The Importance of the Circular Economy Concept among Organizations within the Food Sector and a Management Systems Perspective

The current functioning of the linear economic model has contributed to the deterioration of the natural environment. The linear economy transformed the Earth into a world in which all natural resources were harvested, processed and then delivered as products to customers. After use, they were subjected to disposal processes. Mass consumption and production have created a threat not only to the planet’s resilience but also to the future of humanity [14]. Excessive use of natural resources and the creation of huge amounts of waste have become the cause of environmental problems, i.e., decline in biodiversity, soil degradation, eutrophication, release of greenhouse gases, hydrologic changes and the negative impact of artificial fertilizers [15]. Anthropogenic activities have also contributed to an increase in global earth temperature by approximately 1.0 °C compared to pre-industrial levels. It is estimated that this temperature will increase to 1.5 °C by 2052 while maintaining current emission levels. Climate change has led to natural disasters that have affected approximately 68.5 million people and economic losses of approximately USD 130 billion [16]. Climate changes caused by human activity have contributed to changes related to, among other things, biodiversity. Within ten years between 2006 and 2015, the populations of fish, mollusks and reptiles experienced a rapid loss of biodiversity: 8.0%, 8.5% and 12.5% per year [17]. Moreover, the global biodiversity status indicator in 2020 indicated a loss of plant and animal populations by approximately 68% over approximately 30 years (between 1970 and 2016) [18]. A significant environmental problem is also the huge amounts of pollutants generated in the form of solid waste, atmospheric and water pollution. According to Yorko and Daramola [19], in 2019 the average concentration of carbon dioxide in the atmosphere was 45% higher compared to the period between 1980 and 1990. Moreover, global CO₂ emissions caused by human activity since 1950 have increased by almost 400%. To counteract environmental problems, several concepts have been created, e.g., Sustainable Development. An important change that can help reduce the negative impact of human activity on the natural environment is following the assumptions of the circular economy.

The CE concept is an economic system which concentrates on, e.g., reduction, materials recovery and recycling. It can be realized on all three economic levels: micro, macro and meso [20]. The CE concept also applies to regeneration, closing loops, sharing and exchange. Geissdoerfer et al. [21] draw attention to the importance of the regenerative nature of the concept. They point out that the CE concept focuses on minimizing the use of resources and energy, as well as reducing the generation of waste. This can be achieved by slowing down, closing and narrowing the circulation of materials and energy. The CE concept concentrate also on the minimalization of raw materials use and energy [22]. The concept of CE focuses, in the simplest way, on three strategies, recovery, recycling and reuse, the use of which contributes to extracting value from waste and improving efficiency in relation to sustainable development. Moreover, the product life cycle changes under the influence of maximizing the use of resources and generating value in the final phase of use [23]. An important assumption of the CE concept is to strive to achieve the goals of the Sustainable Development concept [24]. The first two sustainable development goals indicate the importance of eliminating poverty and hunger, but also ensuring adequate food security and better nutrition [25]. To be effective, the circular economy concept should cover the entire production process, including using sustainable raw materials and energy sources, designing efficient production processes, developing durable and repairable products, reusing and recycling and incorporating circular business models [26]. The circular economy concept can also be defined using the 10R strategy. Unlike the 3R model, the strategies within the 10R model are better expanded and present activities that result in loss of value. They are listed from the least circular to the most circular and include recover, recycle, repurpose, remanufacture, refurbish, repair, reuse, reduce, rethink, refuse [27]. It is possible to implement the circular economy concept using individual strategies. In the literature, it is possible to describe the circular economy concept through the possibility of regeneration [28,29]. Others, in turn, pointing to the definitions of the circular economy concept, draw attention to the aspect of the possibility of closing the loop [30,31]. Analyzing the concept, we can point to a diverse approach to the concept of the circular economy. As can be seen, the literature indicates that there are various possibilities of proceeding in accordance with the assumptions of the circular economy concept. Appropriate use of strategies such as recycling or recovery can improve the environmental performance of the organization and thus contribute to the implementation of the assumptions of the circular economy concept.

