Circular Economy within the Organization: Challenges and Opportunities

Abstract

Over the last decade, the circular economy has emerged as a promising alternative model aimed at reducing CO2 emissions, waste, and resource depletion through a series of practices focused on resource and energy efficiency (Almeida-Guzmán & Díaz-Guevara, 2020). This model optimizes linear production and consumption systems to establish processes in which material flows are used cyclically along with renewable energy sources, thereby creating new business models. Moreover, circular models limit material flows to sustainable levels, respecting ecosystem cycles and natural reproduction rates, while integrating environmentally responsible economic processes (Korhonen et al., 2018). Consequently, the circular economy has a direct impact on the three dimensions of sustainable development: economic, social, and environmental.