Circular Economy Implementation in an Organization: A Case Study of the Taiwan Sugar Corporation

Abstract

The implementation of circular economy principles is increasingly seen as a viable way to promote sustainable development and reduce environmental impact. This case study examines the implementation of circular economy principles at the Taiwan Sugar Company (TSC), a leading sugar manufacturer in Taiwan. This study analyzes the company’s efforts to redesign its production processes, develop closed-loop systems, and promote resource efficiency. It also explores the challenges and opportunities associated with implementing circular economy principles in the sugar industry, such as the complexity of supply chains, the need for stakeholder engagement, and the availability of sustainable technologies. This study follows the principles of British standard 8001:2017 to implement the concept of a circular economy into the organization. This study finds that the Taiwan Sugar Company has made significant progress in implementing circular economy principles, including adopting renewable energy sources, using byproducts as raw materials, developing sustainable packaging solutions, and using the output products of the company to make another useful product for industrial or agricultural use. These initiatives will result in the reduction of waste, an increase in resource efficiency, and enhanced environmental performance. However, this study also identifies several challenges that the company faces in implementing circular economy principles, such as the lack of standardized regulations and guidelines, the need for investment in sustainable technologies, and the need for stakeholder collaboration. Overall, this case study provides valuable insights into the implementation of circular economic principles in the sugar industry and offers practical recommendations for other organizations seeking to adopt circular economy principles. This study highlights the importance of stakeholder engagement, technological innovation, and regulatory support in promoting a transition toward a more sustainable and circular economy.

1. Introduction

Since the late 1970s, the idea of a Circular Economy (CE) has been gathering speed and the attention of many researchers, customers, and companies [1]. The circular economy is an innovative and sustainable approach to resource management that aims to minimize waste, maximize resource efficiency, and promote closed-loop systems [2,3]. A CE is a regenerative model that seeks to create a more circular and inclusive economy, where waste is reduced, and materials are continuously reused, recycled, or repurposed. The circular economy concept is gaining momentum worldwide, as it offers a viable alternative to the traditional linear model of consumption and waste [4]. A CE can be defined as a system that “seeks to replace the notion of end-of-life with a focus on minimizing waste and reusing, recycling, and recovering materials throughout the production, distribution, and consumption process” [5].

The ultimate goal of the Circular Economy is to achieve sustainable development, which would lead to environmental quality, economic prosperity, and social equity for both present and future generations. To achieve this, novel business models and responsible consumer behavior are crucial [6]. Implementing a circular economy approach in an organization can lead to several benefits, including increased resource efficiency, reduced waste, lower operating costs, and enhanced environmental performance [7]. Several enabler factors such as business model innovation, knowledge management, top management support, an organizational resilience mindset, employee engagement, technological advancement, and organizational size can help achieve the goal of a circular economy in an organization [8]. While a universally accepted definition remains elusive, the circular economy represents a paradigm shift from a linear “take-make-waste” model to a regenerative system that mimics natural processes [9]. It goes beyond simply reducing waste, aiming to fundamentally redesign how resources are used, valued, and ultimately retained within an economic system. Instead of discarding products after their initial use, a circular economy prioritizes keeping materials in circulation at their highest value for as long as possible [10,11]. While the circular economy emphasizes resource optimization at a systemic level, approaches like frugal innovation highlight the role of resource efficiency at the micro-level. Iqbal et al. [12] demonstrate how frugal innovation, characterized by its focus on affordability, functionality, and resourcefulness, can contribute to sustainable development. This concept aligns with the principles of the circular economy by promoting the efficient use of resources and minimizing waste in product and service design.

The Taiwan Sugar Company (TSC), established in 1946, is a prominent state-owned enterprise in Taiwan, initially focused on sugar production. Over the decades, TSC diversified its operations into sectors such as agriculture, animal husbandry, biotechnology, and retail, making it a key player in Taiwan’s industrial landscape. The company’s origins trace back to the Japanese colonial period when sugar was a primary industry. Post-World War II, TSC was nationalized by the government of the Republic of China, playing a crucial role in Taiwan’s economic development. In response to changing market conditions, TSC diversified into rice and fruit cultivation, livestock products, and biotechnology [13].

Recently, TSC has integrated sustainability and circular economy principles into its operations, reflecting global trends towards sustainable development. Initiatives include reducing water and energy consumption, developing waste management systems, and pioneering projects like using sugarcane bagasse for bioenergy and converting livestock manure into organic fertilizers. TSC has also invested in renewable energy sources, installing solar panels, and exploring wind energy projects. Additionally, TSC has followed the British Standard [14] principles to successfully implement the circular economy principles in their organization, passing the verification of BS 8001 level optimization in February 2022. TSC promotes sustainable farming practices, reducing chemical fertilizers and pesticides, enhancing soil health, and implementing crop rotation and polyculture systems [15]. The company engages with local communities to promote environmental awareness and sustainability through educational programs and collaborations with academic institutions. Despite TSC’s progress, comprehensive academic studies evaluating its circular economy initiatives are lacking.

This research aims to fill this gap by analyzing TSC’s strategies and their impact on resource efficiency and sustainability, contributing valuable insights to the broader discourse on circular economy practices in the industrial sector. This paper creates a valuable method and plows a path for many other organizations that seek to contribute towards nature to achieve sustainability or a circular economy. The systematic framework developed for the case of the Taiwan Sugar Company includes all the possible combinations of methods and steps taken by the organization to show how it aims for the circular economy. Other organizations can follow the same practices or make some changes according to the nature of the business or situation to accomplish their objective of implementing a circular economy in an organization.

2. Literature Review

2.1. Overview of Circular Economy Principles

Circular Economy principles refer to the practices that promote resource efficiency, waste reduction, and sustainable production and consumption patterns [5]. At its core, the circular economy is about closing the loop of the linear economy, where resources are extracted, used, and then disposed of as waste. In contrast, a circular economy seeks to design out waste and pollution, keep products and materials in use for as long as possible, and regenerate natural systems. Several researchers in the last few decades have proposed different circular economy principles which include the “regenerative design” [16], “Cradle-to-Cradle” [17], “industrial ecology” [18], “reduction of resource use” [19], “traditional ReSOLVE framework” [1], “closing resource loop”, [20] and several others.

This study focuses on the implementation of Circular Economy principles outlined in British Standard [14] within an organization. Several factors make selecting the BS 8001:2017 Circular Economy principles framework for this study particularly suitable compared to other available frameworks. The BS 8001:2017 standard offers a comprehensive and structured approach to implementing circular economy principles within organizations, providing practical guidance and methodologies tailored to various industries and sectors. Unlike some other frameworks that may focus on specific aspects such as design or resource reduction, BS 8001:2017 offers a holistic perspective that encompasses multiple dimensions of circularity, including design, production, consumption, and end-of-life considerations.

