Raw material criticality assessments as decision-making support for corporate circular economy strategies – A systematic review

Abstract

The European economy and its low-carbon transition relies on raw material deposits of few countries. Companies can enhance Europe's resilience and gain a strategic advantage by systematically mapping and actively managing their company-specific raw material risks. For example, they can proactively align their Circular Economy, supply chain or investment strategies accordingly. This study creates a foundation for scientists to enable companies to realise the synergies of corporate raw material criticality assessments. A literature review is combined with semi-structured interviews with industry experts. Results show that company-specific data is the main opportunity for customisation, uncovering company-specific risks and progress, but are rarely included. Less than 5 % of the investigated environmental, social and supply risk indicators are company specific. Furthermore, varying assessment levels impede linking of risk evaluation and mitigation. Only two methodologies considered Circular Economy strategies beyond recycling. Overall, the variance in reporting and information depth poses a major challenge for application. A methodology profile is developed for prospective methodologies as means to provide an standardised overview and underscore their distinctive features. The profile and our raw material risk management cycle facilitate companies’ application and scientists’ further development. Prospective research avenues concern the linking of assessment levels, systematic coupling of risk mitigation measures, risks associated with secondary materials, risks in the downstream value chain and new opportunities arising from the digital transformation.