicals into the air, ground and water after they are disposed of in a landfill. Planning for the reuse or refurbishing of a product will change the types of materials that would be used, how they could later be disassembled and reused, and the environmental impacts such materials have.

I have of course included the environmental impact in the cost building block, measured nowadays with CO2e.

We see nowadays many companies focusing on sustainability and Environmental issues. Some of them have already started aligning/manufacturing their portfolio according to the Environmental requirements defined by Global initiatives like the UN Global Compact, The Climate Group, the Global e-Sustainability Initiative (GeSI).

 http://www.smart2020.org/ report

The Information Communications Technology (ICT) sector has an important role to play

in reducing environmental impact from these and other sectors. The wider deployment of communication networks and the addition of an underlying intelligence to existing infrastructure can reduce CO2e by 15% or more. ICT has been estimated to account for 2% of energy consumption and as a consequence 2% of CO2e emissions. While this figure is expected to increase over the coming years it is important not to underestimate the net benefit ICT can contribute by increasing efficiency.