How can managerial practices for Circular Business Models contribute to achieving carbon neutrality? A taxonomy of their preventive and corrective role

The implementation of managerial practices for Circular Business Models (CBMs) can significantly advance a sustainability transition pathway of companies, particularly in addressing environmental issues. However, there is a lack of studies investigating how these practices can contribute to achieving carbon neutrality. This research gap is addressed in this study using a mixed-methodological approach: the Decision-Making Trial and Evaluation Laboratory (DEMATEL) and the Delphi methods. From the literature, we identified a set of eight prevalent managerial practices for CBMs implemented by companies across various industry sectors. The experts involved in the empirical analysis assessed this set of practices using first the DEMATEL, and a preliminary taxonomy showing the contribution of managerial practices to achieving carbon neutrality was proposed, considering their preventive (i.e., avoiding carbon emissions) and corrective (i.e., capturing and storing carbon from the atmosphere) role. The preliminary taxonomy was subsequently refined through the Delphi method to reduce its degree of subjectivity and enhance its effectiveness. Our results show how managerial practices for CBMs can play both a preventive and corrective role in achieving carbon neutrality, with 'Product Design for Circularity' and 'Energy efficiency and usage of renewable energy sources' standing out as contributing more than the others. Companies aiming to pursue a decarbonization strategy can also leverage a range of managerial practices for CBMs.