The circular economy and sustainable development: implications for organisations and society

The circular economy (CE) represents a paradigm shift from traditional linear "take-make-waste" business models (Parte and Alberca, 2023). It aims to prevent resource depletion, minimise or eliminate waste, and create a closed-loop system for products, parts, and materials, all while balancing environmental protection and socio-economic benefits (Morseletto, 2020). CE has gained traction as a promising solution to excessive resource depletion and has received support from policymakers and business leaders globally (Stahel, 2016; Murray et al., 2017; Confente et al., 2020; Kutaula et al., 2022). The CE paradigm is aligned with the United Nations’ Sustainable Development Goals (SDGs), which promote increased use of renewable energy, more efficient use of resources, reduced pollution, the deployment of innovative technologies, and thus more sustainable patterns of consumption and production (SDG 7, 8, 11, 12 and 13). The UN Conference of the Parties (COP 28) held in Dubai aimed to accelerate progress in reducing carbon emissions. The conference sought to build on the 2015 Paris Agreement from COP 21 and the outcomes of COP 26 in the UK (UN Partnership for Action on Green Economy, 2024). Additionally, the European Parliament's "New CE Action Plan" and legislative frameworks in major economies like China and India have generated unprecedented momentum for companies to adopt CE as both a business philosophy and a strategic framework for their operations.