Circular Economy Adoption in Manufacturing Firms: Evidence From Germany

Abstract

This paper analyses Circular Economy (CE) practices adopted by manufacturing firms and explores whether the decision to adopt these practices differs in relation to manufacturing sector, company size, or having Environmental Management Systems (EMS) in place. Empirical data from 1191 German manufacturing firms was used to show that the circular practices companies adopt most are framed mainly within Recovery Field of Action (FA), followed by Distribution and Use. Findings highlight differences between sectors and point to a correlation between company size or having an EMS and a higher level of CE adoption, emphasising the need to tailor CE strategies to specific industrial sectors and company size, and highlighting the role EMS plays in facilitating the adoption of CE.