transition to a circular economy
; Gennari, F. Stakeholder perspective of corporate governance and CSR committees. A companys review of the values, principles, and behaviors associated with the circular economy and global responsibility may be supported by engaging relevant stakeholders. It operates in 66 countries across the globe and employs about 32,000 employees. the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, Circular economy action plan - Environment European Commission. If we reduce food loss and waste by just a quarter, we could feed 870 million hungry people. The engagement of another category of stakeholders can produce direct effects in terms of good and bad practices (e.g., consumption, supply, and production). In a business-as-usual scenario, which includes a broad transition toward renewable energy and continued improvements in energy efficiency, our analysis suggests that industrial emissions in 2050 would be 530 million metric tons of CO 2 (MtCO 2 ), which is roughly what they are at present, and which is far from Europe's net-zero targets. Enis disclosure about stakeholder engagement covers all the relevant issues, such as: the engaged stakeholders, the interactions established, and the selected approach in order to promote dialogue and decision-sharing. You can unsubscribe at any time using the link in our emails. Through the current research, the authors intend to demonstrate how stakeholder engagement, with respect to circular economy principles, promotes the diffusion of the sustainability culture by involving different and interconnected fields and creating long-term value. Remain passive: no active communication is required, as the engagement is primarily conducted via letters, the media, and websites; Monitor: one-way communication (stakeholder to organization) takes place through media and internet tracking and second-hand reports from other stakeholders (possibly via targeted interviews); Advocate: one-way communication (organization to stakeholder) occurs via pressure on regulatory bodies, lobbying efforts, and other advocacy efforts through social media; Inform: one-way communication (organization to stakeholder) occurs through bulletins and letters, brochures, reports and websites, speeches, conferences, and public presentations; Transact: limited two-way engagement is effected through publicprivate partnerships, private finance initiatives, grant provision, and cause-related marketing. In particular, the engagement of different stakeholders during the transition toward the circular economy model promotes the establishment and diffusion of principles on which the sustainability culture is based. In general, the circular economy principles underline the manner in which ecosystem integrity and community wellbeing can become widely compatible with the optimization of economic performance in the long term. Circular Economy. There are three ways to address our rate of consumption: The circular economy focuses on better use of natural resources, and the simple fact is that many of us consume far too much. The circular economy transition will likely introduce structural changes to the economy and may have potential impacts on trade flows. Most case-studies are inductive; this study started with documentary analysis, focusing on Enis 20152019 sustainability reports and other relevant Eni documents available on the web, including interviews with the Head of Bio Development, Sustainable Mobility, and Circular Economy about the companys transition to the circular economy model. the changes needed to In other words, an effective transition toward the circular economy model requires a change in the elementary values established by the companys leaders and shared within the entire organization according to transparency and responsibility principles, ensuring alignment among the corporate culture, business models, and related corporate strategies [. Marcello Boldrini at the top of Agip/Eni (19481967). Image: DXC Technology. Mycocycle is applying fungi to remove toxins from landfill waste, converting trash into new bioproducts. The decision to provide disclosure according to GRI guidelinesthrough specific indicatorsshows the relevance attributed to these issues. The opportunities presented by different business models in the fashion industry were also explored. According to the International Labour Organization (ILO), the pandemic caused lost working hours equal to 255 million full-time jobs. Search all of the site's content. Marans, R.W. The analysis of the above stated documents makes it possible to see that Eni has strongly promoted the transition toward new development models leading to a sustainable growth based on low-carbon practices. Can We Fix it by 2030? Collier, J.; Esteban, R. Corporate social responsibility and employee commitment. Empower: stakeholders play a relevant role in shaping the organizations agendas; thus, engaging them is crucial to ensure good governance, strategy, and operations. The above-mentioned initiatives are aimed at maximizing the efficiency of the companys assets, increasing the use of low-carbon and emission-free energy sources, and implementing new technologies to capture CO, The mainstays of Enis circularity strategy are: sustainable raw material: that is, processing increasingly less virgin inputs and moving towards the use of materials of biological origin or derived from production process waste; reuse, recycling, and recovery: by processes for raw material recovery from waste products and reuse of water and land, as well as recovery of waste; and extension of useful life: giving new life to assets with a view of sustainability (). In general, the engagement of relevant stakeholders within the processes aimed at improving the relationships between the company and the ecosystem contributes to better awareness upon which long-term value creation depends, as well as the capacity to ensure environmental and community health protection. Cookies cannot read data off your hard disk or read cookie files created by other sites. Marens, R.; Wicks, A. Tracks the visitor across devices and marketing channels. Mode of circular economy in Chinas iron and steel industry: A case study in Wuan city. Orientation of