Work

Actual Versus Potential Impact: Leveraging Life Cycle Assessment to Implement Business Models for Sustainability

Year: 2025

Type: article

Abstract: ABSTRACT Research on business models for sustainability (BMfS) has primarily focused on the conceptual aspects and sustainability potential of BMfS rather than their actual impact. There is a need to understand whether BMfS have less environmental impact on society than conventional business models and in what context and conditions they can reduce impact. This research conducted a systematic literature review utilizing three databases to identify comparative life cycle assessments (LCAs) of BMfS and conventional business models. These studies were analyzed by comparing their scope of assessment, functional unit, environmental indicator categories, impact, sensitivity factors, geographic, and business model factors affecting the impact. We found that the impacts of BMfS varied greatly, with some cases showing the same, increased, or decreased environmental impacts compared to conventional business models. There were no certain types of BMfS that indicated greater environmental potential than others. Our findings highlight the discrepancies in the environmental impact reduction claims of BMfS, pointing to the need for a detailed examination of specific factors such as rental efficiency and time frames, customer logistics and behavior, product, and parts' service life, transport, rental infrastructure, end‐of‐life activities, and pricing. These factors, or leverage points for impacts, significantly influence BMfS' sustainability performance.

Source: Business Strategy and the Environment

DOI: 10.1002/bse.4309

Authors: Emma Johnson, Oksana Mont

Institution: Lund University

Language: English

Topic: Sustainable Supply Chain Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Responsible consumption and production, Climate action

Open Access status: hybrid

Estimated APC paid: $4,480