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Circular Economy in the Digital Age

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A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (31 August 2021) | Viewed by 60822

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Special Issue Editors

Dr. Gianmarco Bressanelli

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Guest Editor

Department of Mechanical and Industrial Engineering, Università degli Studi di Brescia, Via Branze 38, 25123 Brescia, Italy
Interests: circular supply chain; circular economy; sustainable production and consumption; sustainable development

Dr. Federico Adrodegari

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Co-Guest Editor

RISE Laboratory, Department of Mechanical and Industrial Engineering, University of Brescia, Brescia 25123, Italy
Interests: servitization; digital servitization; service management; Sustainable Product/Service-Systems; business model; Digital Technologies Industry 4.0; maturity modelling

Prof. Dr. Daniela Cristina Antelmi Pigosso

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Co-Guest Editor

Section of Engineering Design and Product Development, Department of Mechanical Engineering, Technical University of Denmark, Kongens Lyngby, Denmark
Interests: circular economy business modelling; Product/Service-Systems; sustainable development; sustainable design; sustainability maturity modelling; eco-innovation
Special Issues, Collections and Topics in MDPI journals

Prof. Dr. Vinit Prida

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Co-Guest Editor

Department of Business Administration, Technology and Social Sciences, Lulea university of technology, 97187 Luleå, Sweden
Interests: servitization; business model innovation; industrial ecosystems; digitalization; ciricualr economy
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

The circular economy is recognized by industrials, scholars, and policymakers as a promising approach to jointly advance the sustainability and competitiveness of supply and value chains, given its ability to decouple economic growth from resource consumption and waste generation. Moving companies towards the circular economy involves fundamental changes in industrial ecosystems and a systemic redesign of business models, supply chains, production processes, products development, and consumption patterns. However, several challenges arise in this transformation.
In this perspective, the digital age we live in offers companies many opportunities for overcoming these challenges. In fact, digital 4.0 technologies can support the implementation of circular economy principles into business by enabling new business models (e.g., digital servitization) and the redesign of value chains, products, and consumption patterns towards a new smart circular economy paradigm. For instance, Michelin implemented Internet of Things technology to enable a tires-as-a-service business model where fuel consumption and downtime are minimized. Groupe SEB leveraged additive manufacturing to print spare parts on-demand, virtualizing its provision and the technical assistance processes, thus reducing transport needs and emissions. Walmart tested the IBM Food Trust blockchain to track provenance, real-time location, and status of food products in its supply chain network, to prevent food waste and support consumer choices towards sustainable patterns. Rolls-Royce take advantage of product-in-use data collected through the IoT on jet engine conditions, to improve the redesign of engines for optimal performance and maintenance. Despite its substantial potential, the convergence between digital technologies and Circular Economy is still under-investigated, and practical applications in companies remain limited.
This Special Issue calls for a more critical discussion and outlook on this topic. Thus, we invite articles integrating a system perspective into rigorous research, describing and prescribing how digital technologies can enable the different aspect of the Smart Circular Economy paradigm, namely: i. strategic (e.g., new business models and ecosystems, digital servitization); ii. tactical (e.g., supply and value chains redesign); and iii. operational (e.g., product redesign, consumption patterns).

Dr. Gianmarco Bressanelli
Dr. Federico Adrodegari
Prof. Dr. Daniela Cristina Antelmi Pigosso
Prof. Dr. Vinit Prida
Guest Editors

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Keywords

conceptualizing the circular economy in the digital age (i.e. smart circular economy)
business models for the smart circular economy
digital servitization for the smart circular economy
value chain redesign for the smart circular economy
circular supply chains and reverse logistics for the smart circular economy
product (re)-design and development for the smart circular economy
smart predictive maintenance for extending the life cycle of products
virtualization of business processes in a smart circular economy
consumption patterns in the smart circular economy, including potential rebound effects

Published Papers (9 papers)

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Editorial

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6 pages, 199 KiB

Open AccessEditorial

Circular Economy in the Digital Age

by Gianmarco Bressanelli, Federico Adrodegari, Daniela C. A. Pigosso and Vinit Parida

Sustainability 2022, 14(9), 5565; https://doi.org/10.3390/su14095565 - 5 May 2022

