The circular economy (CE) was popularized by the Ellen MacArthur Foundation (2013) as an alternative to the linear model of extraction, production, and discharge of resources, emphasizing the circularity of products and materials and the regeneration of natural systems. CE models can also be considered as a complementary strategy toward decarbonization. According to the latest report (Macarthur & Heading, 2019), the energy transition can address 55% of global greenhouse gas (GHG) emissions, while the remaining 45% are associated with the production of goods and land use.
However, CE has primarily been framed in terms of its economic and environmental aspects, and social benefits are usually presented as expected outcomes rather than being systematically investigated. In their analysis of 221 CE definitions in the literature, Kirchherr et al. (2023) found that approximately one-quarter of these definitions contemplate social equity or related concerns such as human well-being, socioeconomic development, and employment.
Citation: Hollnagel, H. C., Bueno, R. L. P., & Andrade, A. F. (2026). From Human Capital to Circular Capabilities: Digital Transformation and Inclusive Growth Tensions in a Brazilian SME. Adv Earth & Env Sci; 7(4):1-14. DOI : https://doi.org/10.47485/2766-2624.1101