Climate Transition – Policy and Instruments for Manufacturing Value Chains (CIRCLE-PACT II)

Purpose and goal

The project aims to examine how manufacturing companies develop and adapt control mechanisms for climate-neutral and circular transitions within the value chain, with a focus on double materiality. The goal is to analyze how this concept is applied in resource use through collaborations within the value chain. The project is expected to provide insights into challenges related to the implementation of CSRD and to support sustainable transitions in companies and their value chains.

Expected effects and result

The project aims to study how CSRD is implemented in practice, with strong potential to disseminate knowledge about opportunities and challenges related to corporate implementation. The results are expected to: 1) support sustainable transitions in companies and value chains; 2) provide feedback to ongoing norm development at the national and international levels; and 3) contribute to academic research and education.

Planned approach and implementation

We will conduct a case study focusing on how a large industrial company is developing sustainability control mechanisms in the value chain in real-time. Specifically, we will examine how the concept of double materiality is applied and what risks and opportunities it presents for resource use and circularity (ESRS E5). Additionally, we plan to perform a qualitative content analysis of sustainability reports from large industrial companies in light of the new reporting requirements.