A systems thinking approach to understanding the challenges of achieving the circular economy

Abstract

Circular economy (CE) is extensively discussed around the globe. Presently, discussions are mostly concerned with the importance of achieving CE and the benefits associated therewith, with the various barriers surrounding its implementation being less debated. Understanding the context in which circularity can flourish is a prerequisite in building the capabilities to deal with the multi-faceted challenges that currently hamper progress in closing the material, component and product loops. In this study, we discuss the importance of systems thinking in understanding the way resource recovery systems operate, and in promoting deep transformational change. We suggest that transformational change needs to go beyond closing materials, components and products (MCPs) loops, and promote sustainability in the way resources are exploited, used and managed throughout the system. By adopting a system of systems approach, we postulate that there are five interconnected sub-systems that need to be considered for supporting transitions to CE, namely, resource flows and provisioning service; governance, regulatory framework and political landscape; business activities and the marker; infrastructure and innovation; and user practices. This holistic approach provides a useful means to cutting through systemic complexity, and focuses on the dynamics between processes, values and actors in the value chain, and their dependence on cultural, spatial and temporal characteristics. We conclude that a systems-based approach can build up the capabilities required to identify and understand persistent linear trends and, in turn, support forward-thinking and time investment in enabling sustainable transitions. This, in turn, can help to align priorities and transform our current practices, speeding up the process of closing the MCP loops in a sustainable manner.

Municipal Solid Waste Mass Balance as a Tool for Calculation of the Possibility of Implementing the Circular Economy Concept

“…The use of mathematical modeling also allows for effective planning of waste management systems and assessment of the impact of changes in input parameters on the functioning of the system as a whole [25][26][27][28][29][30][31][32][33][34][35][36]. It has proved particularly useful in recent years in connection with the implementation of the circular economy concept [37][38][39][40][41][42][43][44][45][46][47][48][49][50][51][52][53]. Obviously, with the implementation of the circular economy concept, municipal waste will not disappear ("zero waste") and its amount will still depend on the standard of living of the inhabitants.…”

Circular Supply Chain: Literature Review and Theoretical Framework

“…Various authors attempted to identify barriers, drivers, practices, and challenges of the circular supply chain (Acerbi & Taisch, 2020;Bressanelli et al, 2019;Govindan & Hasanagic, 2018;Iacovidou et al, 2020;Khan & Haleem, 2021;Kumar et al, 2021). Table 1 shows the summarized structure of the circular supply chain key focus areas through challenges, drivers, and barriers.…”

“…Information sharing difficulty can be solved by technologies such as RFID's, 3d scanning lasers, optical character recognition, building information modeling, sensors networks, blockchain, etc. (Iacovidou et al, 2020). Data management enabled by digital technologies allows optimizing CSC solutions and processes (Del Giudice et al, 2020).…”

“…With lower uncertainty of secondary materials price, the demand for these materials would possibly increase. Therefore, it would create demand for new scalable high-value recycling processes as the current market demands different materials quality (Iacovidou et al, 2020). The designing of MCP's and business as usual (BAU) logistics adaption for CSC requires co-operation between the supply chain organizations.…”

“…Researchers had different approaches to conceptualizing the systems and/or their processes of the circular supply chain. Iacovidou et al (2020) proposed that CSC is a combination of multiple systems: internal sub-system (processes, actions, values) and external systems (technologies, governance, natural resources, etc.) forming a system of systems.…”