Sustainability in Motion A Business Model Life Cycle Assessment of Lending and Sales Business Models for Mobility Aids in the Dutch Market

Abstract

In the European Union the industrial sector is one of the most significant contributors to global greenhouse gas emissions, highlighting the urgent need for more sustainable practices within the sector. Business model innovation, particularly models grounded in circular economy principles such as product-service systems, has emerged as a promising approach to decouple economic growth from environmental impact. To assess the environmental impact of different business models this thesis has studied two business models in use today by a Dutch distributor of medical aids. The models analysed are a traditional linear sales model as well as a lending model. The models have been evaluated based on two products, a shower chair and a rollator. To assess the sustainability of these models, the study applies the Business Model Life Cycle Assessment (BM-LCA) methodology. The method, which is built on the Life Cycle Assessment (LCA) methodology utilises the business model as the object of analyses, coupling monetary flows with environmental impact. The study also explores how the results can support improved sustainability practices for both the case company and other actors in the value chain. The results indicate that the lending model generates significantly lower greenhouse gas emissions than the sales model, largely due to the reduced number of new products required. However, the findings also reveal that factors such as product pricing, delivery logistics, and user transport distance play a critical role in overall environmental performance of the business models. These parameters can influence outcomes to the extent that they may offset the relative benefits of one model over another. In addition to the quantitative finding, the project also yielded valuable insights into the practical application of BM-LCA. It was found that the BM-LCA methodology can be used both to validate business model practices, as well as support strategic planning and adaptation of similar business models within the company. The method also facilitated cross-departmental collaboration and increased awareness of sustainability concepts, suggesting its potential as a platform for internal knowledge sharing. These observations underscore the broader strategic value of BM-LCA in guiding environmental management and scaling circular practices across different markets.