Circular economy and social life cycle assessment: The role of corporate renewable energy strategies, environmental justice, and environmental impacts

Abstract

The rapid evolution of Industry 4.0 emphasis on sustainable development has made environmental and social factors increasingly important, especially for small and medium-sized enterprises (SMEs). This study explores an integrated model encompassing the circular economy, environmental justice, environmental impacts, corporate renewable energy strategies, and social life cycle assessment. Through a quantitative approach, data from 459 senior and middle-level managers (using Smart PLS version 3.3.2) provide insight into how these elements contribute to sustainable business practices. The analysis investigates the interplay between environmental justice, the circular economy, and corporate renewable energy strategies. Additionally, it examines the influence of the circular economy on these strategies through social life cycle assessment. It showcases a substantial direct and indirect impact of circular economy practices and environmental implications on company plans for renewable energy, especially in developing countries experimenting with sustainable development. The study highlights the positive role of renewable energy in corporate strategies and the value of integrating social life cycle assessment into the circular economy framework. This study's contribution lies in its empirical examination of these relationships, offering practical insights into how businesses can align with circular economy principles. By addressing a gap in the current literature, the research emphasizes the critical need for businesses to adopt the circular economy as a core strategy for sustainable development. It provides valuable insights for business practitioners and leaders collaborating with governments and communities on sustainable projects and design products or processes. Thus, this can lower production costs and mitigate environmental impacts. For the public sector, policymakers can further sustainability by setting clear regulations and positioning the circular economy as a key national policy and a core element of economic strategy. They will create a framework that drives businesses toward sustainable practices, fostering long-term economic growth while addressing environmental and social challenges