Circular Economy Practices and Sustainable Business Performance: A Critical Review of Emerging Business Models

Abstract

The increasing pressure on businesses to address climate change, resource scarcity, environmental degradation, and evolving stakeholder expectations has accelerated the transition from traditional linear economic models to circular economy (CE) practices. Unlike the conventional "take-make-dispose" approach, the circular economy promotes the efficient use of resources through strategies such as reducing, reusing, repairing, remanufacturing, refurbishing, and recycling materials. These practices aim to minimize waste generation, extend product life cycles, and create regenerative systems that contribute to long-term environmental sustainability while enhancing economic value. As governments, industries, and international organizations increasingly emphasize sustainable development, circular economy principles have become central to achieving the United Nations Sustainable Development Goals (SDGs) and improving corporate sustainability performance.