Conceptual and practical aspects of circular maturity management in corporate industrial ecosystems: The case of Novolipetsk Steel and Metalloinvest

Abstract

This paper aims to develop and validate a comprehensive framework for managing and assessing circular maturity in industrial ecosystems at the corporate level. Leveraging theoretical constructs related to principles, factors, strategies, and circular business models, the paper introduces a methodological approach for evaluating circular economy development within corporate industrial ecosystems. The framework is empirically tested and illustrated through a case study focusing on the corporate industrial ecosystems of Novolipetsk Steel (NLMK) and Metalloinvest in Russia for the period 2016–2020. The study reveals that both companies have made strides in integrating sustainable development goals (SDGs) related to the circular economy into their operational strategies, albeit with varying degrees of documentation and strategic focus. Content analysis of annual sustainability reports and estimation of the number of environmental, social and corporate governance (ESG) indicators and global reporting initiative (GRI) standards used by the industrial ecosystems further support these findings and suggest a growing interest in circular economy development, particularly within the NLMK ecosystem. The study finds that NLMK exhibits a more pronounced increase in circular economy practices compared to Metalloinvest, with a significant rise in the use of terms related to circularity in their reports, indicating strategic shifts towards these principles. The innovative aspect of this paper lies in its development of a multi-level methodological framework for circular maturity assessment, which incorporates both theoretical and empirical dimensions. This approach not only provides a structured way to measure and enhance circular economy practices but also bridges the gap between theory and practical application. The paper concludes by offering insights into the construction of systemic mechanisms for enhancing circular maturity at the corporate level, thereby contributing both to theoretical discourse and practical applications in the field of industrial sustainability. Key findings include the identification of specific areas where circular economy practices can be strengthened and the demonstration of how a systematic approach to circularity can lead to substantial improvements in sustainability outcomes.

Keywords

• Circular economy
• Industrial ecosystems
• Circular maturity
• Sustainability
• Corporate strategies