Impacts of circularity-oriented policies and measures on financial performance of agri-food organizations

Circularity stands as one of the main drivers—perhaps the most tangible one—marked by a strong interconnection between research and practice, aimed at crafting sustainable business models that reconsider the entire product and service lifecycle through a lens of resource optimization and enhancement. Given its significance, measuring circularity becomes crucial to equip companies with the appropriate tools for evaluating and refining their sustainable practices. The adoption of standards such as UNI/TS 11820:2022 and ISO 59020 underscores the urgency to harmonize assessment tools to foster effective circular practices, stemming from strategic choices made with awareness. The article emphasizes the necessity to develop standardized circular economy performance indicators to effectively gauge circularity levels across micro, meso, and macro dimensions. Hence, the authors adopted a circular economy performance index based on ESG scores, thoughtfully adjusted to mirror the 4R paradigm (reduce, reuse, recover, and recycle), and applied multivariate regression models for analyzing a global sample of agri-food companies. This approach demonstrates how circular economy practices can enhance not just environmental sustainability but also companies' financial performance through a holistic and inclusive approach. The findings provide valuable insights for academics and managers, reinforcing the notion that the circular economy is not only a response to environmental pressures but also a strategic opportunity for businesses, especially in the agri-food sector. Adopting circular practices translates into tangible economic benefits, such as reduced operational costs and increased resource efficiency, positively impacting financial performance.