The environmental impacts of circular business models

This chapter focuses on the environmental potential of circular business models. Drawing primarily on insights from the lifecycle assessment (LCA) literature, it assesses and compares the environmental footprint of goods and services produced via circular modes of production to those produced via more traditional means. Thus, recycled materials are compared to those made from virgin natural resources, remanufactured products are compared to new products, and the sharing or leasing of assets is compared to conventional ownership. While the environmental potential of circular business models is found to be broadly positive, the analysis also identifies several risks and unintended consequences that could result from their more widespread adoption.