Decarbonization drivers and their impact on business models in the energy-intensive manufacturing industry (EIMI)

Abstract

EIMIs face the challenge of adapting to the Paris Agreement and the European Green Deal to achieve carbon neutrality. Driven by consumer interest in low-carbon products, regulatory requirements, and investor priorities, companies are pressured to integrate sustainability beyond short-term financial gains. The growing awareness of the environmental impact of business models (BM) has fueled the development of Sustainable Business Models (SBMs). Although the importance of decarbonization of EIMIs has increased, there is a lack of industry-specific research examining the combination of decarbonization and business models, as well as their interrelationships and correlations. This study addresses the discussion on the role of SBMs in decarbonization, improving the understanding of how these drivers can be integrated to enable new BMs for EIMIs. Based on a structured literature review and semi-structured interviews within the EIMIs, the study identifies BM components influenced by these drivers requiring sustainable business model innovation (SBMI). Results show that decarbonization drivers significantly impact all BM components. Experts emphasize the importance of collaborative approaches and cooperation throughout the value chain. This research highlights the need for systematic analysis to understand how companies can manage decarbonization drivers effectively and suggests exploring potential SBM design options.