Vol. 33 (2023)
Artículos de Investigación

Actions to promote circular economy: case study of multinational manufacturers in the automotive and fast-moving consumer goods in Mexico

PDF XML
  • Lourdes Loza Hernandez,
  • Pilar Arroyo
Lourdes Loza Hernandez
UNIVERSIDAD AUTONOMA DEL ESTADO DE MEXICO
Bio
Pilar Arroyo
Tecnologico de Monterrey
Bio
DOI: https://doi.org/10.15174/au.2023.3798

Published 2023-11-01

How to Cite

Loza Hernandez, L., & Arroyo, P. (2023). Actions to promote circular economy: case study of multinational manufacturers in the automotive and fast-moving consumer goods in Mexico. Acta Universitaria, 33, 1–20. https://doi.org/10.15174/au.2023.3798

Abstract

The overuse of natural resources as manufacturing inputs demands enterprises to support sustainable development through a transition from a linear model of production to a circular and resource-efficient model. This work applies a multiple-case research design based on secondary information to explore the advancement of circular economy (CE) among six subsidiaries of multinationals that operate in Mexico. The qualitative analysis shows that reduction of natural resources and closing the loop of water, followed by closing the package cycle and using renewables, are the main approaches applied by companies in the automotive and fast-moving consumer goods sectors. Slowing the product life cycle and closing the supply chain are the least used approaches. Results show a limited advancement in the implementation of circular economy models and provide guidelines to other companies as well as recommendations for the establishment of a legal framework that complements the bottom-up efforts of enterprises located in a developing country.

