Circular Economy Disclosure in Europe's Automotive Sector: An Analysis of Reporting Patterns

ABSTRACT According to the European Circular Economy Action Plan, the automotive industry plays a key role in Europe's transition to a circular economy (CE). Industry‐specific legislation and upcoming reporting guidelines raise the question of the current CE implementation level, which is still an underexplored research field. Based on 77 corporate reports from European automotive companies, a content analysis is conducted using a mix of a deductive and inductive code system to examine CE disclosure in terms of its reporting patterns. Overall, a wide range of CE practices are already being pursued. However, the automotive industry focuses on more easily implementable practices such as reduce and recycle activities. Frequently disclosed CE practices are generally described in more detail than those reported less often. Furthermore, the reports lack specific targets and quantitative statements. Lastly, supply chain position, compliance with voluntary reporting guidelines, and external assurance are associated with CE disclosure.