Designing a business model to reduce CO2emissions from construction machinery: Aligning business and environmental objectives

The   literature   on   sustainable   business   models   suggests   a   large   potential   for   radical environmental  benefits  in  many  industries  based  upon  current  technological opportunities. However, there is a lack of empirical knowledge on how to design, implement and spread such business models in complex value chains. Based on a qualitative exploratory study, a concept for sustainable business models to reduce carbon emission when using construction machinery has  been  developed  and  measures  needed  to implement  and  design  such  a  model  within  the construction  industry  is  identified.

The  study  is  based  upon  interviews,  study  visits  and  a workshop,   with   participants  representing   all   important   actors   in   the   value-chain.   In conclusion,  business  and environmental  objectives  can  be  aligned  through  a  result-oriented business  model, supported  by  life-cycle  data,  contractual  incentives,  standardised  emission measures and driver visualization. The concept is generalisable to the greening of value chains beyond carbon reduction and also to other complex business to business value-chains.

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Last updated: 2022-01-19

IVL Swedish Environmental Research Institute

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