Conference PaperPDF Available

Assessing the environmental impact of new Circular business models

  • June 2016
  • Conference: Conference "New Business Models" - Exploring a changing view on organizing value creation - Toulouse, France , 16-17 June 2016
  • At: Toulouse, France
Authors:
Nancy Bocken at Maastricht University
Nancy Bocken
Karen Miller at University of Cambridge
Karen Miller
Steve Evans at University of Cambridge
Steve Evans
Download full-text PDF
Read full-text
Download citation

Abstract and Figures

Circular business models are increasingly viewed as a key driver for business competitiveness and sustainability. Yet it is unclear what the positive (or negative) environmental impact of such new business models might be. Existing methods such as Life Cycle Assessment and Mass Flow Analysis, typically more suited for product-level and material-level environmental assessment respectively, may be modified to assess the impact of new circular business models. However, these might be too time and resource-intensive to effectively guide decision-making. Building on earlier work on circular design and business models, the performance economy and life cycle and systems thinking, this work proposes a list of guiding principles to start assessing the impact of new circular business models. The guiding principles are organised according to the following high-level strategies: Slowing effects; Closing effects; Life cycle effects, and Systems effects. Slowing effects are linked to long lasting products and extending product life as part of the new business model. Closing effects relate to the potential for recycling, or product life post-consumer use, as a result of the circular business model innovation. Life cycle effects are the effects not yet captured within these slowing and closing effects, which arise across the product life cycle from raw material sourcing up until production, transport, use and disposal of products. Finally, Systems effects are the wider impacts of circular business model innovation. For each high-level strategy key questions were formulated to assess the environmental impact reduction of the new circular business model. It was found that the strategies and guiding principles help stimulate debate on the environmental direction of new circular business models. This work has provided insights to guide a potential direction for assessing the environmental impact of new circular business models, and added to the sparse body of literature in this field. Keywords: Circularity assessment; circular business; sustainability assessment; sustainable business; circular design; streamlined LCA.
Figures - uploaded by Nancy Bocken
Author content
All figure content in this area was uploaded by Nancy Bocken
Content may be subject to copyright.
Content uploaded by Nancy Bocken
Author content
All content in this area was uploaded by Nancy Bocken on Nov 04, 2016
Content may be subject to copyright.
Assessing'the'environmental'impact'of'new'Circular'business'models'
!
!"#$%&%#'%()*%+(,-./#%..(0"1%2.)(3(4562"&/#7(8('98#7/#7(:/%+("#("&78#/;/#7(
:82-%('&%8</"#(=(>"-2"-.%?(@&8#'%?(AB3AC(D-#%(EFAB(
!
!
!
Nancy!Bocken1,2,*,!Karen!Miller3!and!Steve!Evans1!
A(G#/:%&./<H("$(!8IJ&/17%?(K%68&<I%#<("$(4#7/#%%&/#7?(L#.</<-<%($"&(
08#-$8'<-&/#7?(AC(!98&2%.(,8JJ87%(M"81?(!8IJ&/17%(!,N(F@O?(G#/<%1(P/#71"I(
Q#I6JER'8IS8'S-T((
E(K%2$<(G#/:%&./<H("$(>%'9#"2"7H?(L#1-.<&/82(K%./7#(4#7/#%%&/#7(UJ-/21/#7(NEV?(K%2$<(
G#/:%&./<H("$(>%'9#"2"7H?(W8#1J%&7.<&88<(AX?(EBEY(!4(K%2$<?(>9%(*%<9%&28#1.
N(G#/:%&./<H("$(,&/79<"#?(0/<9&8.(Z"-.%?(W%+%.(M"81?(,&/79<"#?(,*E([\>?(G#/<%1(
P/#71"IS
!!
Abstract''
Circular!business!models!are!increasingly!viewed!as!a!key!driver!for!business!
competitiveness!and!sustainability.!Yet!it!is!unclear!what!the!positive!(or!negative)!
environmental!impact!of!such!new!business!models!might!be.!Existing!methods!such!as!
Life!Cycle!Assessment!and!Mass!Flow!Analysis,!typically!more!suited!for!product-level!
and!material-level!environmental!assessment!respectively,!may!be!modified!to!assess!
the!impact!of!new!circular!business!models.!However,!these!might!be!too!time!and!
resource-intensive!to!effectively!guide!decision-making.!Building!on!earlier!work!on!
circular!design!and!business!models,!the!performance!economy!and!life!cycle!and!
systems!thinking,!this!work!proposes!a!list!of!guiding!principles!to!start!assessing!the!
impact!of!new!circular!business!models.!The!guiding!principles!are!organised!according!
to!the!following!high-level!strategies:!Slowing!effects;!Closing!effects;!Life!cycle!effects,!
and!Systems!effects.!Slowing!effects!are!linked!to!long!lasting!products!and!extending!
product!life!as!part!of!the!new!business!model.!Closing!effects!relate!to!the!potential!for!
recycling,!or!product!life!post-consumer!use,!as!a!result!of!the!circular!business!model!
innovation.!Life!cycle!effects!are!the!effects!not!yet!captured!within!these!slowing!and!
closing!effects,!which!arise!across!the!product!life!cycle!from!raw!material!sourcing!up!
until!production,!transport,!use!and!disposal!of!products.!Finally,!Systems!effects!are!the!
wider!impacts!of!circular!business!model!innovation.!For!each!high-level!strategy!key!
questions!were!formulated!to!assess!the!environmental!impact!reduction!of!the!new!
circular!business!model.!
It!was!found!that!the!strategies!and!guiding!principles!help!stimulate!debate!on!the!
environmental!direction!of!new!circular!business!models.!This!work!has!provided!
insights!to!guide!a!potential!direction!for!assessing!the!environmental!impact!of!new!
circular!business!models,!and!added!to!the!sparse!body!of!literature!in!this!field.!'
Keywords:'!/&'-28&/<H(8..%..I%#<]('/&'-28&(J-./#%..](.-.<8/#8J/2/<H(8..%..I%#<](
.-.<8/#8J2%(J-./#%..]('/&'-28&(1%./7#](.<&%8I2/#%1(W!\S('
1.'Introduction''
The!Circular!Economy!is!increasingly!viewed!as!a!key!driver!for!business!competitiveness!
and!future!sustainability!under!increasing!resource!scarcity.!The!switch!from!the!current!
linear!economy!to!a!circular!one!has!recently!attracted!attention!from!major!global!
companies!and!policymakers!(Lewandowski,!2016).!The!Ellen!MacArthur!Foundation!
(2015),!whose!mission!is!to!accelerate!the!move!to!a!circular!economy,!regards!the!
circular!economy!as!essential!in!reshaping!resource!utilization!and!a!resilient!economy.!!
Scholars!view!the!circular!economy!as!a!key!driver!for!sustainability;!however,!to!enable!
this!transition,!business!models,!product!design!and!supply!chains!need!to!change!
