Government Support, Collaboration, and the Circular Economy: Impacts on ESG Performance and Firm Reputation

Purpose This study aims to analyze how the Environmental, Social and Governance (ESG) guidelines and the Circular Economy (CE) are being internalized in the companies that are part of the Corporate Sustainability Index – ISE B3, from the perspective of the stakeholder theory. Design/methodology/approach Using a qualitative approach, the research was developed with data analysis collected from multiple sources: documentary research in sustainability reports and websites, application of a survey, and conducting in-depth interviews with managers of ISE organizations. Findings ESG practices are internalized in the companies surveyed, highlighting aspects of waste management, relationship with communities and anti-corruption. CE practices are still at an early or intermediate stage of adoption. It was identified that in the ESG and circular dynamics, suppliers, customers and employees are primary stakeholders, which have a direct influence on the sustainability context of organizations. Integrating ESG with CE principles provides a systemic view of sustainability, going beyond fragmented approaches that treat ESG and CE as isolated initiatives. Originality/value The contribution of the study is associated with managerial support for decision-making. The practical examples presented can be used as a benchmarking parameter, contributing to the planning of organizations that are in the process of transition to CE. The focus on the Brazilian Stock Exchange’s Corporate Sustainability Index (ISE B3) is an original contribution, given that most studies on CE and ESG focus on developed economies or specific sectors. The study offers valuable insights into how Brazilian companies – which operate in the context of regulatory challenges.

This paper provides an examination of the impacts of the circular economy within the framework of ESG criteria, emphasizing the interplay between these domains. The research aims to explore how circular economy principles can enhance ESG performance while identifying synergies and trade-offs across the three pillars. A methodology leveraging European Union datasets and indicators is applied, comparing to the ESG performance values of individual European Union member states. The findings indicate that integrating circular economy practices into ESG strategies enhances environmental outcomes, such as resource efficiency and waste reduction, while fostering social equity and improving governance transparency. However, challenges related to metric standardization and data harmonization across regions present limitations. The paper provides implications for policymakers, businesses, and investors by offering a framework for embedding circular economy principles within ESG strategies to drive sustainable development. The novelty of the research lies in the use of the first coherent and comprehensive index database for comparisons, leveraging European Union data to deepen the understanding of the relationships between circular economy principles and ESG (environmental, social, and governance) domains. By addressing a gap in the literature, this work contributes to the development of actionable tools for assessing and improving sustainability practices across industries.

This study explored the role of Circular Economy (CE) strategies in small and medium-sized enterprises (SMEs), with a particular focus on integrating Artificial Intelligence (AI) to optimize CE performance. The research aimed to identify the key determinants influencing CE indicators by using Principal Component Analysis (PCA) and regression modeling. The findings revealed that factors such as employment in CE sectors, resource productivity, and effective waste management practices significantly impact circularity outcomes. These factors were found to be crucial for SMEs striving to enhance sustainability and reduce environmental impact through circular economy practices. The study primarily focused on general Circular Economy strategies, meaning the results may vary across different industries, particularly those with varying waste streams and resource challenges. For instance, certain sectors might face specific hurdles in waste management or resource efficiency, making the application of CE strategies more complex. Additionally, the study uncovered the complexity of systemic interactions within CE implementation, such as the negative correlation between municipal recycling rates and circular material use, which requires further exploration. These findings suggest that understanding the broader systemic factors affecting CE is essential to fully realizing its potential. Moreover, the integration of AI in CE strategies emerged as a promising avenue for optimizing resource management, improving waste reduction, and enhancing productivity. AI can play a critical role in identifying inefficiencies, predicting trends, and streamlining operations in SMEs. This study contributes to the growing body of knowledge on CE in SMEs, emphasizing the importance of AI in advancing sustainability and efficiency in circular practices. Further research is needed to explore industry-specific challenges and systemic interactions in greater detail.