One of the key strengths of BS 8001:2017 is its emphasis on integrating circular economy principles into organizational strategies, processes, and decision-making frameworks. This aligns closely with the objectives of this study, which seeks to explore the implementation of circular economy practices within a specific company context. By adopting the BS 8001:2017 framework, the study can systematically evaluate the company’s performance against a set of internationally recognized standards and best practices, providing a robust basis for analysis and comparison.

Furthermore, the BS 8001:2017 standard promotes collaboration and stakeholder engagement, emphasizing the importance of involving employees, customers, suppliers, and other relevant parties in the transition towards a circular economy. The framework’s focus on stakeholder engagement ensures that diverse perspectives and insights are considered in the development and implementation of circular economy strategies, enhancing their effectiveness and sustainability.

The circular economy concept is fundamentally rooted in principles of industrial ecology and closing resource loops. Industrial ecology provides the foundational understanding of how resource flows can be optimized within industrial ecosystems, which is essential for the development of circular economy practices. By implementing various approaches to closing material loops, such as reuse, remanufacturing, and recycling, the principles of industrial ecology are operationalized within the framework of a circular economy. This ensures a comprehensive approach to resource management that minimizes waste and maximizes resource efficiency.

The BS 8001:2017 standard supports these principles by providing a structured approach to integrating these methodologies into organizational practices. This standard complements other frameworks such as “regenerative design” and “Cradle-to-Cradle”, which prioritize eco-design principles and material cycling. Similarly, it aligns with the ”reduction of resource use” framework that emphasizes efficiency improvements and waste minimization, and the “traditional ReSOLVE framework” and “closing resource loop” methodologies that focus on resource recovery and reuse. By appreciating the contributions of these various frameworks, the BS 8001:2017 standard offers a comprehensive and adaptable approach that facilitates the implementation of circular economic practices within the company.

2.2. BS 8001: 2017 Principles of the Circular Economy in Organizations

The British standard BS 8001:2017 introduces six principles of the circular economy which are system thinking, innovation, stewardship, collaboration, value optimization, and transparency (See Figure 1). These six principles also serve as research themes and objectives for scholars interested in making progress in sustainable development through the use of the circular economy [21].

The first principle, system thinking, refers to thoroughly comprehending the organization’s nature. This involves awareness of the customers, stakeholders, employees, suppliers, raw materials, output products, byproducts, and other essential factors. Such knowledge enables making decisions that add value to the organization. Innovation, the second principle, involves generating new concepts related to products, services, or processes while keeping the environment in mind. The third principle, stewardship, entails comprehending and accepting accountability for all actions and choices made by management. For instance, when creating a product, the organization must consider factors such as raw material availability, byproduct utilization, potential customers, the environmental and social impact, and the value creation within and outside the organization. Stewardship aims to distribute responsibility among everyone involved in the organization towards achieving a circular economy. Collaboration, the fourth principle, aims to create an environment where all internal and external parties, such as customers, suppliers, governments, academia, society, stakeholders, and workers, realize their significance in the organization. This motivates them to support the organization’s objectives. The fifth principle, value optimization, emphasizes maximizing the value of all the organization’s products and exploring the use of byproducts to strengthen the organization financially and achieve circular economy goals. Finally, the sixth principle, transparency, advocates for openness and honesty in the organization’s activities and decision-making, building a sense of ownership and motivation among everyone involved.

Organizations can utilize the six principles of the circular economy as a reference for their decision-making and conduct. Each organization does not need to follow only these six principles. According to the requirement or condition, they can also modify these for the sake of benefits. They can also regularly assess the degree to which their culture and actions align with these principles.

Table 1. Comparative overview of Circular Economy Principles across different frameworks.

Principle	BS 8001: 2017	Ellen MacArthur Foundation	European Commission	Cradle to Cradle (C2C)
Circularity Focus	Flexibility, transparency, value preservation	Design out waste, keep products in use	Waste prevention, re-use, recycling	Continuous material cycles
Resource Efficiency	Maximize resource productivity	Optimize resource yields	Sustainable resource management	Safe and continuous material cycling
System Thinking	Holistic, interconnected approach	Systems perspective	Integrated lifecycle approach	Biological and technical nutrient cycles
Innovation	Encourages creativity, innovation	Foster innovation	Support for research and innovation	Innovative design and production
Stakeholder Engagement	Encourages active participation	Collaboration across value chains	Inclusive stakeholder engagement	Involvement of all stakeholders
Risk Management	Encourages proactive risk management	Consideration of risks and uncertainties	Comprehensive risk assessment	Risk minimization through design

allows for a more concise comparison of the key principles associated with various circular economy frameworks, demonstrating the unique focus areas and contributions of each specification.

2.3. Implementation of Circular Economy

The implementation of a circular economy in an organization is not an easy process. Korhonen [21] identified six different challenges to implementing the principle of the circular economy. Hence, to effectively implement circular economy principles, planning is essential. This involves mapping out the entire value chain, identifying areas where waste can be reduced, and designing products for reuse and recycling. Planning also involves engaging with stakeholders, such as customers, suppliers, and local communities, to ensure buy-in and support for circular economy initiatives. BS 8001:2017 provides a flexible eight-stage framework to help an organization implement the principles of the circular economy. The framework is shown in Figure 2. While the eight stages have been presented in a specific order, this is only for the sake of presentation. In reality, companies can probably start from any stage or shift between the stages as their level of maturity in circularity progresses.

Stage 1: Framing entails comprehending the concept and significance of the circular economy within the organization. This involves understanding how resources are managed throughout the organization and identifying the associated risks and opportunities. It is important to recognize both internal and external stakeholders and consider their perspectives and concerns regarding the organization. Additionally, raising awareness and generating enthusiasm amongst stakeholders about the benefits and opportunities of the circular economy is crucial.

Stage 2: Scoping involves developing a strategic plan for implementing circular economy practices within the organization. This includes defining short-term, medium-term, and long-term goals. It is essential to consider potential risks, opportunities, and obstacles that may arise during the journey toward circularity. Establishing a dedicated team to continually work towards achieving the circular economy goals is also recommended.

Stage 3: Idea generation focuses on generating a list of options and solutions to address the current and future challenges identified in Stage 2. This stage encourages the organization to foster a culture of innovation and creativity to continuously generate ideas for solving problems and improving practices.

Stage 4: Feasibility involves conducting a thorough assessment of the ideas and options identified in the previous stage. This assessment includes evaluating the value proposition, identifying the required capabilities, and exploring the revenue models. The help of famous proprietary tools such as the Business Model Canvas [22] and Value Proposition Canvas [23] can be utilized to assess the feasibility of different ideas.

Stage 5: Business case emphasizes the importance of developing a well-defined business case in advance to ensure preparedness for implementing the chosen initiatives. The business case encompasses a market analysis, the customer journey, the logistics and supply chain information, the financial considerations, the identification of potential obstacles, and the strategies for overcoming them.

