Sustainability by Design: Rethinking the Business Model Canvas

It essentially lays out on a single page how organisations create, deliver, and capture value.  It comprises 9 key building blocks that together describe how any organisation works:

It’s a brilliant tool for analysing and communicating existing models, but even better for innovating and developing new ideas / models.

This article is not meant to be an introduction to the standard Business Model Canvas, so if you are not familiar with it, please take a peek at this 2 minute video to get a feel for how it works.

However, for all its strengths, in the today’s business environment, the original Business Model Canvas has some significant limitations when it comes to ESG considerations.

The BMC is focused on the concept of value, rather than merely activity.  But value for whom?

It excels at helping organisations visualise at a high level how they create and deliver value to customers, how key partners help them to do so, the costs incurred and of course, the revenue received from customers, which contribute to financial viability.

In an era where ESG credentials can make or break public trust, procurement bids, and investor confidence, this omission is no longer just a gap but can be considered a liability.

Without guidance, it’s easy for even well-intentioned businesses to ignore such things completely or drift into greenwashing; the tendency to overstate the environmental and / or social benefits of their offer whilst failing to address the deeper systemic issues and negative impacts.

You don’t have to look too hard to find examples of organisations who shout loud about their green credentials whilst keeping very quiet about their somewhat less than environmentally or socially sound actions. Think:

It isn’t just about messaging though.  Wouldn’t it be good if we could somehow embed these considerations into our fundamental business model design rather than just putting a positive spin on our existing model?

If you’ve read this far, my guess is that you won’t be surprised to discover that I think that there is a way to do just that.  Otherwise, what would be the point of this piece? 

Sustainable versions of the Business Model Canvas generally build directly on the original canvas, retaining the key blocks in similar designs, but adding components that help organisations think more holistically about externalities, whilst expanding the thinking in others. 

There are numerous variations of Sustainable BMCs (I list some in the References section at the end of this article), but for this piece, we will use one of the simpler variants, illustrated below

This version is very similar to Alex Osterwalder’s original BMC, but with a few simple changes/additions:

You should of course always consider sustainability in your Value Propositions too.

These two additional blocks prompt critical thinking about the ripple effects of your business decisions.  Your whole business design in fact.  They also help point to some potentially fantastic opportunities to do better.

By explicitly mapping environmental and social impact, the SBMC brings sustainability into the centre of the conversation rather than keeping it in a separate CSR or ESG report.

It’s not about perfection, more about awareness, accountability, and intention progress.

Business can be, many will argue should be, a force for good; creating positive change as a matter of course.

In March 2024, for example, the UK’s Competition and Markets Authority secured formal commitments from fashion giants like ASOS, George at Asda and Boohoo to clean up their green claims following concerns about misleading environmental messaging.  This wasn’t just a slap on the wrist.  It set a precedent.

Doing nothing is no longer the safe option.  Why wait for regulation to force your hand?  Be proactive and change before you need to.

The Sustainable Business Model Canvas is deceptively simple.  In the right hands it can help shift mindsets, shape decisions, and spark genuine change. 

It’s an especially powerful tool in facilitated, collaborative group workshops, where its one-page, visual approach encourages ideation, fosters peer learning and drives genuine, lasting change.

So, this Earth Day, consider taking 30 minutes with your team to explore your own business model through a new lens.  It might surface things you’ve never mapped before and reveal opportunities you’ve never considered.

Ask yourself and your leadership team, in fact ask your whole workforce, “What could our business look like if sustainability was built into its business model?  What opportunities would this bring us?

Let’s build businesses that don’t just survive the future but actively shape it for the better.

If you would like to explore how you, your business and/or teams can use these tools to make that shift, then please get in touch and let’s talk.  I love to help forward-thinking organisations make a real difference. 

Happy Earth Day everyone.

Phil Kilburn

1.     Business Model Generation - The book that started it all

2.     Value Proposition Design – Dive deeper into how to create compelling value propositions.

3.     Strategyzer – Alex Osterwalder’s company website.  Excellent Blogs, case studies and courses on BMC, VPC and more

4.     Sustainable Business Canvas – Downloadable SMBC similar to that used in this article

5.     Threeability - Sustainable Business Model Canvas – A more in depth SBMC and accompanying game, which is great in workshop scenarios

6.     CASE – Sustainable Business Model Canvas (Download Canvas here) – Yet more great stuff on Sustainable BMs

7.     Blue Tribe – Some excellent resources and case studies on sustainable businesses and their innovative BMs

8.     Sustainable Pathways – Triple Layered BMC – An even more complex and in-depth look at SBMCs

9.     Interesting Blog post on SMBC

10.  Business Model Canvas Guru – More information on SBMC features, along with some other great stuff.