Investigating the interplay between circular economy, servitistaion and Industry 4.0 disclosure practices

The circular economy (CE) has emerged as a critical component of sustainability reporting. Yet, a gap still needs to be in systematically reporting commitments related to servitisation and Industry 4.0 (I4.0) technologies as CE strategies. Through translational research, this study investigates the role of servitisation and I4.0 adoption as CE strategies, aiming to provide actionable insights for stakeholders. A CE disclosure index is developed to assess the alignment of manufacturing firms’ strategies with evolving CE conditions, translating theoretical concepts into practical applications to establish standards for CE implementation. A pilot project is conducted to validate the credibility of the CE-disclosure index. The findings indicate that integrating CE and servitisation practices can prolong product lifecycles and promote their continued use while leveraging I4.0 technologies fosters innovation in circular product development, streamlines information/product flow, and enhances transparency in reporting for stakeholder engagement. The CE disclosure index is a valuable tool for practitioners, government entities, and society to evaluate the extent of CE-driven change and promote the adoption of CE principles across various sectors.