Stage 6: Piloting and prototyping suggest conducting experiments to test the feasibility of developed ideas. This stage helps identify key stakeholders, validate objectives, and assess performance. It also aids in identifying necessary revisions to the existing business case.

Stage 7: Delivery and implementation stress the need to embrace and transition to new operational approaches aligned with the circular economy. If a specific plan demonstrates positive results toward the circular economy goals, the organization should develop and prepare for its implementation.

Stage 8: Monitor, review, and report entail continuously monitoring the performance of the implemented initiatives and ensuring their success through ongoing improvements. This stage highlights the importance of maintaining a positive organizational culture and being open to reviewing reports and making transformative changes whenever necessary for the organization’s success.

2.4. Hypothesis Development

• Economic Aspects (EA)

The economic aspects of circular economy practices focus on the financial benefits and cost savings associated with resource efficiency, waste reduction, and the adoption of sustainable business models. Implementing circular economy principles can lead to significant economic advantages, including lower production costs, reduced material expenses, and increased profitability through the creation of new revenue streams from recycled and reused materials [24]. Additionally, circular economy practices can enhance competitiveness and resilience by reducing dependence on raw materials and mitigating the risks associated with resource scarcity and price volatility [1].

• Environmental Aspects (ENVA)

Environmental aspects refer to the impact of circular economy practices on the natural environment, including the reduction of greenhouse gas emissions, conservation of natural resources, and minimization of waste and pollution. Circular economy strategies such as recycling, remanufacturing, and sustainable product design contribute to the creation of closed-loop systems that minimize environmental degradation and promote sustainable resource use [3]. The implementation of these strategies can lead to improved environmental performance, reduced ecological footprints, and enhanced ecosystem health [25].

• Social Aspects (SA)

Social aspects encompass the societal benefits of circular economy practices, including job creation, community development, and improved quality of life. By promoting sustainable consumption and production patterns, circular economy initiatives can generate employment opportunities in recycling, remanufacturing, and other green industries [26]. Additionally, these practices can enhance social equity by ensuring fair access to resources, fostering community engagement, and promoting social innovation [5].

• Degree of Concern and Impact

The degree of concern and impact are critical metrics for assessing stakeholder perceptions and the effectiveness of circular economy initiatives. The degree of concern reflects the level of stakeholder awareness and interest in the economic, environmental, and social aspects of circular economy practices. The degree of impact measures the actual influence of these practices on stakeholders and their engagement with the organization’s sustainability efforts. Understanding these metrics is essential for developing effective strategies and ensuring the successful implementation of circular economy principles.

• Relationship between Economic and Environmental Aspects

Economic aspects are positively related to environmental aspects as financial benefits and cost savings from circular economy practices often lead to an improved environmental performance. The reduction in material expenses and waste management costs directly contributes to the conservation of resources and minimization of environmental impact [24]. Thus, we hypothesize:

H1. 

Economic Aspects (EA) have a positive relationship with Environmental Aspects (ENVA).

• Relationship between Environmental and Social Aspects

Environmental aspects positively influence social aspects by promoting healthier ecosystems and sustainable resource use, contributing to an improved quality of life and community well-being. Environmental sustainability efforts can create job opportunities in green industries, enhancing social equity and fostering community development [3]. Therefore, we hypothesize:

H2. 

Environmental Aspects (ENVA) have a positive relationship with Social Aspects (SA).

• Relationship between Economic and Social Aspects

Economic aspects also positively relate to social aspects, as the financial benefits of circular economy practices can lead to greater social investments, job creation, and community engagement. Economic resilience and profitability enable organizations to support social initiatives and enhance societal well-being [26]. Consequently, we hypothesize:

H3. 

Economic Aspects (EA) have a positive relationship with Social Aspects (SA).

2.5. Research Procedure

This study follows a systematic and standard research procedure, which begins with an in-depth literature review to gain a comprehensive understanding of the topic and identify any gaps or areas for further investigation. In the case of the study of the implementation of circular economy principles, the literature review would involve examining relevant scholarly articles, books, reports, and other authoritative sources that discuss circular economy concepts and sustainable development.

Based on the findings from the literature review, appropriate principles and methods for implementing circular economy practices are selected and applied. This involves identifying the specific strategies and approaches that can be employed to promote resource efficiency, waste reduction, and sustainable production and consumption patterns within the organization. To effectively implement circular economy principles, short-term, mid-term, and long-term goals are formulated. These goals provide a roadmap for the organization, outlining the desired outcomes and milestones to be achieved at different stages of the implementation process. The goals are aligned with the selected principles and strategies, ensuring a coherent and focused approach toward circularity. As the implementation progresses, various changes and adjustments are made within the organization to align its operations and practices with circular economy principles. These changes can involve modifications to production processes, product design, supply chain management, waste management systems, and stakeholder engagement strategies.

Finally, a systematic framework is developed to guide the implementation process and ensure a holistic approach. This framework incorporates all the important factors, such as technological advancements, regulatory considerations, stakeholder collaboration, and the measurement of environmental and social impacts. The framework serves as a roadmap that outlines the interconnections and dependencies between different elements of the implementation process, providing a comprehensive and structured approach to achieving the common goal of circularity. Overall, the research procedure for this study involves conducting a thorough literature review, selecting appropriate principles and methods, setting goals, making organizational changes, and developing a systematic framework. This approach ensures a rigorous and structured investigation into the implementation of circular economy principles and their impact on the organization.

To implement the principles of a circular economy on the target organization of this research, detailed procedures are mentioned below for the different stages implemented for achieving the goal of the organization implementing a circular economy.

Stage 1: A study was conducted to understand how the circular economy might be relevant to the organization by understanding the associated risks and opportunities of resources used by the organization. Circular economy and environmental education and training were conducted on 11–12 August 2021 in the organization by Professor Hong Yao Ming of Nanhua University in Taiwan to create awareness and a sense of enthusiasm among their employees or different stakeholders.

Stage 2: After a detailed study and strategic plan, a roadmap was developed for short-term, mid-term, and long-term goals. The details of these goals are discussed in Section 3.3 and, to properly monitor and implement this road map, a special team/ working group was formed.

Stage 3: To tackle the problems or opportunities identified in Stage 2, different studies were conducted, and a later list of ideas/options was mentioned. The details are discussed in Section 3.4.

Stage 4: This step involves the feasibility studies of the action or idea generated earlier. To do this, a SWOT analysis was performed. The SWOT analysis is to identify a clear and comprehensive understanding of the current situation, which can then be used to inform strategic decision-making and make an action feasible. Different strategies for evaluation and selection are also crucial parts. More details about this stage are in Section 5.2.

