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

Johnson, Emma LU and Mont, Oksana LU (2025) In Business Strategy and the Environment
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... (More)
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. (Less)
Please use this url to cite or link to this publication:
author
and
organization
publishing date
type
Contribution to journal
publication status
epub
subject
keywords
business models for sustainability, environmental impact, life cycle assessment, sustainable business models, systematic literature review
in
Business Strategy and the Environment
publisher
John Wiley & Sons Inc.
external identifiers
  • scopus:105003556402
ISSN
1099-0836
DOI
10.1002/bse.4309
project
QUEST - In search for knowledge, gaps and action on sustainable business models
Resource-Efficient and Effective Solutions based on Circular Economy Thinking - Phase 2
Mistra Sustainable Consumption: From Niche to Mainstream (Phase II)
language
English
LU publication?
yes
id
dd079957-9659-47a4-bfac-1af8b8aa7c91
date added to LUP
2025-04-28 13:58:54
date last changed
2025-05-18 04:04:29
@article{dd079957-9659-47a4-bfac-1af8b8aa7c91,
  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.}},
  author       = {{Johnson, Emma and Mont, Oksana}},
  issn         = {{1099-0836}},
  keywords     = {{business models for sustainability; environmental impact; life cycle assessment; sustainable business models; systematic literature review}},
  language     = {{eng}},
  month        = {{04}},
  publisher    = {{John Wiley & Sons Inc.}},
  series       = {{Business Strategy and the Environment}},
  title        = {{Actual Versus Potential Impact: Leveraging Life Cycle Assessment to Implement Business Models for Sustainability}},
  url          = {{http://dx.doi.org/10.1002/bse.4309}},
  doi          = {{10.1002/bse.4309}},
  year         = {{2025}},
}