Increased Sustainability Through Circular Economy : A case study on how to increase the circularity performance of a global manufacturing enterprise

Abstract: Businesses are gradually extending their attention towards including sustainability activities in their business practices. Current linear approaches are outdated and new long-term sustainable options are being investigated. Circular economy (CE) has gained momentum during the past few years after the publication of a report by the Ellen MacArthur Foundation in 2013. Since then, scientific articles have presented different aspects of the concept, proposing various frameworks on how to address circular product design or circular business models. However, a framework visualizing CE from a holistic perspective and how it should be implemented is lacking. Therefore, this master’s thesis aims at developing a practically applicable framework for CE on a strategic level, as well as a tool for implementing circularity practices in an organization. Since large manufacturing industries seem to find it especially difficult to change from linear to circularity practices, the focus of this study will be on large manufacturing companies. Previous literature within the area was analyzed to interpret existing findings and to enable a creation of a new holistic CE framework. A case study was carried out to enable analyzing theoretical findings with a practical case. The conducted studies resulted in the development of a holistic CE framework, presenting areas necessary to address to accomplish a successful CE implementation. An implementation model was also developed, based on the stage-gate process, as well as the British Standard for implementing CE. The case study results show a status quo based on categories within the developed CE framework. The proposed implementation tool along with three defined focus areas to guide the case company’s continued transition was defined as 1) to introduce product-service systems to close resource loops and increase control of company resources, 2) to improve organizational culture to increase knowledge and thereby also the company’s market position, and 3) to establish product-focused partnerships to strengthen value chain relations.