Work

Unpacking financial aspects of circular economy: A systematic literature review

Year: 2025

Type: review

Abstract: The integration of circular economy (CE) principles into practical applications is accelerating, driving rapid growth in research within this field. However, critical financial aspects that could facilitate the wider adoption of CE practices remain underexplored. This study aims to address this gap through a systematic literature review to analyse the key financial topics related to CE. Specifically, we categorise financial themes in CE research into three distinct areas: the financial performance of CE practices, diverse financing approaches and their impact on CE adoption, and strategies for de-risking CE projects. By synthesising the existing literature, identifying research gaps, and presenting a case study of a UK-based SME that exemplifies both the challenges and opportunities within the industrial symbiosis concept, our review provides deeper insights into the financial implications of CE practices. Additionally, we propose a conceptual framework to highlight current knowledge and gaps, offering a guide for future investigations in this area. • Systematic review analyses financial aspects of circular economy (CE) practices. • Categorises financial themes into performance, financing sources, and risks. • New conceptual framework guides the expansion of CE investment strategies. • Further research needed to reshape the finance system for CE transition.

Source: Journal of Environmental Management

DOI: 10.1016/j.jenvman.2025.125507

Authors: Qianqian Ma, Bing Xu, Umit Bititci

Institution: Heriot-Watt University

Language: English

Topic: Sustainable Supply Chain Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Responsible consumption and production

Open Access status: hybrid

Estimated APC paid: $3,750