(Rashid!et!al.,!2013;!Bocken!et!al.,!2016).!!Business!models!are!viewed!as!a!key!lever!to!
change!to!business!as!usual!(Chesbrough,!2010)!and!can!be!an!important!driver!for!
business!sustainability!(Bocken!et!al.,!2013).!However,!the!literature!on!the!potential!
impact!of!such!new!business!models,!with!the!exception!of!conceptual!work!by!Tukker!
(2004;!2015)!for!example,!is!yet!sparse.!Currently,!it!is!unknown!what!the!potential!
positive!(or!negative!impact)!of!such!new!business!models!could!be.!!
This!paper!addresses!the!following!research!question:!Z"+('8#(<9%(%#:/&"#I%#<82(
/I68'<("$('/&'-28&(J-./#%..(I"1%2.(J%(8..%..%1^(
Building!on!earlier!work!on!circular!design!and!business!models!(Bocken!et!al.,!2016),!
the!performance!economy!(Stahel,!2010)!and!life!cycle!and!systems!thinking,!this!work!
proposes!a!list!of!guiding!principles!to!start!assessing!the!impact!of!such!new!circular!
business!models.!This!paper!first!reviews!the!literature!on!circular!business!models!and!
environmental!assessment.!Subsequently!a!brief!illustrative!case!of!the!proposed!
framework!of!circular!guiding!principles!is!developed.!Finally,!suggestions!for!future!
research!in!the!area!of!circular!business!models!are!developed.!!
2.'Literature'on'environmental'assessment'and'circular'economy'
This!section!contains!a!brief!overview!of!literature!on!circular!business!models,!relevant!
environmental!assessment!methods!and!the!research!gap.!!
2.1'Circular'business'models''
Circular!business!models!first!optimise!the!value!of!products!through!reuse!and!long!
product!lifetimes,!and!second!enable!closed!loop!recycling!with!a!viable!business!case.!!
In!a!circular!economy,!products!are!designed!for!multiple!uses!or!even!lifecycles!(Rashid!
et!al.,!2013).!Stahel!(1994,!p.!179;!2010),!referred!to!“closed!loop!systems”!and!
distinguished!two!fundamentally!different!types!of!loops!within!a!closed!loop!system:!
(1)!reuse!of!goods,!and!(2)!recycling!of!materials.!Building!on!this,!Bocken!et!al.!(2016)!
define!three!strategies!for!the!move!towards!a!circular!economy:!!Slowing!loops!(reuse),!
closing!loops!(recycling)!and!narrowing!loops!(efficiency)!(see!Figure!1).!!
!
Figure'1.'Framework'of'closing,'slowing'and'narrowing'resource'loops.'Bocken'et'al.'(2016)'
Whereas!‘narrowing!loops’!(e.g.!lightening!products!and!manufacturing!efficiencies)!
already!takes!place!in!a!linear!economy,!a!lot!of!work!still!needs!to!be!done!to!slow!and!
close!resource!loops.!!
Circular!business!models!may!be!viewed!as!a!subset!of!‘sustainable!business!models’!
(Stubbs!&!Cocklin,!2008),!which!take!into!account!multiple!stakeholder!concerns,!in!
particular!Society!and!Environment!in!the!way!that!business!is!done!and!performance!is!
defined.!However,!it!is!not!currently!clear!what!the!potential!impact!of!such!new!
business!models!may!be!and!how!these!might!contribute!to!sustainability.!
2.2'“Circular”'assessment'methods'
Environmental!assessment!tools!may!be!highly!qualitative!or!quantitative!as!explained!
according!to!the!classification!in!Figure!1.!Existing!quantitative!methods!such!as!Life!
Cycle!Assessment!and!Mass!Flow!Analysis!have!been!developed!and!used!to!assess!
product-level!and!material-level!environmental!assessment!respectively.!Life!Cycle!
Assessment!(LCA)!is!an!environmental!assessment!method,!which!may!assist!in!
identifying!opportunities!to!improve!the!environmental!performance!of!products,!
inform!decision!makers,!select!environmental!indicators!of!environmental!performance,!
and!support!marketing!statements!(ISO!14044,!2006).!Mass!Flow!Analysis!(MFA)!is!a!
method!of!investigating!flows!of!specific!materials!through!an!economic!system!in!a!
specific!geographic!area!during!a!certain!period!of!time!(Kytzia!et!al.,!2004).!!
LCA!typically!incorporates!the!end!of!life!stages!(e.g.!recyclability),!whereas!MFA!allows!
for!an!overview!of!a!‘system’!of!specific!flows!of!materials!over!time.!Indeed,!whereas!
MFA!is!often!used!to!address!issues!around!the!water-food-energy!nexus,!
environmental!and!human!health!and!economic!systems!(e.g.!material!flows!in!cities),!
LCA!analysis!is!typically!used!to!look!at!product!chains!as!well!as!user!behaviour!
(Blomsma,!2015).!!The!Circularity!Canvas!by!Blomsma!(2015)!brings!together!the!notions!
of!product!(re)!use!and!flows!of!materials!in!a!Sankey!diagram!depicting!resource!flows.!!
However,!in!the!early!phases!of!business!model!design,!similar!to!product!design,!
specific!design!parameters!are!yet!unknown.!Hence,!it!is!beneficial!to!integrate!
environmental!aspects!in!order!to!understand!environmental!impacts!right!from!the!
start,!when!the!greatest!impact!may!potentially!be!achieved,!and!parameters!altered!to!
derive!the!greatest!environmental!benefit!(Bocken!et!al.,!2014).!!While!this!phase!is!
largely!uncertain!and!the!details!of!design!still!need!resolving,!it!is!argued!here!that!rules!
of!thumb!and!guidelines!(Figure!2)!will!be!most!beneficial.!
!
!
Figure'2.'Classification'of'different'types'of'product-level'environmental'impact'assessment'tools'
Source:'Developed'from:'Bocken'&'Allwood'(2012)'adapted'from'Forum'for'the'Future'(2010)'
!
2.3'Research'gap'
While!the!work!on!a!Circular!Economy!has!received!increasing!interest!(Rashid!et!al.,!
2013)!there!is!still!substantial!uncertainty!on!the!potential!impact!of!new!circular!
!!
Rules of thumb
and checklists
Directional
tools
Full
LCA and
labelling
Streamlined
and matrix
based LCA
Qualitative Quantitative
Time-
consuming;
Later stages
Quick;
Early
stages
Time
needed for
analysis
&
Stage of
business
model
innovation
process
Nature of the assessment
business!models.!Few!if!any!suitable!tools!have!been!established!on!circularity!
assessment;!and!even!fewer!for!circular!business!models!specifically.!One!exception!is!
the!“Circularity!Canvas’!by!Blomsma!(2015),!which!can!help!visualise!resource!flows!in!a!
business.!However,!this!canvas!is!focused!more!on!mapping!current!resource!flows!than!
guiding!future!strategic!business!model!design.!This!paper!proposes!a!simple!method!to!
guide!the!development!of!new!circular!business!models!in!order!to!achieve!the!greatest!
environmental!benefit!when!design!parameters!are!still!flexible.!!