PurposeThis study aims to highlight the impacts of a rapidly growing automobile industry on the environment and how implementation of Circular Economy (CE) principles and strategies can help us in improving its sustainability without compromising on our existing economic models.Design/methodology/approachIncrease in spending capacity, improvements in technology and decrease in the prices have catapulted automobile demand over the last few decades. Harmful emissions and waste generation during the entire life cycle of these complex machines need to be addressed in an urgent manner globally. Implementation of CE principles and strategies which are based on promoting a pivotal balance between environment, economy and the society can lead to minimize economic and environmental impact leading to better results for all the stakeholders.FindingsCarbon footprint or environmental emissions during different stages of an automobile life cycle can be minimized using CE principles and strategies without compromising on the existing economic models. Government legislation and keen participation of Original Equipment Manufacturers (OEMs) and automobile manufacturers can drive the automobile industry toward sustainability despite growing consumption.Originality/valueThe literature review has been done with a fresh perspective to combine environmental sustainability with CE. This is a literature review of prior work done in this domain to explore the possibility of further intervention in this domain.

The Circular Industrial Transformation System (CITS) model - Assessing the life cycle impacts of climate and circularity strategies

So far, organizations had no authoritative guidance on circular economy (CE) principles, strategies, implementation, and monitoring. Consequentially, the British Standards Institution recently launched a new standard “BS 8001:2017 – Framework for implementing the principles of the circular economy in organizations”.BS 8001:2017 tries to reconcile the far-reaching ambitions of the CE with established business routines. The standard contains a comprehensive list of CE terms and definitions, a set of general CE principles, a flexible management framework for implementing CE strategies in organizations, and a detailed description of economic, environmental, design, marketing, and legal issues related to the CE.The guidance on monitoring CE strategy implementation, however, remains vague. The standard stipulates that organizations are solely responsible for choosing appropriate CE indicators. Its authors do not elaborate on the links between CE strategy monitoring and the relevant and already standardized quantitative tools life cycle assessment (LCA) and material flow cost accounting (MFCA).Here a general system definition for deriving CE indicators is proposed. Based on the system definition and the indicator literature a dashboard of new and established quantitative indicators for CE strategy assessment in organizations is then compiled. The dashboard indicators are mostly based on material flow analysis (MFA), MFCA, and LCA. Steel cycle data are used to illustrate potential core CE indicators, notably, the residence time of a material in the techno-sphere (currently 250–300 years for steel). Moreover, organizations need to monitor their contribution to in-use-stock growth, a central driver of resource depletion and hindrance to closing material cycles.

While the built environment negatively contributes to resource use, waste generation, and climate change, this same sector has the potential to provide innovative solutions to these complex global challenges. Circular economy (CE) strategies have the potential to provide these solutions, yet systems and incentives related to CE and the built environment are disparate and at varying stages of development. Green building rating systems, such as the Living Building Challenge, have the potential to change the market and drive innovation, but these systems need to evolve and change in alignment with the emergence of new and promising strategies, such as CE. The objective of this study was to elucidate whether implementing CE practices could help further reduce embodied carbon and life cycle carbon dioxide equivalent (CO2-eq.) emissions in buildings that are already environmentally conscious to further drive market innovation. This study analyzed the potential reduction in the embodied carbon of an existing Living Building, the Frick Environmental Center, by applying various CE strategies and using life cycle assessment. The investigated strategies include (1) using materials that are biodegradable and have lower embodied carbon, (2) using salvaged alternatives for embodied carbon-intensive building products, (3) extending the lifespan of selected building materials, and (4) carbon sequestration. Given that the case study building is already LEED Platinum and Living Building certified, the results elucidated the extent of potential environmental impact savings in buildings that are already certified due to having lower environmental impacts than the industry average. The CE strategies resulted in a 30% reduction in the building’s embodied carbon (excluding end-of-life) compared with the base case. Results exemplify whether a significant decrease in the buildings’ embodied carbon/life cycle CO2-eq. emissions can be achieved as a result of implementing modest changes in design.

