Model of Circular Economy in Environmental Management. Case Study

  • Anastasia SALNIKOVA Kuban State University, Russian Federation
  • Andrey KOVALEV Kuban State University, Russian Federation
  • Valery IOSIFOV Kuban State Technological University, Russian Federation
  • Nairuhi ALMASTYAN Kuban State University, Russian Federation

Abstract

The transition to circular economy models is a big challenge for enterprises, since it forces them not only to change established supply chains, pay extra attention to the quality and durability of manufactured products, develop schemes for the collection and subsequent disposal of products that have worked out their life, but also actively develop eco-innovation activities and participate in R&D more actively. The aim of this work is to study examples of the implementation of circular business models from the leading EU-based companies. The focus of the research on European companies is due to the fact that the European Union has been implementing a plan for the transition to a circular economy since 2015. In order to track the nature of applied eco-innovation in the field of CE the case-studies from the leading EU-based companies have been analysed. The choice of the companies is determined by their commitment to the CE principles and availability of the obtained results in their annual reports. The case-studies have shown all reviewed companies demonstrated beyond average commitment to the principles of CE in all aspects (sayings, doings and materiality). Their strong adherence is determined by their intense environmental impact and leading positions at regional and global markets.

References

[1] Asma-Qamaliah, A.-H., et al. 2020. Impeding challenges on industry 4.0 in circular economy: Palm oil industry in Malaysia. Computers& Operations Research, 123:105052. DOI:https://doi.org/10.1016/j.cor.2020.105052
[2] Balashova, S., Ratner, S., Gomonov, K. and Berezin, A. 2020. Modeling Consumer and Industry Reaction to Renewable Support Schemes: Empirical Evidence from the USA and Applications for Russia. International Journal of Energy Economics and Policy, 10(3):158-167. DOI: https://doi.org/10.32479/ijeep.8961
[3] Buttol, P., et al. 2012. Integrating services and tools in an ICT platform to support eco-innovation in SMEs. Clean Technol. Environ. Policy, 14(2): 211–221.
[4] Carrillo-Hermosilla, J., Gonzalez P., del, R. and Konnola, T. 2009. Eco-innovation: when Sustainability and Competitiveness Shake Hands. Palgrave Macmillan. DOI: https://doi.org/10.1057/9780230244856
[5] Chertow, M. and Ehrenfeld, J. 2012. Organizing self-organizing systems. Journal of Industrial Ecology, 16(1): 13–27. DOI: https://doi.org/10.1111/j.1530-9290.2011.00450.x
[6] Ching-Yan, Wu, Mei-Chih, Hu and Fu-Chuan, Ni. 2021. Supporting a circular economy: Insights from Taiwan's plastic waste sector and lessons for developing countries. Sustainable Production and Consumption, 26: 228-238. DOI: https://doi.org/10.1016/j.spc.2020.10.009
[7] Domenech, T. and Bahn-Walkowiak, B. 2019. Transition towards a Resource Efficient Circular Economy in Europe: Policy Lessons from the EU and the Member States. Ecological Economics, 155: 7-19. DOI:https://doi.org/10.1016/j.ecolecon.2017.11.001
[8] Dony, M. 2020. The EU’s legal framework and the limits of its external environmental regulatory influence. M. Telò, A. Weyembergh (Eds.), Supranational Governance at Stake. The EU’s External Competences Caught between Complexity and Fragmentation. Routledge, London. pp. 119-129. DOI:https://doi.org/10.4324/9781003013563
[9] Frosch, D. and Gallopoulos, N. 1989. Strategies for manufacturing. Scientific American, 261(3): 94–102.
[10] Galvao G.D.A., et al. 2018. Circular Economy: Overview of Barriers. Procedia CIRP. 73: 79-85. DOI:https://doi.org/10.1016/j.procir.2018.04.011
[11] Geissdoerfer, M., Savaget, P., Bocken, N.M.P. and Hultink E.J. 2017. The Circular Economy: a new sustainability paradigm? Journal of Cleaner Production, 143: 757–768 DOI:https://doi.org/10.1016/j.jclepro.2016.12.048
[12] Graedel, T.E. 1996. On the concept of industrial ecology. Annual Review of Energy Environmental, 21: 69–98.
