This paper explores the relationship between Circular Economy (CE) and Environmental, Social, and Governance (ESG) frameworks—a connection that remains ambiguous in both academic literature and practical application. This lack of clarity hinders corporate accountability and progress toward sustainability goals. To address this, we examine how CE and ESG intersect by integrating relevant theories and practical approaches. We identify key strategic overlaps across diverse CE and ESG indicators and frameworks, demonstrating how each can inform and strengthen the other. We begin by outlining foundational theories and current practices in both CE and ESG, then explore how their integration can enhance organisational alignment and accountability, particularly in the environmental dimension of ESG. To support this synergy, we propose an updated 10-R framework for qualitative reporting, incorporating new dimensions such as Regeneration (e.g., Rewilding and Restoration) to reflect biodiversity considerations. Additionally, we introduce the Circularity Scoring Model (CSM) to assess organisational CE performance concerning ESG objectives quantitatively. Our findings suggest that embedding CE principles into accounting and investment practices can highlight opportunities for improvement, such as transitioning to renewable energy, sourcing alternative materials, extending product lifespans, enhancing repairability, minimising waste, and increasing use of recycled or regenerative resources.
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Understanding the decision-making process of a boardroom is one of the most fascinating parts of organizational research. We are all interested in power games, team dynamics and how the external environment could influence the decision of directors. One of the important buzzwords of today is “good governance” and many boards face a lot of societal pressure to implement best practices of governance. It goes beyond regulatory requirements and boards need to take a different perspective on integrating governance codes and best practices in their organizations. In this study, we focused on the role of individual directors in developing organizational responses to that pressure. More specifically, we looked at how directors’ own cognitive frames of governance influence the way boards choose best practices.
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The decarbonisation of the aviation industry requires strict regulation to align with the EU Green Deal, which aims to make the EU the world’s first climate-neutral region by 2050. EU regulations continuously evolve and impact the key performance indicators (KPIs) used to measure progress towards this ambitious objective. Supported by the Marie Skłodowska-Curie Actions (MSCA) programme, the AZERO project assesses airline reduction commitments to achieve net-zero carbon by 2050. It uses an interdisciplinary approach to map greenhouse gas (GHG) KPIs, evaluate actions taken, and simulate traffic scenarios to estimate feasibility using the System Dynamics method for the timeframes of 2030, 2040, and 2050. This advanced simulation method uses real airline emission data and environmental, social and governance (ESG) report commitments.
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