Circular economy practices in the leather industry: A practical step towards sustainable development

The concept of circular economy (CE), a recent popular global business trend, considerably minimizes waste and environmental pollution. However, studies exploring CE practices in the context of leather industry have been scant. To deal with this issue, this paper proposes a decision support framework for evaluating the challenges to CE practices in the context of leather industry. Best worst method, a generic decision support tool, is employed in the assessment process. The study findings reveal that “lack of financial support from authorities” is assigned the highest weight in the final ranking results. This indicates that the lack of financial facility poses a major challenge to the successful implementation of CE practices. The findings can assist industrial managers and authorities in taking the required actions to implement CE practices in the leather industry for the sustainable development of the leather sector.

[1]  Hadi Badri Ahmadi,et al.  Integrating sustainability into supplier selection with analytical hierarchy process and improved grey relational analysis: a case of telecom industry , 2017 .

[2]  Bernd Bilitewski,et al.  The circular economy and its risks. , 2012, Waste management.

[3]  N. Bocken,et al.  Product design and business model strategies for a circular economy , 2016 .

[4]  Javed Malek,et al.  Prioritization of sustainable manufacturing barriers using Best Worst Method , 2019, Journal of Cleaner Production.

[5]  K. Lai,et al.  Circular economy practices among Chinese manufacturers varying in environmental-oriented supply chain cooperation and the performance implications. , 2010, Journal of environmental management.

[6]  António Manuel Dinis Ribeiro Marques,et al.  Leather wastes in the Portuguese footwear industry: new framework according design principles and circular economy , 2017 .

[7]  Eco-Design and Supplier Relationships , 2017 .

[8]  Susana Carla Farias Pereira,et al.  Circular economy: benefits, impacts and overlapping , 2019, Supply Chain Management: An International Journal.

[9]  J. Sarkis,et al.  A supply chain sustainability innovation framework and evaluation methodology , 2018, Int. J. Prod. Res..

[10]  Risto Soukka,et al.  The Role of Laser Additive Manufacturing Methods of Metals in Repair, Refurbishment and Remanufacturing – Enabling Circular Economy , 2016 .

[11]  O. Mont,et al.  Business model innovation for a Circular Economy: Drivers and barriers for the Swedish industry – the voice of REES companies , 2017 .

[12]  Eva Ocelíková,et al.  Multi-criteria decision making methods , 2005 .

[13]  J. Sarkis,et al.  Sustainable supply chain flexibility and its relationship to circular economy-target performance , 2020, Int. J. Prod. Res..

[14]  M. Germani,et al.  Cost-benefit analysis of a circular economy project: a study on a recycling system for end-of-life tyres , 2019, Journal of Cleaner Production.

[15]  B. Mentink,et al.  Circular Business Model Innovation: A process framework and a tool for business model innovation in a circular economy , 2014 .

[16]  Diego Honorato Clemente,et al.  Circular Economy: Overview of Barriers , 2018 .

[17]  Shu-Yuan Pan,et al.  Strategies on implementation of waste-to-energy (WTE) supply chain for circular economy system: a review , 2015 .

[18]  N. Gusmerotti,et al.  Drivers and approaches to the circular economy in manufacturing firms , 2019, Journal of Cleaner Production.

[19]  Albert W. Veenstra,et al.  An analysis of E-waste flows in China , 2010 .

[20]  M. Ilić,et al.  Drivers for development of circular economy – A case study of Serbia , 2016 .

[21]  Nicola Bechtel,et al.  Be in the Loop : Circular Economy a Strategic Sustainable Development , 2013 .

[22]  Masaru Nakano,et al.  Towards a Circular Economy for End-of-Life Vehicles: A Comparative Study UK – Japan☆ , 2015 .

[23]  Vasileios Rizos,et al.  The Circular Economy: Barriers and Opportunities for SMEs , 2015 .

[24]  Y. Geng,et al.  Developing the circular economy in China: Challenges and opportunities for achieving 'leapfrog development' , 2008 .

[25]  J. Dewulf,et al.  Improving the resource footprint evaluation of products recovered from wastewater: A discussion on appropriate allocation in the context of circular economy , 2019, Resources, Conservation and Recycling.

[26]  N. Bocken,et al.  Circular Economy in the building sector: Three cases and a collaboration tool , 2018 .

[27]  Monika Paradowska,et al.  Grounds and Challenges for Implementing a Circular Economy in the European Road Transport Sector , 2016 .

[28]  Furkan Sariatli Linear Economy Versus Circular Economy: A Comparative and Analyzer Study for Optimization of Economy for Sustainability , 2017 .

