Towards a framework for corporate disclosure of circular economy: Company perspectives and recommendations

Circular economy (CE) is becoming an increasingly mandatory material issue withincorporate sustainability reporting, however, what remains unaddressed within litera-ture are the perspectives and capacities of the companies which must soon adapt tomeet the evolving reporting requirements. This research aims to capture insightsfrom companies engaged with CE in order to develop recommendations that supportthe integration of CE within corporate sustainability reports. To do this, a series ofsemi-structured interviews and focus groups were conducted with companies oper-ating in Italy or the Netherlands, not limited by sector. The results provide a list ofchallenges experienced- and benefits gained- by companies from externally commu-nicating CE. Companies are urged to consider not only risks associated with stayingin the linear economy but also those associated with the implementation of new cir-cular practices, to communicate potential sustainability trade-offs and reduce poten-tial claims of CE-related greenwashing. Practical recommendations are offered fordeveloping targets and indicators for CE as well as identifying and reportingCE-specific risks and opportunities.