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Integrating Circular Economy and Lean Management: A Strategic Framework for Sustainable Business Transformation

  • Higher Institute of Engineering of Lisbon
  • Universidade Federal de Alagoas

Research output: Contribution to journalArticlepeer-review

Abstract

This study investigates the integration of circular economy (CE) and lean management (LM) as a strategic approach for enhancing corporate efficiency and sustainability. While CE emphasizes resource circularity, LM focuses on waste elimination and value maximization in production processes. Through the analysis of multiple cross-sector case studies in industries such as automotive, consumer goods, and technology, this research identifies the operational, environmental, and financial impacts of integrating these practices. Notably, companies like Toyota and Renault achieved cost reductions of up to 30% and a significant decrease in carbon emissions through the combined application of CE and LM principles. However, challenges such as organizational resistance, insufficient reverse logistics infrastructure, and skill gaps persist. This article proposes a theoretical framework to support companies in successfully implementing CE-LM practices. This framework emphasizes process mapping, circularity opportunities, lean principles adoption, and reverse logistics development, underpinned by continuous employee engagement and technological innovation. The findings highlight that integrating CE and LM not only enhances operational efficiency but also strengthens competitive advantage by aligning with consumer and regulatory demands for sustainable practices. The study gives actionable recommendations for managers and policymakers, emphasizing the transformative potential of CE-LM synergy for advancing sustainable business models in diverse industrial contexts.

Original languageEnglish
JournalCorporate Social Responsibility and Environmental Management
DOIs
Publication statusAccepted/In press - 2026

Bibliographical note

Publisher Copyright:
© 2026 The Author(s). Corporate Social Responsibility and Environmental Management published by ERP Environment and John Wiley & Sons Ltd.

Funding

Open access publication funding provided by FCT (b‐on).

Funders
FCT - Fundação para a Ciência e a Tecnologia

Keywords

  • Lean Management
  • circular economy
  • continuous improvement
  • operational efficiency
  • remanufacturing
  • reverse logistics
  • sustainability

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