Business Alignment with Circular City Initiatives : A cross-case analysis of business in the city of Turku

Abstract

Global consumption of materials has increased at a significant rate over the recent years and the high level of material usage and consumption pose a significant threat to the social, environmental and economic stability of the world. Linear model of consumption, which is taking, making and disposing, has been the most prominent pattern of consumption for many economies over the years. With the rising need of material needs, the linear model of consumption adds an unsustainable pressure on biodiversity, climate and the entire ecosystem. As a solution to address this pressing concern, the concept of circular economy has been emerged and becoming increasingly popular as a sustainable model of consumption to replace the linear consumption of materials. The transition from linear economies to circular is recognized as a challenge for businesses and governments, largely due to the deeply rooted and well-established linear business models. The transition towards the circular model requires strategical and behavioural changes from many actors in both the organizational and personal levels. Aggressive changes to existing policies are required to speed up the transition and it has been a major topic of discussion in the European politics. Cities have been identified as the key driver of the circular transition as they are the main contributor to high levels of material consumption. The circularity initiatives adopt by cities can have a strong impact on business due to the deep-rooted factors of linear business models. The thesis investigates the circularity initiatives that have been adopted by the city of Turku, a city in southwest Finland, that is home to a diverse business eco-system. The author examines the key circularity initiative adopted by the city: the circular city roadmap, a policy document driven by the 5R framework, which is a set of principles that promotes sustainable practices within the circular economy. The businesses in the city need to support these new policies to become a resource-wise city the city of Turku expect to be by 2040. The author investigates three businesses representing multiple sectors in the city’s business eco-system and uses cross-case analysis to draw similarities and identify patterns to discuss the alignment of the businesses to circular city roadmap of the city of Turku. The thesis findings suggest the companies welcome the transition from linear business practices to circularity in businesses and support the city’s circular economy initiatives.