Operationalizing the Circular Economy—A Longitudinal Study on Sustained Circular Action

Abstract

Circularity is becoming increasingly important for Distribution System Operators (DSOs) as their infrastructure ages and needs replacement, alongside compliance with stringent environmental regulations like the Corporate Sustainability Reporting Directive (CSRD). However, implementing circular economy (CE) practices is challenging due to the fragmented nature of the current CE landscape and its limited interaction with practical application. A longitudinal case study at the Dutch DSO, Liander, focusing on the circularity of distribution transformers, was conducted to generate prescriptive knowledge on operationalizing circularity. This resulted in the formulation of six design propositions for circular action that suggest to (1) initiate small-scale circularity experiments; (2) involve technical and strategic experts; (3) synergize circularity with more urgent, primary goals; (4) translate circular initiatives bottom-up and top-down; (5) collaborate with other DSOs; and (6) create multidisciplinary teams. The propositions suggest to situationally select interventions and build upon the outcomes of previous interventions in order to incrementally contribute to circular change. Other DSOs could use these propositions to optimize their strategy toward circular action. Additionally, the findings contribute to advancing scientific knowledge to implementable actions in order to initiate and sustain circular change.