Regenerative Indicators and Multi-Objective Optimization for ESG-Aligned Data Analytics Platforms in Product-as-a-Service Business Models
Keywords:
Product-As-A-Service (PaaS), Regenerative Sustainability, Multi-Objective Optimization, ESG Analytics, Internet of Things (IoT)Abstract
We propose a novel data analytics platform that serves as the central optimization engine within a Product-as-a-Service (PaaS) business model, fundamentally reorienting conventional ESG analytics from cost minimization toward regenerative sustainability. The core innovation is a Regenerative Performance Indicator (RPI) Engine that computes three primary metrics from IoT sensor streams and external datasets: net biodiversity gain, soil carbon sequestration rate, and community resilience score. These indicators are then fed into a Long-Horizon Multi-Objective Optimization (LH-MOO) Module, which solves a constrained optimization problem over a thirty-year planning horizon. The module employs a multi-objective evolutionary algorithm (NSGA-III) to generate a set of Pareto-optimal business-model configurations that simultaneously maximize cumulative restoration value while satisfying financial viability constraints. A key methodological contribution is the Sustainability-Adjusted Discount Rate (SADR), which replaces the conventional weighted average cost of capital by incorporating an environmental-intensity penalty that increases the discount rate for configurations exceeding planetary boundaries. Furthermore, a Scenario Simulation Module stress-tests each Pareto-optimal portfolio against multiple Shared Socioeconomic Pathways using stochastic differential equations, thereby computing the probability of long-term viability under diverse external conditions. The closed-loop architecture integrates directly with existing IoT sensor networks and asset lifecycle management modules, transforming raw operational data into actionable portfolios that actively restore ecological and social systems. This work is significant because it provides a rigorous, data-driven framework for operationalizing regenerative sustainability within PaaS business models, moving beyond traditional ESG reporting to embed ecological restoration and social resilience directly into the core optimization logic of the enterprise.
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