This study only focuses on the first four stages of implementation of the circular economy. Since it is at the inception of the adoption of a circular economy by the organization, it is expected to implement other stages later when the organization fully adopts the changes.

3. Research Background and Information

3.1. TSC’s Circular Economy Concept and Planning

The Taiwan Sugar Corporation (TSC) is transitioning from a linear to a circular economy to address increasing resource demand and environmental concerns. The mission is to promote sustainable economic, social, and environmental development. TSC’s vision is to create a zero-waste/zero-pollution model, increase enterprise output value, and foster recycling cooperation. The strategy involves improving resource use efficiency in the short term, enhancing energy efficiency for a low-carbon model in the medium term, and promoting diversified development for a cooperative industrial structure in the long term.

3.2. Promote the Circular Economy Process of Oyster Shells

Calcium carbonate is a common substance found in rocks in all parts of the world (most notably as limestone) and is the main component of the shells of marine organisms, snails, coal balls, pearls, and eggshells [27]. The main sources of global calcium carbonate production are mining ore and calcining. The calcination of calcium carbonate (CaCO₃) is a major contributor to carbon dioxide (CO₂) emissions that are changing our climate [28]. Calcium carbonate produced by sintering is called ground calcium carbonate (GCC), which is an inorganic material because it comes from natural minerals. After secondary processing, adding water to dissolve, adding carbon dioxide and other reactions, and precipitation, a finer texture is obtained which is called precipitated calcium carbonate (PCC) [29]. After this processing, the price can be higher, but it is still an inorganic material. In replacement of this, it is found that the content of calcium carbonate in oyster shells is very high [30]. The calcium carbonate produced by recycling and processing cultivated oysters from oyster shells helps in reducing energy consumption, absorbing carbon dioxide and sequestering carbon, and is more environmentally friendly. The biomass materials produced through this are organic. So, countries in Europe, the United States, and Japan all use calcium carbonate materials made of oyster shells to make food-grade materials, healthcare materials, or medical equipment materials. Commercially available calcium carbonate is widely used in various industries such as plastics, rubber, paper, paint, ink, industrial cosmetics, pharmaceuticals, and toothpaste. With the rise in the demand for calcium carbonate all over the world, the international price of calcium carbonate gradually increases. The current estimated annual output of oyster shells in Taiwan is 169,000 tons [31]. If the oyster shell recycling industry chain in Taiwan is successfully integrated, it will have the opportunity to become the largest supplier of bio-based calcium carbonate in Taiwan. Also, it will have the opportunity to solve the environmental problems caused by local oyster shell stacking. Therefore, with the goal of the “Oyster Shell Biotech Materials Factory” becoming a benchmark enterprise in Taiwan’s circular economy and biorefining industry in mind, first set up a circular economy promotion team, set the structure and scope, establish a business model and promotion strategy, conduct a feasibility assessment, and establish operations with the marketing strategy and the rolling adjustment of the operation and management methods.

In 2017, TSC invested NTD 170 million in building an oyster shell biological material plant in collaboration with the Industrial Technology Research Institute (ITRI). The plant processes oyster shells into valuable biomass materials, providing resources for feed, fertilizers, and other applications, reducing dependence on imported materials.

3.3. Short-, Medium-, and Long-Term Goals of the Oyster Shell Circular Economy

To effectively implement the circular economy for oyster shells, TSC has outlined a series of short-term, medium-term, and long-term goals. These goals are structured to ensure a gradual and sustainable transformation towards a circular economy.

• Short-Term Goals (2018–2020)

The short-term goals focus on establishing the foundational infrastructure and processes necessary for the circular economy initiative:

• Establish an oyster shell processing plant to recycle discarded shells.
• Achieve green building standards, save energy and water, and reduce carbon emissions.
• Collaborate with research institutes for product applications.
• Begin plant operations and obtain production licenses.

• Mid-Term Goals (2021–2023)

The medium-term goals aim to stabilize and optimize operations, ensuring efficiency and expanding the scope of applications:

• Obtain necessary operational permits and ISO certifications.
• Optimize equipment and processes, and expand product applications to feed, fertilizers, and 3D printing.
• Enhance research and development in collaboration with academic and industrial partners.

• Long-Term Goals (2024–2026)

The long-term goals focus on expanding production capacity and further integrating sustainability practices into the operation:

• Expand production capacity to 50,000 tons per year.
• Source oyster shells from across Taiwan and outlying islands.
• Achieve carbon neutrality certifications and develop new applications for functional materials.

3.4. Complementary Corrective Measures in Response to Risks and Opportunities

To ensure the success of the oyster shell circular economy initiative, TSC has identified potential risks and opportunities and developed complementary corrective measures, as outlined in

Table 2. Complementary corrective measures in response to risks and opportunities.

Period	Risk Issue	Supporting Measures
Short-term (2018–2020)	Political considerations of local governments, and doubts about environmental sanitation	The original evaluation site was moved from Dongshi to Yongkang District, Tainan City
Mid-term (2021–2023)	Low prices for agricultural use and fierce competition	Seek industrial use
	Industrial use is expensive, low in usage, and slow in development time, and regulations need to be amended	Research and development in cooperation with academic institutions
Long-term (2024–2026)	Applications in various industries require relevant technical documents and materials, and the threshold for use is relatively high	Looking for willing and capable manufacturers to cooperate

below.

3.5. Business Objectives and Business Strategies

TSC’s initiative exemplifies transforming waste into resources, creating employment opportunities, and enhancing ecological sustainability. The business strategy focuses on the following:

• Efficient utilization and processing of oyster shell raw materials.
• Achieving zero pollution, zero waste, and zero accidents through advanced environmental management.
• Expanding the applications of calcium carbonate to various industries.
• Establishing a model for industrial innovation and circular economy practices.

4. Research Methodology

This study employs a comprehensive methodological approach to evaluate the implementation of circular economy principles at the Taiwan Sugar Company (TSC) Biotechnology Material Factory. Multiple methodologies are integrated to provide a robust analysis, including a structural model assessment, Impact–Attention matrix development, a feasibility assessment using SWOT analysis, and strategy evaluation and selection. This study employs a mixed-methods research design, integrating both quantitative and qualitative data analysis techniques to provide a comprehensive understanding of Taiwan Sugar Company’s transition towards a circular economy model. This approach was deemed most appropriate due to the multifaceted nature of the research problem, requiring both an assessment of stakeholder perceptions (qualitative) and an evaluation of strategic options using structured frameworks.

Specifically, this study utilizes a sequential mixed-methods design, beginning with the collection and analysis of quantitative data through a stakeholder survey. This data informs the development of an Impact–Attention Matrix and guides the identification of key factors for the subsequent SWOT analysis. The SWOT analysis, incorporating both internal documents and expert insights from the Taiwan Sugar Company, provides a structured assessment of the feasibility of implementing circular economy principles within the company’s biotech material factory. Finally, a strategy evaluation and selection process, drawing upon the insights obtained from the preceding analyses, identifies the most viable and impactful strategies for the Taiwan Sugar Company to pursue in its pursuit of circularity.

