Sustainable business model: the strategic role of ESG
When it comes to sustainable business transition, one of the first areas that companies need to analyse is their business model. Indeed, the sustainability of the business model is the foundation upon which not only the success of the organization's sustainability strategies depends, but also its competitiveness and, before that, its very viability over time. Regarding the business model, sustainability is analyzed and implemented on the basis of three pillars: the environmental and the social pillars focuses on the impact of the company and its operations, including those that occur upstream and downstream its supply chain, on the environment and the people and communities where the company is located, while the economic pillar refers to the economic sustainability of the model over time. This analysis, as well as the work to streamline and improve the critical issues detected, must consider all aspects that impact the company's business model, as well as all areas impacted by the company. In this journey, ESG plays a primary role, as it helps companies to identify those issues and areas where they need to focus to monitor current performance and develop strategies for improvement.