A growing attention has been given to understanding the social, economic and environmental impacts of circular economy (CE) strategies at national and regional levels. However, the potential trade-offs and synergies involved in a CE transition remain underexplored. This paper presents a novel framework designed to measure these trade-offs and synergies through three key dimensions: impact, geography, and sector. This step-wise, multi-dimensional approach enables a detailed analysis of circularity challenges and benefits. To illustrate the framework's application, a hypothetical scenario was developed on CE strategies within the agriculture sector, focusing on trade-offs and synergies between two regions — the European Union and Latin America & the Caribbean. This framework contributes to a better understanding of potential winners and losers in a global circularity transition, and supports policymakers in interpreting CE scenarios effectively.

Concrete is the world's most widely-used anthropogenic material, and Circular Economy strategies will be key to addressing the myriad challenges that face its use today and into the future. Despite a rapid growth of research interest in developing Circular Economy strategies for concrete, this has mostly focussed on technical and environmental issues at the material and product scale. Holistic approaches considering wider social and political aspects as well as system-scale perspectives have been relatively neglected. This article uses a narrative review to investigate three outstanding questions to help address this gap: how concrete's material, product and system-scale attributes influence the interpretation of Circular Economy principles; how the full range of Circular Economy strategies can be implemented for concrete; and what the likely implementation issues will be when integrating different Circular Economy strategies (such as design for durability, component reuse and material recycling). From a product-scale perspective, it is argued that greater specificity is needed around the growing diversity of concrete materials and products in Circular Economy discourse - their properties are often distinct and hence specific strategies are not necessarily universally applicable. At the same time, a solely product-centric Circular Economy perspective is insufficient for concrete, and only joint consideration of structural and systemic perspectives will yield satisfactory solutions. ‘Soft’ perspectives of social, political and legal aspects cannot be viewed simply as an added bonus, but are essential to reconciling the ‘hard’ issues of technical, environmental and economic aspects that dominate discussions. Whilst concrete can and should have a key role in a Circular Economy, its success will require more than just extensions of linear economy thinking. • Circular Economy (CE) offers opportunities as well as challenges for concrete. • CE strategies must be applied at material, product and infrastructure levels. • Concrete circularity requires a system-level perspective. • Socio-economic and political environments are overlooked circularity drivers.

Purpose The increasing worldwide focus on environmental, social and governance (ESG) principles has compelled higher education institutions (HEIs) to re-evaluate their strategic responsibilities in promoting sustainable development. In Malaysia, the shift from ESG policy frameworks to institutional implementation is uneven and fragmented. Design/methodology/approach This systematic literature review (SLR) consolidates 26 peer-reviewed studies published from 2020 to 2025 to critically analyse the integration of ESG principles by Malaysian higher education institutions across five thematic domains – policy and institutional commitment, curriculum integration, campus operations, stakeholder engagement and governance and reporting. Findings Results indicate that while institutional knowledge of ESG has grown, its implementation often suffers from inconsistency, insufficient theoretical foundation and a lack of national standards. Principal issues include restricted curricular integration, variable environmental practices, superficial stakeholder engagement and disjointed reporting systems. The assessment reveals considerable demographic deficiencies, notably the underrepresentation of private and rural colleges and underscores the lack of customized ESG guidelines for the Malaysian higher education sector. Practical implications This paper advocates for strategic, theory-based and contextually adaptable ESG integration to facilitate Malaysia’s comprehensive sustainable transition. By integrating national educational reforms with ESG principles, higher education institutions may act as catalysts for systemic and inclusive sustainability progress. This report provides practical insights for politicians, educators and institutional leaders aiming to close the gap between policy and practice in ESG adoption. Originality/value This study is the first SLR to critically examine the integration of ESG principles within Malaysia’s higher education sector through a structured thematic synthesis of 26 peer-reviewed publications from 2020 to 2025. Unlike previous works that focus narrowly on sustainability education or isolated campus initiatives, this review holistically maps ESG practices across five core domains – policy, curriculum, operations, stakeholder engagement and reporting – while uncovering theoretical, practical and population-level gaps. By focusing specifically on the Malaysian context, the study provides region-specific insights that are often underrepresented in global ESG discourse. The originality of this paper lies in its framework-driven synthesis and cross-theme evaluation, which collectively offer actionable recommendations for institutional leaders, policymakers and academics aiming to bridge the policy–practice divide in ESG adoption. The value of this work extends beyond scholarly contribution; it provides a strategic lens to support Malaysia’s higher education institutions in aligning with national sustainability goals and global benchmarks such as the United Nations Sustainable Development Goals.

