Exploring environmental and social performances of circular start‐ups: An orientation and certification assessment

Abstract

The circular economy (CE) aims to deeply transform the current linear model of economy and society into a business model capable to extend the lifetime of resources and decrease environmental impacts. For this to happen, changes in societal systems and production sectors, from micro to macro, are required.The present research, based on a multiple case‐study explorative approach of circular start‐ups (CSUs), investigates their adoption of environmental impact assessment methods, environmental and social certifications and contribution to a better integration of the social dimension in the CE model. Results indicate that three out of six CSUs carefully measure and certify their environmental and social impacts. Life Cycle Assessment resulted the most adopted environmental assessment method, while two CSUs are also certified benefit corporations. CSUs are mainly oriented toward the use of quantitative methods for the measurement of environmental and social impacts. Additional efforts are still needed toward the implementation of qualitative methods to properly highlight the achievement of social benefits (environmental and social awareness, employees' engagement, work time and free time balance, consumers health and safety, among others) for their stakeholders (workers, local community, consumers). Nevertheless, CSUs case studies highlight their potential of supporting the transition toward a fair CE while at the same time facilitating the integration of social dimension aspects into the CE model. Finally, by developing appropriate business to consumer models, CSUs can strongly affect consumption behaviors and habits, making them also more aware and responsible of their environmental and social life cycle impacts and improvement potential.