The circular economy is a model for a sustainable future, but remains imperfectly realized in Finland

In her doctoral dissertation in corporate environmental management, Milla Sarja, MSc (Econ), from the Jyväskylä University School of Business and Economics, Finland, investigated the operations of Finnish companies in relation to the circular economy. Her findings suggest that the circular economy, in its current form, will not achieve any higher level of sustainability, and therefore its promise for creating environmental sustainability remains a utopia. The circular economy model should also be updated.

The current widespread popularity of the circular economy is based on its 'silver bullet' promise as a solution to environmental unsustainability. So it is no wonder that, in less than a decade, the circular economy has become a hot topic of discussion, promoted widely by governments and private organizations alike.

The circular economy has been said to create economic benefits as well as to promote sustainability in corporate activities. In recent years, many companies have conducted business according to circular economy ideas through, for example, industrial symbiosis.

In her doctoral dissertation in corporate environmental management, Milla Sarja investigated the operation of Finnish companies in relation to the circular economy. She looked at both pioneering companies of the circular economy and at those lagging behind.

In general, companies implement circular economy principles through recycling, energy efficiency, and increasing the share of renewable energy sources or materials in their operations. Especially the pioneering companies had found a market niche where they could respond to an existing need with their circular economy business.

Sarja states that the circular economy in its current form will not achieve any high level of sustainability, and therefore its promise to create environmental sustainability remains a utopian ideal.

"The circular economy has been realized only partially, in an imperfect form, as it is implemented largely according to its lowest level principles," says Sarja.

"Reaching for higher ambitions is considered challenging, or these are not even considered in business activities. Finnish companies have also been very moderate in taking actions in accordance with the circular economy, and there are hardly any radical undertakings, although the circular economy is referred to as a radically different economic model."

In her study, Sarja also noted that the circular economy as a model should be updated. Over the years, it has seemingly settled into the frames of current recycling and enhanced production. However, the idea of the circular economy could enable much more radical changes regarding the way resources are used in society.

"In order to build an environmentally sustainable society based on the model of a circular economy, companies and policymakers need to understand that the work is still largely unfinished," Sarja says. "We need to call for more significant steps towards a circular economy that enables higher sustainability."

More information:
From ambivalence to raised ambitions : the needed organisational change for a circular economy among Finnish companies. jyx.jyu.fi/handle/123456789/97022

Provided by University of Jyväskylä