Abstract
The purpose of this chapter is to review the concept of circular economy in the context of logistics and supply chain, which it is crucial in dealing with climate change. To strengthen the circular supply chain, this chapter proposed the Quadruple Helix logistics model (QHLM). The model emphasized corporate spirituality values that instill responsibility for environmental, social, and economic sustainability in four key components: the government, university, logistics companies/departments, and community, all of which are thought to be critical for the success of circular economy implementation, resulting in sustainable development. Finally, this chapter discusses the future prospects of logistics within the circular economy concept, presenting a win-win situation between environmental conservation, societal well-being, and business sustainability.
TopBackground
The world is deteriorating by the day. Because of global warming, the climate changes dramatically these days. Scientists agreed that the primary cause of global warming is the combustion of fossil fuels, which emits carbon dioxide (CO2), nitrogen dioxide (NO2), and other poisonous particles into the environment (European Environment Agency, 2021). CO2 and NO2 combined to form GHG, one of the primary causes of global warming (United States Environmental Protection Agency, 2022). As the world enters the industrial era, the primary causes of global warming can be divided into two primary sources; productions and wastes, both of which are involved in the supply chain.
Logistics services lies significantly in supply chain. Recently, logistics sector is one of the central of societal and environmental discussions due to massive environmental pollutions, social misconduct and arising awareness to become ‘lean and green’ especially for logistics transportation, storage and packaging which involve with the usage of energy and non-renewable materials to operate (Lambrechts et al., 2019). However, logistics services have a large number of unsustainable processes that must be addressed immediately in order to improve sustainability. In relation to logistics, one of the most pressing issues that humanity will face in the coming years is lowering GHG emissions and reducing ecological footprint. Power demand, too, is increasing daily for transportation and electricity, both for logistics and for public use (United States Environmental Protection Agency, 2022b). Though, this chapter focuses on the logistics sector, which includes modes of logistics transportation such as road, sea, air, and railway, as well as storage and packaging. These types of logistics services are primarily responsible for high GHG emissions and landfill pollution.
The World Business Council for Sustainable Development notes that a circular economy has been identified as a significant commercial opportunity worth up to USD4.5 trillion (Halog and Anieke, 2021) that could encourage the development of new industries, generate jobs, reduce GHG emission, and enhance natural resource efficiency. In recent years, the industrial sector has embraced the advancement of circular economy. Circular economy is now being a necessity to promote SDGs and it is found as a promising concept to achieve SDGs. Developing a sustainable society requires paradigms breaks to shift to a new mindset or mental attitudes. Circular economy can help achieving sustainable development only if implemented specifically based on its ecosystem and holistic dimensions that together work for the same purpose, SDGs.
Key Terms in this Chapter
Green Logistics: Green logistics entails using more environmentally friendly devices and sustainable processes to reduce the environmental footprint of logistics services. This method addresses the entire product life cycle, including manufacturing, storage, transportation, marketing, use, and disposal.
Linear Economy: The concept of traditional economy where raw materials is produced into products that consumers use until they are discarded as waste, with no regard for their environmental impact or consequences.
Sustainability: The needs of current generations without jeopardising the needs of future generations, while maintaining a balance of economic growth, environment protection, and social well-being.
Circular Economy: An economic system based on the concept of ‘redesign, reuse, recycle and rethink’, or in other word, regeneration of materials or products, in means of sustaining production in a sustainable or environmentally friendly manner. The real goal of this concept is to produce zero landfill. The circular economy influences directly towards sustainable development.
Circular Supply Chain: A circular supply chain is one in which a company reuses or repurposes waste and customer returns to create new or refurbished products. A circular supply chain aims to lessen the use of raw materials and energy, while also reducing waste.
Reverse Logistics: Reverse logistics is the processes of anything returning inwards or travelling 'backwards' through the supply chain, for the purpose to recapture the value of materials/products and reproduce into other beneficial forms.
Sustainable Development: The United Nations defined sustainable development as a development that meets the needs of the present without compromising the ability of future generations to meet their own needs. The term sustainable development is normally used to refer to the concept of sustainability at a country level.
Landfill: The process of burying large amounts of garbage, or a location where garbage is buried