Blockchains as Enablers for Auditing Cooperative Circular Economy Networks

Implementing a circular economy business model which is profitable for businesses operating physical assets, while at the same time does not conflict with strategic goals of environmental policies can be a complex and risky undertaking for a single entity, especially if the asset operator is a small-to-medium enterprise (SMEs). To mitigate this, a collaborative circular economy business model is proposed, where the circular economy cycle is materialized by assets transitioning between asset operators on a demanddriven approach. Demand itself is partially based on the asset's state, which is described by its circular properties (location, condition, availability). The asset state and its transition between operators can be monitored by auditors and governmental regulators to ensure asset integrity and compliance with environmental targets. This common view of asset state between all parties can be enabled by blockchains and smart contracts, which can provide the underlying technology to share data with integrity, while simultaneously offering more efficient interoperability between participants. To demonstrate how this could be achieved, a conceptual asset record access and sharing mechanism is presented which is suitable for regulated environmental jurisdictions

The green blockchains of circular economy

Eco‐friendly systems are necessitated nowadays, as the global consumption is increasing. A data‐driven aspect is prominent, involving the Internet of Things (IoT) as the main enabler of a Circular Economy (CE). Henceforth, IoT equipment records the system’s functionality, with machine learning (ML) optimizing green computing operations. Entities exchange and reuse CE assets. Transparency is vital as the beneficiaries must track the assets’ history. This article proposes a framework where blockchaining administrates the cooperative vision of CE‐IoT. For the core operation, the blockchain ledger records the changes in the assets’ states via smart contracts that implement the CE business logic and are lightweight, complying with the IoT requirements. Moreover, a federated learning approach is proposed, where computationally intensive ML tasks are distributed via a second contract type. Thus, “green‐miners” devote their resources not only for making money, but also for optimizing operations of real‐systems, which results in actual resource savings

The Role of Data Sharing in Extending Material and Product Life Cycles in Circular Economy

There is a need for systemic change towards circular economy. Consequently, the twin transition drives the digital and green transition in the European Union. In addition, interoperable data and wide network of stakeholders sharing data have been identified as keys for data-driven, circular innovation. However, there is currently no research that explicitly combines circular economy and data sharing. Thus, this thesis investigates the role of data sharing in material and product life cycles and how the life cycles can be extended through data sharing. The research questions are answered by conducting a literature review. It was found that multiple types of material and product data can be shared across value chains. The data can include, for instance, the origin, manufacturing, and end-of-life handling of the materials and products. Additionally, the characteristics, such as the location, condition, and changes made during the life cycles can be described in the data. Customer and consumer data are also highlighted in the reviewed literature. Along with customers and consumers, the reviewed literature reveals multiple stakeholders that can be involved in the data sharing. The stakeholders include policymakers, manufacturers, designers, repairers, and waste management companies. In this thesis, multiple tools were identified as enablers to share material and product data. Digital technologies such as, digital product passports, Internet of Things, digital twins, and blockchain offer interesting data sharing opportunities. Furthermore, ontologies and agents address the challenges in sharing diverse, complex, and confidential data between companies. The identified tools further enable extending of life cycles through data sharing. These approaches include, for instance, tracking life cycles, predictive maintenance, designing durable and recyclable products, remanufacturing, and material banks. However, the data sharing is not straightforward as current research shows challenges in sharing material and product data. The data sharing can be hampered by diverse regulation, definitions, and technology as well as reluctancy in sharing sensitive and confidential information. In addition, competitive practices and awareness of shared benefits can affect the willingness of companies to share data. Also, along with maturing technology, there is still a need for addressing data accessibility and ownership

A Smart Contract Architecture Framework for Successful Industrial Symbiosis Applications Using Blockchain Technology

Funding Information: Author acknowledges Fundação para a Ciência e a Tecnologia (FCT-MCTES) for its financial support via the project UIDB/00667/2020 (UNIDEMI). Publisher Copyright: © 2023 by the authors.Industrial Symbiosis (IS) involves a network of organizations that exchange energy, materials, and by-products to lower production costs, reduce environmental impact, and conserve natural resources. Despite over two decades of extensive research into IS, its benefits are well known, but implementation remains challenging. This paper proposes utilizing blockchain technology (BCT) to digitize IS, making it more secure and transparent. First, drivers and barriers of BCT implementation in IS are identified. A smart contract architecture framework using Hyperledger Fabric is then proposed using the constructed theoretical background and abductive method. Finally, the paper discusses how this framework supports the implementation of BCT in IS by addressing its drivers and attempting to overcome its barriers. It is a resource for those seeking a comprehensive grasp of the foundational elements necessary for constructing a successful IS blockchain design, which is adaptable to all types of IS network configurations.publishersversionpublishe

Artificial intelligence in support of the circular economy: ethical considerations and a path forward

The world’s current model for economic development is unsustainable. It encourages high levels of resource extraction, consumption, and waste that undermine positive environmental outcomes. Transitioning to a circular economy (CE) model of development has been proposed as a sustainable alternative. Artificial intelligence (AI) is a crucial enabler for CE. It can aid in designing robust and sustainable products, facilitate new circular business models, and support the broader infrastructures needed to scale circularity. However, to date, considerations of the ethical implications of using AI to achieve a transition to CE have been limited. This article addresses this gap. It outlines how AI is and can be used to transition towards CE, analyzes the ethical risks associated with using AI for this purpose, and supports some recommendations to policymakers and industry on how to minimise these risks

Implications of the blockchain technology adoption by additive symbiotic networks