4.1. Data Collection

This study draws upon multiple data sources to ensure a comprehensive and robust analysis of the Taiwan Sugar Company’s circular economy transition. Data collection methods include a stakeholder survey, analysis of internal company documents, and expert consultations.

4.1.1. Stakeholder Survey

A questionnaire survey was conducted to measure stakeholder perceptions regarding the Taiwan Sugar Company’s circular economy initiatives. The target population comprised key stakeholder groups identified as crucial to the factory’s operations and impacted by its circular economy transition:

A.

The Operational Managers and Shareholders are as follows:

• Biotechnology Division.
• General Management Office.
• Planning Office.

B.

The Suppliers and Third Parties are as follows:

• Oyster Shell Suppliers: Ji Jin Fishery Marketing Cooperative, located in Chiayi County, Taiwan, and Jiesheng Environmental Co., Ltd., based in Tainan, Taiwan.
• Packaging Material Suppliers: Chengxin Industrial Co., Ltd., situated in Taipei, Taiwan, and Zhangming Enterprise Co., Ltd., located in Taichung, Taiwan.
• Third Party Logistics: Youheng Transportation Co., Ltd., which operates out of Kaohsiung, Taiwan

C.

The Waste Carrier is as follows:

• YingHe Company located in Tainan, Taiwan.

D.

The Customers are the following:

• Internal Customers: Taiwan Sugar Corporation’s Animal Husbandry Division, Recreation Division, and various district offices.
• External Customers: Nong Sheng Enterprise Co., Ltd. is located in Taichung, Taiwan. Fu Shou Industrial Co., Ltd. is based in Taipei, Taiwan. Mao Sheng Agricultural Economics Co., Ltd. operates out of Taipei, Taiwan. Fumao Oils & Fats Co., Ltd. is situated in Tainan, Taiwan. Taiwan Charoen Pokphand Enterprise Co., Ltd. is headquartered in Taipei, Taiwan. Formosa Plastics Corporation is located in Kaohsiung, Taiwan. Nan Pao Resins Chemical Co., Ltd. is based in Tainan, Taiwan. Uni-President Enterprises Corporation operates from Tainan, Taiwan. Great Wall Enterprise Co., Ltd. is situated in Taipei, Taiwan. Finally, Xie Xin Machinery Co., Ltd. is located in Taichung, Taiwan.

E.

The Employees are as follows:

• Internal employees of the biotechnology material factory.

F.

Media and NGO Organizations

G.

Government Agencies and Representatives of Public Opinion

H.

Community Residents

The questionnaire with 43 questions was carefully designed based on the framework provided by the Global Reporting Initiative (GRI) Standards to ensure a comprehensive assessment of Taiwan Sugar Company’s sustainability performance. The GRI Standards offer a widely recognized and credible set of guidelines for sustainability reporting, enabling organizations to measure and communicate their economic, environmental, and social impacts. A copy of the questionnaire is included in Supplementary Materials.

The questionnaire specifically focused on two key dimensions:

• Degree of Concern: measured the stakeholders’ level of concern regarding the economic, environmental, and social aspects of the Taiwan Sugar Company’s circular economy transition. A five-point Likert scale (1 = Not at all concerned to 5 = Extremely concerned) was used for each aspect.
• Degree of Impact: evaluated the stakeholders’ beliefs about the positive and negative impacts of the Taiwan Sugar Company’s circular economy initiatives on the same three aspects (economic, environmental, and social). A similar five-point Likert scale (1 = Very low impact to 5 = Very high impact) was employed.

The survey was administered online, ensuring accessibility and anonymity for the respondents. This response rate was deemed satisfactory to ensure a representative sample of the target population.

4.1.2. Internal Company Documents

The internal Taiwan Sugar Company’s documents, included the following:

• Sustainability reports: providing insights into the Taiwan Sugar Company’s existing sustainability practices and circular economy goals.
• Strategic plans: outlining the company’s vision and objectives related to circularity.
• Operational data: on waste generation, resource consumption, and production processes, used to assess the feasibility of implementing specific circular economy strategies.

These documents provided valuable contextual information and served as a basis for the SWOT analysis.

4.1.3. Stakeholder Communication

Effective stakeholder communication is essential for implementing circular economy practices in an organization. It fosters understanding, alignment, and collaboration amongst various parties involved in the transition. Recent research highlights the crucial role employees play in driving environmental sustainability within organizations, particularly through green innovative behaviors [32]. This underscores the importance of considering employee perspectives and engagement when implementing circular economy principles. By engaging stakeholders, the company builds trust, gathers insights, and garners support for circular economy initiatives. Transparent communication addresses concerns, clarifies objectives, and highlights the benefits of circular economy principles such as resource efficiency, waste reduction, and environmental sustainability.

Table 3. Communication channels of stakeholders of Taiwan Sugar Biotech Material Factory.

Category	Subcategory	Communication Channel	Frequency of Communication
Suppliers and third parties	Oyster shells and packaging materials suppliers	Telephone	Not fixed
	Third-party	Interview, telephone, E-mail	1–6 times/month
Client	External customers	Interview, telephone, E-mail	1–6 times/month
	Internal customers	Interview, telephone, E-mail	1–2 times/month
Waste processor		Interview, telephone, E-mail	Not fixed
Government agencies and representatives of public opinion		Interview, telephone, E-mail	1–2 times/month
Operation Manager and Shareholder		Interview, telephone, E-mail	1–2 times/month
Media and NGOs		Interview, telephone, E-mail	1–2 times/month
Residents		Interview, telephone, E-mail	Irregular
Staff		Interview, telephone, E-mail	At any time

outlines the specific communication channels for each stakeholder group, including interviews, telephone calls, and emails, facilitating two-way communication and active stakeholder participation. Prioritizing stakeholder communication ensures valuable insights and meaningful progress toward a sustainable and circular future.

5. Assessment and Result

The company first plans to use the circular economy team to identify the degree of concern and impact through stakeholder surveys, produce the concept of circular economy, provide considerations in the feasibility assessment, establish operational objectives and business strategies, and define the promotion of biotechnology materials factories. The structure, design, and scope of the circular economy are explained below.

5.1. Stakeholder Investigation and Analysis

Following the British Standard BS 8001:2017 six principles of systematic thinking on the circular economy and the requirement of the Global Reporting Initiative (GRI) Standard, the assessment of the current situation of the oyster shell biotechnology material factory is carried out, and the connection to the circular economy is constructed. The explanation is below.

