Integrating Circular Economy Practices into Business Models for SDG 12: A managerial approach to sustainable consumption and production

Abstract

A shift of the linear take-make-dispose economy to the circular economy (CE) is becoming widely acknowledged as a key step towards reaching Sustainable Development Goal 12 (SDG 12) responsible consumption and production. This paper explores how to incorporate circular economy practices in businesses via managerial processes where managers create a sustainable, innovative and competitive firm. Based on already-existing literature and case studies, this study refers to such managerial strategies as closed-loop supply chains, product-as-a-service offerings, eco-design, and industrial symbiosis. A conceptual approach is used to examine how adopting CE is related to managerial decision-making both in operational and stratification levels. The findings indicate that the companies that adopt circularity enjoy a decrease in resource dependency, better engagement with stakeholders, and resilience in the long term. Nonetheless, these opportunities will face drawbacks, such as the large investments required initially, the poor consumer awareness, and the unpredictability of the regulations. The paper ends with a reminder of the feasibility of businesses in terms of embedding circular models and a future research necessity on inter-sectoral partnership, digital platforms in measuring CE, and changes in consumer behavior which could make SDG 12 implementation accelerated.