Circular economy, emissions reduction and ESG risk: evidence from B Corp food firms

This study examines the role of B Corp-certified companies in promoting responsible consumption, reducing food waste and advancing sustainable development through circular economy practices. It further explores how local initiatives, including food redistribution and composting, contribute to environmental performance and how sustainable business models integrate environmental, social and financial objectives while addressing operational and ESG-related risks.

A mixed-methods approach combining quantitative and qualitative analyses was employed. The quantitative analysis assessed food waste diversion, CO₂ emissions reductions and the implementation of circular economy practices. The qualitative analysis examined corporate strategies related to waste reduction, sustainability alignment and responsible consumption. Data were collected from a representative sample of international B Corp-certified food companies.

The findings indicate that B Corps actively promote circular economy practices, reduce food waste and encourage responsible consumer behavior through resource-efficient strategies across the food system. Local initiatives, such as composting and food redistribution, were associated with measurable reductions in CO₂ emissions, highlighting the environmental benefits of targeted circular actions. The results also show that B Corp-certified companies adopt business models that integrate social, environmental and economic objectives, with evidence suggesting potential contributions to operational resilience and ESG risk management, although tensions between profitability and long-term sustainability remain.

This study is limited by its focus on a selected sample of food-sector B Corp-certified companies, which may not fully capture the diversity of B Corp practices across industries or regions. Quantitative analyses relied on company-reported CO₂ reductions, food waste diversion and financial metrics, introducing potential measurement and reporting biases. The econometric model for CO₂ avoidance, while highly predictive, does not account for unexpected economic or regulatory fluctuations. Longitudinal effects on profitability, social impact and scalability of initiatives remain underexplored. Future research should expand industry scope, incorporate independent environmental data and examine long-term performance trends.

B Corp companies face challenges in balancing financial returns with environmental and social objectives. While initiatives such as food redistribution, composting and CO₂ reduction demonstrate clear environmental benefits, declining ROE and fluctuating profit margins indicate financial volatility, particularly during crises or international expansion. Operationalizing circular economy practices across diverse regions with varying regulatory and institutional support can limit scalability. Furthermore, integrating ESG risk management into business models demands organizational capacity and stakeholder coordination. Achieving sustained impact requires adaptive strategies, enhanced financial planning and supportive policy frameworks to reconcile economic viability with environmental and social objectives.

This study contributes to the literature by examining the relationship among B Corp certification, circular economy practices and sustainability-related performance in the food sector. The findings suggest that B Corps can support sustainable consumption and reduce environmental impacts while reinforcing organizational resilience through integrated sustainability strategies. The study also provides practical insights for businesses and policymakers seeking to incorporate circular practices into operational and strategic sustainability frameworks.