Practical Implementation Paper – Page 6

Green business model and success stories from each partner country

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5.1. Introduction

A green business model is a concept that has emerged in the business world as a response to the growing concern about the impact of business activities on the environment. It is an approach to business that seeks to incorporate environmental considerations into the core operations of a business. This involves adopting sustainable practices and reducing the negative environmental impact of business activities. In this research, we will examine the theory behind the green business model and how it can be applied to real-world business practices.

5.2. The Theory of the Green Business Model

The green business model is built on several key principles that guide its implementation. These principles include:

Sustainability: The green business model prioritises sustainability, which means that businesses must adopt practices that promote the efficient use of resources and minimize waste. This helps to ensure that resources are preserved for future generations (Apiday, 2022).
Triple Bottom Line: The green business model recognises that businesses have a responsibility not only to generate profit but also to consider their social and environmental impact. The triple bottom line approach encourages businesses to create value for all stakeholders, including employees, customers, and the wider community (Gillis & Stedman, 2023).
Life Cycle Assessment: The green business model emphasises the use of life cycle assessment to evaluate the environmental impact of products and services. This involves examining the entire life cycle of a product or service, from its creation to its disposal (Quist, 2023).
Environmental Management Systems: The green business model requires the adoption of environmental management systems, which include the implementation of policies and procedures that help reduce the environmental impact of business activities (EPA, 2022).
Stakeholder Engagement: The green business model involves engaging with stakeholders to ensure that the business is addressing their concerns and working towards a common goal. This includes employees, customers, suppliers, and the wider community (Fobbe & Hilletofth, 2021).
Innovation: The green business model encourages innovation, which involves developing new products, services, and business models that reduce the environmental impact of business activities.

By adopting these principles, businesses can help create a more sustainable future while also benefiting their bottom line.

5.3. Application of the Green Business Model

The green business model can be used in several ways. One way is through the adoption of sustainable practices. This can involve reducing energy consumption, using renewable energy sources, reducing waste, and recycling materials.

Another way to apply the green business model is through the use of environmental management systems. This involves implementing policies and procedures that help to reduce the environmental impact of business activities. This can include setting targets for reducing energy consumption, reducing waste, and promoting the use of renewable energy sources (EPA, 2022).

The green business model can also be applied through the use of life cycle assessment. This involves considering the entire life cycle of a product or service, from the extraction of raw materials to the disposal of the product at the end of its useful life. By considering the environmental effect of a product or service throughout its life cycle, businesses can identify ways to reduce its impact on the environment (UGREEN, 2022).

Stakeholder engagement is another way to apply the green business model. This involves engaging with stakeholders, including employees, customers, suppliers, and the wider community. By engaging with stakeholders, businesses can identify their concerns and work towards addressing them (Szekely & Francisco, 2015).

Finally, the green business model can be applied through innovation. This involves the development of new products, services, and business models that reduce the environmental impact of business activities. This can include the development of new technologies, such as renewable energy sources and sustainable materials.

5.4. Benefits of the Green Business Model

Adopting a green business model offers many benefits, including cost reduction. Sustainable practices can help businesses reduce energy consumption, minimise waste, and recycle materials, leading to reduced expenses related to energy and material procurement (Maryville University, 2023).

Fahrion (2021) supports this claim, stating that incorporating eco-friendly practices in business operations can lead to cost savings in production. By embracing sustainable practices, businesses can improve their efficiency and achieve greater cost savings while minimising their environmental impact. Thus, adopting a sustainable approach is a smart way for businesses to save money and enhance their overall performance.

The green business model offers businesses the benefit of meeting regulatory requirements, as many governments worldwide are enacting regulations to decrease the environmental impact of businesses. By adopting the green business model, businesses can guarantee that they follow these regulations.

As stated by Makower (2022), the European Commission has adopted a Circular Economy Action Plan, a crucial part of the European Green Deal, designed to support sustainable growth in the region (The Commission, 2020). The plan’s objective is to standardise sustainable products in the European Union (EU) by implementing legislation that ensures goods are designed for longer lifespans, ease of reuse, repair, and recycling, and include as much recycled material as possible. Single-use items will be restricted, premature obsolescence addressed, and destruction of unsold durable goods banned, according to the plan.

