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BSR Insight Article: Sustainable Business Models: Time for Innovation
Imagine that when you buy a pair of jeans you’re offered an agreement to sign before you pay: “I hereby promise to cold-wash, line-dry this clothing item, and own it for at least three years or ensure it is given away for someone else to enjoy.” When you sign, you are rewarded instantly with a coupon for cash back. The rebate is the estimated financial value of the carbon-dioxide emissions you save by avoiding hot-water washing, and by machine drying your jeans over the lifespan of the item. The clothing company is able to provide this discount by aggregating its consumers’ carbon credits and selling them on the open market. This model provides financial incentives for both the clothing company and the consumer to alter behavior. Read more
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