The roles of ESG, supply chain transparency, and circular economy in net-zero capability

Achieving net-zero emissions has become a strategic imperative for organizations and supply chains worldwide. This study explores how Environmental, Social, and Governance (ESG) commitment and Supply Chain Transparency (SCT) contribute to Net-Zero Capability (NZC), with Circular Economy (CE) adoption positioned as a mediating mechanism. Grounded in Institutional Theory and the Resource-Based View, the study conceptualizes ESG and SCT as institutional and strategic resources that influence net-zero transitions. Data were collected via a survey of 261 supply chain managers from leading industrial enterprises in Türkiye. Structural equation modeling confirms that ESG significantly impacts SCT, CE, and NZC, while SCT also positively influences CE and NZC. Crucially, CE not only directly affects NZC but also partially mediates the relationships between ESG, SCT, and net-zero outcomes. ESG commitment emerged as the most influential predictor of NZC, highlighting its central role in decarbonization strategies. These findings underscore the need for a systemic approach to net-zero, integrating governance frameworks, transparency practices, and circular innovations. The study advances the understanding of how internal and external pressures jointly shape sustainability capabilities and offers practical insights into building net-zero supply chains.

URI

https://bradscholars.brad.ac.uk/handle/10454/20792

Version

Accepted manuscript

Citation

Surucu Balci A, Ali I, Balci G (2025) The roles of ESG, supply chain transparency, and circular economy in net-zero capability. EurOMA 2025 conference, 13-18 June, Milan, Italy.

Link to published version

https://secure.onlinecongress.it/Olc/Client/Content/Images/3374553451033716741080931/ProgrammePDF.pdf

Type

Conference paper