PDF XML

References

  1. Aguiñaga, E. E., & Treviño, B. L. (August 16, 2022). Six success stories for the circular economy in Mexico and Latin America. EGADE Ideas. https://egade.tec.mx/en/egade-ideas/research/six-success-stories-circular-economy-mexico-and-latin-america
  2. Agwu, U. J., & Bessant, J. (2021). Sustainable business models: a systematic review of approaches and challenges in manufacturing. Journal of Contemporary Administration, 25(3), 1-18. https://doi.org/10.1590/1982-7849rac2021200202.en
  3. Ahmad, F., Bask, A., Laari, S., & Robinson, C. V. (2023). Business management perspectives on the circular economy: Present state and future directions. Technological Forecasting and Social Change, 187, 122182. https://doi.org/10.1016/j.techfore.2022.122182
  4. Asociación Mexicana de la Industria Automotriz A. C. (AMIA). (2022). Reporte de venta de vehículos ligeros nuevos por marca a noviembre, 2022. https://amia.com.mx/2022/12/12/reporte-de-venta-de-vehiculos-ligeros-nuevos-por-marca-a-noviembre-2022/
  5. Bocken, N. M. P., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes. Journal of Cleaner Production, 65, 42-56. https://doi.org/10.1016/j.jclepro.2013.11.039
  6. Bocken, N. M. P., Bakker, C., & de Pauw, I. (2015). Product design and business model strategies for a circular economy. Sustainable Design & Manufacturing Conference, 12-14 April, Seville, Spain. https://www.rescoms.eu/assets/downloads/Business-models-and-design-for-a-closed-loop-FINAL.pdf
  7. Cámara Nacional de la Industria de Productos Cosméticos (Canipec). (2023). Perspectivas de la industria del cuidado personal y del hogar 2023. https://canipec.org.mx/presenta-canipec-las-perspectivas-de-la-industria-del-cuidado-personal-y-del-hogar-2023/
  8. Centro de Estudios para el Desarrollo Rural Sustentable y la Soberanía Alimentaria (CEDRSSA). (2022). Tratado entre México, Estados Unidos y Cánada, T-MEC, Capitulo 24 Medio ambiente. Cámara de Diputados LXV Legislatura. http://www.cedrssa.gob.mx/identificacion_institucional.htm
  9. Chinie, A. C. (2014). Current concerns and trends in the business of renewable energy. Management Research and Practice, 6(4), 5-22. https://mrp.ase.ro/no64/f1.pdf
  10. Córdova, M. L., Salgado, L., & Bravo, B. (2021). Circular economy and its situation in Mexico. Indiciales, 1(1), 24-37. https://doi.org/10.52906/ind.v1i1.7
  11. Cordova-Pizarro, D., Aguilar-Barajas, I., Romero, D., & Rodriguez, C. A. (2019). Circular economy in the electronic products sector: material flow analysis and economic impact of cellphone e-waste in Mexico. Sustainability, 11(5), 1361. https://doi.org/10.3390/su11051361
  12. Cortinas, C., & Rosillo, I. (2022). La economía circular. Los retos para México. Fundación Cristina Cortinas A. C. y Red Queretana de Manejo de Residuos A. C. https://cristinacortinas.org/sustentabilidad/wp-content/uploads/2022/06/Economi%CC%81a-circular.-Los-retos-para-Me%CC%81xico.pdf
  13. Danone. (2020a). Economía Circular. https://www.grupodanone.com.mx/impacto/one-planet/economia-circular.aspx
  14. Danone. (2020b). One Planet, One Health. https://www.grupodanone.com.mx/impacto/one-planet.aspx
  15. Danone. (2021). Integrated Annual Report 2021. https://www.danone.com/content/dam/danone-corp/danone-com/rai/2021/danone-integrated-annual-report-2021.pdf.
  16. Dieleman, H., & Martínez-Rodríguez, M. C. (2019). Potentials and challenges for a circular economy in Mexico. In M. L. Franco-García, J. C. Carpio-Aguilar, & H. Bresse (eds.), Towards Zero Waste, Greening of Industry Networks Studies, Vol. 6 (pp. 9-24). Springer Nature Switzerland. https://doi.org/10.1007/978-3-319-92931-6_2
  17. Emerald Group Publishing (n. d.). How to… use secondary data & archival material. https://www.emeraldgrouppublishing.com/how-to/research/data-analysis/use-secondary-data-and-archival-material#:~:text=Reliability%20and%20validity,carefully%20before%20deciding%20to%20proceed
  18. Fernandes, E., & Cunha, R. (2023). Review of water reuse from a Circular Economy perspective. Water, 15(5), 848. https://doi.org/10.3390/w15050848
  19. Ferraso, M., Beliaeva, T., Kraus, S., Clauss, T., & Ribeiro-Soriano, D. (2020). Circular economy business models: the state of research and avenues ahead. Business Strategy & the Environment, 29(8), 3006–3024. https://doi.org/10.1002/bse.2554
  20. Ford. (October 25, 2022). [Home page] https://www.ford.mx
  21. Geissdoerfer, M., Pieroni, M. P. P., Pigosso, D. C. A., & Soufani, K. (2020). Circular business models: a review. Journal of Cleaner Production, 277, 123741. https://doi.org/10.1016/j.jclepro.2020.123741
  22. Geissdoerfer, M., Savaget, P., Bocken, N. M. P., & Hultink, E. J. (2018). The circular economy — A new sustainability paradigm?. Journal of Cleaner Production, 143, 757–768. https://doi.org/10.1016/j.jclepro.2016.12.048
  23. General Motors de México. (November, 2022). [Home page]. https://www.gm.com.mx
  24. Golay, E. (2021). Recycled fibers for circular economy - The case of the fashion industry [Master Thesis]. Uppsala University. https://www.diva-portal.org/smash/record.jsf?pid=diva2%3A1558552&dswid=7524
  25. Gobierno de México. (n. d.). Industria Alimentaria. https://datamexico.org/es/profile/industry/food-manufacturing