Cited by 6 | Viewed by 2494

Abstract

The Circular Economy has been pointed out by scholars and policymakers as a promising approach to decouple economic growth from resource consumption and waste generation [...] Full article

(This article belongs to the Special Issue Circular Economy in the Digital Age)

Research

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20 pages, 796 KiB

Open AccessEditor’s ChoiceArticle

Towards the Smart Circular Economy Paradigm: A Definition, Conceptualization, and Research Agenda

by Gianmarco Bressanelli, Federico Adrodegari, Daniela C. A. Pigosso and Vinit Parida

Sustainability 2022, 14(9), 4960; https://doi.org/10.3390/su14094960 - 20 Apr 2022

Cited by 30 | Viewed by 6370

Abstract

The digital age we live in offers companies many opportunities to jointly advance sustainability and competitiveness. New digital technologies can, in fact, support the incorporation of circular economy principles into businesses, enabling new business models and facilitating the redesign of products and value chains. Despite this considerable potential, the convergence between the circular economy and these technologies is still underinvestigated. By reviewing the literature, this paper aims to provide a definition and a conceptual framework, which systematize the smart circular economy paradigm as an industrial system that uses digital technologies during the product life-cycle phases to implement circular strategies and practices aimed at value creation. Following this conceptualization, the classical, underlying circular economy principle, ‘waste equals food’, is reshaped into an equation more fitting for the digital age—that is to say, ‘waste + data = resource’. Lastly, this paper provides promising research directions to further develop this field. To advance knowledge on the smart circular economy paradigm, researchers and practitioners are advised to: (i) develop research from exploratory and descriptive to confirmatory and prescriptive purposes, relying on a wide spectrum of research methodologies; (ii) move the focus from single organizations to the entire ecosystem and value chain of stakeholders; (iii) combine different enabling digital technologies to leverage their synergistic potential; and (iv) assess the environmental impact of digital technologies to prevent potential rebound effects. Full article

(This article belongs to the Special Issue Circular Economy in the Digital Age)

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15 pages, 816 KiB

Open AccessArticle

Digital Twins for the Circular Economy

by Anna Preut, Jan-Philip Kopka and Uwe Clausen

Sustainability 2021, 13(18), 10467; https://doi.org/10.3390/su131810467 - 20 Sep 2021

Cited by 27 | Viewed by 8645

Abstract

Accurate information plays an important role for the circulation of materials and products. It influences the economically and ecologically successful execution of processes such as reconditioning and the corresponding supply chain management. Digitization concepts, such as digital twins, enable the relevant information to be made available to the right actor at the right time in a decentralized manner. It is assumed that digital twins will play an important role in the future and can contribute, among other things, to the successful implementation of circular economy strategies. However, there is no uniform definition of the term digital twin yet and the exploration and use of digital twins in the context of circular economy products and supply chains is still in its infancy. This article presents potential contributions of digital twins to the circularity of products and the management of circular supply chains. To this end, the derivation and validation of a definition for the term digital twin is described. A stakeholder analysis with a special focus on the processes of the individual stakeholders results in an overview of potentials and information requirements of circular supply chains for a digital twin. The paper concludes that circular supply chains can benefit from digital twins, but that there is still a need for research and development, particularly regarding product and use case-specific implementations of the concept. Full article

(This article belongs to the Special Issue Circular Economy in the Digital Age)

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20 pages, 3226 KiB

Open AccessArticle

Industry 4.0 and Smart Data as Enablers of the Circular Economy in Manufacturing: Product Re-Engineering with Circular Eco-Design

by Marco Vacchi, Cristina Siligardi, Erika Iveth Cedillo-González, Anna Maria Ferrari and Davide Settembre-Blundo

Sustainability 2021, 13(18), 10366; https://doi.org/10.3390/su131810366 - 16 Sep 2021

