Circular economy implementation and business performance: The mediating role of environmental performance in the Chinese energy production enterprises

Abstract

This study proposes a model to explain the effect of circular economy implementation on business performance in the Chinese energy production enterprises. Moreover, it analyzes the mediating role of environmental performance in explaining the influence mechanism. Our study used data from the Chinese energy production enterprises, which included 295 firms. We applied the methodological approach, partial least square structural equation modeling (PLS-SEM), to test the hypothetical model. The results show that circular economy implementation have a positive on business performance, and environmental performance plays a part of the intermediary role in the circular economy implementation affecting business performance. Finally, some promising avenues for future research and implications for managers and policymakers are suggested based on these findings.

Assessment of Non-financial Reports in the Context of Circular Economy: The Case of Czech Large Companies

“…These activities were: Minimise water usage and maximize its re-usage; Use of renewable energy; Minimise energy consumption; Minimise waste; and Redesign products and services to minimize the use of materials or use recycled materials (European Commission, 2016). The suitability of these indicators to assess the level of CE implementation was also confirmed by the studies of Antonioli et al (2022), Dong et al (2022), Farooque et al (2022), Gupta et al (2021), or Sarfraz et al (2022), who used at least some of them. Additionally, activities regarding the minimalization of emissions are often used to assess the level of CE implementation in businesses (for example in the studies made by Dong et al, 2022;Farooque et al, 2022;Sarfraz et al;2022), thus the assessment of this activity was also added to this research.…”

“…The suitability of these indicators to assess the level of CE implementation was also confirmed by the studies of Antonioli et al (2022), Dong et al (2022), Farooque et al (2022), Gupta et al (2021), or Sarfraz et al (2022), who used at least some of them. Additionally, activities regarding the minimalization of emissions are often used to assess the level of CE implementation in businesses (for example in the studies made by Dong et al, 2022;Farooque et al, 2022;Sarfraz et al;2022), thus the assessment of this activity was also added to this research. Therefore, the following However, these institutions were analyzed further (as additional research), because when employing such a big number of employees, the impact on the environment is also important, thus their level of circularity should not be neglected.…”

“…Also, some authors (e.g. Dong et al, 2022;Ellen MacArthur Foundation, 2013;Sarfraz et al, 2022) consider the issues regarding the reduction of emissions and the use of renewable energy also part of the CE concept.…”

The Relationship Between the Circular Economy and Business Performance: A Systematic Literature Review

“…The data and methods used to prove the relationship are shown in Table 3. Dong et al (2022) tested whether there is a positive effect of the reduce, reuse and recycle principle on environmental performance (measured, e.g., by the emission level of air pollutants or discharge level of solid pollutants) and market and financial performance (measured by ROA, ROI and ROS) and whether environmental performance itself has a positive effect on market and financial performance. All these effects were proven to be positive.…”

Circular Economy Approaches in the Palm Oil Industry: Enhancing Profitability through Waste Reduction and Product Diversification

“…The model of the circular economy offers a revolutionary framework to directly confront these challenges. By endorsing the reduction, reuse, recycling, and regeneration of resources, the circular economy strives to detach economic growth from the consumption of resources and the deterioration of the environment [6][7][8]. The utilization of this method is not solely a tactical reaction to the ecological predicaments linked with the manufacture of palm oil, but also a chance to bolster economic endurance and societal inclusiveness within the sector [9][10][11].…”