Funding Information: Funding: This work was supported by Fundação para a Ciência e Tecnologia, Lisboa, Portugal [Grant No SFRH/BD/145448/2019 and via the project UIDB/00667/2020 (UNIDEMI)]. Publisher Copyright: © 2023A vibrant debate has been initiated around the potential adoption of blockchain technology for enhancing the development of industrial symbiosis networks, particularly for promoting the creation of additive symbiotic networks. Despite the potential benefits of trust creation and elimination of intermediary entities, adopting such innovative technologies promises to disrupt the current supply chains of those symbiotic networks. The literature on these topics is still beginning; thus, the present research intends to contribute. A framework for understanding the implications of adopting the blockchain technology in the supply chain structure (specifically, in the dependency dimension) of an additive symbiotic network was developed, considering a network theory lens. The case study method was deemed to be suitable for carrying out this research. A case study related to an additive symbiotic network is described in detail, with the development of two scenarios: scenario I “as-is” for the current state of the network and scenario II “to-be” considering the adoption of the blockchain technology. Results show that adopting blockchain technology impacts the supply chain structure of additive symbiotic networks. More specifically, there are implications for the power distribution among the network's stakeholders.publishersversionpublishe

“Sustaining the Sustainable Sustainability”: Leveraging Digitalization and Emerging Technologies by the Auditor in Providing Assurance on Sustainability Reporting

In today's rapidly evolving world, the importance of sustainability and circularity has become more prominent than ever. Businesses and economies worldwide are recognizing the need to transition towards a circular model, where resources are used efficiently and waste is minimized. This transition necessitates changes across all sectors, including financial auditing. While the main object of financial audit is to provide an opinion on financial statements to ensure that it gives true and fair view of the accounts, the auditor will also need to assess an organization's sustainability by evaluating its environmental and social impact, resource efficiency, and circularity performance. It becomes more and more important that the financial auditor should provide a comprehensive assessment of the organization's sustainability practices, enabling stakeholders to understand its commitment to environmental responsibility, social equity, and economic resilience. Auditing sustainability reporting involves different challenges compared to those encountered in auditing financial statements. The independent audit report issued by the financial auditor on sustainability reporting plays an essential role in building confidence in the robustness of non-financial information, providing benefits such as: ensuring the credibility of ESG information presentations within the annual report; creating a positive impact on the company's reputation; strengthening the company's awareness of material ESG risks and facilitating the improvement of internal systems, processes and controls and the company's performance in the ESG area; better positioning of the company in ESG rating rankings. Hence, auditing sustainability reporting goes beyond financial metrics and includes non-financial indicators that reflect the organization's triple bottom line – people, planet, and profit. Henceforth, by expanding the scope of financial audits to incorporate sustainability metrics, audit companies can demonstrate their commitment to the circular economy and provide transparency regarding their clients’ environmental and social performance. Henceforward, auditing sustainability reporting not only enables stakeholders to make informed decisions, but also promotes accountability and incentivizes organizations to adopt circular practices. In this context, to effectively track, measure, and assess the sustainability performance of organizations, emerging technologies play a crucial role. This paper explores the role of emerging technologies in facilitating the transition of financial auditing towards a circular economy by employing a Reflexive Thematic Analysis (RTA). Analyzing the literature on the subject is the first step in the process, which is followed by a reflective study of the underlying themes and their consequences for financial auditing procedures. Several important themes emerged, highlighting the benefits, difficulties, as well as moral and social ramifications of integrating modern technology. These themes draw attention to the topic's complexity and shed light on the opportunities and difficulties that come with incorporating emerging technologies into an audit engagement on sustainability reporting

Blockchain for Sustainable Supply Chain Management: Trends and Ways Forward

YesBlockchain operates on a highly secured framework, and its decentralized consensus has benefits for supply chain sustainability. Scholars have recognized the growing importance of sustainability in supply chains and studied the potential of blockchain for sustainable supply chain management. However, no study has taken stock of high-quality research in this area. To address this gap, this paper aims to provide a state-of-the-art overview of high-quality research on blockchain for sustainable supply chain management. To do so, this paper conducts a systematic literature review using a bibliometric analysis of 146 high-quality articles on blockchain for sustainable supply chain management that have been published in journals ranked “A*”, “A”, and “B” by the Australian Business Deans Council and retrieved from the Scopus database. In doing so, this paper unpacks the most prominent journals, authors, institutions, and countries that have contributed to three major themes in the field, namely blockchain for sustainable business activities, decision support systems using blockchain, and blockchain for intelligent transportation system. This paper also reveals the use of blockchain for sustainable supply chain management across four major sectors, namely food, healthcare, manufacturing, and infrastructure, and concludes with suggestions for future research in each sector

Removing Barriers to Blockchain use in Circular Food Supply Chains: Practitioner Views on Achieving Operational Effectiveness

This is the author accepted manuscript. The final version is available on open access from Elsevier via the DOI in this recordData availability: The data that has been used is confidential.The increasing demand for a sustainable, reliable and secure supply chain for food products has led to the application of digital technologies such as blockchain to improve operational effectiveness. The purpose of this paper is to investigate the integration barriers of Blockchain Technology (BCT) within Circular Food Supply Chains (CFSCs) towards firm’s operational effectiveness through a multi-methodological process. Initially the integration barriers are identified through a review of literature and these risks are categorised, using evidence obtained by survey questionnaire completed by experts in the integrated research arena. A further quantified prioritisation of these barriers is made by utilizing a Fuzzy Delphi approach, validated by expert practitioners drawn from the food production and supply organizations. Finally, through semi-structured interviews with Blockchain and FSC experts, an examination of how the integration barriers affect operational effectiveness may be mitigated is provided. This paper concludes that the identified barriers to blockchain integration have real impact on the operational effectiveness of the firm that can only be clarified through industry wide standardised processes