consumption behaviors toward responsible consumption and sustainability principles; Preferential use of sustainable and renewable resources; Adoption of measures lengthening product and service lifecycles; Introduction of laws (fiscal and non-fiscal) encouraging the conservation of the natural environment; Formulation of a specific set of laws aimed at promoting the circularity of products and services (e.g., disposal of spent batteries, packaging, and textiles products); Development of specific technical capabilities (green or environment-friendly skills) and specialized profiles to help establish and implement a circular economy (e.g., circular economy manager and waste manager) in order to adapt the organizational structure to the new strategic needs; and. Washington DC 20002 Transitioning to a Circular Economy An Evaluation of the World Bank Group's Support for Municipal Solid Waste Management (2010-20) Kozlowski, A.; Searcy, C.; Bardecki, M. The redesign canvas: Fashion design ad a tool for sustainability. Jonas, J.M. Role of culture in low carbon supply chain capabilities. Circular Economy | NIST 10 G Street NE This research received no external funding. Thus, the commitment and willingness to improve all the dimensions affected by a companys activities depend on its cultural framework and the awareness that the optimization of economic performance is closely linked to environmental and health protection. Enis disclosure about stakeholder engagement and sustainability is assumed to be a key indicator of the topics importance, implying that the higher the disclosure, the stronger the stakeholder engagement and the sustainability culture. Who will benefit from the transition to the Circular Economy? The cookie is used in context with the local-storage function in the browser. ; Wood, D.J. Cookies are small text files containing a string of characters which are sent and stored on your computer or mobile device when you visit our website (the Site). Bocken, N.M.P. The stakeholder theory of the corporation: Concepts, evidence and implications. Stakeholder impact analysis of infrastructure project management in developing countries: A study of perception of project managers in state-owned engineering firms in Vietnam. Corporate governance, sustainable development and value creation. This study underlines how stakeholder engagement may be used to promote cultural change within the organization with respect to specific principles, while simultaneously facilitating the establishment of a circular economy. The thematic analysis of Enis declarations, together with the stakeholder engagement indicators, highlights that Eni has strongly promoted stakeholder engagement in order to conduct the transition toward the circular economy model. Create a free account and access your personalized content collection with our latest publications and analyses. and A.A.; writingreview and editing D.M.S. Lambin, J.J. Capitalism and sustainable development. Prosperity without Growth: Economics for a Finite Planet, Manifesto for a Resource-Efficient Europe, Towards a Circular Economy: A Zero Waste Program for Europe, Closing the LoopAn EU Action Plan for the Circular Economy, Growth Within: A Circular Economy Vision for a Competitive Europe, Business Models for a Circular Economy: Opportunities and Challenges from a Policy Perspective, Private Management and Public Policy: The Principle of Public Responsibility, From CSR1 to CSR2: The Maturing of Business-and-Society Thought, Business and Society: Dimensions of Conflict and Cooperation, The Stakeholder Strategy: Profiting from Collaborative Business Relationships, Leading Corporate Citizens: Vision, Values, Value Added, Strategic Management: A Stakeholder Perspective, Managing for Stakeholders: Survival, Reputation and Success, Competitive Business Management: A Global Perspective, Guided Choices Towards a Circular Business Model, Circular Advantage. 17 innovations accelerating the transition to a circular economy Visit our dedicated information section to learn more about MDPI. ; methodology, A.A.; formal analysis A.A.; investigation D.M.S. into action and scale Why one company is brewing beer out of recycled wastewater, Why 'creative destruction' could be a positive shift for the water industry, How should start-ups act in the face of recession? Boesso, G.; Kumar, K. Stakeholder prioritization and reporting: Evidence from Italy and the US. Scientists expect there could be more plastic than fish in the ocean by 2050. Transitioning to a Circular Economy Overview Enabling more responsible production and consumption via the principles of a circular economy is crucial for addressing various global challenges such as climate change and biodiversity loss. Sustainability disclosure underlines the companys commitment to stakeholder engagement and the related impact on sustainability culture, even if the analysis has underlined some flaws with reference to the environmental dimension. those of the individual author(s) and contributor(s) and not of MDPI and/or the editor(s). Lambin, J.J. In 2001, Eni was the first Italian business to sign up to the Global Compact, an initiative encouraging companies around the world to adopt sustainable policies, document their progress, follow the universal principles of sustainability and support the UNs Sustainable Development Goals (SDGs). Explore the latest strategic trends, research and analysis. Burchell, J.; Cook, J. Stakeholder dialogue and organisational learning: Changing relationships between companies and NGOs. Shareholder value, stakeholder management and social issues: Whats the bottom line? Vilchez, V.F. There are two key problems with this, one social and the other economic. The role of international trade in realizing an inclusive circular economy Factors affecting corporate environmental strategy in Spanish industrial firms business strategy and the environment. There must also be a major investment in infrastructure so that recycling can be expanded or even compulsory. You can support our work by making a gift today or exploring other ways to give. Unclassified cookies are cookies that we are in the process of classifying, together with the providers of individual cookies. The impact of