Businesses adopting the green business model for regulatory compliance benefit in several ways. By producing goods that are longer-lasting, easier to repair, and recycle, they can lower their environmental impact while serving the rising demand for sustainable products in the EU market. Additionally, incorporating recycled material into products and reducing single-use products can result in lower production costs and higher profits. Following regulatory requirements can help businesses build a positive brand image, enhance their reputation, boost customer loyalty, and increase sales.

Adopting the green business model not only helps businesses to demonstrate their commitment to sustainability but also serves as a powerful tool for enhancing their reputation and attracting environmentally conscious consumers. As per Maryville University’s report (2023), consumers are becoming increasingly concerned about the environmental impact of the products and services they use. By embracing environmentally conscious practices, businesses can differentiate themselves from the competition and enhance their brand identity. Furthermore, the trend towards sustainability can be leveraged by companies to bolster their marketing efforts and cultivate a positive image among consumers, who are increasingly viewing sustainability as a desirable quality in businesses.

In addition, the green business model can help businesses to reduce their environmental impact. By adopting sustainable practices, businesses can reduce their energy consumption, carbon footprint, and waste. This can help to preserve natural resources and reduce the negative impact of business activities on the environment (Freedman, 2023).

5.5. Challenges of Implementing the Green Business Model

The green business model presents a variety of advantages, but it also poses implementation difficulties. One of these is the cost of adopting sustainable practices. For many businesses, the initial costs associated with sustainability can be prohibitively high FlexiSpot (2021).

However, transitioning to sustainable practices does not necessarily have to be expensive, especially for businesses operating on a limited budget. They can begin by implementing sustainability measures on a smaller scale. For example, they can implement energy-saving measures such as switching off electronic devices and lights when not in use. Recycling can also be introduced by providing recycling bins and educating employees on biodegradable and non-biodegradable materials. To produce eco-bricks, companies can gather plastic waste, while using both sides of paper can reduce waste. Flexible working arrangements can also be considered by offering two days of remote work and three days in the office. Before investing in costly measures, businesses can start by implementing these small but significant changes to become sustainable (FlexiSpot, 2021).

Furthermore, in order to avoid losing profits and becoming overwhelmed with unattainable objectives, businesses should not rush into adopting a green strategy without a focused and well-considered plan. Their approach must be informed by thorough research and calculated risks, considering data-driven predictions of profitability. A patient and determined commitment to their goals are essential for success (FlexiSpot, 2021).

Another challenge is the lack of knowledge and expertise in sustainable practices. Many businesses may not have the knowledge or expertise to implement sustainable practices effectively. This can make it difficult for them to adopt the green business model.

Implementing a green business model can cause obstacles, including resistance to change within the organisation. Despite the increasing number of individuals prioritising environmental sustainability, there are still those who remain indifferent to green initiatives. As a result, introducing new systems can be challenging if colleagues are not receptive to the idea. To overcome this challenge, it is vital to gather feedback from all participants during meetings and consider their opinions and ideas. Additionally, providing incentives to employees who follow green programs can persuade uninterested individuals to become more involved in the company’s efforts to protect the environment, according to FlexiSpot (2021). By involving and incentivising employees, companies can improve engagement and increase the likelihood of successfully implementing a green business model.

5.6. Conclusion

The green business model is an approach to business that seeks to incorporate environmental considerations into the core operations of a business. The green business model is built on several key principles, including sustainability, triple bottom line, life cycle assessment, environmental management systems, stakeholder engagement, and innovation. Adopting the green business model offers many benefits, including cost reduction, regulatory compliance, and enhanced reputation. By adopting sustainable practices, businesses can reduce their environmental impact while improving their efficiency and overall performance. Businesses can also use the green business model as a tool to demonstrate their commitment to sustainability and attract environmentally conscious customers.

5.7 Green Business Model Success Stories from each partner country

Country	Ireland
Name of Case Study	Go Carbon Neutral by Forestry Partners
Link to Case Study	https://www.gocarbonneutral.ie/
Short description (200 words max)	Go Carbon Neutral is an initiative by Forestry Partners, a social enterprise founded in 2019 by young entrepreneur John Beckett. The initiative brings together leading industry figures alongside climate, forestry and biodiversity experts to deliver an ambitious strategic plan: to reforest 1% of the land area of Ireland, offsetting c. 28 million metric tons of CO2, while creating tens of thousands of acres of new woodland wildlife habitats. The initiative was developed as a counteraction to Ireland falling significantly behind target on commitments made under the 2015 Paris Agreement. According to the 2019 Climate Change Performance Index (CCPI), Ireland is the worst performer in Europe and among the worst performers globally. Forestry Partners believe that by working with Irish business it can make a significant contribution to improving Ireland’s performance through the creation of large areas of new native woodlands and also capturing carbon dioxide from the atmosphere, protecting and restoring native Irish woodlands and fostering biodiversity and creating vital wildlife habitat.

