An exploratory analysis of key features and drivers of the circularity initiatives of 75 businesses that were uncovered and documented with the support of EU SWITCH-Asia (https://www.aceba.co/business-case/).

This research paper covers the methodology for and a secondary analysis of the results and insights from the first phase of the SWITCH Asia Technical Advisory on business leadership for circular economy in Southeast Asia (https://switch-asia.eu/our-work/multi-country/asean-circular-economy-pact-acep-mobilizing-business-action-for-circular-economy/). Specifically, it provides a theoretical justification for the principles-based framework for business action on circular economy in Southeast Asia (see: https://switch-asia.eu/resource/framework-for-business-action-for-the-circular-economy-in-southeast-asia/).

Moreover, it contains an exploratory analysis of the key features and drivers of circularity initiatives of 75 businesses that were uncovered and documented with the support of SWITCH Asia (see: https://www.aceba.co/business-case/). These findings have been incorporated in the design and drafting of a business guide for circular economy (see: https://switch-asia.eu/resource/unlocking-the-circularity-opportunity-guidance-to-advance-circular-business/), and have since catalysed the establishment of the ASEAN Circular Economy Business Alliance (www.aceba.co).

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Abstract

This research investigated the divergent interpretations of Circular Economy (CE) among Southeast Asian (SEA) businesses, and with policy and academic communities. Using a grounded theory approach, the research developed a convergent, ambitious, and actionable CE meta-idea, and analysed elements of CE-relevant actions implemented by SEA businesses. The resultant CE meta-idea is articulated through five guiding principles, which set ambition for CE implementation by business, yet do not constitute a new definition.

Compared to prior CE operationalizations, this reaffirms CE as an umbrella concept, de-emphasizes specific CE solutions in favour of focusing on resource innovation strategies, and adds responsible business conduct as critical CE success factor. 75 CE-relevant business cases were purposely sampled across Cambodia, Indonesia, Philippines, Thailand, and Vietnam; analysed using secondary industry data and company interviews; and interpreted using the study's CE meta-idea. The documented CE practices were driven by cost savings, new product and market opportunities, anticipation of likely product declines, and/or eagerness to be informed and involved. Success was found to hinge on sense of company purpose, innovation-readiness, and entrepreneurialism.

Collectively, the cases demonstrate diversity of actual CE solutions, and wide applicability across business sectors, sizes, ownership structures and geographies. To business it illustrates that CE offers prospect for competitive opportunity and strategic advantage. To policy makers it highlights the need for innovation and economic policy for CE, as complement to environmental regulation and waste management strategy. Further research may focus on investigations into the innovation attributes of CE solutions and the requisite firm-level innovation competencies and enabling ecosystems.