Strategic supply chain management of renewable resources for sustainable innovation in the circular economy

The global reliance on finite resources and fossil-based energy systems continues to drive ecological degradation and climate instability. As of 2023, over 81% of the global energy mix remains dependent on fossil fuels, whereas only 7.2% of the global economy operates under circular principles. In response, renewable resources and circular economy (CE) frameworks are increasingly recognized as strategic levers for long-term sustainability. Operationally, such levers include renewable energy integration plans, eco-design and modular manufacturing, reverse logistics and recycling programs, as well as digital monitoring systems to track material flows across supply chains. This article examines the convergence between renewable resource management, sustainable innovation, and CE principles through the lens of strategic business administration and supply chain management (SCM). Renewable energy provides critical pathways for decarbonization, material loop closure, and resilience; however, effective integration requires coordinated planning, interoperable digital infrastructures, and governance frameworks that can overcome sectoral fragmentation. Technologies, such as energy storage, smart grids, digital twins, and modular product design, are analyzed as enablers of CE objectives and as components of an integrated model that links operational tools with systemic transformation. The study highlights the role of SCM in operationalizing circularity by combining life cycle costing, reverse logistics, and green procurement with governance structures and standardized performance metrics. Its primary objective is to develop a systems-oriented framework that integrates harmonized sustainability indicators and renewable energy strategies with digital traceability, environmental, social, and governance-driven decision-making systems, thereby differentiating the proposed framework from existing approaches by bridging the technological, managerial, and institutional dimensions. The findings provide actionable insights for policymakers, industry leaders, and academics seeking to accelerate systemic transformation and advance sustainable value chain transitions within regenerative economic models.
- Lacy P, Rutqvist J, editors. Circular business models: Evaluation, enablers, and ecosystems. In: Waste to Wealth: The Circular Economy Advantage. London: Palgrave Macmillan UK; 2015. p. 117-130. doi: 10.1057/9781137530707_9
- Shukla PR, Skea J, Slade R, et al, editors. Climate Change 2022: Impacts, Adaptation and Vulnerability. Contribution of Working Group III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge: Cambridge University Press; 2022. doi: 10.1017/9781009157926
- International Energy Agency (IEA). Renewables 2023 -Analysis; 2024. Available from: https://www.iea.org/ reports/renewables-2023 [Last accessed on 2025 Jul 28].
- Kirchherr J, Reike D, Hekkert M. Conceptualizing the circular economy: An analysis of 114 definitions. Resour Conserv Recycling. 2017;127:221-232. doi: 10.1016/j.resconrec.2017.09.005
- Circle Economy. The Circularity Gap Report 2023: Closing the Circularity Gap in a Global Economy under Pressure. Amsterdam: Circle Economy; 2023. Available from: https://www.circularity-gap.world/2023 [Last accessed on 2025 Sep 10].
- Rehman Khan SA, Zhang Y, Anees M, Golpîra H, Lahmar A, Qianli D. Green supply chain management, economic growth and environment: A GMM based evidence. J Clean Prod. 2018;185:588-599. doi: 10.1016/j.jclepro.2018.02.226
- Zhu Q, Sarkis J, Geng Y. Green supply chain management in China: Pressures, practices and performance. Int J Oper Prod Manag. 2005;25(5):449-468. doi: 10.1108/01443570510593148
- United Nations Department of Economic and Social Affairs. Special Edition: Progress Towards the Sustainable. Available from: https://sdgs.un.org/documents/special-edition-progress-towards-sustainable-25359 [Last accessed on 2025 Jul 28].
- Bocken NMP, de Pauw I, Bakker C, van der Grinten B. Product design and business model strategies for a circular economy. J Ind Prod Eng. 2016;33(5):308-320. doi: 10.1080/21681015.2016.1172124
- United Nations. Progress Towards the Sustainable Development Goals: Report of the Secretary-General; 2022. Available from: https://digitallibrary.un.org/record/4051646 [Last accessed on 2025 Jul 28].
