Circular Business Models (CBMs) in Environmental Management—Analysis of Definitions, Typologies and Methods of Creation in Organizations

Abstract

A circular economy (CE) is an economic model that involves more sustainable management of raw materials and waste. Implementation of CE assumptions is highly recommended in the form of dedicated CE technologies as well as CE business models, so-called circular business models (CBMs), which are an integral part of environmental management in organizations. Depending on the application and the type of sector or enterprise, CBMs are defined differently, focusing on various areas of raw materials and waste management. In general, they should create added value for the given enterprise that meets the CE assumptions or integrate CE principles with the organization’s business practices. This paper aims to analyze different approaches to CBMs with the use of comparative analysis and desk research methods. The scope of this paper includes a comparative analysis of CBM definitions and their typologies, as well as the basics for creating CBMs in enterprises. Moreover, good practices of implemented CMBs in various enterprises are presented. The general definition of CBM is developed as “a business model that assumes creating, delivering and capturing added value for the consumer while considering the CE principles”. Furthermore, the basics of building CBM using a modified Business Model Canvas are proposed. In general, CBM should consider the key CE assumption, i.e., increased raw material efficiency. In the coming years, a further increase in interest in CBMs dedicated to specific sectors and their areas of activity is expected. Various stakeholders could use them as a benchmark to compare and define the best practices for the successful adoption of CBMs in the future.