[29]  Tim Jackson,et al.  Prosperity without Growth: Economics for a Finite Planet , 2011 .

[30]  J. A. Smith Leather , 1989, Bristol medico-chirurgical journal.

[31]  Joseph Sarkis,et al.  Creating integrated business and environmental value within the context of China’s circular economy and ecological modernization , 2010 .

[32]  Florin Bonciu,et al.  The European Economy: From a Linear to a Circular Economy , 2014 .

[33]  Francesco Pomponi,et al.  Circular economy for the built environment: A research framework , 2017 .

[34]  K. Winans,et al.  The history and current applications of the circular economy concept , 2017 .

[35]  Md. Abdul Moktadir,et al.  Assessing challenges for implementing Industry 4.0: Implications for process safety and environmental protection , 2018, Process Safety and Environmental Protection.

[36]  M. Hekkert,et al.  Barriers to the Circular Economy: Evidence From the European Union (EU) , 2018, Ecological Economics.

[37]  Himanshu Gupta,et al.  A framework to overcome barriers to green innovation in SMEs using BWM and Fuzzy TOPSIS. , 2018, The Science of the total environment.

[38]  A. Azapagic,et al.  Developing and implementing circular economy business models in service-oriented technology companies , 2018 .

[39]  Jyri Hanski,et al.  Unlocking circular business: A framework of barriers and drivers , 2019, Journal of Cleaner Production.

[40]  Qian Liu,et al.  A survey and analysis on public awareness and performance for promoting circular economy in China: A case study from Tianjin , 2009 .

[41]  Zhu Han-min,et al.  Strategic Green Supply Chain Based on Circular Economy——A New View for Sustainable Manufacturing in China , 2006 .

[42]  Joseph Sarkis,et al.  Measuring China's Circular Economy , 2013, Science.

[43]  S. Terzi,et al.  Circular economy performance assessment methods: A systematic literature review , 2019, Journal of Cleaner Production.

[44]  M. Koszewska Circular Economy — Challenges for the Textile and Clothing Industry , 2018, Autex Research Journal.

[45]  Lei Xie,et al.  Integrated forward and reverse logistics network design for a hybrid assembly-recycling system under uncertain return and waste flows: A fuzzy multi-objective programming , 2020, Journal of Cleaner Production.

[46]  Qinghua Zhu,et al.  Evaluating green supply chain management among Chinese manufacturers from the ecological modernization perspective , 2011 .

[47]  Massimiliano Borrello,et al.  Consumers’ Perspective on Circular Economy Strategy for Reducing Food Waste , 2017 .

[48]  Charbel José Chiappetta Jabbour,et al.  Industry 4.0 and the circular economy: a proposed research agenda and original roadmap for sustainable operations , 2018, Annals of Operations Research.

[49]  K. Lai,et al.  Barriers to Promoting Eco‐Industrial Parks Development in China , 2015 .

[50]  Keith R. Skene,et al.  The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context , 2015, Journal of Business Ethics.

[51]  Ana Beatriz Lopes de Sousa Jabbour,et al.  Unlocking the circular economy through new business models based on large-scale data: An integrative framework and research agenda , 2017, Technological Forecasting and Social Change.

[52]  A. Jesus,et al.  Lost in Transition? Drivers and Barriers in the Eco-Innovation Road to the Circular Economy , 2017 .

[53]  J. Rezaei Best-worst multi-criteria decision-making method , 2015 .

[54]  Wei Chen,et al.  Adopting recycled aggregates as sustainable construction materials: A review of the scientific literature , 2019, Construction and Building Materials.

[55]  Jafar Rezaei,et al.  A Systematic Review of Multi-criteria Decision-making Applications in Reverse Logistics , 2015 .

[56]  A. Banerjee,et al.  Thinking Small: A Review of Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty , 2016 .

[57]  M. Matsumoto,et al.  Trends and research challenges in remanufacturing , 2016 .

[58]  Robert U. Ayres,et al.  The second law, the fourth law, recycling and limits to growth , 1999 .

[59]  Gina Rizpah Besen,et al.  Gestão de resíduos sólidos em São Paulo: desafios da sustentabilidade , 2011 .

[60]  N. Droste,et al.  Green, circular, bio economy: A comparative analysis of sustainability avenues , 2017 .

[61]  R. Bendikiene,et al.  Circular economy practice: From industrial metal waste to production of high wear resistant coatings , 2019, Journal of Cleaner Production.

[62]  L. Principato,et al.  Adopting the circular economy approach on food loss and waste: The case of Italian pasta production , 2019, Resources, Conservation and Recycling.

[63]  Fariborz Jolai,et al.  A green closed loop supply chain design using queuing system for reducing environmental impact and energy consumption , 2020 .

