Circular Economy Transformation Through Pattern Recognition

As part of the European Green Deal and the resulting requirements of the Corporate Sustainability Reporting Directive (CSRD), there is increasing pressure on (manufacturing) companies to strategically integrate sustainability into their business model and subsequently reduce emissions. One key to greater sustainability is the transition from a linear to a circular economy. Although the integration of circular economy principles at business model level is widely discussed in the literature, companies often lack relevant information on which of these models and strategies are best suited to them. This information includes data-based and quantifiable statements about the effects on the business model and corporate performance. The overarching aim of this paper is to highlight a developed framework to enable companies to select the most suitable, effective and economical circular economy business model (CEMBM) by means of a decision support system (DSS). To this end, the system analyzes company-specific data and suggests suitable business model patterns. In addition, the system will provide an initial quantitative assessment of the potential impact of the proposed business model patterns on the business model. By taking suitable economic and ecological metrics into account, companies will receive a sound basis for making decisions on how to expand their own circular economy performance.