ifkad articles

A Theoretical Tool for Evaluating the Circular Economy of Agrifood Companies

Benedetta Coluccia, Giulio Paolo Agnusdei, Giuseppe Orlando, Pamela Palmi

Global warming, pollution and the rapid absorption of natural resources require swift and immediate action to limit and reverse their impact on the environment. Circular economy offers a clear solution to addressing these global challenges. Therefore, measuring the circularity of one’s organization should be the fundamental objective of all companies intending to apply circular economy. Otherwise, the effort made cannot be evaluated and the results achieved cannot be quantified. The agri-food sector is considered one of the main challenges related to the achievement and application of Circular Economy (CE) strategies, therefore this study is aimed at developing a multilevel framework for assessing circularity in agri-food industries, by providing the user with a step-by-step approach. The framework is composed of four stages. In the first stage, a circular economy theoretical model, based on four criteria, was implemented and adapted to agri-food sector. In the second stage, a set of indicators capable of measuring each criterion was collected. In the third stage, a weight is assigned to each indicator using the Analytical Hierarchy Process (AHP). Lastly, an Axial Distance-based Aggregated Measurement (ADAM) model is used to normalize, assess, and aggregate the results and produce final circularity scores. The model can be a useful tool to support corporate decisions concerning the circular economy, making entrepreneurs aware of their starting level. It indicates the extent to which companies are implementing circular business models across different dimensions, and thus where they are still lacking.

IN: Proceedings IFKAD 2023 – Managing Knowledge for Sustainability
PP: 1284-1307