3.'Method'
The!proposed!method!was!developed!based!on!simple!and!fundamental!‘circularity!
strategies’!identified!from!the!literature!(Stahel,!1994,!p.!179;!2010;!and!Bocken!et!al.,!
2016).!
Stahel!(1994,!p.!179;!2010)!distinguished!two!fundamentally!different!types!of!loops!
that!support!the!move!to!a!circular!economy:!(1)!reuse!of!goods,!and!(2)!recycling!of!
materials.!Based!on!these,!Bocken!et!al.!(2016)!defined!three!strategies!for!the!move!
towards!a!circular!economy:!!slowing!loops!(reuse),!closing!loops!(recycling)!and!
narrowing!loops!(efficiency).!!!
As!a!result,!the!following!high-level!strategies!were!developed:!Slowing!effects;!Closing!
effects;!Life!cycle!effects,!and!Systems!effects.!!
In!line!with!Stahel,!Slowing!and!Closing!effects!are!most!important!in!a!circular!economy!
(Stahel,!1994,!p.!179;!2010).!Slowing!effects!are!linked!to!long!lasting!products!and!
extending!product!life!as!part!of!the!new!business!model!(Bocken!et!al,!2016).!Closing!
effects!are!in!essence!about!assessing!the!potential!for!recycling,!or!what!happens!to!
products!post-consumer!use,!as!a!result!of!the!circular!business!model!innovation!
(Bocken!et!al,!2016).!Life!cycle!effects!are!the!effects!not!yet!captured!within!these!
slowing!and!closing!effects,!which!arise!across!the!product!life!cycle!from!raw!material!
sourcing,!up!until!production,!transport,!use!and!disposal!of!products.!The!idea!of!‘life!
cycle!effects’!is!derived!from!LCA,!which!takes!a!product!life!cycle!perspective!(ISO!
14044,!2006).!Finally,!Systems!effects!are!the!wider!impacts!of!the!circular!business!
model!innovation.!MFA!also!takes!a!‘systems!view’,!e.g.!the!flows!of!a!material!in!an!
economic!system!(Kytzia!et!al.,!2004).!!However,!in!this!case,!the!effects!might!be!the!
wider!changes!or!impacts!that!the!new!circular!business!model!might!have!on!society!or!
other!businesses.!!
For!each!of!these!high-level!strategies!key!questions!were!formulated!to!assess!the!
environmental!impact!reduction!or!improvement!of!new!circular!business!models.!A!set!
of!circular!guiding!principles!(i.e.!key!questions)!was!developed!for!each!of!these!
environmental!strategies!–!slowing,!closing,!life!cycle!and!systems!strategies!and!effects.!
Table!1!includes!the!high-level!circularity!strategies.!
>8J2%(AS(!/&'-28&/<H(.<&8<%7/%.(1%:%2"6%1(/#(<9/.(&%.%8&'9S(
Slowing'effects'
U2"#7(28.</#7(6&"1-'<.(8#1(%5<%#1/#7(6&"1-'<(
2/$%V(
'
Closing'effects'
U&%'H'2/#7V(
Life'cycle'effects'
U%$$%'<.(8'&"..(&8+(I8<%&/82(."-&'/#7?(
6&"1-'</"#?(<&8#.6"&<?(-.%(8#1(1/.6".823((#"<(H%<(
'86<-&%1V'
'
Systems'effects'
U+/1%&(/I68'<.("$(<9%(/##":8</"#V(
!
!
This!approach!was!further!developed!and!tested!through!a!case!study!in!the!clothing!
retail!industry!(specifically,!a!fashion!retailer).!The!case!company!aims!to!reduce!waste!
through!new!circular!business!models.!While!‘waste!reduction’!was!the!main!metric,!the!
improvement!in!waste!reduction!was!not!at!the!expense!of!other!environmental!metrics!
such!as!water!usage!and!carbon!emissions.!The!company!wants!to!investigate!the!
reduction!in!waste!of!new!business!models!before!allocating!significant!resources!to!
implementing!a!certain!business!model.!!
The!aim!of!the!approach!developed!in!this!research!was!to!help!companies!in!the!move!
to!a!circular!economy.!The!quick!assessment!method!developed!can!help!test!the!
environmental!viability!of!new!circular!business!models.!!
The!approach!was!used!in!two!instances!by!the!case!company:!firstly!in!earlier!phases!of!
business!model!development!and!secondly!as!background!material!for!a!more!in-depth!
business!model!development!workshop.!!!
4.'Circular'business'models'–'rapid'environmental'assessment''
Table!2!includes!the!Rapid!Circularity!Assessment!(RCA)!to!assess!the!environmental!
impact!of!new!circular!business!model!ideas!for!clothing!retailers.!!
>8J2%(ES(M86/1(!/&'-28&/<H(\..%..I%#<(UM!\V(
!
Flows'–'XX'items'sold'annually'by'
COMPANY'
'
Closing'
effects'
UM%'H'2/#7V'
Key'questions'to'consider:'
1.!Does!it!increase!the!&%'H'28J/2/<H!of!new!COMPANY!
clothes!being!manufactured?!(E.g.!consider!design!
for!disassembly!and!keeping!technical!and!biological!
materials!separate)!
2.!Does!it!increase!&%'H'2/#7(&8<%.($"&!new!COMPANY!
clothes!being!manufactured?!(E.g.!by!ensuring!that!
used!product!collection!at!the!end!of!the!useful!
product!life!time,!a!product!deposit!system,!or!
leasing,!where!the!material!remains!in!the!ownership!
of!the!company)!
!
Estimated!impact:!xxx!reduction!in!waste!
Confidence:!low,!medium,!high!'
Slowing'
effects'
UW"#7(28.</#7(
6&"1-'<.(
8#1(
%5<%#1/#7(
6&"1-'<(2/$%V(
(
'''''''''t'
'
Key'questions'to'consider:'
1.!!Does!it!increase!the!useful!lifetime!of!#%+!
garments!(e.g.!through!maintenance!and!care,!
repair,!re-manufacture,!reuse)?!
2.!!Does!it!reduce!total!#%+!garment!production?!
!
!
Estimated!impact:!xxx!reduction!in!waste!
Confidence:!low,!medium,!high!
Life'cycle'
effects'
U4$$%'<.(
8'&"..(&8+(
Key'questions'to'consider:'
1.!Does!it!lead!to!any!‘design!efficiencies’!(e.g.!less!
material!per!product)?!
2.!Does!it!lead!to!any!manufacturing!efficiencies?!
Garment!Stocks!
6bn!in!UK!!
(100!pp)!
