PARADIGM SHIFTING TOWARDS GREEN

BUSINESS MODEL FOR THE FUTURE

OPPORTUNITIES

Dr. Sagar O. Manjare

B.Pharm, MBA, M.Phil, Ph.D, UGC-NET
(Principal, Siddhant College Management Studies)
 Contents
INTRODUCTION

OBJECTIVES

RESEARCH METHODOLOGY

BUSINESS AND ENVIRONMENT

GREEN BUSINESS CONCEPT

GREEN BUSINESS MODEL

HURDLE OF ENERGY AND PLASTIC USE IN GOING GREEN

GREEN VALUE CHAIN

CONCLUSION
 Introduction
The green nature of a business and business model influenced by Klein-Art
(1991) is not the beginning of any single display of care about the production of a
business model that is environmentally friendly, CO2 neutral, plastic paper, or
material recycling as an example.
Rather, the company and its whole value chain are willing to continuously
innovate throughout the life cycles of its business models in order to green up and
make its business models green - now and throughout their full cycles.
The real green enterprises involved are those who are looking at the opposites
such as energy consumption, the type of energy used, the material, pollution,
waste and waste, for instance their users, customers, network partners, employees
and other partners – figures according to their own and collaborative partners.
 Introduction
Environment problems are the main reason behind the emergence of Green
businesses.
The Environmental Definition presents it as the efforts by organizations to
produce, promote, package, and reclaim products in a manner that is sensitive or
responsive to ecological concerns.
Customers as well as marketers change to green products and services.
The existing circumstance has made sustainable development vital, where green
marketing is a means to achieve it.
Consumer behaviour has changed & the market for green products is increasing.
Many businesses have so begun to use environmentally friendly steps to achieve
competitive advantages.
 Introduction
Green policies are crucial in order to safeguard customers, customers and
employees.
This improves society and makes the company socially and ecologically
responsible.
This article offers an overview of the green business concept and development.
This study also evaluates the Green value chain and provides insight into the
different strategies used by start-up firms to promote a green environment.
 Objectives & Research Methodology
OBJECTIVES:
To comprehend the broader Green Business idea
To analyze a Green Business model and Green value chain
To investigate Green start-up efforts

RESEARCH METHODOLOGY:
The study is descriptive in nature and is carried out using secondary data
obtained from diverse sources.
The study addresses first how to grasp business models, the green value chain,
and green business models, then the window industry and ends ultimately.
 BUSINESS AND ENVIRONMENT
Environmental protection is highly important in today’s society. In taking
steps to safeguard our Mother Earth, environmental concerns have arisen.
Recent concerns such as air pollution in New Delhi have taught us that it is
time to take action to safeguard environment in the future.
Business uses company resources, adds value, and sells products and services
for profit. The existence of businesses therefore rests entirely on society.
Therefore, it must have some duty in return. The most important challenge
facing civilization is environmental issues.
It is true that a collaborative effort of companies and society is vital for
environmental protection.
 BUSINESS AND ENVIRONMENT
The companies have an obligation to execute their CSR.
Today, customers realise the benefits of environmental protection.
Customers are aware of green items or environmentally friendly products
and are willing to adopt green efforts.
Green initiatives; business should thus modify its strategies and embrace
environmentally friendly methods.
 GREEN BUSINESS CONCEPT
When environmental issues are a key component of a value proposition, a
company’s business model is green.
Depending on how the green profile is essential to the competitive strategy of
the organisation, there are surely ‘weak’ and ‘strong’ green business models.
This will change over time as green rental opportunities continue to grow
and companies adjust their business strategies.
The environmental aspect needs to be significant enough to impact the value
proposition and the business model in order to talk about a green business
model.
In view of the broad-based paradigm of the Green Economic Process, most
green businesses will probably sooner or later change their business strategy.
 GREEN BUSINESS CONCEPT
It has not yet been established in detail and so what we understand in green
business models is still vague.
For example, two major green business models are proposed by T.Bisgaard et
al. (2012)5.
One is the incentive model with functional sales and items and models that
can have green advantages such as energy efficiency, water saving and
material conservation.
It includes systems including design, building, finance and operations for
chemical management to assist users achieve sustainable outcomes.
The second model consists of the life cycle model covering cradles, retail
management, green supply chain management and industrial alliance.
 GREEN BUSINESS MODEL
It may be characterised as “the business model that supports enterprises to
manage it with environmental awareness and helps businesses green by
reducing environmental damage” (IGI Global, 2020).
Green business methods assist to reduce the environmental impact.
Green business methods may be used by both new and creative businesses
and existing companies.
The greening of corporations is organised into two primary types of
components in the business models of firms: incentive models and life cycle
models.
 GREEN BUSINESS MODEL
Incentive models: enterprises provide incentives for consumers and
themselves to more effectively use re-sources by, for example, providing a
service where salary is connected to the use of a product rather than to the
product.
The firm is encouraged to lengthen the life of the product by means of proper
care and the client pays less.
Incentive models discovered include Functional Sales (FS), ESCO, Chemical
Management Systems (CMS) and Design, Construction, Finance and
Operational Management (DBFO).
 GREEN BUSINESS MODEL
Models for a life cycle: firms focus on greening their value chain, in sections
or the whole value chain.
Enterprises enhance the use of resources, create goods to recover and
reusable or recycle, or produce products that are not hazardous to the
environment and the health of our consumers.
Green Supply Chain Management (GSCM), Take Back Management (TBM),
Cradle to Cradle (C2C), and Industrial alliance are the models of their life
cycles (IS).
These eight aspects of business models are believed to have a greater
favourable influence on the environment than “business as usual” activities in
companies and to have an impact on the income of the firm.
 HURDLE OF ENERGY AND PLASTIC USE IN GOING GREEN
Major CO2 emissions is done through energy consumption & that too
because of petroleum.
The best alternative to reduce such emission is use of renewable energy.
World Energy Outlook 2020 stated that “global energy demand is set to drop
by 5% in 2020, energy-related CO2 emissions by 7%, & energy investment 18%
The impacts vary by fuel.” The anticipated 8% drop in oil consumption & 7%
in coal use are in stark contrast to a modest increase in renewable energy
contribution.
The demand for natural gas has decreased by around 3%, and world power
demand is expected to fall by a very moderate 2% a year.
Further WEO 2020, reported “the 2.4 gigatonnes (Gt) decline takes annual
CO2 emissions back to where they were a decade ago.”
 GREEN BUSINESS MODEL
These aspects are typically focussed on non-technological breakthroughs or
technology is an innovation facilitator rather than an innovation engine, which
is the case for greentech and cleantech firms.
This list of components for innovation in the green business model is
probably not a full list, but has provided the foundation and focus for study.
The sobering realization is that most companies only go green because other
competitors’ businesses do so. You don’t grasp the actual motive.
Corporate environment is the realisation by companies that environmental
concerns occur via their product and services creation, production, distribution
and consumption (Kirgiz, 2016)3.
 GREEN BUSINESS MODEL
However, the first indications suggest that methane – a strong greenhouse
gas – emissions from the energy industry might not have decreased similarly in
2020 despite lower oil and gas output.
According to Energyworld.com, (2020) , “Among the top countries who are
investing in, partially using or have plans to use renewable energy in the near
future, the USA is ranked 1 with a score of 7, followed by Brazil at 6.5 and India
with a score of 6.3.”
Second most momentous hurdle in Going Green is Plastic.
Plastic is a significant packing material and a highly important form of
garbage since it is created worldwide more and damages a variety of
ecosystems.
 GREEN BUSINESS MODEL
That stated, the source of the problem lies in the production of plastic trash,
which is a significant data point.
Indian companies reduce the use of plastic as a raw material and as a packing
material. Indian consumers also avoid the use of plastic in their routine life.
Hence India is ranked first among the Asian countries in reduced use of
plastics.
 GREEN VALUE CHAIN
Green Value Chain Development, in its simplest form, attempts to increase
the overall natural sustainability of the whole chain by improving the
connections between players.