The concept of the circular economy is now a global phenomenon that has covered virtually the entire planet. In many European countries, but also in the United States and Japan, activities are being implemented to develop circular economy models [32,33]. The use of various practices related to the circular economy concept also affects the functioning of individual countries. However, the perception of the circular economy concept and its implementation vary. Research conducted in Asia on the acceptance of practices related to the circular economy concept indicates that local consumers are reluctant to accept recycled or regenerated products because they value high quality and reliability of products. Interestingly, however, they willingly use sharing platforms [34]. Comparing the circular economy concept in China with the European Union, McDowall et al. indicate that in both cases the circular economy concept has a common conceptual basis and point to similar concerns related to achieving resource efficiency. However, in the case of China, the concept of the circular economy is related to the aspect of pollution and sustainable development, while in Europe there is a focus on waste and opportunities for industry [35]. In turn, the implementation of the circular economy concept in Latin America is associated with increased interest in this topic. However, cultural and political issues that Europe is gradually struggling with turn out to be problematic in this area. However, in Latin American countries, the focus on the circular economy concept is primarily about the ability to generate economic value using recycling [36]. There are also relationships between aspects related to the concept of the circular economy, i.e., generation of municipal waste, and aspects including economic. According to research conducted by Apostu et. al., gross fixed capital formation is a factor limiting the amount of waste generated, and GDP, in turn, is the opposite. Similar relationships in the case of GDP are also observed with energy consumption and SOx and NOx emissions [37]. As can be seen, there is variation in the perception of the circular economy concept in different regions of the world. It results primarily from differences related to economic development. Latin American countries focus primarily on recycling. However, in European countries and China, attention is paid to more circular solutions related to reducing the consumption of natural resources.

It is possible to implement the assumptions of the circular economy concept indirectly using management systems standards (MSSs). The key system that can significantly support the implementation of the assumptions of the circular economy concept is the environmental management system (EMS), which is compliant with the requirements of the ISO 14001 standard. The implementation of an EMS improves the environmental performance of the organization by implementing better technologies, which include, among others, the protection of natural resources [38]. Moreover, the implementation and certification of an EMS in accordance with the ISO 14001 standard contributes to reducing the amount of waste generated [39]. ISO 14001 contains requirements whose application in an organization allows for minimizing the negative impact on the environment by reducing pollutants and emissions [40]. The same applies to the circular economy concept. According to research conducted by Kumar et al. [41], one of the most important benefits resulting from the implementation of the circular economy concept may be the reduction in the amount of generated waste. Like the EMS, the circular economy concept aims to increase production efficiency and reduce the amount of natural resources used [27]. Other management systems are also important for the circular economy concept, i.e., an energy management system consistent with the requirements of the ISO 50001 standard for food safety management systems, e.g., ISO 22000.

Implementing a management system in accordance with the requirements of the ISO 50001 standard contributes to increasing and developing the organization’s energy efficiency [42] and, at the same time, reducing its consumption and greenhouse gas emissions [43]. The ISO 50001 standard focuses on energy consumption but also takes into account the possibility of using renewable energy generated in the system developed on its basis [44]. The circular economy concept also seeks to increase the use of renewable energy sources, which may be more effective sources [45]. Apart from improving the efficiency of resource use, one of the goals of the circular economy concept is also to make more efficient use of energy and reduce greenhouse gas emissions [46].

In turn, food safety management systems, e.g., those compliant with the requirements of the ISO 22000 standard, strive to reduce the number of errors and, simultaneously, reduce food losses in entire food supply chains [47]. Similarly, the circular economy concept seeks to minimize waste [48].

The implementation of various initiatives in organizations may depend on many factors, including the size of the organization. For example, according to Bravi et al. [49], large and medium-sized companies are more open to the aspect of management system certification compared to smaller organizations or micro-enterprises. On the other hand, implementing assumptions related to environmental management, looking through the prism of sustainable development, becomes a desirable tool in fulfilling environmental responsibility by all groups of organizations [50]. However, implementing an EMS for smaller organizations is less beneficial than in the case of implementing the system in large and medium-sized organizations [51]. As one can see, there are differences in the implementation of initiatives such as management systems in organizations, taking into account their size. However, unlike the circular economy concept, management systems are better known and have appropriate guidelines for their implementation. Therefore, implementing the circular economy concept may cause barriers for every organization, regardless of its size.

The concept of the circular economy is a completely different approach to managing an organization. However, applying the assumptions of the circular economy concept is not always possible. According to research prepared by Ormazabal et al. [52], the implementation of the circular economy concept is a challenge for small and medium-sized organizations, especially when they operate in B2B relationships, as well as for producers of perishable products, such as food. They cannot control what happens to the final product. Due to the loss of control, they are unable to recover materials and are limited only to taking actions in the field of cleaner production practices in the organization. The implementation of circular economy initiatives is problematic not only for the small and medium-sized enterprise sector. Large organizations also struggle with many barriers. The size of the organization may influence secondary factors, such as technology development or access to resources, on which the implementation of the circular economy concept depends [53]. The aspect of formulating guidelines and regulations for the CE is also becoming an important issue. This aspect is more suitable for large organizations than for small and medium-sized enterprises. Bureaucratic issues in administration are also becoming a problem, reducing the possibilities of implementing the CE concept in small and medium-sized enterprises [54,55].

