Cost-Benefit Analysis of Implementing Circular Economy in a Portuguese Company: From a Case Study to a Model

Abstract

Purpose: This work was carried out in a company of the upholstery sector in northern Portugal to demonstrate that Investment in Preventive Measures, within the scope of Environmental Management and supported by a Circular Economy approach, is a significant investment decision, with transversal benefits to the entire organization.

Methodology/Approach: This study focuses on an interview, a financial cost-benefit analysis and a sensitivity analysis. The company is in line with concerns about the Circular Economy.

Findings: The findings support that the cost-benefit analysis is a valuable tool for decision-making and for identifying the potential benefits that can arise from implementing measures from the Circular Economy perspective. An action plan was structured with several recommendations in a logic of action priorities. A case study was carried out in the company and a model was designed.

Research Limitation/Implication: The studied company is still at an embryonic stage. Nevertheless, it was possible to identify all environmental aspects, namely, impacts, consumption. The study in question was carried out only in one company. It can be extended to many more companies.

Originality/Value of paper: The measures to be implemented, in addition to bringing economic and financial benefits to the Company, will contribute to a better and greater environmental sustainability and a better intervention at a social level.