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The Economics of Sustainability: Driving Profitability and Resilience in Business Models
Abstract
This chapter analyzes how businesses can incorporate sustainability into their economic strategy in order to increase profitability and create long-term resilience. It analyses the financial logic behind sustainable business models that can achieve cost efficiency, revenue growth through green innovations, and operational and regulatory risk mitigation. Using this chapter, firms can get tools for setting sustainability-based financial metrics such as carbon ROI and environmental profit and loss accounts. Some of the essential strategies are optimized resource utilization, reduction in waste via principles of the circular economy, and effective use of digital technologies in increasing the efficiency of sustainability measures. It also talks about the regulatory landscape, discussing the economic benefits of proactive compliance and alignment with global standards. New funding sources such as green bonds and impact investing are also explored.
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