Green Business Model Navigator

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Executive summary
Rationale and introduction
The private sector as a job creator and innovation bearer plays an
important role to implement market-based approaches of the
Green Economy by supporting sustainable business activities and
green business start-up promotion. The promotion of ‘Green and
Inclusive Business Models’ is an effective way to combine
entrepreneurship and market development objectives with
environmental concerns and with social issues.
Green business models build upon conventional business models.
‘Green’ refers to the improved quality of business activities which
deliver products and services with a better economic,
environmental, and social value proposition. Like other
entrepreneurs green entrepreneurs look for business opportunities
emerging from drivers such as changing customer behaviours, new
or changing regulations, societal and environmental issues.
Many examples demonstrate the value and viability of green
business models in developing and emerging countries. However,
the development, implementation and scaling up of green business
models are still facing technical, market, economic and regulatory
barriers.
There are an increasing number of tools and concepts to assist
practitioners with solving their challenges and to tap into new
market opportunities. It can be difficult to get a quick overview of
existing concepts and to identify the right tools serving one’s
interests and needs.
The Navigator
This Navigator is an all new innovative knowledge sharing
product in the form of an interactive ‘Navigator’. It gives a
practical introduction to green business models, outlines the
benefits, challenges, and scaling up strategies of green
business models, and the role of different stakeholders in this
process. The Navigator includes a database with existing
tools to assist in the development and implementation on
green business models.
The key target groups of this Navigator are entrepreneurs,
development organisations, consultants and service providers.
However, large businesses, innovation centres and financial
institutions are also expected to benefit from the use of the
Navigator.

CLICK HERE TO GET INSTRUCTIONS ON HOW TO USE THIS NAVIGATOR
CLICK ON ANY ITEM IN THE START MENU TO NAVIGATE
DIRECTLY TO THE TOPIC OF YOUR INTEREST
Start menu
Executive
summary

Instructions on how to use this Navigator
This Navigator is set up as an interactive publication which enables you to browse and
select topics of your interest, including a searchable database with existing green
business model tools.
You can get to each of the chapters and sections in this Navigator in various ways:
•You can use the top menu to easily get to each chapter in this Navigator
•The sections in each chapter are presented in the submenu
•Interactive links in the text in the Navigator look like this ‘click here to go to start
menu’, and lead you to relevant chapters and sections
•Linkages to more or related information are marked with
This Navigator is not modular nor sequential so you can view the specific topics of your
interest through links provided.
WHEREVER YOU ARE IN THIS NAVIGATOR, YOU CAN ALWAYS GO BACK
TO START MENU OR THESE INSTRUCTIONS BY CLICKING HERE.
TOP MENU WITH CHAPTERS
DEVELOPMENT
ORGANISATION
CONSULTANT
INNOVATION
CENTRE
LARGE BUSINESS
SUBMENU WITH SECTIONS
THIS INDICATES THAT MULTIPLE PAGES ARE INCLUDED IN A SECTION. YOU CAN BROWSE THROUGH THE PAGES BY CLICKING ON THE ARROWS
DO NOT FORGET TO CHECK OUT THE FURTHER
INFORMATION SECTION INCLUDING THE WORKING PAPER
In this Navigator these personas
show up where content is relevant
to specific stakeholders
ENTREPRENEUR
all photos © shutterstock

About this Navigator
This Navigator is an all new innovative knowledge
sharing product in the form of an interactive
‘Navigator’. It outlines the concept and benefits of
green business models, and guides practitioners to
existing tools to solve their challenges and to tap
into new market opportunities.
The focus of this Navigator is on innovative and
green business models, nevertheless taking into
account inclusiveness and poverty reduction as a
core principle of international development.
The concept underpinning green business models
is not something totally new, but it builds upon
existing entrepreneurship activities and
conventional business models. It is about an
improved quality of business activities which
deliver products and services with a better
economic, environmental, and social value
proposition.
Objectives of the Navigator
•Provide a database with existing tools to assist with
the development, implementation, and scaling up of
green business models
•Offer a clear introduction to green business models,
related concepts and practical examples
•Present the rationale, benefits and drivers for green
business models
•Outline the challenges, success factors and pathways
to scale up the positive impacts of green business
models
•Summarise the role of key stakeholder groups in
scaling up green business models.

Target groups
Key target
groups of
Navigator
•Entrepreneurs
•Development organisations
•Consultants and service
providers
•Get clear(er) understanding of green business models and their benefits.
•Find the right tools to assist with the development, implementation
and scaling up of green business models.
•Get inspiration and ideas for business development opportunities.
Target groups
which also
benefit from
this Navigator
•Large businesses
•Innovation centres
•Investors and financial
institutions
•Learn about practical tools available to assist entrepreneurs and
businesses with scaling up green business models.
•Gain a better understanding of concepts underpinning green business
models, including practical examples, drivers, and barriers.
•Better understand your role to scale up green business models and
support entrepreneurial activities and innovation.
THE FINANCIAL SECTOR IS VERY SPECIALISED AND NEEDS CUSTOMISED TOOLS. THEREFORE, THIS SECTOR IS NOT INCLUDED IN DETAIL IN THIS NAVIGATOR.
WHY USE THIS NAVIGATOR?
The key target groups of this Navigator are entrepreneurs, development organisations, consultants and service
providers. However, large businesses, innovation centres and financial institutions are also expected to benefit from
the use of the Navigator. You check out in the table below what the Navigator can offer you. Click here to find out
more about your role in scaling up green business models.

Background information –Green economy and private sector development
Sources: BMZ (2011). Green Economy, DCED (2015). Green Growth.
The concept of Green Economy (and Green Growth) and its implementation have been emphasised as one of the
main goals of international development since the early 21st century. Though a number of definitions exist, at
heart of a green development path is economic growth that is environmentally sustainable. While economic
growth is necessary for increased employment and poverty reduction, further environmental goals include the
mitigation of climate change, adaptation to climate change, the reduction of other pollutants, and a reversal of
biodiversity loss and growing fresh water scarcity, alongside social issues.
The private sector as a job creator and innovation bearer plays an important role in this context to implement
market-based approaches of the Green Economy by supporting sustainable business activities and green business
start-up promotion.
The promotion of ‘Green and Inclusive Business Models’ is an effective way to combine entrepreneurship and
market development objectives with environmental concerns (such as pollution, waste, resource efficiency,
biodiversity, climate change etc.) and with social issues referring to the ‘base of the pyramid approach’ (i.e.
integrating the poor and disadvantaged groups of society as producers and consumers).
Private sector development has an important role in assisting practitioners (e.g. entrepreneurs, government
agencies, service providers) with the development, implementation and scaling up of feasible green business
models. This role includes promoting and synergising learnings of successful green business models, facilitation
of multi-stakeholder processes, and fostering a marketplace for services necessary for developing green
businesses.

The UN Agenda 2030 for Sustainable Development and the 17 Sustainable Development Goals
Sources:
https://sustainabledevelopment.un.org/post2015/transformingourworld
http://www.un.org/sustainabledevelopment/sustainable-development-goals
In September 2015, all 193 Member States of the
United Nations adopted an ambitious plan for
achieving a better future for all, to end extreme
poverty, fight inequality and injustice, and protect
our planet: the Agenda 2030 for Sustainable
Development, entitled “Transforming the World”.
At the heart of the Agenda are the Sustainable
Development Goals (SDGs), 17 global goals which
clearly define the world we want, applicable to all
and leaving no one behind.
It is clear that governments alone cannot achieve this ambitious plan. We need all hands on deck: a new global
partnership bringing together business, civil society, citizens and governments must work together to realize
sustainable development for all. The private sector in particular has a central role to play in designing solutions to
address global challenges through innovative business models.
The promotion of green, inclusive and social business models provides an important contribution to the Sustainable
Development Goals. It is especially relevant to SDGs 8, 9, and 12, while green private sector development as a cross-
cutting theme in fact refers to all SDGs.

Helping you to find the right tool for the job…
Database of existing green business model tools
An introduction
•The database is a an interactive Excel file with a compilation of existing tools
promoting the green economy through business models and associated
business opportunities.
•A large proportion of tools in the database include conventional business
knowledge and practices (e.g. business plans, market research, management
systems).
•Based on multiple choice questions, the user is guided to available green
business model tools.
a) What is the main target group for the tool use?
b) What is the main geographical focus?
c) What is the main targeted impact area?
d) For which activity do you need support and insights?
•All tools included in the database are aligned with the criteria of the green
business model definition applied in this Navigator and concept of green
economy.
CLICK HERE TO DOWNLOAD THE TOOL DATABASE
THE TOOLS INCLUDED IN THE
DATABASE ARE RELEVANT TO
MULTIPLE STAKEHOLDER GROUPS
DEVELOPMENT
ORGANISATION
CONSULTANT
INNOVATION
CENTRE
LARGE BUSINESS
ENTREPRENEUR
all photos © shutterstock

