Sustainable Entrepreneurship: How Sustainability leads to Higher Profits

Module 1: Sustainability and value creation

The world has shifted to a more sustainable, environmentally conscious mindset. The shift is not only in the mindsets of the people, but also in the way companies are making decisions to create value.

The idea of sustainable value creation is the process of integrating three aspects – environmental, social, and economic – into a business mindset. Furthermore, it is a way of thinking about business and sustainable development that considers the interests of all stakeholders (such as customers, employees, investors, suppliers and communities) and considers environmental impacts in its operations and its products. Moreover, it recognises the existence of many capitals (e.g., natural, social and economic) and it focuses on long-term growth rather than short-term gains.

Module 2: Applying performance management to sustainability

By definition, performance measurement is always selective. Businesses cannot measure every performance aspect, so they must decide on the most important metrics and indicators to focus on.

A creditable, trustable and impactful organization’s performance measurement systems (in relation to sustainability), need to include the following key elements:

• Cover the most appropriate performance from a sustainability perspective
• Enable management to measure performance from a sustainability perspective
• Provide a balanced picture of the organization’s performance (rather than, for example, just focusing on areas in which the organization is doing well)
• Based on clear performance measurements (eg inputs, activities; outputs), and reliable data
• Refer to benchmarks or comparators against which performance can be assessed
• Presented in a way which maximizes its usefulness to its audience

Module 3: Managing risks

Startups must be aware of the material risks and opportunities in their given industry, which is essentially what a careful ESG strategy provides. Startups should start by identifying their purpose, then marry that purpose to ESG considerations — for instance, by identifying risks to avoid and manage.

Startups also need a business strategy that aligns profit goals with a company’s environmental, social and governance (ESG) policies. This alignment should be efficient enough to address potential risks and realize opportunities that come with sustainability.

Module 4: Circular economy

Our current linear economy consumes finite resources, turns them into products, and creates a never-ending stream of waste. By cleverly designing products, systems, and policies, we can instead create a circular approach that benefits businesses, people, and the planet.

• Understanding the Circular Economy
• Designing for a Circular Economy
• Making the shift

Module 5: Take advantage of new business opportunities

Entrepreneurs can find opportunities through innovation and sustainable business opportunities.

 Recognize the areas that present opportunities

• Discuss how these opportunities present a business competitive advantage
• Prepare a short presentation of the selected opportunity
• Present the opportunity to the class and lecturer
• Gain feedback from the class and lecturer