- Boons F, Lüdeke-Freund F. Business models for sustainable innovation: State-of-the-art and steps towards a research agenda. J Clean Prod. 2013;45:9-19. doi: 10.1016/j.jclepro.2012.07.007
- Zhu Q, Geng Y, Lai KH. Circular economy practices among Chinese manufacturers varying in environmental-oriented supply chain cooperation and the performance implications. J Environ Manage. 2010;91(6):1324-1331. doi: 10.1016/j.jenvman.2010.02.013
- Lozano R. Towards better embedding sustainability into companies’ systems: An analysis of voluntary corporate initiatives. J Clean Prod. 2012;25:14-26. doi: 10.1016/j.jclepro.2011.11.060
- Raygoza-Limón ME, Orduño-Osuna JH, Trujillo- Hernández G, et al. Supply chain management in renewable energy projects from a life cycle perspective: A review. Appl Sci. 2025;15(9):5043. doi: 10.3390/app15095043
- Jabbour CJC, Jabbour ABLS, Sarkis J, Filho MG. Unlocking the circular economy through new business models based on large-scale data: An integrative framework and research agenda. Technol Forecast Soc Change. 2019;144:546-552. doi: 10.1016/j.techfore.2017.09.010
- Lüdeke-Freund F, Gold S, Bocken NMP. A review and typology of circular economy business model patterns. J Ind Ecol. 2019;23(1):36-61. doi: 10.1111/jiec.12763
- Zhu Q, Sarkis J, Lai KH. Confirmation of a measurement model for green supply chain management practices implementation. Int J Prod Econ. 2008;111(2):261-273. doi: 10.1016/j.ijpe.2006.11.029
- International Renewable Energy Agency (IRENA). World Energy Transitions Outlook 1.5°C Pathway 2022 Edition; 2022. Available from: https://www.irena.org/publications/2022/ Mar/World-Energy-Transitions-Outlook-2022 [Last accessed on 2025 Jul 28].
- Govindan K, Soleimani H, Kannan D. Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future. Eur J Oper Res. 2015;240(3):603-626. doi: 10.1016/j.ejor.2014.07.012
- Bag S, Pretorius JHC, Gupta S, Dwivedi YK. Role of institutional pressures and resources in the adoption of big data analytics powered artificial intelligence, sustainable manufacturing practices and circular economy capabilities. Technol Forecast Soc Change. 2021;163:120420. doi: 10.1016/j.techfore.2020.120420
- Yadav G, Kumar A, Luthra S, Garza-Reyes JA, Kumar V, Batista L. A framework to achieve sustainability in manufacturing organisations of developing economies using Industry 4.0 technologies’ enablers. Comput Ind. 2020;122:103280. doi: 10.1016/j.compind.2020.103280
- Lee AHI, Kang HY, Hsu CF, Hung HC. A green supplier selection model for high-tech industry. Expert Syst Appl. 2009;36(4):7917-7927. doi: 10.1016/j.eswa.2008.11.052
- Ahi P, Searcy C. A state-of-the-art review and meta-analysis on sustainable supply chain management: Future research directions. J Clean Prod. 2021;278:123357. doi: 10.1016/j.jclepro.2020.123357
- Cheilas P, Christou T, Karkalakos S, Kottaridi C, Michaelides PG. Rare earth elements and the US renewable economy: A causality exploration between critical materials and clean energy. Resour Policy. 2025;101:105491. doi: 10.1016/j.resourpol.2025.105491
- Kujala J, Sachs S, Leinonen H, Heikkinen A, Laude D. Stakeholder engagement: Past, present, and future. Bus Soc. 2022;61(5):1136-1170. doi: 10.1177/00076503211066595
- Li J, Peng K, Wang P, et al. Critical rare-earth elements mismatch global wind-power ambitions. One Earth. 2020;3(1):116-125. doi: 10.1016/j.oneear.2020.06.009
- Tukker A. Product services for a resource-efficient and circular economy: A review. J Clean Prod. 2015;97:76-91. doi: 10.1016/j.jclepro.2013.11.049
- Ellen MacArthur Foundation. What is a Circular Economy? Available from: https://www.ellenmacarthurfoundation. org/topics/circular-economy-introduction/overview [Last accessed on 2025 Jul 28].
- International Energy Agency (IEA). World Energy Outlook 2024 - Analysis; 2024. Available from: https://www.iea. org/reports/world-energy-outlook-2024 [Last accessed on 2025 Jul 28].
- United Nations Department of Economic and Social Affairs. The Sustainable Development Goals Report 2022; 2022. Available from: https://desapublications.un.org/ publications/sustainable-development-goals-report-2022 [Last accessed on 2025 Jul 28].
- Yu Z, Waqas M, Tabish M, Tanveer M, Haq IU, Khan SAR. Sustainable supply chain management and green technologies: A bibliometric review of literature. Environ Sci Pollut Res. 2022;29(39):58454-58470. doi: 10.1007/s11356-022-21544-9
- Ellen MacArthur Foundation. Completing the Picture: How the Circular Economy Tackles Climate Change; 2021. Available from: https://www.ellenmacarthurfoundation. org/completing-the-picture [Last accessed on 2025 Jul 28].
