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Risk management for the circular economy business model sustainability of reduce, reuse, and recycling in plastic waste management
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Researchers developed a circular economy business model for plastic waste management in Indonesia, identifying key risks across reduce, reuse, and recycling operations and proposing mitigation strategies that improve both environmental outcomes and the financial sustainability of waste-sector enterprises.
Abstract Plastic waste management is a pressing issue, particularly in Indonesia, where plastic constitutes a significant portion of waste. This study investigates the development of a sustainable circular business model for plastic waste management while emphasizing the need for effective recycling and reduction strategies. Unlike previous studies that incorporated risk management into a five-dimensional approach to sustainability—economic, social, environmental, institutional, and technical factors—primarily focused on pre-consumption industries and risk prioritization based on criticality alone, this research focuses on post-consumption industries related to plastic waste and considers risk interaction for the prioritization. Failure Mode and Effects Analysis and Decision-Making Trial and Evaluation Laboratory were utilized to identify and prioritize risks based on how critical they were and how they interacted with each other. Video interviews and pilot surveys from related individuals in Indonesian plastic waste management were conducted to gather data on related risks. Higher risk influence score and risk priority number (i.e., 147 and 72), indicating the risks are influential and critical, were found for lack of regulation to distinguish the government's role in waste management, insufficient policy to maintain product price from reprocessing plastic waste to remain competitive, unaffordable product/service price from circular plastic waste management, and unavailable technology and infrastructure to support plastic waste recycling. The findings highlighted the necessity of stakeholder collaboration, improved infrastructure, and supportive government policies for successful circular plastic waste management. Enhancing community engagement in waste segregation, establishing clear operational procedures, and fostering partnerships between the public and private sectors are recommended. The study underscored the importance of addressing both environmental and socio-economic dimensions to create a sustainable and effective plastic waste management system, ultimately contributing to a circular economy. Future research should expand on these findings to validate relationships among identified risks and explore additional waste management strategies.
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When a large batch of papers lands in the Atlas, we read through it and send a short write-up of what stood out.