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Towards sustainable business models with a novel life cycle assessment method

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  • Giulia Goffetti
  • Daniel Böckin
  • Henrikke Baumann
  • Anne‐Marie Tillman
  • Thomas Zobel

Abstract

Business model (BM) innovation for sustainability is hampered by a lack of tools for environmental assessment and guidance at the BM level. Conventional life cycle assessment (LCA) neglects the economic and socio‐technical mechanisms within a BM, and tools based on the BM canvas (BMC) cannot provide recommendations substantiated by environmental data. Here, a new method, BM‐LCA, is applied to a case comparing the selling and renting of jackets, using profit as basis of comparison. Results identify how business parameters influence environmental performance, permitting analysis for decoupling within a business practice. This is made possible by the unique way the method links physical life cycle and the monetary flows of a BM. Usefulness of BM‐LCA is discussed relative to BM innovation, business strategy and similar tools. BM‐LCA provides insights into a broad range of BM elements and emerges as useful for business strategy. By measuring BM environmental performance, it helps determine what BM to compete with and support critical analysis of business against greenwashing. BM‐LCA also enables identification of BM elements in greatest need of environmental innovation. BM‐LCA appears as a promising tool for guiding business companies towards sustainability, filling a space between LCA and BMC. The method offers a practical way for business and LCA experts to merge their respective knowledge.

Suggested Citation

  • Giulia Goffetti & Daniel Böckin & Henrikke Baumann & Anne‐Marie Tillman & Thomas Zobel, 2022. "Towards sustainable business models with a novel life cycle assessment method," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2019-2035, July.
    • Handle: RePEc:bla:bstrat:v:31:y:2022:i:5:p:2019-2035
    DOI: 10.1002/bse.3005
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    2. Cao Dinh Kien & Nguyen Huu That, 2022. "Innovation Capabilities in the Banking Sector Post-COVID-19 Period: The Moderating Role of Corporate Governance in an Emerging Country," IJFS, MDPI, vol. 10(2), pages 1-14, June.
    3. Moa Nyvall & Thomas Zobel & Cecilia Mark‐Herbert, 2023. "Use‐oriented business model," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1314-1324, May.
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    5. Simon Stork & Rolf Morgenstern & Bernd Pölling & Jan-Henning Feil, 2023. "Holistic Business Model Conceptualisation—Capturing Sustainability Contributions Illustrated by Nature-Based Solutions," Sustainability, MDPI, vol. 15(19), pages 1-20, September.

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