The adoption of circular economy practices in supply chains – An assessment of European Multi-National Enterprises

Abstract

The European Commission Circular Economy Action Plan aims at fostering a society based on sustainable production and consumption. Within this context, industrial organisations are called to implement a wide set of practices to drive this transition: manufacturing easy-to-repair and sustainable products, adopting solutions aimed at extending product lifetime, and promoting remanufacturing and materials’ recycling. A major contribution is expected from Multi-National Enterprises (MNEs), as these organisations dominate the European economy and coordinate resource-intensive global supply networks.As such, this study assesses the Circular Economy-inspired initiatives promoted by the largest European MNEs. The content of sustainability reports is scrutinised, through a template analysis technique, in order to create a database of Circular Economy practices. Key findings include the degree of implementation, the level of involvement of supply chain partners, and the drivers behind the implementation of such practices. Furthermore, a conceptual framework is proposed, in order to describe the adoption of Circular Economy practices as a supply chain process. A theoretical discussion explores the role of institutional pressures and supply chain integration to shape the transition towards the adoption of Circular Economy practices in global supply chains.