  26. Gustafsson, J. (2017). Single case studies vs. multiple case studies: A comparative study. https://www.diva-portal.org/smash/get/diva2:1064378/FULLTEXT01.pdf%20(10
  27. Heineken. (October 15, 2022a) Reporte de Sustentabilidad 2019. https://heinekenmexico.com/informe-sustentabilidad/assets/images/descargas/informe-de-sustentabilidad-2019.pdf
  28. Heineken (October 15, 2022b). Reporte de Sustentabilidad 2021. https://heinekenmexico.com/sustentabilidad/informe
  29. Instituto Nacional de Ecología y Cambio Climático (INECC). (2020). Evaluación de la situación actual de la economía circular para el desarrollo de una hoja de ruta para Brasil, Chile, México y Uruguay. https://www.gob.mx/cms/uploads/attachment/file/641380/VF_version_ejecutiva_Economia_Circular_2.pdf
  30. Kenton, W. (June 2, 2023). Fast-Moving Consumer Goods (FMCG) Industry: Definition, Types, and Profitability.
  31. https://www.investopedia.com/terms/f/fastmoving-consumer-goods-fmcg.asp
  32. Kowszyk, Y., & Maher, R. (2018). Case studies on circular economy models and integration of sustainable development goals in business strategies in the EU and LAC. EU-LAC Foundation. https://eulacfoundation.org/en/system/files/case_studies_circular_economy_eu_lac.pdf
  33. Martínez, A. A., Octaviano V. C. A., & Nieto. R. J. (2021). Análisis y revisión técnica del marco legal existente para la instrumentación de una política en materia de economía circular para México. Instituto Nacional de Ecología y Cambio Climático (INECC). https://www.gob.mx/cms/uploads/attachment/file/677876/V2_An_lisis_y_revisi_n_t_cnica_de_marco.pdf
  34. Mexican Association of Automotive Distributors (AMDA). (2022). Variaciones de 15.4 y 5.2% en el comercio de automotores ligeros nuevos en noviembre y su acumulado 2022. https://www.amda.mx/
  35. Munoz-Melendez, G., Delgado-Ramos, G. C., & Diaz-Chavez, R. (2021). Circular Economy in Mexico. In S. K. Ghosh & S. K. Ghosh (eds.), Circular Economy: Recent Trends in Global Perspective (pp. 497-523). Springer Books. https://doi.org/10.1007/978-981-16-0913-8_16
  36. National Institute of Statistics and Geography (INEGI). (2022a). Sectores Económicos. https://www.inegi.org.mx/temas/productividadsec/
  37. National Institute of Statistics and Geography (INEGI). (2022b). Registro administrativo de la industria automotriz de vehículos ligeros. https://www.inegi.org.mx/datosprimarios/iavl/
  38. National Institute of Statistics and Geography (INEGI). (2023). Sistema de Cuentas Nacionales de México. Producto Interno Bruto Trimestral. Año Base 2013. Serie del primer trimestre de 1993 al cuarto trimestre de 2022. https://www.inegi.org.mx/programas/pib/2013/#Tabulados
  39. Nissan Mexicana, S.A, de C.V. (September 24, 2022). [Home page]. https://www.nissan.com.mx/
  40. Organization for the Cooperation and Economic Development (OECD). (2019). Business models for the circular economy: opportunities and challenges from a policy perspective. OECD Publishing. https://www.oecd.org/environment/business-models-for-the-circular-economy-g2g9dd62-en.htm
  41. Panchal, R., Singh, A., & Diwan, H. (2021). Does circular economy performance lead to sustainable development? A systematic literature review. Journal of Environmental Management, 293, 112811. https://doi.org/10.1016/j.jenvman.2021.112811
  42. Peric, M., Durkin, J., & Vitezic, V. (2017). The constructs of a business model redefined: a half-century journey. SAGE Open, 7(3). https://doi.org/10.1177/2158244017733516
  43. Robert, K. W., Parris, T. M., & Leiserowitz, A. A. (2005). What is sustainable development? Goals, indicators, values, and practice. Environment: Science and Policy for Sustainable Development, 47(3), 8-21. https://doi.org/10.1080/00139157.2005.10524444
  44. Secretaría de Economía (2022). Capítulo 24 - Medio Ambiente. [Extractos de los capítulos 1 y 24 del T-MEC (CUSMA o USMCA en Canadá y Estados Unidos, respectivamente); texto íntegro del nuevo Acuerdo de Cooperación Ambiental (ACA) y textos relevantes del Protocolo Modificatorio al T-MEC]. http://www.cec.org/wp-content/uploads/cca-temec-aca-y-protocolo.pdf
  45. Stubbs, W., & Cocklin, C. (2008). Conceptualizing a “sustainability business model”. Organization & Environment, 21(2), 103-127. https://doi.org/10.1177/1086026608318042
  46. Unilever. (2021). Climate Transition Plan. https://assets.unilever.com/files/92ui5egz/production/bbe89d14aa9e0121dd3a2b9721bbfd3bef57b8d3.pdf/unilever-climate-transition-action-plan-19032021.pdf
  47. Unilever. (November 15, 2022a). Planeta y Sociedad. https://www.unilever-northlatam.com/planet-and-society/
  48. Unilever. (November 15, 2022b). Waste Free World. https://www.unilever.com/planet-and-society/waste-free-world/
  49. Unilever. (November 15, 2022c). El camino del reciclaje en una empresa de consumo. https://www.unilever-northlatam.com/news/press-releases/2022/el-camino-del-reciclaje-en-una-empresa-de-consumo/.
  50. Velenturf, A. P. M., & Purnell, P. (2021). Principles for a sustainable circular economy. Sustainable Production and Consumption, 27, 1437-1457. https://doi.org/10.1016/j.spc.2021.02.018
  51. Yin, Y. K. (2014). Case Study Research Design and Methods (6th ed.). Thousand.