[13] Guo, B., et al. 2017. Comparative assessment of circular economy development in China's four megacities: the case of Beijing, Chongqing, Shanghai and Urumqi. Journal of Cleaner Production, 162: 234-246. DOI:https://doi.org/10.1016/j.jclepro.2017.06.061
[14] Haas, W., Krausmann, F., Wiedenhofer, D. and Heinz, M. 2015. How circular is the global economy? An assessment of material flows, waste production, and recycling in the European Union and the world in 2005. Journal of Industrial Ecology, 19(5):765–777.
[15] Huppes, G. and Ishikawa, M. 2009. Eco-efficiency guiding micro-level actions towards sustainability: ten basic steps for analysis. Ecology Economic, 68:1687–1700.
[16] Iosifov, V.V. and Ratner, S.V. 2018. Environmental Management Systems and Environmental Performance: The Case of Russian Energy Sector. Journal of Environmental Management and Tourism, 7(31): 1377-1388. DOI: https://doi.org/10.14505/jemt.v9.7(31).02
[17] Jelinski L.W., et al. 1992. Industrial ecology: concepts and approaches: proceedings of Natural Academy of Science, 89: 793–797.
[18] Jesus, A., Antunes, P., Santos, R. and Mendonca, S. 2018. Eco-innovation in the transition to a circular economy: An analytical literature review. Journal of Cleaner Production, 172: 2999 - 3018. DOI:https://doi.org/10.1016/j.jclepro.2017.11.111
[19] Jesus, A. and Mendonca, S. 2018. Lost in Transition? Drivers and Barriers in the Eco-innovation Road to the Circular Economy. Ecological Economics, 145: 75-89. DOI: https://doi.org/10.1016/j.ecolecon.2017.08.001
[20] Kapoor, R. et al. 2020. Valorization of agricultural waste for biogas based circular economy in India: A research outlook. Bioresource Technology, 304: 123036. DOI: https://doi.org/10.1016/j.biortech.2020.123036
[21] Kemp, R. 2010. Eco-innovation: definition, measurement and open research issues. Econ. Polit., 3: 397-420.
[22] Kemp, R. and Pearson, P. 2008. Final report MEI project about measuring eco-innovation: deliverable 15 of MEI project (D15). Available at: www.oecd.org/greengrowth/consumption-innovation/43960830.pdf.
[23] Kern, F., Sharp, H. and Hachmann, S. 2020. Governing the second deep transition towards a circular economy: How rules emerge, align and diffuse. Environmental Innovation and Societal Transitions, 37: 171-186. DOI: https://doi.org/10.1016/j.eist.2020.08.008
[24] Kirchherr, J., et al. 2018. Barriers to the Circular Economy: Evidence from the European Union (EU). Ecological Economics, 150: 264-272. DOI: https://doi.org/10.1016/j.ecolecon.2018.04.028
[25] Korhonen, J., Honkasalo, A. and Seppälä, J. 2018. Circular Economy: The Concept and its Limitations. Ecological Economics, 143: 37-46. DOI: https://doi.org/10.1016/j.ecolecon.2017.06.041
[26] Lifset, R. and Graedel, T.E. 2001.Industrial ecology: goals and definitions. In: Ayres, R.U., Ayres, L. (Eds.), Handbook for Industrial Ecology. Edward Elgar, Brookfield.
[27] Murray, A., Skene, K. and Haynes, K. 2017. The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context. Journal of Business Ethics, 140(3): 369-380. DOI:https://doi.org/10.1007/s10551-015-2693-2
[28] Petit-Boix, A. and Leipold, S. 2018. Circular economy in cities: Reviewing how environmental research aligns with local practices. Journal of Cleaner Production, 195: 1270-1281. DOI:https://doi.org/10.1016/j.jclepro.2018.05.281
[29] Priyadarshini, P. and Abhilash, P. C. 2020. Circular economy practices within energy and waste management sectors of India: A meta-analysis. Bioresource Technology, 304: 123018 DOI:https://doi.org/10.1016/j.biortech.2020.123018
[30] Qian, G. and Wang, C. 2016. Circular Economy Cities. Springer, Berlin, Heidelberg, pp. 169-188.
[31] Ratner, S., Gomonov, K., Revinova, S. and Lazanyuk, I. 2020. Eco-Design of Energy Production Systems: The Problem of Renewable Energy Capacity Recycling. Appl. Sci. 10: 4339. DOI:https://doi.org/10.3390/app10124339
[32] Ratner, S., Gomonov, K., Revinova, S. and Lazanyuk, I. 2020. Energy Saving Potential of Industrial Solar Collectors in Southern Regions of Russia: The Case of Krasnodar Region. Energies, 13: 885. DOI:https://doi.org/10.3390/en13040885
[33] Ratner, S. and Iosifov, V. 2017. Eco-management and eco-standardization in Russia: The perspectives and barriers for development. Journal of Environmental Management and Tourism, 1(17): 247-258. DOI:https://doi.org/10.14505/jemt.v8.1(17).23
