Business Models of AI-driven Sustainability Startups: A Taxonomy

Kathleen Liebe, Niclas Brune, Oliver Vetter, Jan Heidrich and Joshua Beck

Publications of Darmstadt Technical University, Institute for Business Studies (BWL) from Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL)

Abstract: Rapid advancements in artificial intelligence (AI) and sustainability efforts are fostering innovative business models that integrate both domains. This paper develops a taxonomy to classify business models for AI-driven sustainability startups. Following the methodological approach of Nickerson et al. (2013), a taxonomy comprising of 43 characteristics across nine dimensions was developed through five iterations utilizing the Business Model Canvas as a foundational framework. This taxonomy was developed and validated by analyzing 90 European startups, resulting in the categorization and clustering of five types of business models. By establishing a common vocabulary, this research addresses fragmentation and creates a foundation for comparative research and theory building in the intersection of AI and sustainability. The final taxonomy provides a tool for evaluation, classification and communication of business model types for both researchers and stakeholders, while remaining adaptable of future extensions and specifications to reflect innovation and evolution of AI-driven sustainability startups.

Date: 2026-12
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