(Newsletter #2) Circular economy: Why are we wasting time?

This month, our faculty members show us how to move away from current "take/make/waste" models. How can the existing models be transformed and what are the benefits of the circular economy? How can we engage key stakeholders and think about the social implications of this transition? What can we learn from specific sectors such as startups and manufacturers?

Up next, we’ll talk about climate finance, as well as our individual and collective vulnerabilities. If these topics pique your curiosity, and if you’re not already following us on LinkedIn, please subscribe here.

To read this issue on LinkedIn, follow this link.

Happy reading!

Circularity versus linearity: how to transform existing economic models?

By Maria Figueroa-Armijos – EDHEC Associate Professor

Traditional economic and business models consider nature to be endowed with an infinite quantity of resources. Conversely, the circular models have a smaller environmental footprint on two fronts: they avoid the exploitation of natural resources, and they revalue resources that might otherwise be considered waste. Rethinking value creation is therefore essential. The author proposes a modular framework for guiding the development of new business models, which requires an in-depth rethink of each of its constituent blocks: products, supply chains and customer journeys… read this article

Transitioning to a Circular Economy: Adopting an Actor Engagement Lens

By Arne De Keyser – EDHEC Professor

Circular models do not just offer environmental benefits but also economic and social advantages by fostering sustainable growth and innovation. But the transition from current linear models is complex and requires the engagement of diverse actors, including businesses, consumers, and government bodies. How can we do so? Based on joint work, the author has formalized a set of six practices – signaling, convincing, matching, legitimizing, supporting, and empowering – all necessary to boost the motivation, opportunities, and abilities of actors to engage in these new models… read this article

The burden of the ESG debt for startups

By Ludovic Cailluet – EDHEC Professor, EDHEC Centre for Responsible Entrepreneurship Associate Dean, Yasmine Machwate – Head of Responsible Entrepreneurship of EDHEC Entrepreneurs, Justine Soudier – Director of EDHEC Entrepreneurs and EDHEC Centre for Responsible Entrepreneurship Deputy Director.

For startups, the quest for product-market fit is an absolute priority. Founders race against time, aware that any slowdown could jeopardize their survival. However, one of the other many obstacles they face is still little-known: the ESG debt, i.e all the environmental, social and governance compromises made by young companies in their early days. Yet the consequences can be serious in the medium and short term. Various EDHEC studies and initiatives highlight this issue and propose a new approach called "Responsible Entrepreneurship by Design", which includes and echoes the "Circular by Design" mindset… read this article

Sachin Kamble: "For manufacturers, an integrated circular supply chain is the key driver in the shift to sustainable processes"

An interview with Sachin Kamble – EDHEC Professor

Closing the loop for resource efficiency is necessary for organizations to achieve sustainability objective. Most of the author’s research is focused on logistics and supply chains, and it advocates that developing an integrated circular supply chain (CSC) is the critical driver for closing the loop by design […]. But the starting point differs and depends on the maturity level of various other factors, such as lean management, innovative technologies, management support, green thinking, etc. Fortunately, the latest technologies can facilitate the implementation of circularity, providing a consensus exists among stakeholders to collect, store, analyze, and share information across the different stages of the supply chain… read this interview (and/or read Prof. Kamble’s portrait below).

By forgetting the social dimension, is the Circular Economy missing an opportunity?

By Thomas B. Long – EDHEC Associate Professor

With sustainability firmly on the agenda of boards and governments, circular economy stands out as one of the most promising pathways towards sustainable development […]. It can provide a range of business benefits, from reduced costs, a better reputation, and new opportunities for collaboration and innovation, or even new revenue models. Despite recent progress however, circular economy initiatives often miss or exclude the social dimension of sustainability, which threatens its effectiveness and unintended social impacts. Indeed, the author argues there is a two-way relationship that could be positively reinforced: circular economy initiatives often have social impacts, while social factors can also affect the success of the circular economy… read this article

[case by case #3] Marie-Cécile Cervellon: exploring the ACS circular business model

An interview with Marie-Cécile Cervellon - EDHEC Professor and Head of the Marketing department

The interviewee presents her latest case study, wrote together with her two co-authors, Lindsey Carey and Aileen Stewart (GCU). They have explored the marketing challenges faced by Advanced Clothing Solutions (ACS), a circular fashion hub based in Glasgow, B-Corp certified - i.e that meets very high social sustainability and environmental performance standards. This strategic marketing case is a 360° case, presenting more than 8 hours of interviews with ACS top managers, customers and a private equity fund investing in the circular economy. The researchers highlight ACS socially responsible ethos… read this interview

Product reparability: durability versus reliability, what are the communication issues?

By Joëlle Vanhamme – EDHEC Professor

Every French citizen contributes a substantial 5 tonnes of waste annually, including discarded products. In 2020, a mere 40% of broken electrical and electronic appliances were fixed. The French government has enforced a reparability index since 2021, specifically targeting certain product categories. Despite these efforts, a crucial question looms: How does revealing a product's reparability impact brand images? The answer resides within the realm of consumer reactions—an arena marked by uncertainty and potential contradictions. The author, in collaboration with Pauline Munten (UCLouvain), endeavors to unravel the intricacies of this multifaceted phenomenon… read this article

Meet Sachin Kamble, a life-long learner with an insatiable thirst for knowledge

“When he joined EDHEC Business School on the Lille Campus in May 2020, Professor Sachin Kamble was already at the height of his career: more than 20 years spent teaching, researching, and consulting in his native India, an impressive track record of more than 125 publication […] From the very beginning, even before graduating from Karnatak University with a Bachelor’s in Mechanical Engineering, Sachin Kamble has always loved discussing ideas and concepts, picking them apart with friends, and going the extra mile to push the understanding forward.”… read this portrait

To read the previous issue of the #EDHECVox newsletter - Greener, chattier, more connected… How do companies address "new" customers? - follow this link