Abstract
Circular business models are often enabled by means of product/service-systems (PSS). The common perception is that such business models have enhanced environmental performance when compared to conventional business models rooted in the linear economy. This article investigates the environmental potential of developing a use-oriented PSS business model for Merino wool t-shirts intended for use by the British Ministry of Defence as an alternative to the present supply system based on synthetic t-shirts purchased from sportswear clothing companies. To conduct the assessment, we apply the life cycle assessment (LCA) methodology to quantify and compare the climate change impacts and impact potentials of the proposed PSS business model and of a reference business model. Results showed that there could be significant contribution of quantifying environmental potential for PSS business models when justifying the transition to a circular economy. However, when adopting LCA methodology for this purpose, the design of the PSS needs to be well thought to overcome some of the identified challenges. The article concludes by making the case that LCA studies can support the definition, design and value creation of the product/service-systems in early development stages.
Highlights
Circular economy is often seen as an environmental superior alternative to the take–make–dispose linear economy
To capitalise on using the current Ministry of Defence (MoD)’s freight system and North Atlantic Treaty Organization (NATO) stocking numbers (NSN) tracking system to ensure that the garments are returned to the supply pool after each tour
Through conducting this case study, it is acknowledged that the life cycle assessment (LCA) methodology could be adopted to assess the environmental performance of PSS
Summary
Circular economy is often seen as an environmental superior alternative to the take–make–dispose linear economy. In recent years, the concept of circular economy has attracted policy makers in the United Kingdom (UK) and Europe, who have been setting up strategies within these regions such as the “Circular Economy Package” launched by the European Commission [5], back in December 2015; and more recently in the UK, a “Circular Economy Strategy” for Scotland [6]. These initiatives provide opportunities to implement circular economy principles on public procurement to expand best practices through better collaborative procurement, guidance and regulations
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