Overview of tools included in the database
Ref no Tool name Publisher and year
1
Becoming a Climate Expert
GIZ (2013)
2
Bethnal Green Ventures
Social Innovation Camp (2008)
3
Brokering Inclusive Business Models
UNDP (2010)
4
Business Case for Eco
-Innovation
UNEP (2014)
5
Business Innovation for Sustainable
Scale-up - Online Scaling up Tool
CSCP (2013)
6
Business Planning Guide for Social Enterprises
Social Ventures Australia (2010)
7
Canadian Social Enterprise Guide
Social Enterprise Canada (2010)
8
Cooperation Platform for Northern Latin America (COPLAN)
BMZ (2012)
9
Ecodesign
Pilot and Assistant
Ecodesign (2000)
10
Entrepreneur’s Toolkit
IISD (2012)
11
Green Business Model Innovation and Corporate Social Responsibility
GIZ, EMM Network (2012)
12
Green Business Plan Guide
Greenforall
(2015)
13
Greening Business Development Services
BMU, UNEP, UNDP, IUCN (2002)
14
Greening the Entrepreneurial Spirit of the
Mediterraneans Guide
SCP
-RAC (2012)
15
Growing
Business with Smallholders - A Guide to Inclusive Agribusiness
GIZ (2012)
By searching the interactive Excel file, you can get access to further information on the tools summarised below and
the next two pages.
IF YOU DO NOT FEEL LIKE SEARCHING THE DATABASE, YOU CAN DIRECTLY OPEN THE WEBLINK FOR EACH TOOL HERE
continues on next page

Ref no Tool name Publisher and year
16
iceguide
Icehubs
Network
17
Inclusive Business Accelerator
BoPinc
, SNV, VC4Africa (2010)
18
Inclusive Business Challenge
WBCSD (2009)
19
Inclusive Business Finance Field Guide
UNDP (2012)
20
Inclusive Business: Mapping of Tools & Resources
WBCSD (2012)
21
Inclusive Markets Development Handbook
Private Sector Division, UNDP (2010)
22
Innovation Promotion in Micro, Small and Medium
-sized Enterprises
BMZ (2014)
23
Limas
Web Suite
LiMaS
Eco-innovation
24
LINK methodology: A Participatory Guide to Business Models that Link
Smallholders to Markets
Centro Internacional de Agricultura Tropical (2012)
25
Market Creation Toolbox
DIBD International Business Development (2011)
26
OECD Sustainable Manufacturing Toolkit
OECD (2011
)
27
PATRI Framework for Scaling Social Impact
Tayabali and Ashoka Globalizer Program (2012)
28
Poverty
-oriented Planning & Reporting for Development Partnerships
GIZ (2012)
29
Practitioner Hub for inclusive business
DFID (2010)
30
Responsible and Inclusive Business Hub South East Asia
BMZ (2013)
IF YOU DO NOT FEEL LIKE SEARCHING THE DATABASE, YOU CAN DIRECTLY
OPEN THE WEBLINK FOR EACH TOOL HERE
Overview of tools included in the database
continues on next page

Ref no Tool name Publisher and year
31
Short Guide to Green Business Model Innovation
Nordic Innovation (2012)
32
Start and Improve Your Business (SIYB) Programme
International Labour
Organisation (2014)
33
SMART Sustainable Entrepreneurship Start
-up training
CSCP (2012
)
34
Social Entrepreneurship Toolkit
UnLdt
(2012)
35
Start up 4 Climate
Borderstep, ADT, Universitat Oldenburg,
BMUB,
Nationale Klimaschutz Initiative (2015)
36
StartupWave
Intellecap, DFID (UKaid), GIZ (2014)
37
Supply Chain Sustainability
- A practical guide to continuous improvement
UN Global Compact, BSR (2010)
38
Sustainable Innovation and Employment
BMZ (2013)
39
Sustainable management in SMEs
- Guidance notes for sustainable
management
Verein
Deutscher Ingenieure (2006)
40
Tips and Tricks for Advisors
–Corporate Social Responsibility in Small and
Medium
-Sized Enterprises
EC DG Enterprise and Industry (2013)
41
Toolbox for Promoting Innovation Systems
BMZ (2012)
42
UN Business Partnership Handbook
UN Global Compact (2013)
43
UNEP Eco
-Innovation Project
UNEP, EC (2014)
44
ValueLinks
2.0
GIZ (2015)
IF YOU DO NOT FEEL LIKE SEARCHING THE DATABASE, YOU CAN DIRECTLY
OPEN THE WEBLINK FOR EACH TOOL HERE
Overview of tools included in the database

Introduction to (green) business models
Green business models build upon conventional business models. ‘Green’ refers
to the improved quality of business activities that deliver products and services
with a better economic, environmental, and social value proposition, often to
more people over a wider geographic area, more equitably, and more
sustainably.
While the concept and practice of green business models is no longer new, it
can be difficult and confusing sometimes to see the ‘big picture’ and to link
green business models with other practices such as green entrepreneurship and
inclusive business development.
What is a business
model?
From conventional to
green business models
Definition of green business models
Green entrepreneurship and green business models
Inclusive and green business models
Challenges of green business models
A categorisation of green business models
Implementation pathways
to operationalise green
business models
Practical examples
Business
models Green business models explained Implementation
THE STORY LINE FOR THIS CHAPTER

What is a business model?
A business model is the rationale of how an organisation
such as an enterprise creates, delivers, and captures value for
itself, its clients, and society. Value can be defined as the
collection of products and services a business offers to meet
the needs of its customers, the environment and society.
Each organisation has its own business model and creates
value through it.
A business model can be described through 9 building
blocks. They demonstrate the logic of how an organisation
intends to develop a new business strategy or improve an
existing strategy to better meet market needs and
consequently increase value creation through better (e.g.
greener) products and services. These building blocks are
further explained on the next page.
Source: Osterwalder and Pigneur (2010). Business model generation.
HERE YOU CAN SEE A DETAILED DESCRIPTION OF THE
BUSINESS MODEL CANVAS AND ITS BUILDING BLOCKS
Key activities
Key resources
Customer segments
Costs
Value proposition
Revenue streams
Key partnerships
Customer relationships
Channels

Business model canvas and its building blocks
Source: Osterwalder and Pigneur (2010). Business model generation.
Customer
segments
An organisation may
service a specific market
niche or several markets
Value
proposition
Products and services
that produce tangible
assets and satisfy the
needs of customers and
society
Key resources
Assets required to offer and
deliver products and
services
Channels
Consist of communication, distribution,
and sale channels to best deliver products
and services
Key
partnerships
Relationships
established and
maintained with
various partners
(e.g. suppliers, clients)
Costs
For the organisation, environment and society
Customer relationships
Type of relationships established and
maintained with each customer segment
Revenue streams
Revenue streams result from value propositions
successfully offered to customers
Key activities
Key activities to deliver
value proposition
HERE YOU CAN SEE A DETAILED DESCRIPTION OF THE
BUSINESS MODEL CANVAS AND ITS BUILDING BLOCKS
The 9 building blocks are incorporated into a Business Model Canvas which is a strategic management and
entrepreneurial tool to describe, design, challenge, invent, and pivot your business model. These building blocks are
applicable to both conventional and green business models as shown on the next slide.

From conventional to green business models (2 pages)
Business model
building
blocks
Conventional
business models →
Green business models
Key
activities
Focus more
on short-term
management
→
Long
-term strategic decision making
Key
resources
Use
of non-renewable and non-
recyclable materials and fossil fuels
→
Use of recycled, renewable and sustainable
materials
Customer
segments
Focus on traditional
and mass
consumer markets
→
Servicing existing consumer markets and
developing new markets through innovative
products and services and thereby increase
competitiveness
Costs
Missed
cost saving opportunities
through resource efficiency
measures
→
Cost saving opportunities through energy
and resource efficiency in the production and
all stages of the value chain
Building upon the business model building blocks, the table below outlines some illustrative differences between conventional
and green business models. This is a generalised and not all-inclusive list as each business model is unique.
continues on next page

Business model
building
blocks
Conventional
business models →
Green business models
Value
proposition
Focus on maximising product
outputs and economic returns
→
Focus on value creation through delivery of
innovative and
green products and services
Revenue
streams
Key focus on delivering
economic
value to business and clients
→
Deliver economic, environmental,
and social
value to customers, the companies and
society
Key
partnerships
Partnership focus on stakeholders
directly linked to manufacturing
sales
of products (‘first tier
partnerships’)
→
Strategic
partnerships along the value chain,
including private and public sectors and
communities
Customer
relationships
Relationships
with core and
traditional customers based on
economic values
→
Long
-term customer relationships based on
environmental and societal values
Channels
Build on ‘open
-loop systems’
(extract, produce, use, and discard)
with significant waste along the
supply chain
→
Build on circular models facilitating the
reuse of resources throughout the value
chain
From conventional to green business models (continued from previous page)

Defining green business models
Source Green business model definitions
Nordic Innovation
Report (2012)
“Green business model innovation is when a business changes part(s) of its business model and thereby both
captures economic value and reduces the ecological footprint in a lifecycle perspective”
FORA (2010) “Green business models are business models which support the development of products and services
(systems) with environmental benefits, reduce resource use/ waste and which are economical viable. These
business models have a lower environmental impact than traditional business models”
OECD (2010) “New (green) business models involve a radically different business model from the conventional ways of
providing products and services, with the potential to significantly improve environmental sustainability”
EEA-ETC/SCP
(2014)
“A sustainable business model goes beyond mere improvements in resource efficiency. It supports individuals
in adapting to more sustainable lifestyles that influence their choice of products and services and the volumes
of products they consume”
Practical and simple definition used in this Navigator:
Green business models deliver products and services with economic, environmental and social benefits
to society and businesses along the supply chain,
and thereby increased competitiveness, inclusiveness, and innovation.”
There are many terms and definitions in the public and academic debate about how companies apply green business
models by operationalising their entrepreneurial activity with environmental goals. There is not yet an internationally
accepted definition. Therefore, common definitions were reviewed in order to arrive at an operational definition for
the Green Business Model Navigator focusing on the concepts of sustainable development, base of the pyramid and
inclusiveness, and sustainable supply chains.

