120 5 Result of Analysis and Interpretations
The empirical data in this study suggests that a successful global diffusion ofthe circular economy concept should be agreed upon. Regional differences in
understanding the concept might lead to each country developing its own policies
making it difficult for globally operating organizations. This would be problematic
especially with regards to regulations for the use of chemicals. More transparency
is required to enable organizations to make smart decisions.
A study by Jiao and Boons raises the following question: “To what extent does theconcept of circular economy have the same meaning in China as it does in Germany
in terms of actors involved, problem definitions and associated solutions, emerged
objects, and practices?” (Jiao and Boons 2014, p. 23). The interview partner in case
Iota mentioned that it would be difficult for global firms if they had to acquire an
understanding of the differences in regulatory processes relevant to the circular
economy in each country they operate in. He describes the challenge as follows:
“So in terms of future challenges, understanding how those regulatory processes both
in Europe and elsewhere evolve, how they treat the body of science, and what the
findings say versus what the findings do not say. I think that is a very difficult area for
a brand and their suppliers to guess at currently, so there is a lot of decision-making
happening under conditions of uncertainty. Achieving more transparent chemicals
regulatory processes will be a challenge. That is going to be one of the major challenges.”
The second sub-category of this challenge is the poor collaboration withinindustries and beyond. Organizations identified the need for a systems approach.
A system in this context is defined as an interrelated set of components that forms
a structure and performs a function. It includes biological systems as well as
engineered systems and social systems (Fiksel et al. 2013). Developing a systems
approach requires an understanding of the dynamic interaction between economic,
environmental, and social systems. Moreover, the potential consequences stemming
from these interactions have to be evaluated in order to develop good policies, and
technological or operating practices. In an optimal situation, all environmental
conditions are synchronized to facilitate the engagement in circular economy.
Whilst several cases in this study identified the need for a systems approach they
also see it as a huge challenge. Many organizations participate in industry groups
to support the implementation of circular economy on an industry level. However,
not every organization within these industry groups is willing to engage in the
circular economy. A representative of the organization in case Zeta describes the
need as follows: “Is this a topic which can be solved by a single organization or is
this something which requires a systems approach? (...) But when we really want to
start a circular economy it makes much more sense to do that on an industry level”
(see Appendix: German Quote 76).