Evaluating the sustainability of Fruta Feia's business model


The sustainability of Fruta Feia Co-Op has been subject of several analyses by IST team with one master thesis completed and a scientific paper submitted on this subject to Journal of Cleaner Production.

The first approach was to map the Co-Op business model through the triple layer model canvas. The business model of Fruta Feia served as a framework for the subsequent analyses: an economic analysis evaluating the Net Present Value (NPV) and the Internal Rate of Return (IRR); an environmental evaluation through Life Cycle Assessment; (LCA) a social assessment using Social Life Cycle Assessment (S-LCA); and an overall assessment with the three dimensions evaluated simultaniously, for which Social Return on Investment (SROI) was the chosen method.

Results show very positive impacts in the three dimensions – economic, environmental and social. These analysis are based in the pilot project and the next step is to extend them to understand also the sustainability of the replication within Lisbon and to other regions. This study has also allowed quantifying the environmental benefits per kg of the avoided waste, such as the reduction of 0.14 kg CO2eq of GHG emissions derived from the decomposition of products that are not consumed.

The challenge now is to incorporate an indicator per avoided waste that includes also social benefits.