Business models and business cases for financial sustainability: Insights on corporate sustainability in the Swedish farm-based biogas industry

In recent years, Swedish farmers have begun investing in biogas technology in an attempt to become more sustainable. Biogas production from organic waste on farms combines renewable energy production with increased resource efficiency. However, many farmers have found this activity less profitable than expected. This paper investigates the corporate sustainability strategy used by Swedish farm businesses, in particular how this strategy influences the development of business models and business cases for sustainability in the effort to increase economic profitability from biogas production. A questionnaire, administered to farm business managers, was used to collect the paper's empirical data. The study's findings show that the farmers currently use a reactive corporate sustainability strategy that hinders profits because biogas production is realized as an indirect financial business case for sustainability. The study concludes that the farmers could benefit financially from biogas production if they adopted a proactive corporate sustainability strategy. Such a strategy, if adopted, enables the development of a business model for sustainability, the capture of sustainable value for stakeholders, and the creation of biogas production as a direct financial business case for sustainability. This study contributes to the literature on business cases for sustainability, specifically in how their creation is connected to, and influenced by, the corporate sustainability strategy and by related business model changes. The study adds to our understanding of how sustainable investments can contribute to long-term, sustainable business success. (C) 2019 Institution of Chemical Engineers. Published by Elsevier B.V. All rights reserved.