Different Markets, Different Business Model Environmental Performance? Analysing a novel recycling service for a single-use paper-based product with business model LCA (BM-LCA)

Paper in proceeding, 2024

This study presents another application of the recently developed business model LCA (BM-LCA) method for evaluating the environmental impacts of business models. A novel recycling service for a single-use paper- based product, launched by a multinational hygiene products company, is assessed with regards to its potential to decouple the company’s business models around the product. A circular business model scenario, where the recycling service is scaled up, is constructed to compare this with the company’s current linear business models. The BM-LCA employs real data on the monetary flows in the company’s business models and on the flows of material and energy in the product systems.

The market dependency of the business model scenarios’ environmental performance is analysed by setting these on the Swedish and German markets respectively. This market analysis is conducted through varying technical and economical parameters as to reflect differences in the company’s own processes and the background system (i.e., energy and waste management systems) on the two markets. Additional sensitivity analysis with respect to said types of parameters is carried out to analyse what factors influence the business model scenarios’ level of decoupling, and what this implies for their environmental performance on other markets. In conducting such a market analysis, the study addresses one of the proposed areas of further studies in the research field around BM-LCA. A literature search on the topic of market dependency of business models’ environmental impacts suggests this issue composes a knowledge gap, which the case study may contribute to explore.