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Circular-ESG Model for Regenerative Transition

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  • Tariqullah Khan

    (School of Graduate Studies, INCEIF University, Jalan Tun Ismail, Kuala Lumpur 50480, Malaysia)

Abstract

This paper presents a novel circular-ESG framework integrating circular economy (CE) principles with environmental, social, and governance (ESG) criteria to address the lack of uniform sustainability measures. We introduce normalized sustainability coordinates (NSCs) as a comprehensive metric for sustainability performance, reconciling economic development with environmental balance. The circular-ESG model employs a four-quadrant Cartesian system to map business model impacts on natural and socio-economic systems, ranging from linear open-loop to circular closed-loop ESG models. This framework enables empirical analysis through data-driven NSCs (−1 to 1) and establishes temporal key performance indicators. By incorporating the Human Development Index within ecological limits, the model promotes regenerative development aligned with planetary boundaries. The circular-ESG approach offers a practical tool for businesses, households, organizations, and policymakers to navigate sustainable development complexities. This integrated framework fosters innovation and supports a just transition towards regenerative practices, providing a roadmap for high human development within ecological limits. The circular-ESG model advances sustainability science and management, contributing to the discourse on measuring and implementing sustainable practices across sectors and scales. The model is currently conceptual; we encourage empirical validation and further research to explore its practical applications and effectiveness in real-world scenarios. While the provided examples of use cases serve as conceptual demonstrations, future research could empirically apply the model to real-world data.

Suggested Citation

  • Tariqullah Khan, 2024. "Circular-ESG Model for Regenerative Transition," Sustainability, MDPI, vol. 16(17), pages 1-26, August.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:17:p:7549-:d:1468520
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    1. Graciela Chichilnisky, 1996. "An axiomatic approach to sustainable development," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 13(2), pages 231-257, April.
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