Strategic integration of servitisation and I4.0 as circular economy strategy: a comprehensive disclosure analysis

The circular economy (CE) has become crucial for sustainability reporting. Prior research indicates that companies use servitisation and I4.0 (I4.0) technologies as CE economy strategies but do not report their commitments systematically. Therefore, this paper explores how servitisation and adopting I4.0 technologies are emerging as circular economy strategies through translational research. The study develops a CE disclosure index to investigate whether manufacturing firms align their strategies with evolving conditions. This index is based on ideas and concepts presented by prior studies and translated into practical applications to provide standards to ensure that CE implementation is properly addressed. Before delivering the findings, a pilot project1 was conducted to evaluate the credibility of the presented CE-disclosure index. The findings suggest that CE and servitisation may create more CE by extending a product's life and keeping it in use for an extended period. Moreover, leveraging circularity through I4.0 technologies leads to tremendous innovation in circular product development, smooth information/product flow, and transparency in reporting for stakeholder engagement in the implementation of CE. Practitioners, government, and society can use the CE disclosure index to assess the extent of CE-driven change and advance the adoption of CE principles.