!
COMPANY!a nnual!garment!item!sales!(XX)!
)(350m)present)!
I8<%&/82(
."-&'/#7?(
6&"1-'</"#?(
<&8#.6"&<?(
-.%(8#1(
1/.6".823(#"<(
H%<(
'86<-&%1V'
'
'
'
(Consider!material!extraction/!production!and!
garment!production)!
3.!Does!it!lead!to!any!transportation!savings?!
4.!Does!it!lead!to!more!efficient!or!less!cleaning?!
5.!Does!it!lead!to!cleaner!forms!of!recycling!not!
captured!yet?!(E.g.!less!toxic,!biodegradable)?!
6.!Does!it!lead!to!any!other!efficiencies!not!yet!
captured!(e.g.!sale!stock/over!ordering!
samples/fabrics,!no!ironing!needed!etc.)!
!
Estimated!impact:!xxx!reduction!in!waste!and!other!
environmental!categories!
Confidence:!low,!medium,!high!
Systems'
effects'
U_/1%&(
/I68'<.("$(
<9%(
/##":8</"#V(
Key'questions'to'consider:'
1. Does!it!lead!to!negative!rebound!effects!(e.g.!consuming!more)!or!positive!ones!(e.g.!from!fast!to!slow!
fashion)?!
2. Are!there!any!unintended!consequences!by!upcycling!the!value!of!waste!(e.g.,!where!textiles!are!used!
as!a!low!cost!filler!what!is!likely!replacement!if!we!can!divert!textile!waste)?!
3. Does!it!lead!to!radical!changes!for!stores!and!employees?!What!are!the!impacts!on!those!stakeholders!
and!others?!Who!are!the!potential!winners/!losers?!!
4. What!is!the!effect!of!multiple!co-existing!business!models?!!
5. What!is!the!impact!on!society!of!this!innovation?!!
6. What!is!required!for!other!companies!to!follow!–!is!that!considered!in!this!new!business!model?!
!
Estimated!impact:!xxx!reduction!in!waste!and!other!sustainability!categories!-!other!positive!and!negative!impacts!
Confidence:!low,!medium,!high!
*"<%S(>9%.%(8&%(7-/1/#7(`-%.</"#.(<"($8'/2/<8<%(H"-&(8#82H./.S(a2%8.%(811(8.(&%`-/&%1(<"(8#82H.%(H"-&(/1%8.S(>9%(GP(
78&I%#<(.<"'T.(18<8("$(BJ#(/<%I.(8&%(&%<&/%:%1($&"I(_M\a(UEFAEVS((
(
!
The!assessment!is!organised!according!to!the!effects!in!Table!1!–!Slowing,!closing,!life!
cycle!and!systems!effects.!In!addition,!it!was!recognized!that!some!innovations!could!
have!effects!on!the!flows!of!new!materials!(left!column)!of!products!sold!by!the!
company,!while!others!could!help!improve!the!usage!of!the!existing!clothing!stock!(right!
column;!clothing!already!in!circulation,!but!may!remain!unused).!WRAP!UK!for!example!
estimates!that!the!average!UK!household!owns!around!£4,000!worth!of!clothes!–!and!
around!30%!of!clothing!in!wardrobes!has!not!been!worn!for!at!least!a!year!(WRAP,!
2012).!The!assessment!method!allows!companies!to!go!through!each!of!the!questions!
step-by-step!to!assess!their!business!models.!
!
This!method!has!been!used!by!the!case!company!in!two!ways:!
1.!The!strategies!in!Table!1!have!been!used!in!the!early!stages!of!business!model!
development!when!changes!could!still!be!made.!It!helped!the!company!identify!business!
models!that!slow!and!close!loops.!
2.!The!strategies!in!Table!2!have!been!used!as!background!material!for!an!in-depth!
business!model!design!workshop.!They!were!used!to!support!further!business!model!
development!and!refinement.!!
'
Through!usage!in!these!two!ways,!it!was!found!that!the!environmental!strategies!and!
guiding!principles!could!help!stimulate!debate!on!the!environmental!direction!of!new!
circular!business!models.!They!can!help!improve!the!environmental!performance!of!
such!new!business!models!at!the!early!stages!of!business!model!innovation.!
!
5.''Conclusion'and'discussion''
The!Rapid!Circularity!Assessment!(RCA)!was!developed!to!support!companies!in!circular!
business!model!innovation!to!help!them!consider!the!most!environmentally!beneficial!
options!and!make!changes!to!the!design!while!these!are!feasible.!Through!the!case!
study!there!are!early!indications!that!this!method!is!beneficial.!However,!significant!
further!testing!and!development!is!required.!Nevertheless,!the!guiding!principles!could!
serve!as!an!input!to!more!detailed!LCA!or!MFA!work.!For!example,!it!can!help!build!the!
assessment!framework!and!assumptions!for!a!detailed!LCA!(ISO!14044,!2006).!It!can!also!
help!focus!the!analysis!and!draw!boundaries!for!MFA.!
This!work!has!provided!insights!in!a!potential!direction!for!assessing!the!environmental!
impact!of!new!circular!business!models!and!contributed!to!the!scant!body!of!literature!
in!the!field.!The!RCA!method!provides!an!indication!on!whether!the!business!model!is!
going!in!a!fruitful!direction!before!committing!excessive!resources!and!embarking!on!
deeper!modelling.!Future!work!could!focus!on!environmental!assessment!methods!
across!the!full!spectrum!illustrated!in!Figure!2!–!from!rules!of!thumb!up!until!highly!
detailed!quantitative!assessment.!Finally,!more!circular!business!models!are!needed!in!
practice!to!be!able!to!assess!their!impact!after!implementation!and!guide!future!
business!model!development.!
!!
Acknowledgements''
Project!funding!was!secured!through!InnovateUK’s!funding!call!“Supply!chain!innovation!
towards!a!circular!economy”!!(InnovateUK,!2013).!!
Short'bio'of'the'authors'
Dr'Nancy'Bocken!is!an!associate!professor!at!TU!Delft,!Industrial!Design!Engineering.!
She!was!awarded!the!TU!Delft!Technology!Fellowship!to!pursue!her!research!in!
sustainable!business!models,!and!innovation!for!a!circular!economy.!She!has!an!
appointment!at!University!of!Cambridge!as!a!senior!research!associate!and!is!Fellow!at!
the!Cambridge!Institute!for!Sustainability!Leadership.!While!her!broader!interest!is!
closing!the!“idea-action!gap”!in!sustainability,!her!research!focus!is!on!sustainable!
business!model!innovation.!Nancy!holds!a!PhD!from!the!University!of!Cambridge,!
funded!by!Unilever.!In!the!past,!she!worked!for!DHL,!Accenture,!and!ING.!
Dr'Karen'Miller!is!a!Senior!Lecturer!in!Business!Studies!for!Fashion!&!Textiles!and!
