Sustainable Business Models: Nature and Industry in Harmony

Sustainable Business Models: Are They the Future or Just a Fad?

Nico Varela in Climate & Environment December 2025 • 4 min read.

"Explore the rise of sustainable business models and whether they represent a lasting shift or a passing trend in the corporate world."

The concept of the business model has dramatically risen over the past 15 years in both academic research and business practices. The business model concept is increasingly important for practitioners dealing with more competitive, complex, and fast-moving business environments. Modern information and communication technologies and e-business in the late 1990s is often seen as the advent of business model research. Theoretical foundations have been identified as being rooted in information technology, organisation theory and strategic management.

Researchers dealing with sustainable development and corporate sustainability started exploring whether and how the business model concept can be used to investigate business-based solutions for ecological and social problems. Practitioners are increasingly interested in how these solutions can range from business models for new technologies and social innovations to hybrid and non-profit organizations.

Sustainable business model researchers and practitioners have a tendency to primarily engage within their sustainability communities. The question arises whether SBMs are just a buzzword-driven phenomenon and a passing fancy, or is this the sign of a new field of research and practice emerging?

Traits of Sustainable Business Models: What Defines a Lasting Field?

Sustainable Business Models: Nature and Industry in Harmony

To determine if SBMs represent a lasting field, it's essential to assess their defining traits. A field must be sufficiently distinct from related, established areas. The question is whether the research and practice around SBMs are unique enough. Understanding and developing these traits can advance the field and lay the foundation for consistent research and practical application.

Following the assessment framework, here are the questions that need answering:

Are SBMs based on foundational beliefs and a cohesive set of concepts that provide common meaning and facilitate communication?
Are SBMs supported by practical resources, including standard tools, textbooks, and guidance?
Do SBMs cultivate an authoritative structure that ensures quality and consistency across diverse topics?
Are SBMs built on a community of actors who adhere to and contribute to these traits?

SBMs aim to solve ecological, social, and economic problems by adhering to normative concepts like sustainable development and social justice. This normative grounding leads to the formulation of particular propositions and concepts associated with SBMs, driving the field forward with a clear sense of purpose.

The Future of Sustainable Business Models: Integration is Key

The choice between viewing SBMs as a sub-field or a stand-alone field presents limitations. Developing SBM research and practice as an integrative field is the best path forward. The SBM field depends on and goes beyond established fields, offering a powerful way to make business sustainable. The SBM field can borrow and merge ingredients from existing fields, linking these in new ways and sharing these experiences to renew and inspire researchers and practitioners.

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Everything You Need To Know

What exactly are sustainable business models (SBMs), and why are they gaining traction?

Sustainable business models (SBMs) represent an approach where businesses address ecological, social, and economic challenges through their core operations. The increasing interest stems from the need to create business-based solutions for issues like climate change, resource depletion, and social inequality. This involves exploring how businesses, ranging from new technology ventures to non-profit organizations, can integrate sustainability into their models. The rise is also due to more competitive and complex business environments demanding innovative approaches.

Are sustainable business models (SBMs) just a passing trend, or are they here to stay?

The longevity of sustainable business models (SBMs) depends on whether they develop into a distinct and cohesive field. For SBMs to last, they require foundational beliefs, practical resources like standardized tools, an authoritative structure ensuring quality, and a dedicated community of actors. If SBMs establish these traits, it's more likely they represent a lasting shift rather than a temporary trend. The integration of SBM principles into existing business practices can help in establishing their credibility and practicality.

What are the defining traits that determine if sustainable business models (SBMs) will become a lasting field?

The defining traits of sustainable business models (SBMs) include several key elements. First, they must be based on foundational beliefs and a cohesive set of concepts that provide common meaning. Second, they require practical resources such as standard tools and textbooks. Third, they need an authoritative structure to ensure quality and consistency. Finally, SBMs must be supported by a community of actors who adhere to and contribute to these traits. The presence and strength of these traits will indicate whether SBMs will become a lasting field of research and practice.

How do sustainable business models (SBMs) address ecological and social problems?

Sustainable business models (SBMs) address ecological and social problems by adhering to normative concepts such as sustainable development and social justice. This normative grounding leads to the formulation of specific propositions and concepts associated with SBMs, driving the field forward with a clear sense of purpose. Unlike traditional business models that prioritize profit maximization, SBMs integrate environmental and social considerations into their value creation and delivery processes. This includes minimizing negative environmental impacts, promoting social equity, and ensuring long-term sustainability.

What is meant by the 'integration' of sustainable business models (SBMs), and why is it important for their future?

The 'integration' of sustainable business models (SBMs) refers to the concept of developing SBM research and practice as an integrative field rather than viewing them as either a sub-field or a stand-alone field. This approach involves borrowing and merging elements from existing fields, linking them in new ways, and sharing experiences to renew and inspire researchers and practitioners. Integration is crucial because the SBM field depends on and goes beyond established fields, offering a powerful way to make business sustainable. This interdisciplinary approach allows SBMs to leverage existing knowledge while addressing unique challenges.