Impact on environment

Using IMP for environmental impact

The IMP framework discussed in the context of impact on people is also relevant here. The dimensions below are all useful to think about in the context of environmental change:

1. What environmental challenges and outcomes are being targeted

2. How much change occurs (albeit perhaps without considering duration, which may be less relevant, thinking of environmental outcomes)

3. Additionality

4. Risks

The one dimension that may be less relevant, is the 'who' dimension, as environmental change often has global impact, or even where localised, this is still over a large geographic area.

Some other frameworks

A number of more specific environmental frameworks have been put together, to help stakeholders think about impact on the environment. Many of these have been mapped by Project Frame (see slide 5 here). Two not mentioned that are useful are:

1. Planetary boundaries

2. The 'ecological ceiling' within doughnut economics

A useful framework to think about environmental outcomes is the EU Taxonomy

The Taxonomy Regulation establishes six environmental objectives

1. Climate change mitigation

2. Climate change adaptation

3. The sustainable use and protection of water and marine resources

4. The transition to a circular economy

5. Pollution prevention and control

6. The protection and restoration of biodiversity and ecosystems

Taking a holistic approach using LCAs

As you will note, most frameworks for assessing environmental impact, focus on footprint driven by operations, rather than impact created by the business model or product. In the absence of a consolidated framework in this area, we find it helpful to think of the Life Cycle Analysis approach (LCA). In other words, thinking about:

1. The different stages of a product's life cycle:

   1. Resource extraction

   2. Manufacturing

   3. Distribution

   4. Product use

   5. Disposal/end of life

2. The different types of environmental impact that may occur across these:

   1. Waste of natural resources (eg materials and water)

   2. Wasteful bi-products including emissions and pollution

   3. Impacts on biodiversity

An analysis of the above would provide a comprehensive understanding of the environmental impacts of a given business model.

For an example of this, have a look at Planet A's impact assessment process, captured here, including a detailed white paper on its methodology, and a list of its Life Cycle Assessments here.