Impact of Circular Economy Strategies on Financial Performance and Sustainable Investments in Supply Chains

Document Type : Research Paper

Authors

Garden City University

Abstract

This research examines the impact of circular economy methods on financial performance and their potential to attract sustainable investments in supply chains. Circular economy principles, such as closed-loop systems and resource efficiency, are investigated for their use in supply chain management methods to improve operational efficiency and reduce environmental impact. The study investigates how companies implementing circular economy strategies improve financial performance metrics such as ROI and cost savings, thereby increasing their appeal to sustainable investors who prioritize Environmental, Social, and Governance (ESG) criteria.  The paper conducts a thorough investigation of how various tactics contribute to economic profitability while also boosting environmental sustainability. It emphasizes the potential for significant cost savings and operational efficiencies derived from optimal resource utilization and waste reduction. The report also looks at how implementing circular economy strategies improves corporate reputation and regulatory compliance, which are increasingly prized by ESG-focused investors. By filling a research gap, this study provides vital insights into the dual function of circular economy practices in accomplishing economic and environmental goals. The findings highlight the significance of sustainable supply chain management for organizations looking to achieve a competitive edge and drive innovation. Finally, this study aims to educate businesses and policymakers on the broader implications of incorporating circular economy ideas into supply chain operations, so contributing to long-term sustainability goals.

Keywords

References

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Journal of Optimization and Supply Chain Management
Volume 1, Issue 1
September 2024
Pages 28-39

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