Circular Economy Practices and Sustainable Business Models for Environmental Protection

Abstract

Over the past two centuries, economic growth has been driven by the linear model of industrial production, characterized by 'take–make–dispose' cycles. The economic growth over the last 200 years has been based on the linear model of industrial production, which implies 'take–make–dispose' cycles. It has resulted in the waste problem, high rates of GHGs, and resource losses. The circular economy provides a way to keep products, parts and materials in use for as long as possible, at the greatest value. If technology is the solution, then circularity is out of reach – it needs business to change how create, add and capture value. This paper examines sustainable business models and circular economy practices that complement each other to strengthen environmental protection. It presents the theoretical foundation of the regenerative economy, based on recent research and literature, explores sustainable business models that move away from selling a product in favorfavor of keeping value in the service, and proposes a closed-loopclosed-loop industrial model. It is a framework that links circular design, sourcing, production, delivery, use, reverse logistics, and value recovery, and is supported by digital enablers and orchestration of the circular economy. The paper provides an overview of implementation patterns in the manufacturing sector and the electronics industry, as well as in resource-intensive sectors; it identifies barriers and potential for implementing ecological improvements; and it presents ways to monitor improvement. It also identifies systemic problems such as greenwashing, regulatory inadequacies, and the tension between short-term gains and long-term stewardship. It ends with guidelines for corporate leaders, policy makers, and further research.