Food waste is one of the main problems the world faces. Currently, approximately 800 million people suffer from hunger and two billion suffer from food shortages. The reasons for this state are poverty and the lack of developed food systems. Food production is one of the main sectors contributing to greenhouse gas emissions. It also uses significant water resources and large land areas. One-third of global food production is lost or wasted throughout the food chain, from production to consumption. Food waste contributes to both an increase in demand for food production, and also has a negative impact on the environment [56]. According to Lopez-Barrera and Hertel [57], the amount of resources used for food production that are wasted constitutes one-quarter of the global use of arable land and fertilizers. In the EU alone, 88 million tonnes each year of food waste is generated throughout the supply chain [58]. As population and prosperity increase, demand for food, feed and energy will impact natural resources [59]. Therefore, food production and water consumption are expected to increase by approximately 60 and 50% by 2050. Food systems alone use approximately 30% of total energy consumption and approximately 70% of global freshwater consumption. Therefore, the current state of exploitation of natural resources needed to meet the nutritional needs of humanity is becoming one of the main causes of environmental degradation and threatens food security in the long term [60]. Food waste also translates into the waste of resources used in their production and distribution, i.e., water, fuels, fertilizers and raw materials. The effect of waste is not only on the environment in the form of resource use or degradation of ecosystems, but also affects the financial sphere and people’s health. The entire food supply chain accounts for 31% of greenhouse gas emissions and 50% of eutrophication. In turn, the carbon footprint for food waste at all stages of the supply chain is 4.4 Gt of CO₂ [61]. The level of food losses from production and processing in Europe in 2016 was 26 million tonnes. Food waste alone accounted for 61 million tonnes, of which approximately 33% came from the wholesale, catering and retail sectors. The remaining waste came from households [62]. It is therefore crucial to reduce food losses and waste throughout the supply chain. This will both contribute to an increase in the efficiency of the use of natural resources, but may also translate into a decrease in the environmental burden caused by this sector [63]. The level of food waste depends on the wealth of the country. Countries with low income levels experience the highest levels of waste at the production, storage and processing stages. In this aspect, it is mainly a consequence of technical and managerial limitations. In contrast, in high- and middle-income countries, waste occurs at the stages of distribution and consumption [64].

One of the main aims of this CE concept is to reduce waste [65]. The CE concept can be implemented in two cycles in economic systems: technical and biological. The biological cycle refers to renewable materials that have been designed to return to the biosphere and are collected in the form of a cascading resource cycle. The phases within this cycle are intended to maintain, among others, quality of resources and waste hierarchy. Biological ingredients are called materials or products that are designed to be returned to the biosphere through degradation by microorganisms or as food for animals [66]. Food recovery resulting from the use of biological cycles may enable a reduction in food waste, limiting excessive amounts of production and redistributing food products in the supply chain [67]. According to Ouro-Salim and Guarnieri [68], solutions resulting from the circular economy concept that may allow for reducing food losses and waste can be found through reuse, recovery, closing cycles, composting food waste, re-use for animal feed, production of biomaterials, etc. Attempts to reduce food waste are already visible, among others, in the UK. In this country, the food industry has agreed to reduce waste by 20% between 2015 and 2025. The UK also plans to achieve zero greenhouse gas emissions from the food industry by 2050 [69]. The concept of a circular economy is also related to the agri-food sector in the context of sustainable development. Sustainable development is the basic assumption of the circular economy concept, which consists of ecological, social and economic components. In the literature, there are inverse relationships between economic and environmental sustainable development [70,71]. This situation occurs in, among others, EU countries that were characterized by moderate durability of the agri-food system. The implementation of ecological assumptions in organizations of the agri-food sector must be gradual due to these differences. This is necessary because the exclusion of SPLs that have a significant impact on the socio-economic development of the EU may have a huge negative impact and encourage depopulation [71].

Considering the CE concept in the food industry may also contribute to minimizing climate impacts. According to a study carried out in Spain on the life cycle assessment of canned tuna, it was determined that the combination of the tuna canning process with the valorization of bio-waste and the production of tuna pâté reduces the environmental impact by approximately 0.03 kg of carbon dioxide equivalent per can of tuna [72,73]. Another possibility of implementing the assumptions of the circular economy concept in food processing is the use of non-thermal processing methods, such as microfiltration during pre-treatment or particle separation. Applications include thermal processing of food which contributes to the degradation of food, making it unsuitable for consumption and becoming waste. Food waste through non-determined processing methods is less harmful because it can allow for food recovery. It also contributes to ensuring adequate food safety. Conventional thermal methods ensure microbiological stability but are unable to ensure chemical safety because they generate the production of dangerous chemicals, such as polycyclic aromatic hydrocarbons [74].