Fashion!Communications!at!the!University!of!Brighton.!Additionally,!she!is!a!Visiting!
Industrial!Fellow!for!Industrial!Systems!Manufacturing!&!Management!at!the!Institute!
for!Manufacturing,!University!of!Cambridge.!At!Cambridge!she!is!also!conducting!
research!with!the!Centre!for!Industrial!Sustainability!on!developing!more!sustainable!
approaches!in!fashion!retailing.!Her!main!research!interests!are!leadership!for!design!
and!innovation,!and!sustainable!business!development!in!fashion.!!
Prof'Steve'Evans'spent!12!years!in!industry,!finally!as!Engineering!Systems!Manager!at!
Martin-Baker!Engineering,!the!world-leading!manufacturer!of!ejection!seats.!He!became!
Professor!of!Life!Cycle!Engineering!at!Cranfield!University!in!1998!and!joined!the!
University!of!Cambridge!Institute!for!Manufacturing!in!2011.!He!is!Director!of!the!
national!EPSRC!Centre!in!Industrial!Sustainability,!with!over!50!staff.!His!research!seeks!a!
deep!understanding!of!how!industry!brings!environmental!and!social!sustainability!
concerns!into!its!design!and!manufacturing!practices,!with!an!emphasis!on!urgent!and!
practical!change!now!and!system!level!change!that!offers!hope!for!a!sustainable!future.!'
References'
Blomsma,! F.! 2015.! Navigating! the!circular! economy:! the! particle-versus-product! debate.! Global! Cleaner!
Production!&!Sustainable!Consumption!Conference,!1!-!4!November!2015,!Sitges,!Barcelona,!Spain.!
!
Bocken,! N.M.P.,! de! Pauw,! I.,! van! der! Grinten,! B.,!Bakker,! C.! 2016.! Product! design! and! business! model!
strategies!for!a!circular!economy.!Journal!of!Industrial!and!Production!Engineering,!32!(1),!67-81.!
!
Bocken,!N.,!Allwood,!J.!2012.!Strategies!to!reduce!the!carbon!footprint!of!consumer!goods!by!influencing!
stakeholders.!Journal!of!Cleaner!Production,!35,!118-129.!
!
Bocken,!N.,!Farracho,!M.,!Bosworth,!R.,!Kemp,!R.!2014.!The!front-end!of!eco-innovation!for!eco-innovative!
small!and!medium!sized!companies.!Journal!of!Engineering!and!Technology!Management,!31,!43–57.!
!
Bocken,!N.,!Short,! S.,! Rana,! P.,! Evans,! S.! 2013.! A! value! mapping! tool! for! sustainable! business! modelling.!
Corporate!Governance,!13!(5),!482!–!497.!
!
Chesbrough,! H.! 2010.! Business! Model! Innovation:!Opportunities! and! Barriers.! Long! Range! Planning! 43,!
354-363.!
!
Ellen!McArthur!Foundation.!2015.!Home!page.!Available!at:!https://www.ellenmacarthurfoundation.org/!
(accessed!!27!May!2016).!
!
Forum! for! the! Future.! 2010.! Metrics.! Retrieved! from! the! WWW! December! 2010:!
http://www.forumforthefuture.org/projects/metrics!
!
INNOVATEUK.! 2013.! O-662H( '98/#( /##":8</"#( <"+8&1.( 8( '/&'-28&( %'"#"IHS( \:8/28J2%( 8<b(
https://interact.innovateuk.org/competition-display-page/-
/asset_publisher/RqEt2AKmEBhi/content/supply-chain-innovation-towards-a-circular-economy#:! UK!
Government!(Accessed!27!May!2016).!
!
ISO!14044.!2006.!Environmental!management!—!Life!cycle!assessment!—!Principles!and!!framework.!
International!Organization!for!Standardization.!2nd!ed.!
!
Kytzia,!S.,!FAist,!M.,!Baccini,!P.!2004.!Economically!extended—MFA:!a!material!flow!approach!for!a!better!
understanding!of!food!production!chain.!Journal!of!Cleaner!Production!12,!877–889.!
!
Lewandowski,! M.! 2016.! Designing! the! Business! Models! for! Circular! Economy—Towards! the! Conceptual!
Framework.!Sustainability,!8(1),!43;!doi:10.3390/su8010043.!
!
Rashid,! A.,! Asif,! F.,! Krajnik,! P.,! Nicolescu,! C.! 2013.! Resource! Conservative! Manufacturing:! an! essential!
change! in! business! and! technology! paradigm! for! sustainable! manufacturing.! Journal! of! Cleaner!
Production,!57,!166-177.!
!
Stahel,!W.!R.,!1994.!“The!utilization!focused!service!economy:!Resource!efficiency,”!in!B.!R.!Allenby!and!D.!
J.!Richards!(eds),!The!Greening! of!Industrial!Ecosystems,! National!Academy!Press,!Washington,!DC,!178–
190!(1994).!
!
Stahel,!W.!R.!2010.!The!performance!economy,!Palgrave!Macmillan!Hampshire,!UK.!
!
Stubbs,! W.,! Cocklin,! C.! 2008.! Conceptualizing! a! “sustainability! business! model”.! Organization! &!
Environment,!21(2),!103-127.!
!
Tukker,!A.,!2004.!Eight!types!of!product-service!system:!eight!ways!to!sustain-!ability?!Business!Strategy!&!
the!Environment,!13!(4),!246-260.!
Tukker,!A.,!2015.!Product!services!for!a!resource-efficient!and!circular!economy–!a!review,!Journal!of!
Cleaner!Production,!97,!76-91.!!
WRAP.!2012.!WRAP.!Valuing!our!clothes.!Available!at:!http://www.wrap.org.uk/content/valuing-our-
clothes!(Accessed!27!May!2016)!!
... The Rapid Circularity Assessment (RCA) aims to assess the environmental impact of new circular business model ideas and concepts (Bocken et al., 2016b). The aim is to help companies consider the most environmentally beneficial options and make changes to the design where feasible. ...
... The circular strategies on the left column have been used by a clothing company to identify and assess business model ideas to slow and close resource loops (Bocken et al., 2016b). Then, during a workshop with a clothing retailer, the RCA helped to refine ideas and improve the environmental side of the value propositions. ...
... Although ideas on how to use design to address environmental issues are not new and go all the way back to Papanek (Baldassarre et al., 2019a(Baldassarre et al., , 2020a, the research field of circular design has been emerging only recently (Van Dam et al., 2020) but building on areas such as eco-design, Design for X (recycling, durability, etc.) and sustainability more broadly (Bocken et al., 2016a;Den Hollander et al., 2017). So far, scholars have explored what circular design is about (e.g., Bocken et al., 2016b), and how it can be practiced through specific skills (Sumter et al., 2018), and through the tools discussed in this study (e.g., Brown et al., 2021;Konietzko et al., 2020). Nevertheless, limited research is available on who these "circular designers" are, and what traits and skills they might possess. ...
