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An Introduction to Circular Economy

Towards Sustainable Business Strategies for a Circular Economy: Environmental, Social and Governance (ESG) Performance and Evaluation


This chapter seeks to give a foundational overview of Environmental, Social, and Governance (ESG) metrics. The definition of individual ESG factors is first introduced to highlight sustainability considerations in businesses and how these can be considered and support circularity in business operations. The chapter further develops the concept that ESG reporting serves as an enabling tool with which the business operations can drive circularity and remedy the existing limitations of the linear economy in practice. The rise in ESG reporting from companies, and the ESG considerations of companies based on their disclosures are discussed. Incorporation of ESG factors into business operations is also evidenced through real-world case studies. The impact of ESG performance and the growing awareness of sustainability among businesses, consumers, and investors on the current investing trends and its contribution to embracing circularity is presented as the conclusion of the chapter.


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