Green entrepreneurship and green business models
Source: Linnanen, 2002, OECD, 2013, FORA, 2010.
FURTHER INFORMATION ON THIS TOPIC IS
INCLUDED IN THE WORKING PAPER
MOTIVATION
Like other entrepreneurs green entrepreneurs look for business
opportunities emerging from drivers such as changing customer
behaviours, new or changing regulations, societal and
environmental issues (e.g. climate change). In a market-based
economy, green entrepreneurs play an important and leading
role in the promotion and eventual adoption of green business
practices by other businesses. Green entrepreneurs often benefit
from competitive advantages as they offer products and services
with a better economic, environmental and social value
proposition to their clients and society.
What differentiates a green entrepreneur are the motives and
strategic objectives behind his/her decision to start a business,
as well as the value-based leadership that guides both the
entrepreneur and the organisations that he or she runs
(Linnanen, 2002). This does not necessarily imply that green
entrepreneurs do not intend to have financial return or
commercial viability as a motivation, though not without
environmental sustainability.
2 KEY GREENING APPROACHES
Green entrepreneurs can be grouped in terms of
how they serve the market through their
business model. These two approaches are also
reflected in the categories of green business
models.
•OUTPUTS: Providing green and
environmentally friendly products and
services (e.g. waste management, renewable
energy, green technology, green business
development services, etc.).
•PROCESSES: Delivering products or
services through environmentally friendly
processes (e.g. eco-tourism, resource-
efficient production).

Source: Extracted from Endeva (2012). Policy Measures to Support Inclusive and Green Business Models.
FURTHER INFORMATION ON THIS TOPIC IS
INCLUDED IN THE WORKING PAPER
Inclusive and green business models
Are poverty alleviation and environmental sustainability
conflictive objectives? Or do these goals support each
other? Strategies to alleviate poverty and achieve
environmental sustainability are often highly interlinked
and definitions by both policy and businesses of one
strategy often cross-reference each other. Many examples
demonstrate the value and viability of green business
models in developing and emerging countries. However,
the challenge is to scale up and multiply these green
business models in these countries. Scaling up is
necessary to enable populations, especially the poor, to
benefit from innovative ways to produce and consume
green products and services.
TRADE OFF
While there are examples of viable and scalable business
models that satisfy both social and environmental criteria,
in practice the two objectives often collide. Like all
economic activity, the consumption and production
activities in developing and transition countries, which
cc | Department of Foreign Affairs and Trade
inclusive business models facilitate,
require natural resources, and tend
to create emissions and
environmental pollution. It may be
argued that inclusive business –
essential to lifting people out of
poverty –can only be realised at
the cost of the environment.
Inclusive business models without greening can lead to
environmental pollution, degradation of ecosystems,
and depletion of natural resources. A focus only on
green business models without considering developing
and transition countries can create political difficulties
and negative impacts on the living conditions of the
poor.
continues on next page

Source: Extracted from Endeva (2012). Policy Measures to Support Inclusive and Green Business Models.
Inclusive and green business models (continued from previous page)
FURTHER INFORMATION
Recognising the importance of the topic of
inclusive and green business models, further
information can be found in the supporting
working paper, Endeva reference below, GIZ
(2013) and GIZ (2014).
SYNERGIES
Including the poor in green business models can support the
implementation of environmental projects. Avoiding exclusion
can also reduce political resistance and avoid reputational
damage once the social implications of some green business
models surface. Making inclusiveness an integral part of green
business models can also expand the consumer base beyond the
upper and middle class, thus increasing the market size and
expanding opportunities for businesses. The poor can and should
be included both as ‘green’ consumers and producers .
Realising synergies between inclusiveness and greening requires
innovation on multiple levels (e.g. local, regional, national, and
international), and cooperation among a variety of stakeholder
groups (e.g. policy makers, businesses, NGOs). The private sector
has significant potential to contribute to and synergise inclusive
and green development through innovating technologies,
products and services, and supporting business models.
FURTHER INFORMATION ON THIS TOPIC IS
INCLUDED IN THE WORKING PAPER

Challenges for scaling up green business models
Although there are increasing benefits and drivers for green business models, practitioners still face challenges in the
development, implementation and scaling up of green business models. The challenges are described from an internal
(referring to enterprises) and external perspective (referring to the ecosystem in which the company is operating in). The
combination and extent of challenges will vary on a case by case basis. Success factors for scaling up impacts and overcoming
challenges are provided in a subsequent chapter of this Navigator. We encourage you to explore the tool database included in
this Navigator to find the right tool to assist with solving your challenges.
Category
Internal /
external
Short
description of challenge
Technology
and R&D
Internal
challenges
•Lack of technological understanding and competency to develop sustainable products and services.
External
challenges
•Difficulty of green business models may not fit with existing infrastructure systems.
•Limited availability or access to R&D infrastructure and supporting innovation systems.
Knowledge,
communi-
cations and
mindsets
Internal
challenges
•Traditional and short-term mind-set among businesses in the supply chain and supporting
stakeholders.
•Lack of knowledge on green business opportunities and associated economic benefits.
•Lack of skills to properly communicate and market the full range of economic, environmental and
social benefits of green business models.
External
challenges
•Lack of awareness and connections between relevant actors in the supply chain to implement
collaborative green solutions
•Lack of robust methodologies and case studies on green business models.
continues on next page

Source: Based on OECD (2011), OECD (2013), Nordic Innovation (2012), and interviews with selected stakeholders.
Category
Internal /
external
Short
description of challenge
Finance and
markets
Internal
challenges
•Limited access to finance due to the relative immaturity of the market and associated challenges
in accurately pricing the risk of investments in green business models.
External
challenges
•Low awareness of business and end-consumers on green products/services and difficulty to
change purchasing behaviour.
•Limited knowledge among stakeholders on economic benefits of investing in green businesses.
Regulations
and policies
Internal
challenges
•Lack of awareness on available government schemes that support green business development.
External
challenges
•Product market regulations which limit competition or reinforce position of incumbent firms to
act.
•Environmental regulations which protect or favour incumbent firms and impose more stringent
requirements on entrants
•Lack of governmental action and commitment for reforms towards green business models
Challenges for scaling up green business models

A categorisation of green business models
There are multiple ways of presenting and categorising
business models. The categorisation will depend on the
focus and context in which business models are
discussed. In this Navigator, we focus on innovative and
green business models.
The next page illustrates a categorisation of innovative
green business models along the value chain. The
business models are grouped in this Navigator according
to their value chain focus (i.e. production, use, end-of-
life) and their core focus in creating value
(products/services versus processes). Furthermore, the
categorisation recognises that business models apply to
both outputs (products and services) and processes (e.g.
production and economic activities).
Product
service
systems
Green
product
design
Collaborative
consumption
Waste
as a
resource
Consumer
choice
influencing
Prosumers
and
co-creation
Many case studies demonstrate how business can
support the transition to a green economy. However,
the challenge is to scale up the impacts from these
good practices. Click here to get an overview of
scaling up pathways.
It is important to recognise the range of positive
impacts on the society that green business models
can generate. These societal impacts can also be
viewed as indirect benefits.
Each business model category is detailed in the
practical examples, scaling up pathway, innovation
aspects, and positive societal impacts.
Green,
efficient &
localised
production

Source: Based on EEA, CSCP, CRI (2014) and interviews with selected stakeholders.
End-of-life
Core focus of
business model
Product
service
systems
Green
product
design
Collaborative
consumption
Waste
as a
resource
Processes
Products &
services
Key focus of efforts in value chain
UseProduction
Consumer
choice
influencing
Applicable to both profit and non-profit organisations.
Applicable to both business-to-consumer (B2C) and business-to-business (B2B)
Prosumers
&
co-creation
Green,
efficient &
localised
production
CLICK ON EACH BUBBLE TO GET FURTHER
INFORMATION ON EACH BUSINESS MODEL
Based on the explanation on previous page, the diagram below illustrates a categorisation of innovative green business
models along the value chain.

Implementation pathways to operationalise green business models
5 implementation pathways to operationalise green business models can be differentiated by looking at their
organisation processes, and level of organisational change. These pathways are illustrated in the graph below.
Each implementation pathway can occur through various categories of green business models, resulting in positive
impacts to the environment and society, as illustrated in the practical examples included in this Navigator.
Source: Adapted and expanded from GIZ (2014). Toolbox for Promoting Innovation Systems.
Full integration:
Environmental and
social considerations
are integrated at the
core of the business
model’s structure and
value chain.
Partial integration:
Conventional businesses
green selected aspects of
their business model and
associated value chains.
Business model improvement:
Businesses that undertake specific
actions to make their business
model greener or add green
business practices to their existing
activities.
Spin-off business:
Organisations that add a green and inclusive business
model to their corporation as an additional branch of their
business.
LEVEL OF ORGANISATIONAL CHANGE
ORGANISATIONAL
PROCESSES
Optimise
existing
activities
Develop new
business
activities
Incremental
change Radical
change
Start-ups:
Setting up new green
businesses by entrepreneurs.

