Sustainable supply chain management and the transition towards a circular economy: Evidence and some applications

Abstract

In the last decades, green and sustainable supply chain management practices have been developed, trying to integrate environmental concerns into organisations by reducing unintended negative consequences on the environment of production and consumption processes. In parallel to this, the circular economy discourse has been propagated in the industrial ecology literature and practice. Circular economy pushes the frontiers of environmental sustainability by emphasising the idea of transforming products in such a way that there are workable relationships between ecological systems and economic growth. Therefore, circular economy is not just concerned with the reduction of the use of the environment as a sink for residuals but rather with the creation of self-sustaining production systems in which materials are used over and over again.Through two case studies from different process industries (chemical and food), this paper compares the performances of traditional and circular production systems across a range of indicators. Direct, indirect and total lifecycle emissions, waste recovered, virgin resources use, as well as carbon maps (which provide a holistic visibility of the entire supply chain) are presented.The paper asserts that an integration of circular economy principles within sustainable supply chain management can provide clear advantages from an environmental point view. Emerging supply chain management challenges and market dynamics are also highlighted and discussed.

Circular economy for the built environment: A research framework

“…Genovese et al (2015) adopted a hybrid LCA methodology in a study on sustainable SCM and CE whereas Chen (2009) promoted the key role of MFA to enhance the understanding of the economic dimension of a CE. Allwood and Cullen (2012) used MFA to map global flows of key materials, energy, and emissions, which allow greater confidence in exploring opportunities for efficiency and recovery.…”

“…This contrast sees on one hand economists identifying a problem of scaling up solutions to achieve monetary savings that would foster a wider implementation of techniques (e.g. Genovese et al, 2015;Lacy and Rutqvist, 2015) while, on the other, designers and naturalists plead for greater local foci and an even-greater respect of diversity (e.g. Braungart et al, 2007;Braungart, 2002, 2013;Ulanowicz et al, 2009).…”

“…Genovese et al, 2015;Lacy and Rutqvist, 2015). However, whilst Genovese et al (2015) seem inclined towards refining current practices within 'green' SCM, Lacy and Rutqvist (2015) foresee and actively work towards a whole rethinking of the SCM status quo to meet the new challenges posed by CEs.…”

“…Genovese et al, 2015;Lacy and Rutqvist, 2015). However, whilst Genovese et al (2015) seem inclined towards refining current practices within 'green' SCM, Lacy and Rutqvist (2015) foresee and actively work towards a whole rethinking of the SCM status quo to meet the new challenges posed by CEs. A strong economic dimension also emerges from the work of Abu-Ghunmi et al (2016) who feel that an environmentally beneficial activity has to be firstly economically viable and profitable.…”

“…Policy is also discussed in Geng and Doberstein (2008) who identified barriers and challenges in terms of technology and public participation. Barriers are also one of the points considered by Genovese et al (2015) who see government bodies as facilitators to overcome them in economic and industrial systems. The opportunities for policymakers to implement CE are also discussed in Esposito et al (2015) who looked at the practical levers such as tax, laws and regulatory frameworks within specific industrial sectors or the society at large.…”