Chapter 24 - Circular economy—A treasure trove of opportunities for enhancing resource efficiency and reducing greenhouse gas emissions

Resource efficiency indicators to assess circular economy strategies: A case study on four materials in laptops

Coming out the egg: Assessing the benefits of circular economy strategies in agri-food industry

This research, based on an in-depth review of 67 papers, explores the intersection of environmental, social and governance (ESG) and sustainability practices in modern business. The study underlines the distinction between these concepts and their evolving significance in the global business landscape. With a methodology anchored in the PRISM framework, the systematic literature review reveals key insights. Notably, it identifies the global adoption of ESG and sustainability strategies, driven by stakeholder demands for transparency. The systematic literature review methodology ensures a comprehensive analysis, providing actionable insights for businesses navigating responsible and resilient strategies. The study also points to future research avenues, emphasising areas such as social origins and consumer behaviour, alternative ESG ratings, ESG failures and challenges, ESG integration into valuation models, sustainable investment strategies in specific sectors and the impact of ESG during crises like COVID-19. The research contributes to a comprehensive understanding of the relationship between ESG and sustainability. The findings offer practical implications for organisations aligning with ethical practices, meeting stakeholder expectations and securing a sustainable future.

There is a growing interest in adopting a holistic circular economy (CE) to reach a sustainable and economically viable future, thus there is an increasing need for professionals in the field to do so efficiently. In this regard, good education and knowledge sharing are crucial. This knowledge sharing is bi-directional across generations, with everyone gaining equally from the various viewpoints and experiences. CE strategy research and education are beneficial for the implementation of sustainable development that considers economic, social, and environmental spheres. Additionally, attention is being paid to the younger generation, which is now focused on addressing climate change, as evidenced by the growth of the post-Greta Thunberg phenomena. As a result, this paper proposes a set of recommendations to improve measures for circular economy education (ECE) in order to train future CE experts who can contribute to achieving successful sustainable development. This research proposes, through a literature review and case studies analyses, that enhancing ECE can cultivate future CE specialists who can contribute to the successful pursuit of sustainable development as the demand for green jobs grows. According to our preliminary understanding, widespread ECE can be a critical tool for bringing together experienced circular professionals, students, and younger generations, in meeting their needs and advancing circular development through various forms, including specific training and reskilling of professionals required. However, we discovered a lack of consensus across the case studies on the ideal CE expert or educational modality, which is mirrored in the literature, indicating the need for greater collaboration among different disciplines and stakeholders. There also appears to be a general lack of awareness about the benefits of the CE, necessitating the collaboration between the private and public sectors in providing educational opportunities, accessible study materials, and research funding to accelerate innovation and competitiveness. Thus, institutions and businesses could play a role in standardising basic circular principles and competencies in CE as a means of providing basic guidelines that could be supplemented with specialised courses and diverse content ranging from public knowledge to more specialised professionals or students aiding the implementation of CE strategies, which reduce local disparities increasing green jobs accessibility for youth. Conclusively, this paper looks to provide recommendations for improvements in this field.