Objective – The circular economy aims to preserve the value of products and materials within a closed supply chain. The existing models and decision-making methods for managing the end of the product life cycle are mostly focused on the economic aspects. While the circular economy is aimed at combining environmental, economic and social goals. This article aims to develop a model for enterprise decision-making on the disposal of used products, taking into account socio-environmental and economic factors. Methodology/Technique – The article analyzes the impact of digital technologies on the formation of closed supply chains and the development of a circular economy. At the same time, special attention is focused on the model of a closed product life cycle, as a fundamental element in the formation of a circular economy at the micro and nano levels, as well as the importance of using digital technologies at all stages of the product life cycle. Findings –The methods of product management at the end of the life cycle studied in the article have made it possible to form a simulation decision support model regarding the method of product disposal, taking into account environmental and economic feasibility. Novelty – This study identified the main trends in the development of closed supply chains under the influence of digital technologies in the context of a circular economy. Type of Paper: Review JEL Classification: F42, F43 Keywords: Circular Economy; Digital Technology; Decision-making Model; Closed-loop Supply Chains Reference to this paper should be made as follows: Vetrova, M; Ivanova, D. (2021). Closed Product Life Cycle as a Basis of the Circular Economy, Journal of Business and Economics Review, 5(4) 36–50. https://doi.org/10.35609/jber.2021.5.4(4)

With the rise of Industry 4.0, novel technologies open new opportunities for business transformation. These technologies change supply chains and drive new ways to create value. However, not all companies chose this path of digitalization due to significant investment costs, and thus risk becoming laggards. This article analyses three key areas of digital technologies development and their impact on the transformation of supply chains, including the emergence of closed loop chains as the basis for a circular economy. This paper provides practical examples of supply chain digitalization, as well as its socioeconomic and environmental effects. It will be shown that the formation of a common information space for all participants and the transformation of the supply chain into an ecosystem has the greatest influence on supply chains.

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The development of supranational and national legislation, standardization requirements and the expansion of producer responsibility have led to the formation of a new approach for the goal-setting of enterprises with a focus not only on purely commercial goals of the short-term period, but on long-term sustainability. This is how the concept of ESG principles of the enterprise was formed, which focuses the company on high efficiency of corporate governance along with the achievement of social and environmental goals of doing business. However, the institutional environment for the effective implementation of ESG practices is at the stage of formation, so there are opportunities for additional risks and threats, among which greenwashing and ESG rating errors stand out due to the lack of standardization and uniform criteria for evaluating companies, green financing errors and the emergence of a financial bubble and other risks. The goal is to systematize the benefits of ESG transformation of companies to ensure sustainability and economic efficiency, analyze the green finance market as a key link in the transformation of sustainable initiatives into real economic benefits, analyze the risks of non-acceptance and manipulation of ESG factors for the sustainable development of companies. Methods and tools of institutional, sectoral analysis and strategic management, theoretical approaches within the framework of the concept of sustainable development, circular and carbon neutral economy were used. Results and scope of their application. The results of this study can be used by enterprises in the implementation of ESG principles and non-financial reporting on environmental, social and managerial risk management, by public authorities in the development of long-term sustainable development strategies and the formation of an institutional environment to achieve climate neutrality, implement energy transition, and ensure the long-term competitiveness of Russian companies in conditions of increasing global threats and the tightening of national and supranational legislation.

The article is devoted to the analysis of the opportunities, risks and threats of the crisis and post-crisis period of the COVID19 pandemic, in particular, the assessment of its impact on the achievement of sustainable development goals. Particular attention is paid to systematizing the short-term and long-term effects of the COVID19 pandemic, affecting the formation of a circular economy. The object of special attention is the role of digital technologies in the formation of closed supply chains, as the basis for the development of a circular economy, which contributes to the highly effective achievement of sustainable development goals. Based on the analysis of best practices, the article provides key technologies that contribute to the spread of the principles of a circular economy at different stages of the formation of closed supply chains, as well as presents the necessary government initiatives to mitigate the threats of the COVID19 pandemic.