Design Thinking Tools to Catalyse Sustainable Circular Innovation
Chapter
Full-text available
  • Nov 2023
Design thinking is an innovation approach for organizations aiming to solve complex andopen-ended problems, including those arising in the transition from a linear to a circulareconomic system. Although the importance has been recognized in business and academia, todate, insight is lacking on how design thinking can be applied within circular innovationspecifically. We investigate the following research question: How can design thinking toolscatalyze sustainable circular innovation? Based on the literature, we first create a frameworkthat characterizes design thinking principles, criteria and phases that could support circularinnovation. The design thinking phases are ideate and design, implement and test, andevaluate and improve. The criteria include desirability, feasibility, viability and sustainability,and circularity. Finally, we identify the following principles that make design thinkingsuitable to tackle complex circular innovation challenges: human-centered, future-oriented,holistic, co-creative, and experimental. Consequently, against this framework, we map eleventools that are suitable to catalyze circular innovation theory into practice through designthinking. Finally, we reflect on the future of research and practice around this subject.
View
... The Rapid Circularity Assessment (RCA) aims to assess the environmental impact of new circular business model ideas and concepts (Bocken et al., 2016b). The aim is to help companies consider the most environmentally beneficial options and make changes to the design where feasible. ...
... The circular strategies on the left column have been used by a clothing company to identify and assess business model ideas to slow and close resource loops (Bocken et al., 2016b). Second, during a workshop with a clothing retailer, the RCA helped to refine ideas and improve the environmental side of the value propositions. ...
... So far, scholars have explored what circular design is about (e.g. Bocken et al., 2016b), and how it can be practiced through specific skills (Sumter et al., 2018), and indeed through the tools discussed in this study (e.g. Brown et al., 2021;Konietzko et al., 2020). Nevertheless, limited research is available on who these "circular designers" are, and what traits and skills they might possess. ...
Design thinking tools to catalyse sustainable circular innovation
Chapter
Full-text available
  • Jun 2023
Design thinking is an innovation approach for organizations aiming to solve complex and open-ended problems, including those arising in the transition from a linear to a circular economic system. Although the importance has been recognized in business and academia, to date, insight is lacking on how design thinking can be applied within circular innovation specifically. We investigate the following research question: How can design thinking tools catalyze sustainable circular innovation? Based on the literature, we first create a framework that characterizes design thinking principles, criteria and phases that could support circular innovation. The design thinking phases are ideate and design, implement and test, and evaluate and improve. The criteria include desirability, feasibility, viability and sustainability, and circularity. Finally, we identify the following principles that make design thinking suitable to tackle complex circular innovation challenges: human-centered, future-oriented, holistic, co-creative, and experimental. Consequently, against this framework, we map eleven tools that are suitable to catalyze circular innovation theory into practice through design thinking. Finally, we reflect on the future of research and practice around this subject.
View
... Further, most business model ideation tools do not factor in rebound effects and thus, do not take the final environmental impact into account (Castro et al., 2022;Pieroni et al., 2019). Our tool bridges this gap in business model experimentation research (Blomsma and Tennant, 2020;Bocken et al., 2016a;Walzberg et al., 2021), and the findings can be useful for innovators, consultants, academics and businesses that are looking into the transition to circular business models. While our tool was specifically designed for the experimentation phase, we believe its use could be extended to the entire business model ideation phase. ...
The Circular Rebound Tool: A tool to move companies towards more sustainable circular business models
Article
Full-text available
  • Oct 2023
Companies design circular business models through experimentation. However, most companies do not consider the environmental impact of their new business model ideas during experimentation, an iterative phase of high uncertainty. Previous research shows that companies typically use ‘rules of thumb’ to estimate environmental impact in this stage due to limited time and reliable information to guide decision-making. This might prevent innovators from detecting unintended rebound effects that offset positive environmental gains of new business models. To mitigate this and let innovators think more profoundly about rebound effects during the circular business model experimentation phase, we propose an evidence-based business model ideation tool, the Circular Rebound Tool, designed around lifecycle thinking, the zero-waste hierarchy, and increased rebound effects awareness. The tool's development follows the design science research method, undergoing continuous improvement through 15 workshops. Our tool can help business innovators gain insights into the environmental impact of their early-stage business ideas.
View
... Sustainable procurement implementation is a business practice underpinned by the circular economy (CE) business model. The circular economy moves away from classical linear production systems by eliminating waste and pollution, slowing or closing resource loops, and regenerating (Bocken et al., 2016). CE is a key factor contributing to sustainability (Ntsondé and Aggeri, 2021). ...
Sustainable procurement implementation among public sector organisations in Ghana: The role of institutional isomorphism and sustainable leadership
Article
Full-text available
  • Sep 2023
Developing nations face institutional impediments in the implementation of sustainable procurement strategies. However, in the right institutional environment, these countries can overcome any hindrance and successfully implement sustainable procurement strategies to promote economic growth and environmental stewardship. Accordingly, this study examines the role of institutional isomorphism (mimetic, coercive, and normative isomorphism) and sustainable leadership in sustainable procurement among public sector organisations (PSOs) in Ghana. The hypothesized relationships were analyzed using partial least squares structural equation modelling (PLS-SEM). The findings support the role of isomorphism and sustainable leadership in sustainable procurement implementation. Specifically, coercive and mimetic isomorphic forces influence sustainable leadership significantly and positively. Second, coercive and mimetic isomorphic factors, as well as sustainable leadership, influence sustainable procurement practices. Based on these findings, we recommend that development partners make significant contributions to the green transition by applying coercive actions, such as threats of withdrawal of financial support for government budgets and policies. In addition, the findings of the study suggest that coercive and mimetic forces can foster a culture of ethical responsibility by influencing leaders to make decisions that contribute to environmentally and socially responsible procurement activities.
View
... In addition to the interpretation of coded interviews, literature analysis indicated that values are the core concepts during a transition toward CIE (Bocken et al., 2016a;Konietzko, 2020). According to responders, the definition, application, and dimensions of CIE values are distinguishable compared to traditional innovation ecosystems. ...
Designing Circular Innovation Ecosystems: Insights from Stakeholders, Values, and Investment Policies
Article
Full-text available
  • Aug 2023
Adopting the circular economy principles as a solution to overcome the challenges of the linear economy is increasing globally. In this regard, the related studies showed that circularity is a property of systems, not individual entities. Therefore, any ecosystem design process, including the implementation of circular innovation ecosystems (CIEs), needs in-depth and comprehensive insights into the design process, transformation of ecosystem components, and transition requirements toward circular ecosystems. This study utilized a two-step research methodology consisting of a systematic literature review on sustainable innovation ecosystems and CIEs alongside using grounded theory coding procedures to analyze 10 interviews based on an analytical ecosystem modeling tool to investigate the transformation of ecosystem components in circular ecosystems. Our findings illustrated that circular ecosystem design needs ecosystem actors' synchronic and incremental evolvement. The results also showed that implementing the CIEs requires broader networks of stakeholders, a new interactive economic model, an open platform for co-innovation and co-creation, transforming ecosystem value propositions, and defining new investment models and policies. The findings also inform policymakers and ecosystem researchers about the requirements of any transition toward CE ecosystems. Accordingly, proper policy-making structures and models for tackling transformation obstacles are provided.
