Assessing the environmental impact of new Circular business models

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: Circularity assessment; circular business; sustainability assessment; sustainable business; circular design; streamlined LCA.

Full text

Assessing'the'environmental'impact'of'new'Circular'business'models'
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Nancy!Bocken1,2,*,!Karen!Miller3!and!Steve!Evans1!
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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%<(
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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'
'
Stocks'––'UK'wardrobe'of'6bn'items'or'100'
items'per'person'
'
'
'
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<%.($"&!new!COMPANY!
clothes!being!manufactured?!(E.g.!by!ensuring!that!
used!product!collection!at!the!end!of!the!useful!
product!life!time,!a!product!deposit!system,!or!
leasing,!where!the!material!remains!in!the!ownership!
of!the!company)!
!
Estimated!impact:!xxx!reduction!in!waste!
Confidence:!low,!medium,!high!'
Key'questions'to'consider:'
1.!Does!it!increase!the!recyclability!of!the!existing!
clothing!stock?!
2.!Does!it!increase!the!number!of!clothing!items!from!the!
UK!wardrobe!given!away!for!recycling?!
3.!Does!it!have!ability!to!reverse!trends!of!textiles!going!
to!landfill?!(E.g.!by!repurposing!the!materials!and!
increasing!recycling!rates)!
!
Estimated!impact:!xxx!reduction!in!waste!
Confidence:!low,!medium,!high'
Slowing'
effects'
UW"#7(28.</#7(
6&"1-'<.(
8#1(
%5<%#1/#7(
6&"1-'<(2/$%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!
Key'questions'to'consider:'
1.!Does!it!reduce!the!total!number!of!items!in!the!UK!
wardrobe?!
2.!Does!it!lead!consumers!to!better!use!their!"+#!existing!
wardrobe?!Will!it!make!them!buy!less!as!a!result?!
3.!Does!it!lead!to!the!stock!of!clothing!being!used!better!
/#(7%#%&82!(e.g.!by!others,!UK,!abroad)?!
4.!Does!it!have!the!ability!to!reverse!trends!of!clothing!
“overconsumption”?!
!
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?!
Key'questions'to'consider:'
1.!Does!it!lead!to!any!transportation!savings!for!handling!
the!current!clothing!stock?!
2.!Does!it!lead!to!more!efficient!or!less!cleaning!for!the!
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!
current!clothing!stock?!
3.!Does!it!lead!to!any!other!efficiency/!savings!(e.g.!
ironing,!tumble!drying)!not!yet!captured!for!current!
clothing!stocks?!
!
!
!
!
!
!
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.!'

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