The positive financial and sustainability business case (Pos-FSBC)

Abstract

This paper seeks to contribute to sustainable business model innovation (SBMI) literature. It aims to do so by putting forward a relatively simple tool that simultaneously calculates the financial value alongside sustainability impact based on the Sustainable Development Goals (SDGs) of a proposed business model innovation. For small businesses to validate the outcome of a proposed SBMI, some form of sustainability measurement will be necessary. Simple tooling specifically aimed at small businesses do not exist. We address this gap in how to predict or create a prognosis of the combined financial and sustainability effect of a proposed business model (BM) in a frugal (easy, time and knowledge effective) and effectual (allowing for iterations, available means and calculating affordable loss) manner. The tool is called the Pos-FSBC (Positive Financial and Sustainability Business Case). The instrument is a calculation model in Excel where users insert a limited number of numerical variables. Alongside financial variables the tool uniquely links the key variable ∆ SDG to the expected quantity sold, it then calculates the contribution to the SDGs in a relevant and measurable unit. By being successful with a sustainable innovation, the tool helps businesses drive out non-sustainable competitors. The tool has been iteratively developed and tested in several students’ projects and in a pilot with practitioners. Based on the findings we propose more iterations to develop an understanding whether the tool inspires business change and if so how.

Assessing the Climate Performance Potential of Start-ups: Insights and Guidance on Environmental Sustainability Assessment of Young Ventures

“…This relates to one of the main challenges of start-up specific assessment approaches the lack of specific knowledge associated with the complexity of environmental sustainability assessments. Most approaches from the literature approach this challenge by simplifying the assessment [11,20,22,26]. This bears the risk of an oversimplification of the assessment approaches.…”

“…A limited number of approaches exist in the literature that deal with sustainability and startup specific assessment, including the Sustainability Assessment Tool for Startups [22], the Sustainability Quick Check (SQC) model [23], the Lean Impact Measurement [24], the LCA clinic [25], The Positive Financial and Sustainability Case Calculation [26], the Standard for Social Return on Investment Analysis (SSROI) [27], the SPI-Framework [28], and the Triple-Bottom Line Impact Analysis Framework of Fintech Companies [29]. Other approaches were developed by third parties such as the Climate Impact Assessment for Early Stage Start-ups by PRIME Coalition and the New York State Energy Research and Development Authority (NYSERDA), which was later used as a basis for the free online open access, web-based software CRANE (Carbon Reduction Assessment for New Enterprises) [30].…”