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This paper provides a new indicator for environmental assessment performance linked to Circular Economy. Almost all existing techniques evaluate resource use based on their burden relative to value, while the central point of Circular Economy is to create value through material retention. The existing burden-orientated techniques are therefore unsuitable for guiding managers in relation to Circular Economy objectives. This paper presents a new performance metric, the longevity indicator, which measures contribution to material retention based on the amount of time a resource is kept in use. The measure is composed of three generic components: initial lifetime, earned refurbished lifetime and earned recycled lifetime. Management of these components can be used for decision making and performance assessment in the Circular Economy. The example of precious metals in mobile phone handsets is used to illustrate the general application and suitability of this indicator. Findings show that for materials to be retained, managers should encourage longer lifetime use, increase product return levels for initial use and refurbished phones, and select the most effective recycling processes available. This paper advances performance indicators for Circular Economy, and provides a tool which can be applied at managerial and organizational levels to measure the impact of business decisions on the longevity of precious materials. [ABSTRACT FROM AUTHOR]

Circular business models are increasingly seen as enablers for the transition towards a circular economy. Perceiving financial benefits is an important driver for companies to make this transition, which is why knowledge of financial performance is required to support decision-makers. However, a lack of understanding of financial performance for circular business models has been identified as a barrier to transitioning. Therefore, this paper uses a systematic literature review to identify the state-of-the-art of how financial performance and its underpinnings are addressed concerning circular business models for each transition phase (i.e., ideate and design, implement and test, evaluate and improve). By analyzing the extent, context, and content of the financial performance discussions in relation to circular business models, the review identifies reasons for perceiving the transition as financially challenging and suggests specific research paths for each phase of the transition, to pinpoint where more efforts are needed. First, there is a lack of studies on prospective financial performance evaluation in the ideate-and-design phase. Second, retrospective evaluation of prototypes for circular business model experimentation lacks guidelines, and evidence and further investigations are needed on upscaling outcomes. Third, although retrospective evaluation gains more interest in the literature, guidelines and empirical evidence on selecting and designing prospective and retrospective indicators are still needed. Fourth, setting the evaluation scope is a key area for future studies. This involves having a long-term perspective and considering the offering from a business model level. • Financial performance as a driver for the transitions to circular business models. • Financial evaluation enables iterations in the transition process. • Need for tools and guidelines for financial evaluation to support decision-making. • Prospective and retrospective financial indicators design need more investigation. • Long-term and offering-level evaluation are key areas for future research. [ABSTRACT FROM AUTHOR]

This paper investigates whether or not Italian Certified B Corps® in the fashion industry achieved levels of corporate social responsibility (CSR) and financial performance that are comparable to listed companies in the same industry during the Covid-19 pandemic. After a review of the literature concerning B Corps, CSR and the circular economy, as well as some coverage of pandemic impacts, a quantitative approach is used to analyze the data empirically. Based on the data available, the study incorporated the entire population of Italian listed companies and B Corps in the fashion industry. Moreover, this study confirms the relationship between CSR and financial performance. The availability of sustainability documents other than the required social responsibility report does not directly affect a company's profitability, but they are necessary for the long term. The results also confirm the positive relationship between sustainability certification and higher financial performance, as the most sustainable companies were also the most profitable. Certified B Corps® declare their willingness to adopt circular economic principles to the same extent as non-certified listed companies. Moreover, the results show that consumers mainly remember the information disclosed on a company's homepage; therefore, managers should publish more there. However, they should not underestimate the importance of their sustainability report because it is an effective social communication tool, especially in the long term. Finally, obtaining the B Corp certification will allow companies to inform stakeholders of their social responsibility and achieve higher financial results. [ABSTRACT FROM AUTHOR]

Studies on circular economy traditionally focus on the sustainability aspect, however, the main issue regarding industrial adoption of these initiatives is the financial viability. This paper seeks to address this gap, by identifying factors that affect the financial performance of circular economy initiatives. The research uses a multiple embedded case study approach within a large Danish OEM, who has established four forms of take-back projects, in three different countries. The paper identifies seven factors which across the four cases affect the financial performance, through either affecting the efficiency of the take-back (i.e. the cost spent) or affecting the effectiveness of the take-back (i.e. the cost saved/turnover created) or even affecting both. In addition to the factors, the research identifies and discusses critical interdependencies between them, meaning that one factor might affect another factor positively or negatively. The paper provides novel insights towards the factors that from a financial standpoint should be considered when designing a take-back program, the research here seeks to improve the financial viability of circular economy, thus making it a viable option even for SMEs and companies faced with stark competition. • Factors affecting the financial performance of Circular Economy initiatives. • In-depth cross case analysis between three similar cases with diverse financial performances. • Managerial implications for designing takeback initiatives. • Implications for legislators required to enable industrial transition towards circular economy. [ABSTRACT FROM AUTHOR]