Designing and delivering products made with
fewer resources (e.g. raw materials, water, and
energy), that are more resource-efficient during
the use phase, and allow effective recovery and
recycling at their end-of-life phase. A key feature
of this business model is that the entire life-cycle
of a product is taken into account, from extraction
of raw materials to production, distribution and
utilisation, all the way to recycling and disposal.
Florex (Costa Rica): Production and
marketing eco-friendly cleaning products and
services for homes and industries in the
Central American region, using the Design-
for-Sustainability (D4S) methodology.
USE OF
RESOURCES
COMMUNICATION
HEALTH
EDUCATION &
SKILLS
Green
product
design
Key
resources
Reduced environmental
impacts of product during
production and use
Increased durability and
efficient use of product
Value
proposition
BUSINESS
MODEL
CATEGORY
Full integration: Environmental
and social considerations are
integrated at the core of the
business model structure and
value chain.
•Product substitution
•Efficient use of products and services
•Efficient end-of-life strategies
INNOVATION IN
BUSINESS MODEL
POSITIVE
SOCIETAL IMPACTS
PRACTICAL EXAMPLE OPERATIONALISATION
IN PRACTICAL EXAMPLE
SCALING UP PATHWAY
IN PRACTICAL EXAMPLE

PRACTICAL EXAMPLE
BUSINESS
MODEL
CATEGORY
OPERATIONALISATION
IN PRACTICAL EXAMPLE
Partial integration: Conventional
businesses green selected aspects of
their business model and associated
value chains.
•Resource efficient and cleaner production
•Efficient end-of-life strategies
INNOVATION IN
BUSINESS MODEL
POSITIVE
SOCIETAL IMPACTS
SCALING UP PATHWAY
IN PRACTICAL EXAMPLE
The continuous improvement of production
processes to deliver ‘conventional’ products and
services from an economic, environmental, and
social perspective is truly embedded into the
business model of the company. This means that
products are produced in the most resource
efficient manner with lowest negative
environmental and social impacts possible,
preferably from locally sourced resources.
Reduced environmental
impacts of product
during production
Key activities
More efficient
production processes
Costs
Reduced production costs
as a result of more efficient
use of resources (e.g.
energy, water, materials)
Andhikhola Hydel Rural Electrification Scheme
(Nepal): This scheme is operated by Butwal
Power Company Ltd. Innovative design features
in the energy generation / distribution system
and tariff structure ensure efficient production
of electricity and enable very low income
subsistence farmers to access electricity. The
scheme also provides water for gravity irrigation
of 280 hectares of land.
USE OF
RESOURCES
ENERGY
GENERATION
URBAN & RURAL
DEVELOPMENT
NUTRITION, FOOD
& DRINK
Green,
efficient and
localised
production
Value
proposition

PRACTICAL EXAMPLE
BUSINESS
MODEL
CATEGORY
OPERATIONALISATION
IN PRACTICAL EXAMPLE
•Efficient use of products and services
•Longer use of products and services
INNOVATION IN
BUSINESS MODEL
POSITIVE
SOCIETAL IMPACTS
SCALING UP PATHWAY
IN PRACTICAL EXAMPLE
Product
service
systems
This model is also known as the function-
oriented business model. The focus is on
providing the function and benefits of a
product instead of physical product itself.
Product service systems take into account the
physical use of a product and its services
necessary to satisfy the customers’ needs.
Chemical leasing (e.g. Egypt, Mexico, Russia,
Sri Lanka, Serbia, Brazil, Croatia): Customer
pays for benefits obtained from the chemical,
not for the substance itself. The economic
success of the supplier is no longer linked
with product turnover.
Business model improvement:
Businesses that undertake specific
actions to make their business
model greener or add green
business practices to their existing
activities.
USE OF
RESOURCES
EMPLOYMENT
AND WORK
CONDITIONS
COMMUNICATION
EDUCATION &
SKILLS
Increase number of
consumers are prepared to
opt access over ownership of
products
Customer
segments
Address potential rebound
effects associated with
efficiency measures
Value
proposition

PRACTICAL EXAMPLE
BUSINESS
MODEL
CATEGORY
OPERATIONALISATION
IN PRACTICAL EXAMPLE
•Resource efficient and cleaner production
•Product substitution
•Shared use of products and services
INNOVATION IN
BUSINESS MODEL
POSITIVE
SOCIETAL IMPACTS
SCALING UP PATHWAY
IN PRACTICAL EXAMPLE
Prosumers
and
co-creation
Consumers are not just consumers but producers as
well. Value is created through localised production
and delivery of services and products. This can help
eliminate or reduce costs of associated utility
infrastructures. Prosumerism is not a new concept in
itself. Societal changes (e.g. increasing consumer
awareness, demand for locally produced goods)
have contributed to the expansion of prosumerism
and associated business models.
USE OF
RESOURCES
URBAN & RURAL
DEVELOPMENT
HEALTH
NUTRITION, FOOD
& DRINK
V-Roof (China): Creating rooftop
gardens and foster enhanced community
ties and knowledge of urban farming.
Start-up: Setting up new green
businesses by entrepreneurs.
Individuals, in addition to
being customers, start playing
an active role in co-production
of products they consume
Localised production
and use of products
and services
Reduced costs for large scale
infrastructure to support
traditional supply chains
© shutterstock
Customer
segments
Key activities
Costs

PRACTICAL EXAMPLE
BUSINESS
MODEL
CATEGORY
OPERATIONALISATION
IN PRACTICAL EXAMPLE
•Product substitution
•Efficient use of products and services
INNOVATION IN
BUSINESS MODEL
POSITIVE
SOCIETAL IMPACTS
SCALING UP PATHWAY
IN PRACTICAL EXAMPLE
Consumer
choice
influencing
Companies engage with consumers to increase their
environmental and social awareness and influence
their purchasing behaviours. For consumer choice
influencing to be a business model, this engagement
should be fully integrated in the company’s
communication and decision making processes. This
business model is particularly relevant to retailers
which are uniquely positioned to influence
sustainable consumption choices and connect the
producer with the end consumer.
Advise consumers during
consumption phases, thus
improving the efficiency of
product use and end-of-life stage
and reducing overconsumption
USE OF
RESOURCES
HEALTH
NUTRITION, FOOD
& DRINK
COMMUNICATION
REWE Group (Germany): The company
promotes sustainable products through a
‘Hallo Erde’ campaign. As part of its Pro-Planet
label, environmental and social aspects of the
entire value chain of selected products are
assessed including international supply chains.
Partial integration: Conventional
businesses green selected aspects
of their business model and
associated value chains.
cc Eurext | Rewe essen steele 06 2014 2
Value
proposition
Offering better and more choices
of eco- and socio-efficient
products and services
Customer
segments

PRACTICAL EXAMPLE
BUSINESS
MODEL
CATEGORY
OPERATIONALISATION
IN PRACTICAL EXAMPLE
POSITIVE
SOCIETAL IMPACTS
SCALING UP PATHWAY
IN PRACTICAL EXAMPLE
Collaborative
consumption
A business model based on sharing, swapping,
bartering, trading or renting access to products (or other
commodities such as land or time) as opposed to
ownership. Technologies (in particular ICT) and peer-
to-peer communities have enabled older market
behaviours of sharing of products to be reinvented. A
number of innovative models supporting collaborative
consumption are emerging, including collaborative
workspaces, book swapping, carpool/ride sharing, bike
sharing, garden sharing, clothes swapping, peer-to-peer
renting, or swapping of accommodation.
USE OF
RESOURCES
URBAN & RURAL
DEVELOPMENT
NUTRITION, FOOD
& DRINK
HOUSING
MOBILITY
Easyway (Colombia):Promoting and
facilitating car sharing through through a
virtual platform. The company started in
Bogota and is already planning to expand
throughout the country.
Start-up: Setting up new green
businesses by entrepreneurs.
•Efficient use of products and services
•Shared use of products and services
•Longer use of products and services
Shared use of products
among consumers
Key partnerships
Business opportunities to
facilitate sharing of products
and services
Value
proposition
INNOVATION IN
BUSINESS MODEL

PRACTICAL EXAMPLE
BUSINESS
MODEL
CATEGORY
OPERATIONALISATION
IN PRACTICAL EXAMPLE
INNOVATION IN
BUSINESS MODEL
POSITIVE
SOCIETAL IMPACTS
SCALING UP PATHWAY
IN PRACTICAL EXAMPLE
Waste as
a resource
Conventional business models are often built on
‘open loop systems’ (extract, produce, use, and
discard) resulting in significant waste generated
throughout supply chains. The focus of this
business model is to create ‘circular and closed
loop systems’ by reducing waste in production and
consumption systems where technically and
economically feasible. Where waste does arise, it
is either re-used or recycled. This business model
is closely linked to the circular economy concept.
EcoPost (Kenya): Use of waste plastic as a
resource to manufacture eco-friendly plastic
lumber and create jobs.
USE OF
RESOURCES
EMPLOYMENT
AND WORK
CONDITIONS
URBAN & RURAL
DEVELOPMENT
•Efficient end-of-life strategies
•Resource efficient and cleaner production
Start-up: Setting up new green
businesses by entrepreneurs.
Displace virgin resources with
secondary materials in
production of new products
Value
proposition
Business opportunities
associated with the re-use and
recycle the increasing amounts
of waste generated by society
(e.g. WEEE, textiles, C&D
waste, plastics)
Key
resources

