Addressing Environmental, Social, and Governance (ESG) issues has become essential for many firms worldwide. However, the internal integration of ESG in shifting the business model to be a sustainable business model (SBM) was rarely discussed in the literature. The knowledge gap of how business is changing toward sustainability is not fully explored. Based on corporate narrative reports analysis of 35 firms' sustainability reports, integrated reports, and annual reports identified from the MSCI database consisting of 25 Japanese firms classified as (Japan ESG Select Leaders) and 10 European (top constituents) in the computer and information technology sector. We found Ricoh Group the only firm that provided a clear link of ESG in one dimension of the business model at the value creation. This study aims to investigate the impact of the adaptation of ESG on the Ricoh business model. We will conduct a single qualitative case study of Ricoh and explore the business model in three phases: the business model before the adaptation of ESG, the process of shifting or transitioning toward a sustainable business model, and the business model after ESG integration. This study will contribute to ESG and sustainable business model literature in three aspects. First, explain how firms shift or change their business model after adapting ESG. Second, develop a conceptual framework for ESG integration process into the business model. Finally, we will highlight how firms can integrate ESG into the business model to foster sustainability and financial performance.
ESG integration process, business model, sustainable business model, business model transformation, organizational change.