municipal solid waste has surpassed local and regional boundaries and has become a global challenge, with mounting public health, environmental, social, and economic costs. We use cookies on our website to ensure you get the best experience. Nonetheless, the analysis of best practices of even a single case study can provide useful insights and practical guidelines. Stakeholder Engagement, Knowledge Problems and Ethical Challenges. The key to our survival: a green planet or green technologies? External knowledge sourcing and new product development: Evidence from the Italian food and beverage industry. The Macroeconomics of the Circular Economy Transition What we need is systemic change, so that sustainability doesn't only depend on consumer choices. How can businesses hasten the transition to a circular economy? Recreating the University from Within: Sustainability and Transformation in Higher Education. most exciting work published in the various research areas of the journal. Stakeholder engagement in the transition to a circular economy promotes relationships based on consent, trust, and sharing of responsibilities, sustainability principles, and positive behaviors. The annual WCEF, a global initiative of Finland and the Finnish Innovation Fund (Sitra), presents the world's leading circular economy solutions with business leaders, policymakers and experts participating from around the world. Frederick, W.C. Toward CSR3: Why ethical analysis in indispensable and unavoidable in corporate affairs. ; Darnall, N.; Correa, J.A.A. During the 20th century, the world's use of raw materials grew at twice the rate of population growth. Matthew Webster - Head of Environmental Sustainability. The current study contributes to the existing literature on stakeholder engagement, with its focus on the transition process toward adopting the circular economy model. Getting real: Stakeholder theory, managerial practice, and the general irrelevance of fiduciary duties owed to shareholders. Not sure where to find something? The above statements underline Enis commitment to improving the cultural approach to sustainability issues. Accelerator session: A circular economy that works for everyone: ensuring a just and jobs-rich transition to a sustainable future for all ; Gennari, F.; Bosetti, L. Sustainability and convergence: The future of corporate governance systems? Moreover, the topic can be analyzed with reference to more specific research areas, such as the role of corporate governance bodies in establishing circular business models and diffusing a coherent internal culture, the integration of circular models and internal control systems for effective engagement of an organizations members, the types of relationships established between companies and governance bodies in connection with circular economy issues, the role of the government in promoting sustainable behaviors, the relationship between the sustainability culture and competitive advantages, and the contribution of circular business models to reducing corporate reputational risk. Read our Privacy and Cookies Policy here. MDBs join forces to accelerate circular economy transition Embracing the variety of sustainable business models: A prolific field of research and a future research agenda. This research applies the case study methodology by focusing on the experiences of a specific Italian multinational company (Eni Spa; henceforth Eni) operating in the energy industry. The circular economy: from enthusiasm to realism - The World Economic Forum Monitoring the Culture of Sustainability at the University of Michigan: Fall 2015. Indeed, positive stakeholder relationships are necessary for long-term value creation; they enable a company to listen to and engage with relevant stakeholders as well as diffuse values and principles aimed at protecting all the dimensions (economic, social, and environmental). A proposal based on the analytic network process. This research aimed to verify the following hypothesis: stakeholder engagement, with respect to circular economy principles, promotes the diffusion of the sustainability culture. Consuming "better" can also mean avoiding purchasing altogether and shifting to circular models such as sharing platforms. Towards a managerial practice of stakeholder engagement: Developing multi-stakeholder learning dialogues. Indeed, it is useful to establish relationships based on dialogue and long-term interactions, as doing so facilitates the sharing of know-how and reveals effective ways to translate it into innovative circular products/services; Employees: Employees must be encouraged to develop new skills and reshape their values and ethical principles to those of the companys cultural system. () conferences, debates, seminars and training initiatives on sustainability issues (energy, circular economy, remediation, corporate social responsibility); implementation of guidelines and sharing of best practices, We work with institutions and international bodies on projects for technological innovation, care for the environment and support for local communities. ; Wilkins, A.L. 3 Ways to Transition Toward a Circular Economy - World Resources Institute Hollander, M.C. ; Astori, R. Corporate governance and global responsibility. As stated in the introduction, this work aimed to verify the following hypothesis: stakeholder engagement, with respect to circular economy principles, promotes the diffusion of the sustainability culture. For example, the activities undertaken to reduce waste and reuse materials and products according to the circular logic lead companies to enact choices that offer cost savings as well as ecosystem and community protection, all of which are traditionally accepted as sustainability principles. This session explored how actors in renewable energy and automobile value chains have maximised resource efficiencies, and reduced greenhouse gas emissions and pollution levels by implementing circular economy principles. We are increasing our production of electricity from renewable sources, developing numerous projects in Italy and abroad. Transitioning to a Circular Economy - UN Global Compact ; Yuthans, K. Corporate Social Performance, Stakeholder Orientation, and Organizational Moral