An EU-backed initiative based in Denmark’s Central Jutland region has helped several local SMEs to develop concrete and practical ‘green’ business models. The project, Focused value chain collaboration – design for optimal use of resources, helped participants become more sustainable and embrace the circular economy. Introducing green business models has led to an estimated annual decrease in greenhouse gas emissions equivalent to 2 857 tonnes of CO2 and a reduction in the use of energy and materials.
Green business modelling brings rewards for Danish SMEs
- 29 July 2020
Green restructuring as a business model is now part of our DNA – and that will be the future
A total of 39 SMEs participated in the project through which they developed tailored business models that have helped them optimise their value chains. One added benefit of the approach is that suppliers to these companies have become more sustainable. The aim of the business models is to help companies use resources more efficiently and avoid producing unnecessary waste through smart use of product repairs, service agreements and public-private partnerships.
Bespoke support
The project team began by screening 80 companies before selecting the participants. The SMEs were then matched with appropriate consultants who could understand their business needs and objectives. Assessments were carried out using the project’s bespoke adviser exchange tool, as well as through phone interviews with company managers. Workshops were held and visits to companies took place as part of the comprehensive assessment process.
As business models were developed, companies were encouraged to embrace innovative methods to help make their processes more efficient. For example, some drafted a ‘design letter’ for a product or service that keeps materials in use for longer and which can be recycled with maximum efficiency. Participants also forged links with other businesses who could use waste and offcuts as raw material for their own products.
Plans in action
Project activities have helped the SMEs make sustainable changes across their value chains – from receipt of raw materials through processing and to delivery of the final product.
Komproment A/S, based in Aalborg, sells building materials and develops roof and façade systems. The company has adopted sustainable green business models which incorporate a ‘cradle-to-the-grave’ strategy that has strengthened competitiveness and helped break into new markets. A sustainable approach and care for the environment is proving appealing to potential customers.
Meanwhile, Silkeborg-based Tripplex A/S has undergone a comprehensive green transition. The timber company’s business strategy is now focused on sustainability and reflects the values of the circular economy, where little goes to waste.
Total investment and EU funding
Total investment for the project “Focused value chain collaboration – design for optimal use of resources” is EUR 1 006 711, with the EU’s European Regional Development Fund contributing EUR 503 356 through the “Innovation and Sustainable Growth in Businesses” Operational Programme for the 2014-2020 programming period. The investment falls under the priority “Environment and resource efficiency”.