Cited by 25 | Viewed by 4677

Abstract

The digital transformation of manufacturing firms, in addition to making operations more efficient, offers important opportunities both to promote the transition to a circular economy and to experiment with new techniques for designing smarter and greener products. This study integrates Industry 4.0 technologies, smart data, Life Cycle Assessment methodology, and material microstructural analysis techniques to develop and apply a circular eco-design model that has been implemented in the Italian ceramic tile manufacturing industry. The model has been initially adopted in a simulation environment to define five different scenarios of raw material supply, alternative to the current production one. The scenarios were then validated operationally at laboratory scale and in a pilot environment, demonstrating that a proper selection of raw material transport systems significantly improves the environmental performance of the ceramic product. Both the results of the laboratory tests and of the pre-industrial experiments have demonstrated the technological feasibility of the solutions identified with circular eco-design, enabling the re-engineering of the ceramic product as the fifth of the 6Rs of the circular economy. Full article

(This article belongs to the Special Issue Circular Economy in the Digital Age)

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23 pages, 3825 KiB

Open AccessArticle

Circularity for Electric and Electronic Equipment (EEE), the Edge and Distributed Ledger (Edge&DL) Model

by Terje Andersen and Bjørn Jæger

Sustainability 2021, 13(17), 9924; https://doi.org/10.3390/su13179924 - 3 Sep 2021

Cited by 13 | Viewed by 3830

Abstract

In the transition to a circular focus on electric and electronic products, manufacturers play a key role as the originators of both the products and the information about the products. While the waste electric and electronic equipment (WEEE) directive’s contemporary focus is on handling the product as waste after its end of life, the circular economy focuses on retaining the product’s value with a restorative system. The polluter-pays principle requires producers of pollution to bear the costs of handling the pollution, leading to the extended producer responsibility (EPR) principle. This requires manufacturers to change their focus from their current passive role of out-sourcing end-of-life treatment to taking explicit responsibility for product management over an extended period of time. This paper investigates how a manufacturer can assume its responsibility to achieve circularity for its products. Based on our findings, three fundamental circularity principles, the circular electric and electronic equipment (CEEE) principles, for manufactures of electronic and electrical equipment are defined: (1) Serialize product identifiers, (2) data controlled by their authoritative source at the edge, and (3) independent actors’ access to edge data via a distributer ledger are the foundation of the Edge and Distributed Ledger (Edge&DL) model. We demonstrate the model through a case study of how to achieve circularity for lighting equipment. The CEEE principles and the demonstrated model contribute to building new circularity systems for electronic and electric products that let manufacturers undertake their extended product responsibility. Full article

(This article belongs to the Special Issue Circular Economy in the Digital Age)

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34 pages, 4303 KiB

Open AccessArticle

Circular Digital Built Environment: An Emerging Framework

by Sultan Çetin, Catherine De Wolf and Nancy Bocken

Sustainability 2021, 13(11), 6348; https://doi.org/10.3390/su13116348 - 3 Jun 2021

Cited by 104 | Viewed by 18385

Abstract

Digital technologies are considered to be an essential enabler of the circular economy in various industries. However, to date, very few studies have investigated which digital technologies could enable the circular economy in the built environment. This study specifically focuses on the built environment as one of the largest, most energy- and material-intensive industries globally, and investigates the following question: which digital technologies potentially enable a circular economy in the built environment, and in what ways? The research uses an iterative stepwise method: (1) framework development based on regenerating, narrowing, slowing and closing resource loop principles; (2) expert workshops to understand the usage of digital technologies in a circular built environment; (3) a literature and practice review to further populate the emerging framework with relevant digital technologies; and (4) the final mapping of digital technologies onto the framework. This study develops a novel Circular Digital Built Environment framework. It identifies and maps ten enabling digital technologies to facilitate a circular economy in the built environment. These include: (1) additive/robotic manufacturing, (2) artificial intelligence, (3) big data and analytics, (4) blockchain technology, (5) building information modelling, (6) digital platforms/marketplaces, (7) digital twins, (8) the geographical information system, (9) material passports/databanks, and (10) the internet of things. The framework provides a fruitful starting point for the novel research avenue at the intersection of circular economy, digital technology and the built environment, and gives practitioners inspiration for sustainable innovation in the sector. Full article

(This article belongs to the Special Issue Circular Economy in the Digital Age)

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19 pages, 1893 KiB

Open AccessArticle

Using Internet of Things and Distributed Ledger Technology for Digital Circular Economy Enablement: The Case of Electronic Equipment

by Chiara Magrini, Jana Nicolas, Holger Berg, Alberto Bellini, Enrico Paolini, Nazarena Vincenti, Luca Campadello and Alessandra Bonoli

