Balanced Scorecard for Circular Economy: A Methodology for Sustainable Organizational Transformation

Abstract

The integration of circular economy (CE) principles within organizational strategies has become imperative for companies committed to sustainability and resource efficiency. This study explores the adoption of CE principles and the role of the balanced scorecard (BSC) as a facilitative tool. By contextualizing the significance of CE adoption, this paper reviews existing BSC models that incorporate sustainability aspects and evaluates software solutions for BSC implementation. Subsequently, a novel methodological framework was proposed. As a novelty, the strategic analysis included the use of a SWOT analysis. Once the situation was identified, BS 8001:2017 was used to define strategic objectives oriented towards the principles of a CE. Moreover, the proposed objectives were prioritized using the analytic network process tool. After completing the organizational and strategic analyses, the UNE 66175:2003 norm was incorporated to decide on the most appropriate indicators for each objective. Finally, to illustrate the proposed framework, a theoretical detailed case study was developed within the context of an industry specializing in the design and manufacturing of plastic packaging. The developed BSC was implemented using the selected software. This study demonstrated the convenience of establishing a methodology to guide decision making in the development and monitoring of the BSC.