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

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.

Automated summary

The study evaluates the Circular Economy initiatives of the largest European MNEs, analyzing the content of sustainability reports to assess the degree of implementation, the involvement of supply chain partners, and the drivers behind the adoption of Circular Economy practices.