Integrating Circular Economy Concerns Into the Industry 4.0 Roadmaps of Companies: A Literature Review

The Two Life Cycles Of Circular Economy

The Circular Economy (CE) presents a production and consumption model centered on reusing, repairing, and recycling existing materials and products to minimize environmental impact, making it a pivotal strategy for achieving sustainable development. Sustainable development, a United Nations principle, seeks to balance economic growth, environmental protection, and social well-being. Transitioning to a circular economy entails waste elimination, prolonging product lifespans, and regenerating natural systems. This shift expands the conventional linear economy into a closed-loop system, aligning the product life cycle with the natural life cycle (Zbicinski, Stavenuite, Kozlowska, & van de Coevering, 2006). This section provides a concise theoretical background of the CE concept.

The concept of sustainable development today emphasizes economic and social progress, as well as safeguarding the environment for future generations. The Brundtland Report in 1987 (Brundtland, et al., 1987) defined sustainable development as development that meets present needs without compromising future generations' ability to meet their own needs. The CE model is instrumental in achieving sustainable development. It is based on lifecycle perspective to reach sustainability. The product life cycle encompasses the stages from extraction or creation of raw materials to product disposal, while the natural life cycle involves the continuous loop of growth and decay of organic materials. In the product life cycle, raw materials are extracted and processed from natural resources, followed by production, distribution, and use of the product. When the product reaches the end of its useful life, options like remanufacturing, reusing components, recycling materials, or proper disposal in a landfill are available. Conversely, the natural life cycle involves the decomposition of organic materials, which can serve as nutrients for new growth in the ecosystem, creating a sustainable loop.