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Theoretical and Applied Economics
No. 2 / 2024 (639), Summer

Integration of ESG principles: An initiative for transformation from Linear Economy to Circular Economy

Shaheera Banu Z
Avinashilingam Institute for Home Science and Higher Education for Women, India
Avinashilingam Institute for Home Science and Higher Education for Women, India

Abstract. This research article explores the role of Environmental, Social, and Governance criteria as a strategic initiative for reinforcing the Circular Economy paradigm. Through a comprehensive review of literature and empirical data, this article demonstrates how ESG integration can incentivize businesses to adopt Circular Economy practices. It uncovers the mechanisms of ESG – driven investments on circular innovation and technology development. This intends to illuminate the compelling connection between ESG principles and the Circular Economy, offering insights for policymakers, business leaders, and investors seeking to drive the evolving landscape of sustainable practices. It advocates for the integration of ESG considerations as a composite for reinforcing the Circular Economy, ultimately contributing to a more resilient, equitable, and environmentally responsible global economy.

Keywords: ESG, Circular Economy, Linear Economy, Sustainability, Key Performance Indicators (KPIs).

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