An Expert-Based Analysis of ESG Reporting in the context of the Circular Economy

Existing literature has highlighted how Environmental Social Governance (ESG) reporting enables companies to drive their Circular Economy (CE) practices. However, current approaches to ESG reporting do not specifically consider how company activities and decisions about CE contribute to sustainable development. Indeed, CE has a great potential to ensure that companies actively participate in the achievement of the United Nations 2030 Agenda Goals although a more effective way to link CE and sustainability reporting processes is necessary. The present paper recognizes the importance of developing a standardized approach that aligns ESG metrics with CE practices to enhance both transparency and accountability. To this end, taking into consideration the relevance of the GRI guidelines to make the ESG performance of companies more transparent, an expert-based analysis of the importance of GRI topics to capture the ability of CE practices to create circular value is proposed. Creating circular value through CE improves the company’s profitability and resilience while reducing costs for customers, and benefits society and the environment. The use of the fuzzy AHP (F-AHP) method ensures that the relevance of the economic, environmental, and social performance is estimated to make ESG reporting more informative about the company's commitment to a restorative and regenerative business. The findings offer guidelines for using CE reporting information to compare the companies’ contributions to SDGs Keywords: ESG reporting, GRI standards, Circular Economy (CE), Fuzzy Analytic Hierarchy Process (F-AHP), Sustainable Development Goals (SDGs), circular value.