The Relationship between Industry 4.0 & Circular Economy in the context of Sustainability

Ejaz Muhammad Rahim (2022) The Relationship between Industry 4.0 & Circular Economy in the context of Sustainability. In: Shape the future together! - IV. BBS International Sustainability Student Conference Proceeding. Budapesti Gazdasági Egyetem, Budapest, Magyarország, pp. 223-230. ISBN 978-615-6342-21-8 (In Press)

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Official URL: http://doi.org/10.29180/9786156342218_16

Abstract

Purpose: The basic aim of this study is to identify the key enablers of Industry 4.0 in order to interlink them with the concept of circular economy so that the goals related to sustainability can be achieved. These key enablers will help to understand better how Industry 4.0 can be used as a tool to achieve circular economy and eliminating sustainability issues in the process. • Design/Methodology/Approach: An extensive review of the connected literature has been conducted and a framework has been established that connects Industry 4.0 and circular economy. The literature has been synthesized and a connection has been found that helps to lay a foundation of the framework. • Findings: The results from the proposed study are as follows. The use of Industry 4.0 technologies might help organisations to achieve a sustainable competitive advantage at the firm level and on the broader scale it will help to achieve the ultimate goal of circular economy by closing the loop by digitizing all the stake holders present in the economy. • Practical implications: Circular economy brings a radical disruption to the existing system of linear economy. At organizational level, digitization might be a good idea, it will help to low costs, zero waste and increase profits but in the larger picture; it is a radical change. • Social implications: Circular economy combined with Industry 4.0 means less industrial waste, so it will bring positive impact on the environment and improve the quality of life. It will also force governments to revisit their industrial policies.