A multi-criteria decision framework for designing sustainable business models in the context of decarbonization

Abstract

As companies navigate the complexities of sustainability and decarbonization, aligning their business models with environmental pressures and strategic objectives is a major challenge. Building on the authors' previous research on decarbonization drivers, which revealed the influences of decarbonization targets on business model components, and subsequent work on the design of sustainable, open business models, this paper presents a systematic decision-making framework combining the AHP and PROMETHEE II to guide business model innovation in response to the intersecting demands of environmental sustainability and business growth. In contrast to conventional approaches that seek optimal solutions, the methodology provides a nuanced analysis of preferences enabling organizations to efficiently adapt their business models to their unique contexts in a rapidly changing regulatory and environmental environment. The framework directly addresses the need to align decarbonization efforts with corporate goals, providing a valuable tool for practitioners and contributing to the theoretical discourse on the adaptive design of business models for sustainability.