Global Journal of Multidisciplinary and Applied Sciences

Sustainable Business Models and Corporate Innovation in the Era of Green Economics

Muhammad Bilal

Lahore University of Management Sciences (LUMS), Lahore, Pakistan

Sana Farooq

National University of Sciences & Technology (NUST), Islamabad, Pakistan

Keywords: green economics, sustainable business models, circular economy, eco-innovation, ESG disclosure

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Abstract

 Green economics is reshaping how firms create value, compete, and remain legitimate in the eyes of regulators, investors, and society. This article synthesizes contemporary thinking on sustainable business models—such as circular economy, product-service systems, and inclusive value chains—and explains how corporate innovation (technological, organizational, and financial) enables firms to translate environmental constraints into strategic advantage. We develop a practical framework linking (i) sustainability-driven value propositions, (ii) decarbonized and resource-efficient operations, (iii) credible measurement and disclosure, and (iv) governance systems that align incentives with long-term resilience. The discussion highlights the growing importance of standardized sustainability reporting (e.g., IFRS S1/S2 and CSRD/ESRS), transition planning, and science-based targets as market infrastructure that reduces information asymmetry and accelerates diffusion of green innovation. The article concludes with actionable outlines for managers and policymakers, emphasizing that sustainability becomes economically durable when it is embedded in unit economics, risk management, and innovation portfolios rather than treated as reputational “CSR.”