Capturing value in complex markets and ecosystems

Imagine you’ve developed a breakthrough technology that captures carbon emissions directly from industrial sites. It’s efficient and could drastically reduce greenhouse gases. You’ve secured funding, and your technology works, but there’s a catch: the companies that would benefit most—large manufacturers—aren’t the ones making the purchasing decisions. They’re motivated by compliance and operational efficiency, not necessarily by adopting the latest sustainability technology. Unless they see immediate, direct benefits, they’re reluctant to invest.

This scenario is common for many climate companies operating in multi-stakeholder environments. While some companies have a straightforward path where the end user is also the decision-maker, others navigate complex ecosystems where these roles don’t align. In these cases, the buyer might not be the direct beneficiary of the solution, adding layers of complexity in capturing value and scaling. To succeed, climate companies must build business models that help them navigate these ecosystems, aligning diverse stakeholders and ensuring their technology integrates seamlessly with the various interests and incentives present.

In these multi-layered ecosystems, it’s not just about identifying who the customer is; it’s about mapping out the entire network of stakeholders and their diverse interests. Navigating these ecosystems means understanding each stakeholder’s needs, motivations, and pain points. Without this mapping, even the most promising solutions may struggle to gain traction. It’s not enough to build great technology—companies must align these interests and create pathways for collaboration, ensuring that everyone in the ecosystem sees value.

Innovating Business Models for Ecosystem Complexity

To effectively scale, many climate companies are moving beyond the traditional business model of selling directly to an end user. Instead, they are adopting models that align diverse stakeholders and build value across entire ecosystems:

1. The Cooperative Approach: Collaboration can be a powerful tool for aligning interests. For instance, a renewable energy provider might partner with an existing utility company to integrate sustainable solutions into their existing infrastructure. The utility gains access to new technology and sustainability credentials, while the renewable energy firm reaches a broader market. This collaboration leverages both companies’ strengths and distributes value across the ecosystem, ensuring mutual benefits.

   
   

2. Flexible Financing Models: Financing solutions tailored to align multiple interests can also play a critical role. For example, energy-efficient building retrofits often require substantial initial investment from property owners. By offering payment plans that align costs with the energy savings realized over time, companies can reduce the financial burden on decision-makers while also benefiting the end users who enjoy lower bills and increased comfort. This approach ensures that all parties see a clear, shared advantage, helping to drive adoption and scale.

   
   

3. Integrated Value Chains: Climate companies can also become orchestrators within existing value chains. A provider of sustainable building materials, for example, might connect suppliers, construction firms, and regulatory bodies to create a streamlined system that meets industry standards. By coordinating these efforts, the company ensures that each participant gains value, from suppliers expanding their market reach to construction firms offering sustainable solutions. This not only drives adoption but embeds the company’s solution into broader industry practices, facilitating scale.

To achieve meaningful impact and scale, climate companies must go beyond developing innovative technology—they need business models that capture value across complex ecosystems. Companies that align their technology with a robust, stakeholder-oriented strategy are more likely to succeed. By integrating technology and business models seamlessly, these companies create conditions where all parties—those who pay, benefit, or facilitate—are incentivized to engage. This alignment drives adoption and allows climate companies to scale their solutions and achieve lasting climate progress.