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

Emma Johnson and Oksana Mont

Business Strategy and the Environment, 2025, vol. 34, issue 6, 6563-6593

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.

Date: 2025
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