5.1.1. Structural Model Assessment

In the structural model assessment, questionnaire surveys were employed to investigate the inter-relationship between the economic, environmental, and social aspects concerning the sustainable operation of the Taiwan Sugar Co., Ltd.’s Biotechnology Material Factory. Two sets of questionnaires were administered, each comprising 43 questions arranged into three sections. Where the first section measures variables like economic aspects with eight questions. The next section with 10 questions measures the environmental aspects and the other section with the remaining 25 questions comprise the social aspect variable. The first set measures stakeholders’ degree of concern regarding the economic, environmental, and social aspects. Conversely, the second set focused on measuring the impact of these aspects on the factory’s sustainable operation. This structured approach provided valuable insights into stakeholders’ perceptions and the relative importance of economic, environmental, and social considerations in driving sustainability within Taiwan Sugar Co., Ltd.’s operations. In each set the first eight questions are for the economic aspects, the next ten are for the environmental aspects and the rest are for the social aspects.

(a)

For Degree of Concern

For the assessment of the degree of concern of stakeholders, three variables were used to find the relationship among them. To establish the relationship and its verification, different hypotheses were developed. The list of hypotheses is as follows:

H1(a). 

Stakeholders’ concern for Economical Aspects (EA) positively influences their concern for Environmental Aspects (ENVA).

H2(a). 

Stakeholders’ concern for Environmental Aspects (ENVA) positively influences their concern for Social Aspects (SA).

H3(a). 

Stakeholders’ concern for Economical Aspects (EA) positively influences their concern for Social Aspects (SA).

The regression analysis results (

Table 4. Result summary of regression for the variable of the degree of concern.

Hypothesis	Regression Weights	Beta Coefficient	R2	p Value	Result
H1(a)	EA → ENVA	0.855	0.730	0.000	Supported
H2(a)	ENVA → SA	0.839	0.814	0.000	Supported
H3(a)	EA → SA	0.902	0.703	0.000	Supported

) provide strong support for all three proposed hypotheses:

• H1(a): EA → ENVA: The positive relationship between the Economic Aspects and Environmental Aspects is confirmed, with a Beta coefficient of 0.855 and an R² value of 0.730. This indicates that the Economic Aspects significantly influence the Environmental Aspects.
• H2(a): ENVA → SA: The positive relationship between the Environmental Aspects and Social Aspects is also supported, with a Beta coefficient of 0.839 and an R² value of 0.814. This suggests that the Environmental Aspects have a substantial impact on the Social Aspects.
• H3(a): EA → SA: The positive relationship between the Economic Aspects and Social Aspects is further validated, with a Beta coefficient of 0.902 and an R² value of 0.703. This implies that the Economic Aspects significantly influence the Social Aspects.

All three hypotheses were found to be statistically significant (p-value < 0.001), reinforcing the strength of the relationships identified in the model (Figure 3).

Overall, the results demonstrate that there are strong and positive interconnections between the Economic, Environmental, and Social Aspects. This finding underscores the importance of considering these factors holistically when developing and implementing sustainable strategies.

• (b) For Degree of Impact

For the assessment of the degree of impact of stakeholders, three variables were used to find the relationship among them. To establish the relationship and its verification, different hypotheses were developed. The list of hypotheses is as follows:

H1(b). 

The impact of Economical Aspects (EA) on stakeholders positively influences the impact of Environmental Aspects (ENVA).

H2(b). 

The impact of Environmental Aspects (ENVA) on stakeholders positively influences the impact of Social Aspects (SA).

H3(b). 

The impact of Economical Aspects (EA) on stakeholders positively influences the impact of Social Aspects (SA).

The regression analysis results (

Table 5. Result summary of regression for the variable of the degree of impact.

Hypothesis	Regression Weights	Beta Coefficient	R2	p Value	Hypothesis Result
H1(b)	EA → ENVA	0.734	0.538	0.000	Supported
H2(b)	ENVA → SA	0.814	0.663	0.000	Supported
H3(b)	EA → SA	0.942	0.971	0.000	Supported

) provide strong support for all three proposed hypotheses:

• H1(b): EA → ENVA: The positive relationship between the Economic Aspects and Environmental Aspects is confirmed, with a Beta coefficient of 0.734 and an R² value of 0.538. This indicates that the Economic Aspects significantly influence the Environmental Aspects.
• H2(b): ENVA → SA: The positive relationship between the Environmental Aspects and Social Aspects is also supported, with a Beta coefficient of 0.814 and an R² value of 0.663. This suggests that the Environmental Aspects have a substantial impact on the Social Aspects.
• H3(b): EA → SA: The positive relationship between Economic Aspects and Social Aspects is further validated, with a Beta coefficient of 0.942 and an R² value of 0.971. This implies that the Economic Aspects significantly influence the Social Aspects.

All three hypotheses were found to be statistically significant (p-value < 0.001), reinforcing the strength of the relationships identified in the model (Figure 4).

Overall, the results demonstrate that there are strong and positive interconnections between the Economic, Environmental, and Social Aspects. This finding underscores the importance of considering these factors holistically when developing and implementing sustainable strategies.

The findings of the analysis, highlighting the significant relationships between economic, environmental, and social aspects, offer valuable insights that can guide and enhance the research in several ways. Firstly, understanding the strong relationship between the economic aspects and environmental aspects underscores the importance of integrating economic considerations into environmental management strategies. This suggests that investing in environmentally sustainable practices can yield economic benefits, such as cost savings through resource efficiency and enhanced market competitiveness through green innovation. Secondly, the positive relationship between the environmental aspects and social aspects emphasizes the interconnectedness of environmental stewardship and social well-being. This implies that environmental initiatives aimed at reducing pollution, conserving natural resources, and promoting ecosystem health can also contribute to societal welfare by improving public health, enhancing quality of life, and fostering community resilience. By recognizing and leveraging these inter-relationships, the research can develop holistic and integrated approaches to sustainability that simultaneously address economic, environmental, and social objectives. Furthermore, these findings can inform the development of targeted interventions and policy measures aimed at maximizing synergies and minimizing trade-offs between different aspects of sustainability, ultimately facilitating the achievement of the sustainable development goals for the Taiwan Sugar Co., Ltd.’s Biotechnology Material Factory.

5.1.2. Identify the Degree of Attention and Impact

The Impact–Attention matrix was developed using data gathered from stakeholders through a questionnaire survey, allowing for the assessment of both the level of attention required and the impact of economic, environmental, and social aspects. The Impact–Attention Matrix is a strategic tool utilized across various domains to categorize tasks, projects, or ideas based on their impact and the level of attention they require. Impact signifies the potential effect or importance of a task, while attention refers to the effort or resources needed for its completion. The matrix typically comprises four quadrants: high impact, high attention (Top Right); high impact, low attention (Top Left); low impact, high attention (Bottom Right); and low impact, low attention (Bottom Left). Tasks falling in the high impact, high attention quadrant are critical priorities demanding immediate action and substantial resources, such as launching a product or resolving major customer issues. Conversely, low-impact, low-attention tasks involve minimal significance and effort, such as routine administrative chores. By plotting tasks on this matrix, individuals or teams can prioritize effectively, focusing on tasks with a high impact while minimizing time spent on low-impact activities, thus ensuring alignment with strategic goals and efficient resource allocation.