[64]  V. Chiesa,et al.  Towards a new taxonomy of circular economy business models , 2017 .

[65]  Serenella Sala,et al.  Bio-Economy Contribution to Circular Economy , 2018 .

[66]  A. Rashid,et al.  Towards circular economy implementation: a comprehensive review in context of manufacturing industry , 2016 .

[67]  S. Ali,et al.  Modeling the interrelationships among barriers to sustainable supply chain management in leather industry , 2018 .

[68]  J. Rezaei,et al.  Assessing the social sustainability of supply chains using Best Worst Method , 2017 .

[69]  F. Piller,et al.  Towards circular business models: Identifying consumer needs based on the jobs-to-be-done theory , 2019, Journal of Cleaner Production.

[70]  Green Logistics: Eco-friendly measure in Supply-Chain , 2018, Management Insight - The Journal of Incisive Analysers.

[71]  Jinhui Li,et al.  A study on legislative and policy tools for promoting the circular economic model for waste management in China , 2011 .

[72]  Mark Peterson,et al.  Cradle to Cradle: Remaking the Way We Make Things , 2004 .

[73]  Surya Prakash Singh,et al.  Connecting circular economy and industry 4.0 , 2019, Int. J. Inf. Manag..

[74]  Maria Antikainen,et al.  Digitalisation as an Enabler of Circular Economy , 2018 .

[75]  Yiğit Kazançoğlu,et al.  A new holistic conceptual framework for green supply chain management performance assessment based on circular economy , 2018, Journal of Cleaner Production.

[76]  F. Witlox,et al.  Towards a Circular Economy: The Role of Dutch Logistics Industries and Governments , 2016 .

[77]  Omprakash Sarkar,et al.  Waste biorefinery models towards sustainable circular bioeconomy: Critical review and future perspectives. , 2016, Bioresource technology.

[78]  Jeffrey D. Sachs,et al.  The Age of Sustainable Development , 2015 .

[79]  Simon Peter Nadeem,et al.  The Challenges of the Circular Economy , 2018 .

[80]  Sandra Rousseau,et al.  Defining and Measuring the Circular Economy: A Mathematical Approach , 2019, Ecological Economics.

[81]  J. Korhonen,et al.  Circular Economy: The Concept and its Limitations , 2018 .

[82]  W. Stahel The circular economy , 2016, Nature.

[83]  Richard Welford,et al.  Editorial: Corporate environmental management, technology and sustainable development: postmodern perspectives and the need for a critical research agenda , 1998 .

[84]  Jingzheng Ren,et al.  Construction and demolition waste management in China through the 3R principle , 2018 .

[85]  J. Ehrenfeld,et al.  Organizing Self‐Organizing Systems , 2012 .

[86]  N. T. Yap,et al.  Towards a Circular Economy , 2005, CSR, Sustainability, Ethics & Governance.

[87]  Dennis L. Meadows,et al.  Limits to growth : the 30-year update , 2004 .

[88]  Benjamin T. Hazen,et al.  Circular economy and big data analytics: A stakeholder perspective , 2019, Technological Forecasting and Social Change.

[89]  S. Ulgiati,et al.  A review on circular economy: the expected transition to a balanced interplay of environmental and economic systems , 2016 .

[90]  Arnold Tukker,et al.  Product services for a resource-efficient and circular economy - A review , 2015 .

[91]  Shahin Rahimifard,et al.  The Challenges in Achieving a Circular Economy within Leather Recycling , 2016 .

[92]  Kannan Govindan,et al.  A systematic review on drivers, barriers, and practices towards circular economy: a supply chain perspective , 2018, Int. J. Prod. Res..

[93]  Terence Tse,et al.  Is the Circular Economy a New Fast‐Expanding Market? , 2017 .

[94]  Frank Figge,et al.  The symbiotic rebound effect in the circular economy , 2019, Ecological Economics.

[95]  Jouni Korhonen,et al.  Industrial ecology in the strategic sustainable development model , 2004 .

[96]  Yasir Rasool SUPPLY CHAIN EVOLUTION AND GREEN SUPPLY CHAIN PERSPECTIVE , 2016 .

[97]  Ana Beatriz Lopes de Sousa Jabbour,et al.  Critical success factors and green supply chain management proactivity: shedding light on the human aspects of this relationship based on cases from the Brazilian industry , 2017 .

[98]  S. Ulgiati,et al.  Exploring environmental and economic costs and benefits of a circular economy approach to the construction and demolition sector. A literature review , 2017 .

[99]  Jafar Rezaei,et al.  Piecewise linear value functions for multi-criteria decision-making , 2018, Expert Syst. Appl..