Development. Thus, different contributions of stakeholder involvement in the transition to a circular economy model increases the diffusion of sustainability culture. The current research is based on the belief that the creation of long-term relationships between a company and its stakeholders has become increasingly important due to the circular economy, implying that a major change in approach is required in order to balance economic and non-economic interests. ; Northcott, D. Qualitative generalising in accounting research: Concepts and strategies. They are all useful approaches but need to be revised according to an integrated perspective in order to address different topics closely intertwined. Circular Transition Indicators v4.0 - Metrics for business, by business 1987. Dessein, J.; Battaglini, E.; Horlings, L. United Nations, World Commission on Environment and Development (WCED). The aim is to provide a snapshot of some of the Adopting a circular business model improves market equity value. There must be a major shift to incentivize or require the use of secondary or recycled materials, for example by placing taxes on products that use only virgin materials. Logsdon, J.M. Before assessing Enis stakeholder engagement and the related impact on the culture of sustainability, the attention was focused on the companys commitment to circular economy. Moreover, the impact of stakeholder engagement on Enis sustainability culture can be assessed by analyzing the attention paid to sustainability dimensions (environmental, social, and economic). ; Verbong, G.P.J. Enis research is playing a key role by realizing product and process innovations that are sustainable and can be used on industrial scale, as demonstrated by Eni patents. The above studies may be separated into those identifying basic concepts and definitions and those investigating stakeholder engagements implications mainly in terms of value creation. Measuring Up 2.0: How the UK is performing on the Sustainable Development Goals. Haas, W.; Krausmann, F.; Wiedenhofer, D.; Heinz, M. How circular is the global economy? Andriof, J.; Waddock, S. Unfolding stakeholder engagement: Theory, responsibility and engagement. Altogether, more than 100 billion tons of resources flow into the economy every year, and more than 60% ends up as waste or greenhouse gas emissions. Arnstein, S.R. However, although the case study methodology is not a sampling technique [, This work thus applied analytical generalization (rather than statistical generalization) to extend the results to other contexts characterized by key stakeholder engagement and promotion of a green culture based on sustainability principles and long-term value creation [. 2020; 12(20):8641. This engagement mainly involves collective bargaining with workers through their trade unions; Involve: two-way or multi-way engagement occurs, helping all sides to learn; however, the stakeholders and organization act independently through multi-stakeholder forums, advisory panels, consensus-building processes, focus groups, and online engagement tools; Collaborate: two-way or multi-way engagement takes place via joint learning and decision-making through joint projects, joint ventures, partnerships, multi-stakeholder initiatives, and online collaborative platforms; and. We Need a Second Earth to Support Our Current Consumption. We Can Do Intangible assets and internal controls in global companies. 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This session explored the opportunities and practical actions that can be taken to incorporate the principles of a circular economy into the electronics sector. These machines have high upfront costs and are made from very valuable materials, so many companies are successfully using circular models where they take the product back and refurbish it or repurpose the materials. It allows the website to recognise your device and store some information about user preferences or past actions. In this regard, the engagement of key actors via proactive, inclusive, and integrated approaches is an important condition for safeguarding ecosystems and shifting toward approaches emphasizing not only the economic outcomes, but also the environmental and social ones, in line with a long-term perspective. Post, J.; Altman, B. Jones, T.M. Research shows that creating a circular economy offers a $4.5 trillion economic opportunity by avoiding waste, while also creating business growth and employment opportunities. The use of single-use plastics increased significantly, while plummeting oil prices reduced the economic incentive for plastic recycling. Project relationship management and the stakeholder circle. https://doi.org/10.3390/su12208641, Subscribe to receive issue release notifications and newsletters from MDPI journals, You can make submissions to other journals. ), and conducting continuous dialogue with standard setters and governments in order to orient regulation toward measures supporting investments in the circular economy. Indeed, a strong culture of sustainability implies the concurrent enhancement of economic, social, and environmental dimensions, which can be expressed by the companys decision to disclose these issues through specific sustainability indicators. ; Greenspan, D.S. In addition to the technical training courses for the functions directly involved, online training courses on climate change and energy transition have been created and are available to all employees. 1. ; Bell, R.G. Communication to the European Parliament, the Council, the European Economic and Social Committee of the Regions. Eni for 2019. During the World Circular Economy Forum (WCEF) 2023 in Helsinki, environment focussed directors from the leading Multilateral Development Banks (MDBs) met to discuss the topic of the circular economy for the first time. Transforming African economies to sustainable circular models ; Wicks, A.C. Convergent stakeholder theory. Product design in a circular economy: Development of a typology of key concepts and terms. One year's electronic waste weighs in at more than 50 million tons. In. Almici, A. (IDB), IDB Invest, and the World Bank acknowledged the importance of the circular economy transition in combating the .