The matrix diagram drawn for the impact and attention is shown in Figure 5 The numbers depicted in the diagram correspond to the numerical entries in the questionnaire completed by the stakeholders.

The top six issues with the highest attention and impact are as follows:

(1)

Economic aspect: No. 5, which shows the concerns about the procurement expenditure from the local community.

(2)

Economic aspect: No. 7, which shows the concern about unfair competition, antitrust, and monopoly behavior by the company.

(3)

Social aspects: No. 28 shows the concern about human rights, education, and training of the security guards at the company.

(4)

Economic aspect: No. 6 shows the concern about whether the company conducts an anti-corruption risk assessment, provides necessary education and training, and takes actions against corruption.

(5)

Social aspects: No. 20 shows the concern about the shortest notice period for operational changes (such as closures and layoffs) or lost working hours due to industrial disputes, strikes, and factory closures.

(6)

Economic aspect: No. 8 shows concerns about if the company discloses tax policy.

The six issues with the least attention and impact are as follows:

(1)

Social aspect: No. 31 shows the concerns about the communication, development plan, and negative impact assessment of the local community in the operation of the factory.

(2)

Social aspect: No. 34 evaluates the impact of products and services on health and safety, and whether there are incidents of products and services violating regulations.

(3)

Social aspects: No. 36 shows complaints about violations of customer privacy or loss of customer information.

(4)

Social aspects: No. 37 shows the violations of major social and economic regulations.

(5)

Social aspect: No. 43 shows how much stakeholders care about the company making good use of land resources, helping to provide safe and nutritious food to eliminate hunger, and developing agricultural technology to promote sustainable agriculture.

(6)

Social aspects: No. 42 shows the concern about how much the factory invests in innovative research and development in products and services.

If the average value is used to analyze this information, it shows that the environmental aspect is generally valued, followed by the economic aspect, and the social aspect, which is relatively low. The results analysis is shown in

Table 6. Results analysis for the degree of concern.

Basic Information	Economic Aspect	Environmental Aspect	Social Aspect	Most Concerned Issue
Staff	3.54	3.89	3.69	42
Suppliers/partners/waste disposal	2.96	3.43	2.55	9
Client	3	3.72	3.33	9
Residents	3.16	3.83	2.93	14
Media and NGOs	4.69	4.4	4.52	37
Shareholder	3.88	4	4	43
Operation manager	4.88	5	4.74	43
Government agencies and representatives of public opinion	4.69	4.4	4.52	41
Average	30.8	32.67	30.28

, which shows that the environmental aspect needs to be included in the assessment items.

Topics of the most concern in each category are explained as follows:

(1)

Suppliers/third-party manufacturers/waste disposal and customers are most concerned about economic issue No. 9: the weight or volume of oyster shells used in the production process, the proportion of recycled materials used as raw materials for production, and whether to recycle products and packaging materials.

(2)

Community residents are most concerned about environmental issue No. 14: waste management.

(3)

The media and NGOs pay the most attention to environmental issue No. 37: violations of major social and economic regulations.

(4)

Government agencies and public opinion representatives are most concerned about social issue No. 41: the impact of historical culture and cultural asset preservation on society.

(5)

Employees are most concerned about social issue No. 42: investment in innovative research and development of products and services.

(6)

Shareholders and operating managers are most concerned about social issue No. 43: making good use of land resources, helping provide safe and nutritious food to eliminate hunger, and developing agricultural technology to promote sustainable agriculture.

Overall, the analysis suggests a greater emphasis on environmental aspects, followed by economic concerns, while social considerations appear to receive comparatively less attention. This indicates a need to include environmental factors more prominently in assessment criteria.

5.2. Feasibility Assessment

Feasibility assessment involves a methodical process of examining and analyzing the viability of different choices while considering factors like technical and organizational elements, as well as financial impacts [33]. It offers important insights and details that guide decision-making and planning for effectively implementing circular economy practices in a company. It allows businesses to make well-informed decisions, distribute resources efficiently, and optimize the advantages of implementing circular business models. This study uses a SWOT analysis for the feasibility assessment of implementing a circular economy in the TSC Biotech Material Factory.

5.2.1. SWOT Analysis of TSC Biotech Material Factory

A SWOT analysis is a strategic planning technique that evaluates internal Strengths and Weaknesses, along with external Opportunities and Threats. It assists organizations in recognizing factors that influence their goals and decision-making procedures. This SWOT analysis can help the company assess the feasibility of implementing circular economy practices by identifying internal strengths and weaknesses, as well as external opportunities and threats that may impact the transition process.

The results of the SWOT analysis of the Taiwan Sugar Biotech Material Factory are as follows:

(1)

Internal strength (S).

A.

By partnering with agricultural and fishery groups, academic institutions, and industry partners, the company can help farmers and fishermen turn local agricultural and fishery products into high-value health foods using biotechnology and equipment from the Taiwan Sugar Biotechnology Factory. This boosts the value of these products and supports public health.

B.

The company is swiftly utilizing oyster shells to create eco-friendly products and is actively pursuing BS 8001 circular economy certification. This demonstrates a commitment to sustainable practices and environmental education, aligning with global standards.

C.

The establishment of an oyster shell biotechnology material factory will improve the quality of life of residents and promote employment opportunities and economic development.

D.

The technology for recycling waste oyster shells to produce calcium carbonate can be used in agricultural and industrial settings in multiple ways.

E.

It can effectively improve the environmental pollution, odor spread, and landscape ecology, and even eliminate the source of germs caused by the random disposal of oyster shells on the western coastal areas.

F.

Through recycling technology, discarded oyster shells are transformed into calcium carbonate, serving as a “green mineral” resource for the company’s livestock and agricultural operations. This reduces reliance on imported materials and supports domestic manufacturing of feed and fertilizer, fostering self-sufficiency and sustainability.

(2)

Internal Weakness (W).

A.

The state-owned enterprise system has long service years for employees resulting in high personnel costs, and the average age of employees is going up. Recent retirements and slow recruitment of new staff have led to gaps in manpower and the risk of losing core technical expertise.

B.

State-owned enterprises must cooperate with government policies. Production, sales, and quantity are restricted, which affects sales profitability, and restrictions on laws and regulations make raw material procurement and bargaining power weak.

C.

The company lacks prior experience in recycling and processing oyster shells, posing challenges in establishing it as a new industry. Despite challenges, securing suitable industrial land near the Biotechnology Division resolves environmental impact assessment concerns for the plant site.

D.