View
... The move towards Circular Economy (CE) requires systemic change in how companies create and deliver value to customers (value proposition) and how they can capture and generate revenue (value capture) (Bocken et al., 2016). Therefore, innovating Business Models (BMs) are the fundamentals of the CE concept (Centobelli et al., 2020). ...
The Role of Digital Technologies in a Data-driven Circular Business Model: A Systematic Literature Review
Article
Full-text available
  • May 2023
The Circular Economy (CE) has been identified as a promising solution for reducing emissions, waste, and achieving sustainable development goals while offering economic values for companies. However, the move towards CE requires managers and decision-makers to rethink and redesign their Business Models (BMs) incrementally or radically. In order to achieve proper decisions on resource usage, product designs, material flows, and recirculation of materials, data plays a significant role in CE. Accessible data is considered as an essential enabler of circular solutions and at the heart of circular business models. In this regard, digital transformation can offer innovative tools for efficient execution and sharing of data to help companies generating new business models and to increase their competitive advantages. This study explores different data-driven BMs enabled by digital technologies in CE
View
... There are two possible explanations for the explosion of research on GnSBMs in recent years. To begin, the institutional perspective argues that global enterprises are compelled to use GnSBMs by political, legal, and environmental considerations [63][64][65]. Second, the technological perspective suggests that the development of new GnSBMs or the transformation of existing BMs into green and sustainable ones has been facilitated by the introduction of new technologies such as blockchain, digital sharing platforms , and renewable energies [66][67][68]. ...
Green Business/ Marketing: A Journey towards Ecofriendly and Sustainable Approaches?
Article
  • May 2023
During the last two decades, green and sustainable business models (GnSBMs) have become a popular topic of discussion among researchers, practitioners and policymakers. Preponderance of research and an expanding worldwide push to use GnSBMs need a full grasp of the state of research on GnSBMs. "Business should not be detrimental to society nor a parasite on society; rather, it should solely contribute positively to the well-being of society". As a result of this realization, sustainable business development has prompted a significant shift in the way that developing nations extend their business goals to include consideration of the global ecosystem and human development in accordance with the United Nations Sustainable Development Goals. This review focuses on the understanding o green business and marketing, history of green business models, practices of green business and various other aspects of green business.
View
... However, the perception of product longevity as an important and effective element in the circular economy debate (Cooper 2020) and as a quality parameter (Cooper 2012) has raised demand for business and design methods to increase the longevity of their products. This paper adopts the definition presented by Bocken et al. (2016) that increased product longevity relates to slowing the consumption loop, with focus on the lifetime of a complete product including repair, multiple ownerships and remanufacturing but excluding recycling and upcycling, where the product is broken into sub-parts and used in new contexts. ...
The LaST Tool – The Longevity and Sustainable Transition Tool
Chapter
Full-text available
  • Apr 2023
Due to customers’ increased focus on environmental sustainability, companies have been looking to position themselves as producers of consumer goods with greater longevity. Useful tools exist within academia to assist companies in this transformation process. However, the knowledge is scattered, and the focus of tools is often on either the mapping of companies’ status quo or actionable solutions that increase the longevity of their products. Creating a common understanding and coherency to make the knowledge usable in practice has proven to be difficult, as an immediate match of the most appropriate action tools to the mappings does not exist. Therefore, there is a need for a practical transition tool that, in the process of mapping, assists companies in understanding their positions and potential and proposes suitable action tools to assist in the required change process for producing consumer goods with greater longevity. This could mitigate the challenges for practitioners and bridge the different types of tools, hence enabling companies to develop products with increased longevity more easily.
View
Les écolieux de la coopérative Oasis: Un paradigme alternatif pour les organisations responsables ?
Article
  • Jun 2023
Cette étude de cas permet d’analyser la manière dont les écolieux pourraient inspirer la transition vers une société plus écologique et plus respectueuse des liens humains. Le cas met à disposition des étudiants le compte rendu d’une étude terrain à l’écolieu du Bois du Barde en Bretagne, intégrant de nombreux verbatims des parties prenantes interviewées et des photos prises sur place lors de l’été 2021. Il propose un cheminement pour objectiver la contribution sociétale de ce type d’organisation. Les dimensions analysées sont la raison d’être, les missions et interactions du Bois du Barde avec ses parties prenantes, les activités et les pratiques mises en œuvre, l’éthique sous-jacente, les effets positifs et négatifs des activités sur la société et l’environnement et enfin l’évaluation de la contribution sociale de l’écolieu. Le cas peut être utilisé dans un cours d’éthique, de RSE ou dans un cours de stratégie intégrant les dimensions environnementales et humaines du management. Il permet de mettre en perspective des questions stratégiques (raison d’être, mission, modèle économique…) et opérationnelles (activités, organisation du travail) d’une organisation et les outils permettant de mesurer la contribution de ce type de lieu à la société, autrement dit son utilité sociale.
View
View
Stocks and Flows in the Performance Economy
Chapter
Full-text available
  • Jan 2016
The performance economy is a concept which goes beyond most interpretations of a “circular economy”: the focus is on the maintenance and exploitation of stock (mainly manufactured capital) rather than linear or circular flows of materials or energy. The performance economy represents a full shift to servicisation, with revenue obtained from providing services rather than selling goods. While the form of industrial economy which has dominated the industrialised countries since the industrial revolution is arguably appropriate to overcome scarcities in a developing economy, the performance model is applicable in economies close to saturation, when the quantities of new goods entering use are similar to the quantities of goods being scrapped at the end of life.
View
Designing the Business Models for Circular Economy—Towards the Conceptual Framework
Article
Full-text available
  • Jan 2016
Switching from the current linear model of economy to a circular one has recently attracted increased attention from major global companies e.g., Google, Unilever, Renault, and policymakers attending the World Economic Forum. The reasons for this are the huge financial, social and environmental benefits. However, the global shift from one model of economy to another also concerns smaller companies on a micro-level. Thus, comprehensive knowledge on designing circular business models is needed to stimulate and foster implementation of the circular economy. Existing business models for the circular economy have limited transferability and there is no comprehensive framework supporting every kind of company in designing a circular business model. This study employs a literature review to identify and classify the circular economy characteristics according to a business model structure. The investigation in the eight sub-domains of research on circular business models was used to redefine the components of the business model canvas in the context of the circular economy. Two new components-the take-back system and adoption factors-have been identified, thereby leading to the conceptualization of an extended framework for the circular business model canvas. Additionally, the triple fit challenge has been recognized as an enabler of the transition towards a circular business model. Some directions for further research have been outlined, as well.