Rationale, drivers and benefits
Value creation by businesses is often associated with the generation of economic benefits (e.g. return on investment,
increasing revenues, and cost savings). In addition to economic benefits, green business models can provide a range of further
values such as environmental and social benefits, strengthened competitiveness, and new market and business development
opportunities (OECD, 2013).
As noted in the previous chapter, the implementation and scaling up of green business models are subject to a number of
challenges and therefore there is no guarantee for all green business models to be successful. These challenges need to be
taken into account when assessing the rationale, drivers, and benefits of green business models provided in this section.
“We are inventing too much and too many things for nothing. Sustainable innovation is to think if what we
are developing adds value and is really fulfilling the needs of the society. We need to shift the way we think,
meaning a radical change of mindset, and accept the consequences this change brings about.”
Mr. Luis Neves. Group Climate Change and Sustainability Officer. Deutsche Telekom.
Drivers for green
business models
THE STORY LINE FOR THIS CHAPTER
Benefits and positive impacts
Direct benefits
to business and its immediate stakeholders
Positive impacts on society
Rationale….Why
bother with green
business models?
We only have one planet
Increasing market and
business opportunities

RATIONALE FOR GREEN BUSINESS MODELS:
We only have one planet
Today the quantity of resources that we consume
globally and the waste we generate require the
equivalent of 1.5 planets. This means that it takes the
Earth one year and six months to regenerate what we
use in a year.
Source: Global Footprint Network (2014). Footprint Basics.
Consumption patterns are not equal across the globe. The
highly industrialised and developed countries (e.g. in
Europe, North America, and Australia) consume
significantly more than transition and developing
countries in South America, Africa and large parts of Asia.
Our ecological footprint has been consistently on a rise.
Consumption patterns are increasing rapidly in transition
economies due to the growing middle class consumers
and associated demands for supporting services and
infrastructures (e.g. China, India).
Green business models provide a means to address these
unsustainable consumption and production patterns and
make positive impacts in society.
cc Faisal Akram | flickr.com | 7998673399 cc Jaro Larnos | flickr.com | 200880966

The market opportunities for green business are clearly on the rise (UNEP, 2013):
•The global market in low-carbon and energy efficient technologies, which include
renewable energy supply products, is projected to nearly triple to US$ 2.2 trillion
by 2020.
•Many suppliers are rendering their practices more sustainable in order to secure
their positions within international supply chains. This is illustrated for example by
the 1,500 per cent increase in global ISO 14001 certifications on environmental
management awarded between 1999 and 2009.
•The global market for organic food and beverages grew to US$ 105 billion in 2015,
from the total value of US$ 62.9 billion in 2011.
RATIONALE FOR GREEN BUSINESS MODELS:
Increasing opportunities for green businesses
Source: IP Checkups CleanTech PatentEdge
Database
Source: Prepared by Asad Naqvi, Pratyancha Pardeshi based
on the data from A. Sahota (2009). Cited in Green Economy
Report (UNEP, 2011), p 49.
Source: German Ministry for the Environment,
Nature Conservation, Building and Nuclear
Safety (BMUB)
Source: New Climate Economy Report

Drivers for green business models
Although green business models aim at promoting and advancing environmental sustainability in society, by
operating in a highly competitive and changeable market, like any other form of businesses, they are also compelled
to follow economic drivers. Key drivers to foster the uptake of green business models include:
1. Compliance-based drivers: Market and business development opportunities emerging in
a response to changes to regulations and government policies (Horbach et al, 2010). For
example, businesses to recycle construction and demolition waste as a result of ever
stringent legislation to reduce waste to landfills.
2. Market-based drivers: Market opportunities emerging from the increasing environmental
awareness and resulting consumer demand for green products and services (OECD, 2011).
For example, retailers dedicated to selling organic and green consumer products.
3. Technological drivers: Green business model opportunities driven by technology
developments. For example, the rise of collaborative consumption business models (e.g.
car sharing, clothes swapping) as a result of developments and wide-range application of
ICT products.
“It is necessary to drive changes in the society and engage as many people as possible through better
communication and marketing to promote the economic, environmental, and social benefits of green business
models.”
Ms. Tara Chantal Hopkins, Founder Cop(m)adam), Turkey.

Direct benefits of green business models
•Reduced resource usage and
associated costs
•Reduced usage of hazardous
substances
•Reduced waste to landfill
•Valorisation of production
residuals
•Higher recycling and reuse rates
•Reduced energy use and
greenhouse gas emissions
•Increased energy security through
renewable energy
•Reduced production
costs
•Access to new markets
•Increased competitive
market advantage
•Enhanced compliance
with environmental
standards
•Improved stakeholder
relations
•Improved corporate reputation
•New and better local jobs, including for marginalised groups
•Contribution to formalizing local ‘informal economies’
•Improved living standards of surrounding communities
Direct benefits of green business models refer to individual companies, surrounding communities, organisations, and
stakeholders in the value chains of green products and services. An illustrative overview of direct and key economic,
environmental, and social benefits that can be derived from green business models is provided below.
“For green business models to be successful, they should not build just on short term economic returns, but rather focus
towards creating long-term value to consumers, the value chain and society as a whole. For this, it is important to think
in the bigger picture.”
Ms. Anne Roulin, Research and Development Sustainability Manager at Nestlé.
Economic
benefits
Environ-
mental
benefits
Social
benefits

Positive impacts on society (indirect benefits)
Societal impact categories
Source: Adapted from CSCP (2012). Scaling Up Business Impacts on Sustainable Living: Baseline Assessment.
In addition to the direct economic, environmental and
social benefits to its immediate stakeholders, green
business models can produce a range of positive impacts
on society. These societal impacts can also be viewed as
indirect benefits.
A possible grouping of societal impacts is shown in the
graph below. This grouping should be regarded as
indicative and flexible to be adapted to specific
situations.
The practical examples of green business models in this Navigator include
references to the relevant impact categories and also the 9 building blocks
of business models.
Careful consideration should be given whether scaling positive impacts in
one or more of the impact categories may have a negative impact on other
categories (rebound-effects). For instance, by scaling up positive impacts
on communication through ICT products, one should ensure that that
potential negative impacts (e.g. E-waste, use of conflict minerals) are
managed responsively.
Urban & rural
development
Energy
generation
Use of
resources Housing Mobility
Nutrition, food
& drink
Employment
& work conditions Education & skills Governance Leisure &
culture
Communication Health
A DESCRIPTION OF THE IMPACT CATEGORIES IS PROVIDED IN THE WORKING PAPER

Scaling up the positive impacts of green business models
There is an increasing interest in the topic of ‘scaling up’ of green businesses,
including scaling up pathways and success factors. ‘Scaling up’ can mean many
things to different people.
Many examples demonstrate how green business models foster sustainable and
economic development in developing and emerging countries. A key challenge
is to scale up the positive impacts of good viable examples. The success factors
are the pre-requisites required to scale up impacts, and scaling up pathways
describe how the business impacts could be scaled up.
To take advantage of the opportunities offered through green business models,
it is important for entrepreneurs, businesses and supporting stakeholders to
understand the scaling up process and associated success factors.
Let us try to clear the air a bit….
Scaling up pathways
for businesses
•Organisation as key focus
•Value creation as key focus
Practical examples
THE STORY LINE FOR THIS CHAPTER
Success factors for
scaling up impacts
and overcoming
challenges
“My dream is to alleviate
poverty through sustainable
entrepreneurship. Success
factors for scaling up in
Ghana are business training
for entrepreneurs, working
capital, and proper marketing
strategies to facilitate exports
of Ghanaian products.
Support to entrepreneurs (e.g.
monitoring, evaluating,
mentoring) over a long period
is very important.”
Ms. Lucia Quachy, President,
Ghana Association of
Women Entrepreneurs.
Success factors
What do we mean
by ‘scaling up’?
Scaling up? Scaling up
pathways

What do we mean by ‘scaling up’?
The term ‘scaling up’ is widely used in different sectors and contexts (e.g. health, environmental, commercial, and social
studies) at micro (e.g. business case studies), meso (e.g. development strategies), and macro level (e.g. policy formulations).
There is not yet an internationally accepted definition of scaling up and the term is often not well defined or understood.
Very broadly, scaling up means ‘doing more’ of something, but this ‘something’ varies considerably between different fields.
To be more precise, the objective of scaling up can be defined as: “Scaling up leads to more quality benefits to more people
over a wider geographic area more quickly, more equitably, and more sustainably” (Menter et al).
The terms replication, streamlining, expansion, and innovation are often used in the context of scaling up sustainable
industrial development. The table below provides a brief description of these terms, including their underpinning principles,
application areas, and thrust (Van Berkel, UNIDO, 2011).
Terminology Description Principle Application areas
Replicating
Large scale application of known solutions
and best practices (‘widening’)
Applying
Within the same target group,
sector or cluster
Streamlining
Eliminating steps that may not be
necessary to achieve similar result
Learning
Within the same target group,
sector or cluster
Expanding
Seeking new applications and markets for
practices proven elsewhere
Adapting
New sectors, countries, clusters,
etc.
Innovating
Finding new solutions that have more
substantive benefits (‘deepening’)
Research and
development
All areas
Scaling up

