A path towards sustainability through the circular economy phenom: indicators from the Spanish agri-food sector

• Published in: Sustainability accounting, management and policy journal (Print) management and policy journal (Print), 2025-01, Vol.16 (7), p.28-61
• Main Authors: García-Granero, Eva M., Piedra-Muñoz, Laura, Galdeano-Gómez, Emilio, Sorroche-del-Rey, Yolanda
• Format: Article
• Language: English
• ISSN: 2040-8021; 2040-803X
• DOI: 10.1108/SAMPJ-05-2024-0509

Purpose This study aims to propose a comprehensive framework for assessing circular economy (CE) performance in the agri-food sector. It identifies those indicators that should be used to measure circularity regarding CE strategies, applies them at a microeconomic level and examines the impact of key business determinants (financial, internalization, knowledge, awareness and digitalization). Design/methodology/approach A literature review was conducted with a focus on CE strategies and related indicators. The framework obtained is applied on a Spanish agri-food sector survey to provide an empirical CE analysis at firm level. A partial least squares based-structural equation modelling method is applied. Findings The research suggests a set of circularity indicators to assess CE strategies at micro level. The findings reveal the heterogeneity of CE sub-indicators related to narrowing, slowing, closing and regenerating strategies. It also highlights the strong effects that the drivers tested have on CE, especially awareness and knowledge. Practical implications This study provides a framework that can guide public policies and business decisions in sectors with significant environmental impacts. It provides a conceptual framework that explains which CE indicators should be considered by governments and regulators when developing policies that seek to promote circular strategies. Social implications In the case of companies, the results show that acquiring more environmental awareness and knowledge is essential for promoting more sustainable work habits that enhance CE. Originality/value The paper offers a novel contribution to the CE literature by introducing a multidimensional indicator framework comprehensively applied to the agri-food sector, integrating miscellaneous pillars of circular strategies and business determinants.