Country	Romania
Name of Case Study	ECO Stuff
Link to Case Study	https://ecostuff.ro/
Short description (200 words max)	Founded in 2018 by a group of young entrepreneurs, ECO Stuff creates a range of products, including notebooks, folders, and bags, made from recycled paper and other materials. ECO Stuff has been successful in promoting sustainable practices and reducing waste in Romania. The enterprise encourages individuals and businesses to switch to eco-friendly products and actively raises awareness about the environmental impact of waste and pollution. ECO Stuff also runs workshops and training sessions to educate young people about the importance of sustainability and waste reduction. In addition to its environmental impact, ECO Stuff has also created job opportunities for young people in Romania. The enterprise employs a team of young designers and craftsmen who create and produce its sustainable products. Overall, ECO Stuff is a great example of how young people can create innovative solutions to environmental challenges and drive change towards a more sustainable future while also creating economic opportunities for themselves and their communities.

Country	Poland
Name of Case Study	Synthos
Link to Case Study	https://www.synthosgroup.com/
Short description (200 words max)	Synthos SA is a Polish chemical company. It is one of the largest producers of chemical raw materials in Poland. The company is the first producer of synthetic rubbers in Europe. Despite the production of chemical products, Synthos demonstrates an environmentally friendly attitude and actions. Among other things, the use of synthetic rubbers, which are produced there, in low-rolling-resistance tires helps reduce CO2 emissions in transportation. Synthos is actively working to reduce the level of consumption of electricity and utilities (water, industrial gases, cooling) at its production facilities. To this purpose, it is implementing a number of projects to increase the energy efficiency of its buildings and installations. It also reduces production waste. The company is appreciated by the people of Poland, as almost every year it ranks high in the rankings for the most environmentally friendly company in the country. The enterprise supports local governments in the fight against smog. It has also invested more than one million PLN in replacing outdated heating sources with new ecological ones. In August 2020, the company commissioned the first photovoltaic farm at the Synthos Dwory plant. Synthos intends to use fully carbon-free energy from 2028 and become climate-neutral from 2050.

Country	Greece
Name of Case Study	BioAgros
Link to Case Study	https://www.bioagros.gr/
Short description (200 words max)	BioAgros S.A. was founded in 1990 and nowadays is the largest company that produces and distributes organic food in Greece while being present in more than 20 countries across 3 continents. BioAgros is also one of the most innovative and shows its consistency and sense of responsibility for the proper nutrition of its customers by providing organic products of high nutritional value. The company was developed under the philosophy of being fully aware of its responsibility towards its customer needs and environmental sustainability, implementing a respective multi-year strategy that ensures the high quality of its products while being respectful to the environment by reducing its footprint. In this spirit, BioAgros undertakes the following set of actions: – Installation of 100kW photovoltaic panels on the roof of its premises, thus reducing its carbon dioxide emissions by 80 tons per year – Replenishing of its printers on an annual basis, about 60 toner and ink cartridges per year – Recycling of the packaging materials of its incoming goods in cooperation with the Hellenic Recovery Recycling Corporation (HERRCO) – Organic waste management utilizing a collaboration with a biogas production plant – Implementation of integrated delivery management to reduce fuel consumption and truck vehicles emissions – Distribution of nearly expired food to local vulnerable groups, thus reducing waste. These actions render the company a success story in the field of green entrepreneurship and add more value to its environmental policy as it aims to implement new innovations and be complied with environmental regulations.