Success factors for scaling up positive impacts and overcoming challenges
Education &
training
It is necessary to consider whether there exists a market demand for sustainable products
or services or, alternatively, whether it is possible to create demand by influencing
consumption patterns among the target market.
Technology and infrastructure are important to achieve resource efficiencies and reduce
environmental impacts throughout the life cycle of products and services. The
development of sustainability enabling technologies and infrastructure (eg. efficient
buildings, charging stations for electric vehicles) can encourage and enable consumers to
change their behaviours.
Formal and informal education instruments need to be in place to meet the specific
knowledge and capability needs of key stakeholder groups (e.g. entrepreneurs, large
business, development organisations, innovation centres, consultants and service
providers). This should include the provision of skills for demonstrating and
communicating the full economic, environmental, and social benefits of green business
models.
Source: Adapted from CSCP (2014). Scaling Up Business Impacts on Sustainable Living.
Market demand
& behaviour
change
Technology &
infrastructure
The success factors presented here are the pre-requisites required to scale up impacts and are relevant to multiple stakeholder groups. All
entrepreneurs, businesses, and supporting stakeholders should be aware and assess the relevance of the seven success factors in their
initiatives, projects, and programs to scale up the impacts of green business models. If one of these success factors are not met, it is
unlikely that these efforts will be successful.
The seven success factors are introduced below.
“Professionalism in
communication is a key factor
for every business model.
When it comes to green
business models, it is even
more important to be able to
communicate the full range of
economic, environmental and
social benefits to key
stakeholders such as
customers and investors.”
Mr. Joris Depouillon, Co-
Founder Food Surplus
Entrepreneurs Network.
EACH SUCCESS FACTOR IS DISCUSSED IN MORE DETAIL IN THIS PUBLICATION
continues on next page

Governance
Systems
Information
provision
Partnerships &
Communication
The public sector can establish institutional conditions such as normative rules and boundaries as
well as the economic and political incentives that support sustainable living. All these conditions
embody a supportive governance system that enables interaction and cooperation among market
actors. A supportive governance system helps promote the development of market, technological,
educational and advisory factors that support entrepreneurs.
Clear and accessible information enables entrepreneurs and businesses to access the necessary
resources to operate their business and enables other collaboration and support of stakeholders
and potential partner organisations. Information can help facilitate smart decision-making on
strategies and innovative business models. This includes ‘conventional’ business knowledge and
tools (marketing and professional communication, controlling, analysis tools, cost calculation, etc),
and sources for inspiration (e.g. good practices).
Partnerships bring together the competencies and expertise of different stakeholders.
Partnerships also increase problem-solving capabilities, help maximise the efficient use of
resources (e.g. human, financial, infrastructure, technologies), and share experiences amongst
entrepreneurs and key stakeholders. They are key for establishing, enriching and extending a
functioning and supportive ecosystem for innovative business models and entrepreneurship.
Source: Adapted from CSCP (2014). Scaling Up Business Impacts on Sustainable Living.
Financial
Frameworks
It is important to enable access to financial products and services for business and entrepreneurs.
To do so, it is necessary to create support mechanisms such as customised ‘green’ financial
products and services, fair lending and investment conditions. Entrepreneurs should be capable of
approaching financial institutions and present a promising business case.
Success factors for scaling up impacts and overcoming challenges
“Collaboration at all levels
of government, in the
public and private sectors
and with civil society is
needed to scale up green
business models and
remove existing challenges
and barriers. Platforms
that enable access to
information and share
solutions, experiences, and
good practices support
these necessary
collaborations.”
Ms. Kate Berrisford,
Founder & Managing
Director of the Green
Africa Directory.
EACH SUCCESS FACTOR IS DISCUSSED IN MORE DETAIL IN THIS PUBLICATION

Scaling up pathways for green businesses
In the context of green business models, scaling up pathways can be defined as business development
strategies to increase positive business impacts on the environment and society.
Depending on the focus of the efforts, two pathways can distinguished, namely scaling up impacts
with (1) organisation or (2) value creation as the key focus. The common focus of scaling up is on
growing a ‘green organisation’, but it is important to recognise that positive business impacts can be
scaled up by focusing on value creation.
1) Scaling up impacts with ORGANISATION as key focus:
•Scaling up impacts by growing the organisation
(organic growth and acquisitive growth)
•Scaling impacts beyond organisational boundaries
(dissemination, joint ventures, partnerships, franchising and
smart networks)
•Scaling impacts by reducing boundaries
(licensing and mergers/sale).
2) Scaling up impacts with VALUE CREATION as key focus:
•Resource efficient and cleaner production
•Product substitution
•Efficient use, shared use, longer use,
•Better product design and manufacturing
•Efficient end-of-life strategies
Source: Adapted from CSCP (2014). Scaling Up Business Impacts on Sustainable Living.
“We must consider that scaling a
social or green venture is to
consider other dimensions, such as
scaling across and not only up. It
is not only getting bigger but
thinking about who could be
positioned to replicate the idea:
what businesses could become a
scaling partner by leveraging its
core infrastructure or what legal
framework change could have a
large impact. This is all about
hybrid value systems: identifying
best roles and complementary
expertise to enable to create
impact at scale and going beyond
current silos across sectors and
organisations.”
Ms. Stephanie Schmidt, Director
of Ashoka’s Social & Business Co-
Creation Program in Europe.
Scaling up
impacts with
ORGANISATION
as key focus
Scaling up
impacts with
VALUE CREATION
as key focus

Scaling up impacts with ORGANISATION as key focus
Scaling up green business models and their positive impacts can include a range of strategies at the organisational level. A listing of such
strategies are outlined in the graph below. Each of the strategies is detailed in the reference provided below. Click here to view some
practical examples.
Source: Adapted from CSCP (2014). Scaling Up Business Impacts on Sustainable Living.
Scaling up strategies to scale up impacts of organisation
Organic growth
Scaling up by increasing the range and distribution of products and services and by
opening new subsidiaries
Acquisitive growth
Scaling up by acquiring other firms
Dissemination
Sharing ideas with others using advocacy, open
-source change-making and creating
social or political movements
Joint Ventures
Collaborating by establishing a new legal entity (equity
-based)
Partnerships
Collaborating on a contract basis rather than an equity basis
Franchising
Collaborating by establishing a contract between a trademark owner (franchisor) and a
local user (franchisee) to produce/sell products or services
Smart networks
Collaborating by creating well
-coordinated networks centred around a mission, rather
than an organisation
Licensing
Scaling up impacts by establishing a legal contract between a product / technology
owner (licensor) and a local user (licensee) to produce the products / technologies that
were initially developed by a licensor
Merger/sale
Scaling up impacts by selling equity to another firm
A DESCRIPTION AND PRACTICAL EXAMPLE OF EACH STRATEGY LISTED ABOVE IS PROVIDED IN THIS REFERENCE
Scaling up
impacts with
ORGANISATION
as key focus

Scaling up impacts with VALUE CREATION as key focus
Another pathway for scaling up impacts is focusing on the ‘green’ value’ created by businesses. Illustrative value creation strategies are
presented in the graph below. These strategies can be implemented without focusing on organisational growth. Click here to view some
practical examples.
Source: Adapted and expanded from CSCP (2014). Scaling Up Business Impacts on Sustainable Living.
Scaling up strategies to scale up impacts through value creation
Resource efficient
and cleaner
production
Continuous application of an integrated and preventative strategies
to processes,
products and services. This increases efficiency and reduces risks to humans and the
environment Specific
focus areas include production efficiency, environmental
management and human development
(UNIDO/UNEP definition).
Product substitution
Products
or services that help to reduce the consumer’s environmental impact by
substituting more resource and energy intensive products with lower
-
impact products or
services that serve the same or similar purpose.
Efficient use of
products and services
The company actively aims to prevent problems such as overconsumption, or provides
advice to consumers regarding product use during the consumption phase and/or at
end
-of-life stage to improve the efficiency of product use and disposal.
Shared use of
products and services
Consumers get access to products through entrepreneurs (or through other consumers)
who provide access to products.
Longer use of
products and services
Value creation by extending the lifespan of a product and avoiding strategies such as
planned obsolescence.
Efficient end
-of-life
strategies
Efficient product re
-use and recycling strategies (or so-called up-cycling strategies) can
scale up the impacts of existing/new businesses and generate additional economic and
consumer value.
A DESCRIPTION AND PRACTICAL EXAMPLE OF EACH STRATEGY
LISTED ABOVE IS PROVIDED IN THIS REFERENCE
Scaling up
impacts with
VALUE CREATION
as key focus

