Circular economy challenges within the road freight transport: Case study of Portuguese companies

Abstract

Nowadays, environmental concerns have significantly influenced business management and societal practices, leading to a strong focus on minimizing environmental damage and embracing sustainable development. This has prompted the adoption of greener supply chain practices and the transition towards a circular economy (CE). Companies are under pressure to incorporate green innovation practices, aiming for environmentally friendly and low-carbon development. This research aligns with the principles of the CE, an emerging economic model that emphasizes resource preservation and energy efficiency. CE is also recognized as a key driver for achieving sustainable development goals. However, the road freight transport sector, which is vital for goods transportation, faces challenges in becoming more sustainable due to its significant greenhouse gas emissions. This study analyzes the feasibility of achieving both environmental and financial sustainability in the road freight transport sector in Portugal. This piece of research aims to determine if combining these two concepts is practically viable and explores how transitioning to a circular economy can generate value and enhance environmental sustainability in the sector. Drawing upon the interview results, existing literature, and principles of the circular economy, an analysis was conducted to understand the current obstacles faced by companies in the sector and explore potential solutions. The main findings indicate that implementing the circular economy in the sector requires better technological advancements to ensure the use of fully renewable energy sources and facilitate the reuse of materials in vehicles. Additionally, it is crucial for all stakeholders to participate actively, as the transition to a circular economy is a structural change that necessitates collective efforts from everyone involved.