At all stages, efforts aim to streamline natural inputs into the value chain and
to regulate the outputs impacting the natural environment.

This includes input improvements and renewable energy capacity in water,

energy, materials, building, land, tools, sustainable production or production,
reduced air, water and soil pollution, recycling of non-usable products,
recycling of products, use of renewable resources, environment friendly
packaging and the prevention of plastics and other hazardous materials in
products and products, including natura The focus is on waste and pollution,
the employment of pollution control technologies, cleaner manufacturing, eco-
efficiency, life cycle evaluation, closed loop production and industrial ecology
in terms of output.
 GREEN VALUE CHAIN
Green Value Chain Development, in its simplest form, attempts to increase
the overall natural sustainability of the whole chain by improving the
connections between players.
 GREEN VALUE CHAIN
Green Value Chain Development also includes the development of green
market possibilities that optimise the economic advantages of using renewable
resources while minimising environmental impact.
Green value chain interventions also include support to the formation of a
green investment environment, green technology skills development, green
entrepreneurship and corporate development as well as green workplace
greening.
A mix is pushed of policies including eco-labelling, public green
procurement, green cluster networks, environmental levies, tradable permits,
subsidy reform, green legislation, standards and standards.
 GREEN VALUE CHAIN
Green Value Chain Development also includes the development of green
market possibilities that optimise the economic advantages of using renewable
resources while minimising environmental impact.
Green value chain interventions also include support to the formation of a
green investment environment, green technology skills development, green
entrepreneurship and corporate development as well as green workplace
greening.
A mix is pushed of policies including eco-labelling, public green
procurement, green cluster networks, environmental levies, tradable permits,
subsidy reform, green legislation, standards and standards.
 Conclusion
Green business is a modern notion emerging from the environmental
issues of civilization. Consumer awareness of green alternatives remains a
small urban phenomenon.
Even if customers realise this, they usually don’t have the knowledge to
make sustainable judgments. Corporate and customers minimise the
unfavourable environmental effect that lifestyle might have.
Many customer sectors have begun to demand green products and many
companies have begun green business practises for competitive advantage.
“High prices and low quality of the green products are the two main
challenges that prevent and demotivate consumers as they think about the
purchase of these products”.
 Conclusion
A variety of certification systems, including the Fairtrade, Handloom and
the Khadi labels in the Indian textile business, make it possible for the
purchaser to make better selections.
Customer access to clearly visible scorecards or certificates offering
information into the viability of products and services is unusual in most
other industries in India, meanwhile.
Many have already begun to educate customers through various ads. The
economic component should not be disregarded.
There must be a comprehensive plan for introducing green products to
people.
 Conclusion
Companies must conduct ‘Green Value Chain’ investigations to discover a
realistic solution.
Companies must improve product performance and reinforce consumer
loyalty so that they pay a higher price. It will be an expensive procedure, but
will surely have a beneficial influence on the firm.
Government, organisations and customers should join together to promote
their efforts to create a greener environment.
Green business is therefore a tool to safeguard the environment for future
generations.