Country	Spain
Name of Case Study	Bioo
Link to Case Study	https://socialenterprise.es/
Short description (200 words max)	Bioo is a for-profit startup founded in 2015 by a group of young entrepreneurs in Spain. Their goal was to create a new type of clean energy technology that could generate electricity from plants. The process is called “phytovoltaics,” which uses the natural process of photosynthesis to generate electricity, allowing the company to create self-sustaining and eco-friendly systems. Their first product was a plant pot that generated electricity from the plant’s photosynthesis, which could be used to charge small devices such as phones and tablets. The plant pot consisted of a soil-based microbial fuel cell (MFC) that used bacteria to break down organic matter in the soil, releasing electrons as a byproduct. The electrons were then captured by an anode in the MFC, creating an electric current that could be used to charge a device. Bioo’s innovative technology and mission quickly gained recognition, winning the Best Energy Startup Award at the 2016 South Summit Competition. Their products have also been featured in international media, such as Forbes, National Geographic, and CNN. In 2017, Bioo raised over €1 million in seed funding, which allowed them to expand their product line and develop new applications for their phytovoltaic technology. They launched a line of smart plant pots that can monitor and optimize the growth of plants, as well as generate electricity. They also developed a range of outdoor lighting products that are powered by phytovoltaic technology. Today, Bioo continues to innovate and develop new products that generate clean energy from plants. Their mission is to create a sustainable future by using natural resources and reducing the reliance on fossil fuels. Bioo’s success story proves that young entrepreneurs can lead the way in creating innovative and sustainable solutions to global challenges, while also making a profit.

Country	Italy
Name of Case Study	Bio Bas
Link to Case Study	Home
Short description (200 words max)	The first natural cosmetics line, without aggressive and irritating chemicals, dedicated to the care and hygiene of Dachshunds. Two very young girls, Giulia and Doria, 29 and 27 years old, from Lecce and Cesenatico respectively, founded the company. They met by pure chance and a very strong complicity was born between them and a truly rare understanding dictated by their love for their dachshunds. It was by comparing their management and care, and from their shared dissatisfaction with the products on the market, that the idea was born to create a line of products tailor-made for their dachshunds, reflecting their high-quality requirements. From an impromptu chat, over the next few days the process of setting up an ecommerce began: establishing a company, which corporate form to choose, finding an accountant, understanding the investment, finding a cosmetics laboratory, finding vets who could follow them in the realisation of the line, suppliers of boxes, labels, packaging, bottles, envelopes, flyers, a photographer, a logo… Everything seemed difficult but at the same time exciting. exciting and engaging at the same time. The first thing they did, which was then the most difficult and complex, was to find a laboratory that could make products worthy of what we had set out to do, far from the commercial and industrial products, which unfortunately are full of silicones, parabens, petrolatum and many substances that in the long run damage dogs’ coats and skin. After months of research, they have found a cosmetics laboratory that makes 100% natural, organic and vegan products with formulations based exclusively on hydrolases and essential oils, so all that is most delicate in nature. In fact, Bass organic products are natural products that are 100% committed to protecting the physiological balance of coat and skin and are committed to selecting and guaranteeing the highest quality ingredients. The main objective is to make more people aware of the importance of proper animal care and hygiene, from which their psychophysical wellbeing is derived. After the creation of the logo, the most difficult aspect were the bureaucratic issues. Bio Bas is a simplified limited liability company and an initial investment of EUR 30,000. The biggest expense was the raw material, as it still is; because it is all Italian, very pure and of high quality. They do not buy large, large batches of products in order to have a single piece at a low price, because what we care about is keeping the quality of the raw material high, to guarantee maximum freshness of the product. Bio Bas is a green brand because it proposes 100% organic and natural products, trying to use recycled and sustainable plastic packaging as much as possible. It proposes solutions that can contribute, with small gestures, to saving the planet, making products related to the daily cleaning of dachshunds that completely replace wipes, reducing a lot of pollution that this cause and would cause. Lately they have also been getting into the food sector because most biscuits on the market are full of sugar; they have therefore turned to artisan bakeries to offer baked, so they have turned to artisan bakeries to offer baked biscuits with simple, wholesome ingredients. They started with blueberry biscuits, which is a fruit with very little sugar and a thousand beneficial and with a thousand beneficial properties for our munchkins, and we are in the process of creating others with different flavours. Flavours. We hope in the future to expand the Bio Bass project even further into cosmetics and other areas. The aim of Bio Bass is to try to encourage owners to be more aware of the importance of choosing any product for our dwarfs and favour quality over quantity for their psycho quality over quantity for their all-around psychophysical well-being. The aim of Bio Bass is to try to encourage owners to be more aware of the importance of choosing any product for their dachshound and favour quality over quantity for their psycho quality over quantity for their all-around psychophysical well-being.