[100]  J. Bi,et al.  The Circular Economy: A New Development Strategy in China , 2006 .

[101]  M. Ormazábal,et al.  Circular Economy in Spanish SMEs: Challenges and opportunities , 2018, Journal of Cleaner Production.

[102]  O. Chavalparit,et al.  3Rs Policy and plastic waste management in Thailand , 2018, Journal of Material Cycles and Waste Management.

[103]  M. Hekkert,et al.  Conceptualizing the Circular Economy: An Analysis of 114 Definitions , 2017 .

[104]  Hao Yang Design for Transition to a Circular Economy , 2016, HCI.

[105]  Hassan Mina,et al.  An Integrated Hybrid Approach for Circular supplier selection and Closed loop Supply Chain Network Design under Uncertainty , 2020, Journal of Cleaner Production.

[106]  Leonidas Milios,et al.  Bridging the gap: Barriers and potential for scaling reuse practices in the Swedish ICT sector , 2017 .

[107]  Martin Kurdve,et al.  Material efficiency in manufacturing : swedish evidence on potential, barriers and strategies , 2016 .

[108]  Prof Vikas Kumar,et al.  Towards a more circular economy: exploring the awareness, practices, and barriers from a focal firm perspective , 2018 .

[109]  Leonardo Rosado,et al.  Circular economy – From review of theories and practices to development of implementation tools , 2017, Resources, Conservation and Recycling.

[110]  S. Ritzén,et al.  Barriers to the Circular Economy – Integration of Perspectives and Domains , 2017 .

[111]  Yong Liu,et al.  An exploration of firms’ awareness and behavior of developing circular economy: An empirical research in China , 2014 .

[112]  J. Raghava Rao,et al.  Leather solid waste: An eco-benign raw material for leather chemical preparation - A circular economy example. , 2019, Waste management.

[113]  F. Charnley,et al.  Future scenarios for fast-moving consumer goods in a circular economy , 2019, Futures.

[114]  S. Evans,et al.  Business Models and Supply Chains for the Circular Economy , 2018, Journal of Cleaner Production.

[115]  Mohamed Osmani,et al.  Circular economy in construction: current awareness, challenges and enablers , 2017 .

[116]  B. Truffer,et al.  Sustainability transitions: An emerging field of research and its prospects , 2012 .

[117]  T. Graedel,et al.  Industrial ecology: goals and definitions , 2002 .

[118]  Wendy L. Tate,et al.  Seeing the forest and not the trees: Learning from nature’s circular economy , 2018, Resources, Conservation and Recycling.

[119]  Qinghua Zhu,et al.  Evaluating green supplier development programs with a grey-analytical network process-based methodology , 2014, Eur. J. Oper. Res..

[120]  Mingxi Wang,et al.  Ecological utilization of leather tannery waste with circular economy model , 2011 .

[121]  Mark Krystofik,et al.  Circular economy strategies for mitigating critical material supply issues , 2017 .

[122]  Joseph Sarkis,et al.  Towards a national circular economy indicator system in China: an evaluation and critical analysis , 2012 .

[123]  F. Chapin,et al.  Planetary boundaries: Exploring the safe operating space for humanity , 2009 .

[124]  E. Hultink,et al.  The Circular Economy - A New Sustainability Paradigm? , 2017 .

[125]  S. Koh,et al.  Sustainable supply chain management and the transition towards a circular economy: Evidence and some applications $ , 2017 .

[126]  P. Lacy,et al.  Waste to Wealth: The Circular Economy Advantage , 2015 .

[127]  Yong Geng,et al.  Survey of officials' awareness on circular economy development in China: Based on municipal and county level , 2010 .

[128]  S. Ulgiati,et al.  Circular economy transition in Italy. Achievements, perspectives and constraints , 2020 .

[129]  D. A. Vermunt,et al.  Exploring barriers to implementing different circular business models , 2019, Journal of Cleaner Production.

[130]  C. Boks,et al.  Marketing Approaches for a Circular Economy: Using Design Frameworks to Interpret Online Communications , 2018, Sustainability.

[131]  A. Jagger A circular economy: combined food and power projects , 2016 .

[132]  Jafar Rezaei,et al.  Measuring entrepreneurship: Expert-based vs. data-based methodologies , 2012, Expert Syst. Appl..

[133]  Abdul Moktadir,et al.  Drivers to sustainable manufacturing practices and circular economy: a perspective of leather industries in Bangladesh , 2018 .

[134]  D. Hidalgo,et al.  A multi-waste management concept as a basis towards a circular economy model , 2019, Renewable and Sustainable Energy Reviews.