Journal Entry LO3&4

Learning outcomes:

Illustrate the need to broaden the definition of value beyond GDP.

Distinguish the broad assets that are likely to prove profitable and resilient in a net zero economy from those that are likely to be devalued or stranded.

In this journal entry, you are encouraged to reflect on where your organisation places value within its business model, and how this may need to change to manage the transition towards a net zero future.     

The following questions outline the main considerations of the table below. You are only required to complete the table in your response, but you should consider the following questions to formulate your journal entry:

  • How will climate-related risks (physical, transition and litigation) impact the value of the assets your business currently holds?
  • How could your organisation benefit from broadening its definition of value to include natural and social capital?
  • Can you identify any specific business opportunities associated with investing in a wider range of assets and activities?

(Max. 100 words per section in the table below)

Business model featuresCurrentlyIn a net zero future
Value proposition What is the value proposition of your business? What problems is it solving, and what value is it delivering to the customer?  
Customers Who is your company creating value for? What type of relationships do your customers expect and how can these be maintained?  
Key activities What are the key business activities necessary for delivering your company’s value propositions?  
Key resources What assets are required to deliver your company’s value propositions and who are the owners or stakeholders (if your business does not own them)?  
Key partners Who are the essential external stakeholders (ie suppliers and distributors)?  
Cost structure What are the important costs inherent in your company’s business model?  
Revenue streams What revenue will your company earn from the successful delivery of its value propositions to customers?