- Blomsma F, Brennan G. The emergence of circular economy: A new framing around prolonging resource productivity. J Ind Ecol. 2017;21(3):603-614. doi: 10.1111/jiec.12603
- Raygoza-Limón ME, Jiménez-Sánchez R, Orduño-Osuna H, Mercado-Herrera A, Murrieta-Rico FN. Management of public and fiscal policies for the energy transition and sustainable development in Mexico. Rev Cien Tecnol. 2023;6(4):e290. doi: 10.37636/recit.v6n4e290
- Khan T. Circular-ESG model for regenerative transition. Sustainability. 2024;16(17):7549.
- Blanco G, de Coninck H, Agbemabiese L, et al. Innovation, technology development and transfer. In: Shukla PR, Skea J, Slade R, et al, editors. Climate Change 2022: Mitigation of Climate Change. Cambridge: Cambridge University Press; 2022. p. 1641-1725. doi: 10.1017/9781009157926.018
- Sjarov M, Lechler T, Russwurm E, et al. Life cycle of a digital resource twin: Meta-modeling and application example. Procedia CIRP. 2021;104:1644-1649. doi: 10.1016/j.procir.2021.11.277
- Kshetri N. A blockchain-based approach for a multi-echelon sustainable supply chain. Int J Prod Res. 2020;58(7):2082-2096. doi: 10.1080/00207543.2019.1683248
- Wang B, Luo W, Zhang A, Tian Z, Li Z. Blockchain-enabled circular supply chain management: A system architecture for fast fashion. Comput Ind. 2020;123:103324. doi: 10.1016/j.compind.2020.103324
- European Commission. Circular Economy Action Plan. Available from: https://environment.ec.europa.eu/strategy/ circular-economy-action-plan_en [Last accessed on 2025 Jul 28].
- Kirchherr J, Piscicelli L, Bour R, et al. Barriers to the circular economy: Evidence from the European Union (EU). Ecol Econ. 2018;150:264-272. doi: 10.1016/j.ecolecon.2018.04.028
- De Villiers C, Barros MV, Pretorius C. Transitioning to a circular economy in South Africa: The role of innovation in driving greater waste valorization. In: The Circular Economy and its Implications for Sustainability and the Green Economy. Berlin: Springer; 2022. p. 129-146. doi: 10.1007/978-3-031-04725-1_7
- Depraiter L, Goutte S. The role and challenges of rare earths in the energy transition. Resour Policy. 2023;86:104137. doi: 10.1016/j.resourpol.2023.104137
- Floodlight. Carbon Emissions KPIs. Available from: https:// floodlightglobal.com/carbon-emissions-kpis [Last accessed on 2025 Jul 28].
- Chen J, Yin X, Mei L. Holistic innovation: An emerging innovation paradigm. Int J Innov Stud. 2018;2(1):1-13. doi: 10.1016/j.ijis.2018.02.001
- Geissdoerfer M, Savaget P, Bocken NMP, Hultink EJ. The circular economy - A new sustainability paradigm? J Clean Prod. 2017;143:757-768. doi: 10.1016/j.jclepro.2016.12.048
- Taherdoost H. Blockchain integration and its impact on renewable energy: A review of recent advancements and future research directions. Computers. 2024;13(4):107. doi: 10.3390/computers13040107
- Corsini F, Foltyński M, Troiani F, Gusmerotti NM. Fostering the circular economy with blockchain technology. Sustainability. 2023;15(3):1760. doi: 10.3390/su15031760
- Botta A, Fusco G, Mondelli A, Visconti A. Secure blockchain-based supply chain management with verifiable digital twins. (arXiv preprint arXiv:2109.03870). arXiv; 2021. doi: 10.48550/arXiv.2109.03870
- Ali ZA, Khalil M, Murtaza R, et al. Digital twins: Cornerstone to circular economy and sustainable development goals. Environ Dev Sustain. 2025;27(5):7935–7960. doi: 10.1007/s10668-025-06221-4
- Sajadieh MS, Boffelli A, Ciampi F, et al. A review of digital twin integration in circular and sustainable supply chains. Sustainability. 2025;17(16):7316. doi: 10.3390/su17167316
- Bischof J, Weking J, Hein A, Böhm M, Krcmar H. Investigating assumptions and proposals for blockchain integration in the circular economy: A Delphi study. (arXiv preprint arXiv:2312.13774). arXiv; 2023. doi: 10.48550/arXiv.2312.13774