Sustainability 2021, 13(9), 4982; https://doi.org/10.3390/su13094982 - 29 Apr 2021

Cited by 36 | Viewed by 5042

Abstract

Nowadays, high expectations are set for a digitally enabled circular economy (CE), to enhance resource efficiency. Tracing, tracking, and storing information is most important for this. In this paper, the application of Internet of Things (IoT) and Distributed Ledger Technology (Blockchain) are hence discussed by presenting the case of professional Electrical and Electronic Equipment (EEE) in Italy. Within the context of CE, prevention of electronic waste (WEEE) is extremely relevant as it is a fast-growing waste stream, and the products contain environmentally damaging substances as well as valuable and rare materials. The use of a proper combination of IoT and blockchain can help the producers to keep control on products until EEE end-of-life, while promoting CE strategies and supporting decision-making. Based on the outcomes of five interviews conducted in 2019 to companies of the EEE sector, potential improvements in the EEE end-of-use management are discussed. After providing the definition of requirements for both the technical solution and its testing are provided, three solution variations and the related business models are created and presented, as well as considerations on their environmental and economic impacts. The study shows how digital technologies can support the appropriate and circular management of EEE products and WEEE. Full article

(This article belongs to the Special Issue Circular Economy in the Digital Age)

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21 pages, 5505 KiB

Open AccessArticle

Omni-Chanel Network Design towards Circular Economy under Inventory Share Policies

by Damla İzmirli, Banu Y. Ekren, Vikas Kumar and Siwarit Pongsakornrungsilp

Sustainability 2021, 13(5), 2875; https://doi.org/10.3390/su13052875 - 7 Mar 2021

Cited by 13 | Viewed by 3884

Abstract

In this paper, we study inventory share policies in an omni-channel supply network, to contribute to the circular economy (CE) concept. Lateral inventory share implementation provides flexibility and profitability in the supply chain by allowing inventory share between the same echelon locations in a network. Total holding costs and transportation costs can be reduced by lateral inventory share applications, which also contribute to decreased material usage for production over time, as well as reduced CO₂ emission released by transportation. Technological and Internet of Things (IoT) developments make it possible for companies to share their real-time information with each other for uninterrupted marketing experiences. With such a connected network, companies aim to increase their profitability and responsiveness to their customers. We explore a well-designed inventory share policy towards the CE concept under an (s, S) inventory control policy. We simulate several pre-defined share designs by Arena 16.0 commercial software and compare their performances in terms of cost, responsiveness, transportation frequency, inventory held, etc. The results show that, by the implementation of a well-designed lateral inventory share policy, an omni-channel network can benefit from decreased holding cost and transportation cost, contributing to the CE concept. Full article

(This article belongs to the Special Issue Circular Economy in the Digital Age)

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Review

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26 pages, 6178 KiB

Open AccessReview

Green Transition: The Frontier of the Digicircular Economy Evidenced from a Systematic Literature Review

by Fabio De Felice and Antonella Petrillo

Sustainability 2021, 13(19), 11068; https://doi.org/10.3390/su131911068 - 7 Oct 2021

Cited by 21 | Viewed by 3544

Abstract

Today, the issue of economic circularity is certainly not a new concept. It represents an essential issue in any production system since it is an alternative to the current production and consumption model. The importance of the topic is confirmed worldwide. However, there is still a “circularity gap” that can be bridged in the short and medium term, probably with the use of innovative and digital technologies. In fact, many researchers agree that the sustainable future can be achieved in the long term thanks to digital technologies (i.e., IoT, artificial intelligence, quantum computing etc.) which, thanks to their speed of calculation, are able to identify the right solutions at the right time. The challenge, therefore, will be to develop innovative technologies and tools for the efficient use of resources in industries for sustainable production. Thus, the aim of this study is to define the current state of the art and future research developments in this very promising field. To achieve this goal, the integration of a “set” of tools, based on the AHP method and the PRISMA protocol, is proposed. The results aim to be a guideline for decision makers and researchers interested in this topic. Full article

(This article belongs to the Special Issue Circular Economy in the Digital Age)

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