SCALING UP IMPACTS WITH ORGANISATION AS KEY FOCUS
Some practical examples
The company: The SEKEM Initiative has been founded by Dr. Ibrahim Abouleish in 1977 to strengthen sustainable
development within a holistic concept of economic, societal and cultural life in Egypt. Part of the initiative is the
SEKEM Group of companies which produces, processes and markets organic and bio-dynamic products, textiles,
and phyto-pharmaceuticals in Egypt and international markets. SEKEM is known as the bio-pioneer of the region
which has significantly contributed to food security through desert land reclamation.
Scaling up impacts: The SEKEM Initiative provides an example of a scaling up strategy in terms of smart networks
as well as merger/sale. With part of their profits SEKEM co-finances the social and cultural activities of the SEKEM
Development Foundation that runs several schools, a medical centre, an academy of applied sciences, and other
institutions located in Egypt. By 2005, the organisation has established a network of more than 2,000 farmers and
numerous partner organisations in Egypt and began increasingly to seek to extend its experience to other
countries, including India, Palestine, Senegal, Turkey and South Africa.
Source: www.sekem.com
Photo: Sekem..n.d. Retrieved from http://www.sekem.com/slr.html
Smart networks and
merger/sale
The company: Nuru Energy is a for-profit corporation that encourages and provides renewable sources of energy
in East Africa and India. Seed-funded by the World Bank in 2008, it was commercially financed by Bank of America
Merrill Lynch and the Africa Enterprise Challenge Fund.
Scaling up impacts: It has developed an easy-to-use, off-grid re-charging platform called the Nuru POWERCycle
pedal generator, which provides sustainable power anytime, anywhere and is more efficient than current solar-
based solutions at a significantly lower cost. Nuru Energy is currently cooperating with over 800 local micro
franchise entrepreneurs and thereby serves more than 20,000 families throughout East Africa.
Source: http://www.nuruenergy.com.
Photo: Tulane Publications / flickr.com (CC BY –NC- SA 2.0).
Franchising
SEKEM Initiative
(Egypt)
Nuru Energy
(East Africa, India)

SCALING UP IMPACTS WITH VALUE CREATION AS KEY FOCUS
Some practical examples
The company: Cosmos Ignite Innovations is a social enterprise using a disruptive technology solution to
increase access to lighting by the poor and responding to climate change challenges.
Scaling up impacts: Cosmos Ignite offers solar-powered LED-based portable home lighting systems
(MightyLight). The LED lamps are said to produce nearly 200 times more useful light than a kerosene lamp
and almost 50 times the amount of useful light of a conventional bulb. The lighting device is water- and
impact-resistant, low cost, requires virtually no maintenance and is environment-friendly.
Source: www.cosmosignite.com
Photo: Cosmos Ignite Innovations , n.d., Retrieved from http://www.cosmosignite.com/picture-gallery%28India%29.htm.
Product substitution
The company: Opower partners with utility providers to promote energy efficiency through Home Energy
Reports for utility customers developed with Opower’s software.
Scaling up impacts: This software analyses the energy consumption and offers recommendations on energy
saving by making small changes in how energy is used (e.g. optimise electricity use during off-peak hours,
turn off devices when not in use). Through this service, Opower helps protect the environment, boosts
energy security, saves money for utility customers and influences energy consumption behaviour. As of
2012, Opower managed energy data from over 15 million homes around the world. It delivered more than
$75 million in savings for utility customers, saved 750 gigawatt hours of energy and abated 1 billion pounds
of CO2.
Source: www.opower.com.
Efficient use of
products & services
Opower (USA)
Cosmos Ignite Innovations
(India)

Your role in scaling up green business models
Enhancing cooperation, improving
and transforming education
systems as well as engaging with
relevant policy-makers are central
actions to effectively develop and
disseminate green business models
by clearly showcasing their
economic, environmental and
social values
Development organisation
Partnerships and support to
suppliers along value chains
are of key importance for
the implementation of long
term effective green
business models.
Large business
Innovation centre
Providing innovative training,
communication and engagement
tools and approaches increase
the uptake and dissemination of
green innovative business
models along the whole value
chain from production processes,
consumers behaviours to
effective end-of-life solutions.
Entrepreneurs can support the
successful development and
placing of green products and
services on the market to
remain competitive, innovative
and thereby grow and become
sustainable.
Entrepreneur
Consultant
Training and knowledge-sharing
services and approaches are key in
starting, improving or expanding
green activities in specific sectors
and nurtures innovation in
management, helping to turn
existing environmental challenges
into opportunities for business
expansion or business innovation.
As evident from the previous chapters, different stakeholder groups have a role to play in scaling up green business models.
The role for each stakeholder group below is presented on the following pages. You can click on each stakeholder below to
get more detailed information.
all photos © shutterstock

SCALING UP GREEN BUSINESS MODELS
Role of entrepreneurs
•Explore and develop innovative business models which deliver and promote green products and services.
•Communicate economic, environmental and social benefits of green business models to stakeholders,
including consumers and large industries in their supply chains.
•Clearly communicate the economic, environmental, and social benefits of green business model(s) to
investors and present a clear and feasible business plan tapping into existing and emerging markets.
•Engage with policy-makers to communicate the policy needs and encourage the development of
governmental frameworks which support the implementation of innovative green business models
•Share personal experiences on green business models (e.g. drivers, barriers, business and market
opportunities) with key stakeholders (e.g. other entrepreneurs, large industries, development agencies) to
create bottom-up and practical learning processes.
•Engage and collaborate with suppliers and customers to foster the uptake of green business models along
the value chain.
•Assist with the identification of green technology needs and facilitate green technological transformations in
the supply chain.
Education &
training
Technology &
infrastructure
Information
provision
Partnerships &
Communication
Financial
Frameworks
Market demand
& behaviour
change
Governance
Systems
THIS IS AN ILLUSTRATIVE AND NOT ALL-INCLUSIVE LIST. IT IS ACKNOWLEDGED
THAT ADDITIONAL ROLES FOR THE STAKEHOLDER GROUP EXIST

SCALING UP GREEN BUSINESS MODELS
Role of development organisations
•Support capacity building and educational programs on various levels (macro,
meso, micro) to increase the uptake of innovative green business models.
•Support consumer campaigns on sustainable consumption behaviours, pilot and
demonstrate the business case of green business models to various stakeholders.
•Promote and facilitate collaboration between technology developers and
companies to foster the diffusion of green technologies.
•Support companies in accessing (green) investors and financial products/services.
•Support knowledge collection and dissemination on good practices and tools to
green business models.
•Assist policy makers with the development of policy instruments to advance
green business models, including supporting strategies and implementation
processes.
•Facilitate multi-stakeholder processes and public-private dialogues towards the
development, implementation, and scaling up of green business models.
“The role of development
agencies in promoting
green business models is
to provide a marketplace
for services necessary for
developing green
businesses. For that, they
have to be able to deliver
customised content for
their clients.”
Mr. Markus Donath,
Programme Coordinator
at Deutsche Gesellschaft
für Internationale
Zusammenarbeit (GIZ)
GmbH, Egypt.
THIS IS AN ILLUSTRATIVE AND NOT ALL-INCLUSIVE LIST. IT IS ACKNOWLEDGED
THAT ADDITIONAL ROLES FOR THE STAKEHOLDER GROUP EXIST
Education &
training
Technology &
infrastructure
Information
provision
Partnerships &
Communication
Financial
Frameworks
Market demand
& behaviour
change
Governance
Systems

SCALING UP GREEN BUSINESS MODELS
Role of service providers & consultancies
•Undertake research on market needs and consumption behaviours for sustainable products and services.
•Provide tailored trainings to entrepreneurs on existing and emerging green technologies and business
development.
•Foster knowledge collection and dissemination activities (including seminars, conferences) to increase the
knowledge-base and capacities of companies interested in green business models implementation.
•Assist companies with the identification and implementation of green technologies.
•Develop communication and knowledge sharing tools and facilitate multi-stakeholder partnerships.
•Raise awareness among companies on available green finance schemes and facilitate access-to-finance
processes.
•Assist policy makers with the development of policy instruments to advance green business models,
including supporting strategies and implementation processes.
Education &
training
Technology &
infrastructure
Information
provision
Partnerships &
Communication
Financial
Frameworks
Market demand
& behaviour
change
Governance
Systems
THIS IS AN ILLUSTRATIVE AND NOT ALL-INCLUSIVE LIST. IT IS ACKNOWLEDGED
THAT ADDITIONAL ROLES FOR THE STAKEHOLDER GROUP EXIST

SCALING UP GREEN BUSINESS MODELS
Role of large businesses
•Increase consumer awareness on environmental and social opportunities and challenges in supply chains,
and thereby increase demand for green products and services.
•Assist with the identification of green technology needs and facilitate green technological transformations in
the supply chain.
•Collaborate with stakeholders (clients, suppliers, service providers, innovation centres) to innovate supply
chains and their supporting business models.
•Provide training and practical support to clients and suppliers to green and innovate the supply chain.
•Foster cooperation with financial actors to support the development of green businesses, products and
services (e.g. by increasing access to finance).
•Share tools, good practices and information available to large businesses with relevant stakeholders to
support the greening of supply chain and green business models.
•Engage with policy-makers to communicate the policy needs of businesses and encourage the development
of governmental frameworks which support the implementation of innovative green business models.
Education &
training
Technology &
infrastructure
Information
provision
Partnerships &
Communication
Financial
Frameworks
Market demand
& behaviour
change
Governance
Systems
THIS IS AN ILLUSTRATIVE AND NOT ALL-INCLUSIVE LIST. IT IS ACKNOWLEDGED
THAT ADDITIONAL ROLES FOR THE STAKEHOLDER GROUP EXIST

