Assessing the social life cycle impacts of circular economy

Abstract

A transition to a circular economy (CE) affects different stakeholders – positively and negatively. Social aspects still receive little consideration in the context of CE, which is why the assessment and monitoring of the social impacts of CE still require further development and consideration in research. In this context, social circularity indicators and social life cycle assessment (S-LCA) are important tools that were examined in more detail in this study. This paper aimed to assess the current state of social circularity indicators in the literature, the implementation of S-LCA to assess CE concepts, and which additional indicators might be included in future S-LCA studies. Focus will be on the methodological approach of how to assess the social impacts of CE. A systematic literature review was conducted using Scopus Database, Google Scholar, and Web of Science. The search terms were derived from the aim of the study to identify the social impacts of CE in existing literature, to compile relevant social indicators in the context of CE, and to analyze the current role of S-LCA in the assessment of CE concepts. 97 papers were found. After excluding contributions that did not match the search criteria and adding new relevant contributions found through the analysis of the identified studies with the snowball sampling approach, 40 papers were considered in the review. 40 social impacts of CE were found within the literature. About half of them were positive and the other half negative. The authors found that positive impacts for some stakeholders could imply negative consequences for others, e.g., job creation in one region might lead to a decline in job opportunities in other regions. To assess CE, 104 single social indicators and 9 composed indicators were identified. Most of them could be linked to stakeholder groups and subcategories proposed in the UNEP S-LCA guidelines (UNEP, 2020). Training and education, job creation, as well as health and safety were relevant identified indicators in the context of CE. S-LCA has rarely been used in the assessment of CE strategies so far and needs to be standardized for application in the industry. Not all social impacts of CE are addressed by existing indicators. This, and the fact that not all circularity indicators that address social consequences of CE (social circularity indicators) are covered with S-LCA, reveals the need to suggest and harmonize additional subcategories that are especially relevant for CE. The authors propose to apply and integrate the identified social circularity (inventory) indicators in future S-LCA studies to assess CE concepts.