Principles of Sustainability and Circular Economy: Application and Case Analysis of Historical Evidence and Real Internationally-Oriented Food Processing Company in Latvia

Abstract

Nowadays the society observes changes in the surroundings and the environment more and more often, probably caused by traditional ways of production and service practised for several decades—several generations have been taking, using and wasting too much resources. Now companies, especially small and medium enterprises, have to change their operations—life cycle management to match requirements of the Circular Economy. The aim of this chapter is to introduce the concept and requirements of the Circular Economy as a logical continuation and evolution of Environmental Sustainability; to find learning outcomes from observation of historical evidence and identify gaps in the life cycle of existing products in a real food processing company, and to elaborate recommendation for company improvements to be applied as fundamentals of the Circular Economy. The research consists of three sections—theoretical overview of the main definitions and concepts, practical analysis—historical observations, processing of statistical data about waste management in Latvia; and practical findings from case analyses of a food processing company. The research methods used were qualitative research methods—interviews, statistical data analysis, and company’s documentation analysis for Life Cycle Assessment, and also a non-structured direct interview was carried out with the management of the company. Besides Triangulation problems, also other losses were identified after analysis of company “XXX” and turned into recommendations for the company management, such as, to attract European funds support programs, acquisition of triangular equipment and improvement of efficiency; to consider the idea of creating a glass container recycling plant as an additional niche for the company; to pay more and more attention to the sorting and management procedures for residue; to organize feedstock feed in such a way as to minimize the long-term storage of unprocessed products. The theory section includes an overview of the main concepts and definitions and differences between the Linear and the Circular Economy. Reflections of final/modern concepts and definitions of Sustainable business are also included—not only as a role, but also as a stage of development. The historical and today’s development in the EU and Latvia is also observed and described. Some statistics about today’s situation in waste and waste management has been presented and analysed. The practical research consists of socio-economic process and case analysis. One part of the practical research is devoted to the Soviet occupation period in the Baltic countries when many aspects of the Circular Economy evidence were observed, not because of luxury life, but because of poor and modest living conditions. The second section—case includes analyses of the life cycle of a food processing company in Latvia to identify ways to improve the company performance according to the requirements of the Circular Economy. This will give a strong base for the future development of guidelines for food processing companies in order to support their self-evaluation and transition towards requirements of the Circular Economy. Framework for the Circular Economy is tested as flexible and easy to use for explanation and for creation of common understanding among company management and workers. A handbook or guidelines for introduction and implementation of fundamentals of the Circular Economy could be developed for future research.