SCALING UP GREEN BUSINESS MODELS
Role of innovation centres
•Support market research to better understand emerging green markets and
consumption behaviours.
•Support companies to better understand the business value of green products
and services, including the development of tailored financial accounting
instruments to support companies’ investment decisions.
•Support and coordinate innovative research on new and emerging green
technologies, including their practical implementation and scaling up activities.
•Develop and disseminate practical and tailored knowledge and tools to support
and facilitate business model innovation.
•Assist policy makers with the development of policy instruments that
encourage green business models, including supporting strategies and
implementation processes.
•Develop communication and knowledge sharing tools and facilitate multi-
stakeholder partnerships.
•Provide practical technical and business development support to
entrepreneurs to green and innovate their business model. “If we want to promote
green business models, we
need to be able to
understand and measure
their positive impacts. Not
only the financial ones, but
especially the social and
environmental impacts.
Otherwise we will not be
able to explain and
convince key
stakeholders.”
Mr. Loic van Cutsem,
General Manager, Oksigen
Lab.
Education &
training
Technology &
infrastructure
Information
provision
Partnerships &
Communication
Financial
Frameworks
Market demand
& behaviour
change
Governance
Systems
THIS IS AN ILLUSTRATIVE AND NOT ALL-INCLUSIVE LIST. IT IS ACKNOWLEDGED
THAT ADDITIONAL ROLES FOR THE STAKEHOLDER GROUP EXIST

References
BMZ (2011). Green Economy. German Federal Ministry of Economic Cooperation and Development. Weblink.
CSCP (2012). Scaling Up Business Impacts on Sustainable Living: Baseline Assessment. Collaborating Centre on Sustainable
Consumption and Production (CSCP). Report for German Federal Ministry of Economic Cooperation and Development (BMZ). Weblink.
CSCP (2014). Scaling Up Business Impacts on Sustainable Living: One Goal, Three Scaling Up Pathways, Seven Success Factors. Multi-
stakeholder Guideline Report. Collaborating Centre on Sustainable Consumption and Production. Report for German Federal Ministry of
Economic Cooperation and Development (BMZ). Weblink.
EEA, CSCP, CRI (2014). Reflections and Lessons Learnt from EEA’s Work on Innovative Business Models for Sustainable Lifestyles.
Collaborating Centre on Sustainable Consumption and Production and Copenhagen Resource Institute. Working Paper for the European
Environment Agency. Weblink.
Endeva (2012). Policy Measures to Support Inclusive and Green Business Models. Report for German Federal Ministry of Economic
Cooperation and Development (BMZ) and UN Global Compact. Weblink.
FORA (2010). Green Business Models in the Nordic Region: A Key to Promote Sustainable Growth. Green paper for the Nordic Council of
Ministers, Copenhagen. Weblink.
GIZ (2013). Inclusive Business Models –Options for Support through Private Sector Development (PSD) Programmes. Deutsche
Gesellschaft für Internationale Zusammenarbeit. Report for German Federal Ministry of Economic Cooperation and Development (BMZ).
Weblink.
GIZ (2014a). Toolbox for Promoting Innovation Systems. Deutsche Gesellschaft für Internationale Zusammenarbeit. Report for German
Federal Ministry of Economic Cooperation and Development (BMZ). Weblink.
GIZ (2014b). Green Entrepreneurship Tunisia –A Promising Path towards a Sustainable Future in Tunisia and Elsewhere. Deutsche
Gesellschaft für Internationale Zusammenarbeit. Report for German Federal Ministry of Economic Cooperation and Development (BMZ)
Weblink.
SUGGESTIONS FOR FURTHER READING ARE
INCLUDED IN THE WORKING PAPER

References
Global Footprint Network (2014). Footprint Basics. Weblink.
Horbach J., Rammer C. and Rennings K. (2010), Determinants of Eco-Innovations by Type of Environmental Impact: The Role of
Regulatory Push/Pull, Technology Push and Market Pull, Centre for European Economic Research, Discussion Paper No. 11-027.
Weblink.
Linnanen L. (2002). An Insider’s Experience with Environmental Entrepreneurship. Greener Management International, 38, pp. 71–80.
Menter H., Kaaria S, Johnson N., Ashby J. (no date). Scaling Up. Chapter 1. Weblink.
Nordic Innovation (2012). Green Business Model Innovation: Conceptualization Report. Authors: Kristian Henriksen, Markus Bjerre,
Alexandra Maria Almasi, Emil Damgaard Grann. Weblink.
OECD (2010). Eco-Innovation in Industry: Enabling Green Growth. Organisation for Economic Co-Operation and Development.
Weblink.
OECD (2011). Fostering Innovation for Green Growth, OECD Green Growth Studies. Organisation for Economic Co-Operation and
Development. Weblink.
OECD (2013). Why New Business Models Matter for Green Growth. Green Growth Papers. Organisation for Economic Co-Operation and
Development. Weblink.
Osterwalder A., Pigneur Y. (2010). Business Model Generation. Self-published. Weblink.
UNEP (2012). The Business Case for the Green Economy. Sustainable Return on Investment. United Nations Environment Programme.
Weblink.
UNEP (2013). Green Economy and Trade –Trends, Challenges and Opportunities. United Nations Environment Programme. Weblink.
Van Berkel R. (2011). Scaling Up Explained. Slide from presentation on UNIDO-UNEP Resource Efficient and Cleaner Production (RECP)
Programme.

Imprint
Published by
Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) GmbH
Registered Offices
Bonn and Eschborn, Germany
Sector Project ’Innovative Approaches for
Private Sector Development’
Dag-Hammarskjöld-Weg 1-5
65760 Eschborn, Germany
Tel. +46(0)6196 79-0
Fax +49(0)6196 79-1115
private.sector@giz.de
www.giz.de/privatesector
Edited by
Hans Joachim Zinnkann
Authors
Dick van Beers, Francesca Grossi, Pawel Zylka
Alexis Figeac, Michael Kuhndt
Collaborating Centre on
Sustainable Consumption and Production (CSCP)
Design and layout
Nikola Berger (CSCP)
As of November 2015
On behalf of
Federal Ministry for Economic Cooperation and Development (BMZ)
Division 114 Cooperation with the Private Sector; Sustainable Economic Policy
Addresses of the BMZ offices
BMZ Bonn
Dahlmannstraße 4
53113 Bonn
Germany
Tel. + 49 (0) 228 99 535 - 0
Fax + 49 (0) 228 99 535 –3500
BMZ Berlin
Stresemannstraße 94
GIZ is responsible for the content of this publication.

A separate working paper containing the key topics outlined in this Navigator and further
background reading has been produced. Click here to download and open the working paper.
Working paper
Topics Sections in the working paper In Navigator
(Green) business
models
Section 2
•Introduction to business models
•Green business models
•Challenges of green business models
•Categorisation of green business models
•Green entrepreneurship
•Green business models and the notion of inclusiveness
Rationale, benefits,
drivers
Section 3
•Rationale
•Drivers
•Direct benefits
•Societal impacts (indirect benefits)
Scaling up impacts Section 4
•What do we mean by ‘scaling up’?
•Success factors for scaling up impacts and overcoming challenges
•Scaling up pathways for business
Stakeholder roles in
scaling up
Section 5
•Role of entrepreneurs
•Role of development organisations
•Role of service providers and consultancies
•Role of large businesses
•Role of innovation centres
Greening value chains Section 6
•Green business models and value chain promotion
•Green value chains and inclusiveness
•Evolution of green value chains and their business models
This topic is not included in the Navigator in
order to keep it concise and focused.

Contact
For suggestions, questions or comments
on this Green Business Model Navigator,
please contact:
Sector Project ‘Innovative Approaches
for Private Sector Development’
GIZ Germany
private.sector@giz.de
www.giz.de/privatesector
Commissioned by the German Federal Ministry for Economic
Cooperation and Development (BMZ), the GIZ Sector Project on
Private Sector Development (SV PWF) has been working since 2010
on ‘Green Private Sector Development’ to support the following:
•Environmentally sustainable business activities and
entrepreneurship in the private sector through provision of
conceptual work, especially on sustainable value chain
promotion and value chain selection, cost-benefit-analysis,
green business development services and eco-innovation.
•Pilot-tests and international dissemination of the newly
developed concepts and instruments.
•Development of markets for green business development
services (green BDS) in the fields of resource efficiency (e.g.
UNIDO and National Cleaner Production Centres) and
adaptation of the private sector to climate change (e.g.
www.climate-expert.in).
•Donor Committee for Enterprise Development (DCED) for
interagency development of guidance material, harmonisation
of concepts and learning in the framework of the Green Growth
Working Group.
GIZ Sector Project on Private Sector Development

Acknowledgements
This Navigator is based on the experience of practitioners working in the promotion of green business models and private
sector development in various different regions and of entrepreneurs from the private sector engaging in sustainable
consumption and production, and would not have materialised without their contributions.
Many thanks go to those interviewed, who provided invaluable support in the development of the guidelines: Kate Berrisford,
Loic van Cutsem, Joris Depouillon, Markus Donath, Elisabeth Dürr, Andrés Grisales, Tara Chantal Hopkins, Aline Kraemer,
Adam Molineux-Berry, Anne Roulin, Eileen Trenkmann, Michael Vollmann, Uwe Weber.
The review efforts and technical contributions of experts and GIZ colleagues who participated in the validation workshop are
also gratefully acknowledged: Ralf Barthelmes, Sophie von Gagern, Lucie Kirstein, Kristin Meyer, Jörn-Hendrik Müller-
Bornemann, Lisa Peterskovsky, Patrick Schroeder, Birgit Seibel, Stefanie Springorum.
Finally, GIZ would like to extend very special thanks to the authors, Dick van Beers, Francesca Grossi, Pawel Zylka, Alexis
Figeac, Michael Kuhndt, and the designer Nikola Berger from the Centre on Sustainable Consumption and Production (CSCP).
It is due to their exceptional work that this Navigator is made available.