[34] Ratner, S. and Zaretskaya, M. 2020. Evaluating efficiency of Russian regional environmental management systems. Quality: Access to Success, 21(175): 120-125.
[35] Revinova, S., Ratner, S., Lazanyuk, I. and Gomonov, K. 2020. Sharing Economy in Russia: Current Status, Barriers, Prospects and Role of Universities. Sustainability, 12, 4855. DOI:https://doi.org/10.3390/su12124855
[36] Schulz, C., Hjaltadottir, R. E. and Hild, P. 2019. Practicing circles: Studying institutional change and circular economy practices Journal of Cleaner Production, 237:117749. DOI:https://doi.org/10.1016/j.jclepro.2019.117749
[37] Stevenson, R. and Evans, J.W. 2004. Editorial to: cutting across interests: cleaner production, the unified force of sustainable development. Journal of Cleaner Production, 12:185–187.
[38] Valko, D. V. 2018. Circular economy: theoretical model and effects of realization. National interests: priority and security, 8(365): 1415-1429. (In Russ.) DOI: https://doi.org/10.24891/ni.14.8.1415
[39] Wang, P. and Kara, S. 2019. Material Criticality and Circular Economy: Necessity of Manufacturing Oriented Strategies. Procedia CIRP, 80: 667-672. DOI: https://doi.org/10.1016/j.procir.2019.01.056
[40] Weber, C. T., Trierweiler, L. F. and Trierweiler, J. O. 2020. Food waste biorefinery advocating circular economy: Bioethanol and distilled beverage from sweet potato. Journal of Cleaner Production, 268(20):121788. DOI: https://doi.org/10.1016/j.jclepro.2020.121788
[41] Welford, R. 1998. Corporate environmental management, technology and sustainable development: postmodern perspectives and the need for a critical research agenda. Business Strategy Environmental, 7(1): 1–12.
[42] Whalen, K. A. 2019. Three circular business models that extend product value and their contribution to resource efficiency. Journal of Cleaner Production, 226: 1128-1137. DOI: https://doi.org/10.1016/j.jclepro.2019.03.128
[43] Wurzel, R.W., Liefferink, D., Di Lullo, M. 2019. The council, European Council and member states: changing environmental leadership dynamics in the European Union Env. Polit. 28(2): 248-270. DOI:https://doi.org/10.1080/09644016.2019.1549783
[44] Yudin, A. G. and Potapov, I. I. 2018. Waste crisis: European way — «circular economy». Ecology Economics, 5: 45-50. (In Russian)
[45] Circular Economy Solutions https://www.borealisgroup.com/polyolefins/circular-economy-solutions
[46] EC, 2012. The World and Europe up to 2050: EU Policies and Research Priorities - Global Europe 2050. European Commission.
[47] EverMinds – Think Circular. Available at: https://www.borealiseverminds.com/
[48] H&M Sustainability Report 2019. Available at: https://hmgroup.com/sustainability/sustainability-reporting.html#
[49] Intelligent Assets: Unlocking the circular economy potential. Foundation Ellen MacArthur Foundation. Available at: https://www.ellenmacarthurfoundation.org/assets/downloads/publications/EllenMacArthurFoundation_Intelligent_Assets_080216-AUDIO-E.pdf
[50] OECD/Eurostat, 2005. Oslo Manual Guidelines for Collecting and Interpreting Innovation, the Measurement of Scientific and Technological Activities. OECD Publishing, Paris.
[51] Rockwool Sustainability Report. Available at: https://www.rockwoolgroup.com/api/MultipleDownloads/zip?files=410671
[52] Sustainability Galp. Available at: https://www.galp.com/corp/en/sustainability
[53] TetraPak – Circular Economy. Available at: https://www.tetrapak.com/sustainability/circular-economy
[54] TetraPak Sustainability Report 2019. Available at: https://assets.tetrapak.com/static/documents/sustainability/sustainability-report2020.pdf
[55] Why the future of furniture is circular? Available at: https://about.ikea.com/en/sustainability/a-world-without-waste/why-the-future-of-furniture-is-circular
Published
2021-02-21
How to Cite
SALNIKOVA, Anastasia et al. Model of Circular Economy in Environmental Management. Case Study. Journal of Environmental Management and Tourism, [S.l.], v. 12, n. 1, p. 5-17, feb. 2021. ISSN 2068-7729. Available at: <https://journals.aserspublishing.eu/jemt/article/view/5876>. Date accessed: 29 mar. 2024. doi: https://doi.org/10.14505/jemt.v12.1(49).01.