View
A value mapping tool for sustainable business modelling
Article
Full-text available
Purpose – Although business models that deliver sustainability are increasingly popular in the literature, few tools that assist in sustainable business modelling have been identified. This paper investigates how businesses might create balanced social, environmental and economic value through integrating sustainability more fully into the core of their business. A value mapping tool is developed to help firms create value propositions better suited for sustainability. Design/methodology/approach – In addition to a literature review, six sustainable companies were interviewed to understand their approaches to business modelling, using a case study approach. Building on the literature and practice, a tool was developed which was pilot tested through use in a workshop. The resulting improved tool and process was subsequently refined through use in 13 workshops.
View
The front-end of eco-innovation for eco-innovative small and medium sized companies
Article
Full-text available
This paper studies the Front End of Eco-Innovation (FEEI), the initial phase of the eco-innovation process. Incorporating environmental concerns at the front-end of innovation is important, as product parameters are still flexible. This paper investigates the FEEI for 42 small and medium sized eco-innovators in the Netherlands by using a survey. The results show that SMEs embrace informal, systematic, and open innovation approaches at the FEEI. Teams appear to be multidisciplinary, and creativity and environmental knowledge are essential. Experimentation played a significant role at the FEEI. The paper concludes with recommendations for future research and implications for managers.
View
View
The utilization-focused service economy: Resource efficiency and product-life extension
Chapter
  • Jan 1994
In the 1970s, the first wave of environmental regulation targeted specific sources of pollutants. In the 1990s, concern is focused not on the ends of pipes or the tops of smokestacks but on sweeping regional and global issues.This landmark volume explores the new industrial ecology, an emerging framework for making environmental factors an integral part of economic and business decision making. Experts on this new frontier explore concepts and applications, including Bringing international law up to par with many national laws to encourage industrial ecology principles.Integrating environmental costs into accounting systems.Understanding design for environment, industrial metabolism, and sustainable development and how these concepts will affect the behavior of industrial and service firms. The volume looks at negative and positive aspects of technology and addresses treatment of waste as a raw material.This volume will be important to domestic and international policymakers, leaders in business and
View
Product design and business model strategies for a circular economy
Article
  • Apr 2016
The transition within business from a linear to a circular economy brings with it a range of practical challenges for companies. The following question is addressed: What are the product design and business model strategies for companies that want to move to a circular economy model? This paper develops a framework of strategies to guide designers and business strategists in the move from a linear to a circular economy. Building on Stahel, the terminology of slowing, closing, and narrowing resource loops is introduced. A list of product design strategies, business model strategies, and examples for key decision-makers in businesses is introduced, to facilitate the move to a circular economy. This framework also opens up a future research agenda for the circular economy.
View
Product services for a resource-efficient and circular economy - A review
Article
Since the 1990s, Product Service Systems (PSS) have been heralded as one of the most effective instruments for moving society towards a resource-efficient, circular economy and creating a much-needed ‘resource revolution’. This paper reviews the literature on PSS in the last decade and compares the findings with those from an earlier review in this journal in 2006. Close to 300 relevant papers were identified, over 140 of which have been referenced in this review. Research in the field of PSS has become more prolific, with the output of refereed papers quadrupling since 2000, while on average scientific output has only doubled. PSS has also become embedded in a wider range of science fields (such as manufacturing, ICT, business management, and design) and geographical regions (Asia now produces more papers than Europe). The literature of the last seven years has refined insights with regard to the design of PSS, as well as their business and environmental benefits, and confirmed the definitions and PSS concepts already available in 2006. A major contribution of the recent literature is research into how firms have implemented PSS in their organization and what the key success factors and issues that require special attention are (such as a focus on product availability for clients; an emphasis on diversity in terms of services provided rather than the range of products; and the need for staff to possess both knowledge of the product and relationship management skills). The reasons why PSS have nonetheless still not been widely implemented, particularly in the B2C context, seem to have already been explained fairly well in the literature available in 2006. For consumers, having control over things, artifacts, and life itself is one of the most valued attributes. PSS are often less accessible, or have less intangible value, than the competing product, in part because PSS usually do not allow consumers as much behavioral freedom or even leave them with the impression that the PSS provider could prescribe how they should behave.
View
Resource Conservative Manufacturing: an essential change in business and technology paradigm for sustainable manufacturing
Article
For sustainability of our future societies we need sustainable manufacturing strategies with resource and environment conservation as their integral part. In this perspective closed-loop supply chains are considered as the most feasible solution. However, their implementation within the paradigm of prevailing open-loop product systems seems extremely complicated and practically infeasible. This paper argues for a radical shift in thinking on the closed-loop systems and presents the novel concept of Resource Conservative Manufacturing (ResCoM). The ResCoM concept considers the conservation of energy, material and value added with waste prevention and environment protection as integrated components of the product design and development strategy. It also presents the innovative idea of products with multiple lifecycles where several lifecycles of predefined duration are determined already at the product design stage thus demanding for new design strategies and methodologies. To succeed with this concept ResCoM advocates for new approach to supply chain design and business models as well, where the customers are integral part of manufacturing enterprises and the product design is effectively connected with the supply chain design. This work concludes that the products, supply chains and the business models developed for open-loop product systems are unable to cope with the dynamics of closed-loop systems. The uncertainties associated with product returns are inherent to the conventional concept of lifecycle and closed-loop systems. The ResCoM concept has much better capability in dealing with these uncertainties while developing sustainable closed-loop systems. The presented work outlines and discusses the conceptual framework of ResCoM. A comprehensive work on the strategic and tactical issues in the implementation of the ResCoM concept will follow.
View
Strategies to reduce the carbon footprint of consumer goods by influencing stakeholders
Article
Consumer goods contribute to anthropogenic climate change across their product life cycles through carbon emissions arising from raw materials extraction, processing, logistics, retail and storage, through to consumer use and disposal. How can consumer goods manufacturers make stepwise reductions in their product life cycle carbon emissions by engaging with, and influencing their main stakeholders? A semi-structured interview approach was used: to identify strategies and actions, stakeholders in the consumer goods industry (suppliers, manufacturers, retailers and NGOs) were interviewed about carbon emissions reduction projects. Based on this, a summarising presentation was made, which was shared during a second round of interviews to validate and refine the results. The results demonstrate several opportunities that have not yet been exploited by companies. These include editing product choice in stores to remove products with higher carbon footprints, using marketing competences for environmental benefits, and bundling competences to create win–win–win business models. Governments and NGOs have important enabling roles to accelerate industry change. Although this work was initially developed to explore how companies can reduce life cycle carbon emissions of their products, these strategies and actions also give insights on how companies can influence and anticipate stakeholder actions in general.
View