People’s awareness of environmental protection is on the rise. To eliminate residents’ doubts about environmental pollution, Taiwan Sugar has increased the depth and frequency of communication with local opinion leaders and residents, emphasizing that the overall planning of the plant is designed by the Industrial Technology Research Institute based on the most stringent environmental and ecological assessments. As a result, the production process will comply with legal norms.

(3)

External Opportunities (O).

A.

The “Agricultural Waste Management Strategy” report prepared by the Environmental Protection Agency of the Executive Yuan in 2013 highlights the potential for an innovative utilization of oyster shells, opening the direction for new applications.

B.

With the advancement of science and technology and the improvement of the environmental protection concept of waste recycling, the development and diversification of related applications of oyster shells will help to increase the added value of oyster shells and promote the sustainable operation of the oyster farming industry.

C.

Addressing natural resource scarcity and mitigating long-distance transportation challenges through local utilization of oyster shells reduces carbon emissions and fosters the production of green, eco-friendly products. This trend will encourage the adoption of sustainable practices and contribute to environmental conservation efforts.

D.

Leveraging oyster shell utilization promotes local economic development and employment opportunities, fostering a mutually beneficial scenario and actualizing the principles of the “circular economy”. This not only supports regional growth but also ensures the efficient use of resources within the local ecosystem.

E.

The TSC Biotech Materials Factory uses discarded oyster shells as raw materials. After high-temperature calcination and fine crushing, it can produce a maximum of 40,000 metric tons of calcium carbonate per year, which can replace the traditional mining of rocks or imported white stones.

(4)

External threats (T).

A.

The accumulation of oyster shells makes it easy to breed mosquitoes and flies, and the odor produced by the heat can pollute the nearby environment.

B.

The added value of oyster shells is low, and the selling price is only about two yuan per kilogram. This means the company cannot make more money from only this practice.

C.

National awareness of environmental protection is rising, and environmental protection laws and regulations are becoming more and more stringent. This means the company might have to spend more money on equipment to follow the rules, like setting up three special dust collectors.

5.2.2. Strategy Evaluation and Selection

Strategy evaluation and selection refers to the process of assessing and choosing the most suitable strategies for achieving the organizational goals and objectives. The TSC Biotech Material Factory developed SO, WO, ST, and WT strategies derived from the SWOT analysis by combining these internal (Strengths and Weaknesses) and external (Opportunities and Threats) factors. Where the SO strategies emphasize the strengths and opportunities, the WO strategies tackle the weaknesses and opportunities, the ST strategies utilize the strengths against threats, and the WT strategies aim to minimize the weaknesses and threats. These approaches assist organizations in matching their internal abilities with external conditions to improve their competitiveness and long-term success.

(1)

SO Strategies (Strengths–Opportunities): establish partnerships and increase employment opportunities.

A.

Through the establishment of a cooperative relationship through strategic alliances, TSC Biotechnology cooperates with well-known enterprises and related health food industries to communicate with each other to create healthy and beautiful performances and promote a better environment.

B.

The construction of an oyster shell processing facility benefits the environment, economy, and industries by creating employment opportunities and adding value to waste.

(2)

WO Strategies (Weaknesses–Opportunities): promote the concepts of environmental protection and circular economy to achieve corporate social responsibility.

A.

To integrate company resources and establish friendly environmental measures and explanatory resources in the field, to promote and introduce to visiting people from all walks of life, enhance people’s concept and knowledge of environmental protection and the circular economy, and fulfill corporate social responsibility.

B.

To advocate and promote the industrial model of environmental recycling, and actively work towards the goals of waste reduction, zero-emissions, carbon reduction, and the creation of added value.

(3)

ST strategies (Strengths–Threats): strengthen the concept of waste utilization among colleagues to improve production efficiency.

To assign colleagues to participate in the course credits of environmental education, which can effectively alleviate the problems caused by the random disposal of oyster shells.

(4)

WT strategies (Weaknesses–Threats): in response to this trend, adjust the focus of operation and improve the overall efficiency.

A.

The company collaborates with universities and researchers on projects related to the environment. It also joins global events about eco-friendly technologies to meet others and work together on making the world greener.

B.

The company acknowledges that the circular economy is gaining traction globally and is a fundamental concept for international development. Taking into account Taiwan’s agriculture, which generates significant waste, oysters stand out for their ability to absorb carbon dioxide and purify seawater. Additionally, oyster shells present an endlessly recyclable resource. Establishing an oyster shell biotechnology material factory could enable the domestic oyster industry to achieve a closed-loop system, fostering a genuine circular economy. This initiative is not only a sound idea but also a lucrative business opportunity. It will mitigate landscape impact, environmental pollution, disease transmission, and odor associated with haphazard oyster shell disposal, thereby enhancing residents’ quality of life and stimulating local economic development.

Each of these strategies plays a vital role in advancing the company’s goals within the circular economy framework by leveraging its internal strengths, addressing weaknesses, capitalizing on opportunities, and mitigating threats. By integrating circular economy principles into strategic decision-making, the company can drive innovation, enhance competitiveness, and contribute to sustainable development.

5.3. TSC Circular Economy Systematic Thinking Framework Output

Based on the previous discussions and outcomes, the figure below illustrates the systematic thinking framework of TSC’s circular economy (Figure 6). The framework addresses both upstream and downstream supply chains. Upstream activities encompass the oyster shell origin and the supplier of oyster shells, while downstream activities involve agricultural and industrial applications. Environmental protection regulations are given importance by implementing measures such as flood storage tanks, rooftop solar panels, environmental education facilities, and dust generated from oyster shells to prevent air pollution.

The TSC also incorporates social and environmental policies by establishing a circular economy team to promote circular economy practices within the organization. This not only helps in achieving the circular economy goal but also aligns with the government’s 5 + 2 industrial policies. Furthermore, TSC identifies the interested stakeholders and determines their concerns and expectations from the organization.

It is important to note that the current framework is subject to modification as per the changing needs of the organization and the evolving circumstances over time.

This framework is designed to keep in mind reaching the goal of the BS 8001:2017-based 6 principles of a circular economy. For example, the first principle, the system thinking principle, is reflected in the detailed analysis of upstream or downstream operations. This can be shown by how the input resource of the oyster is collected, keeping in mind that all the resources are from a sustainable source. For this recycled oyster shells are also used after grooming and cleaning as the main input resource. It is also taken into consideration that the downstream use of the product also meets the requirement of sustainability. In the downstream operation, the product is used in agricultural and industrial applications. In agricultural applications, the product is used as fertilizer for the land cycle and as animal food for the biological cycle. The product is also used for functional building materials, 3D printing, and other industrial applications.

The second principle about the innovation of new ideas or products is shown in all four phases of this framework. All four phases show fresh thinking for example using the recycled oyster shell, using byproducts as functional building materials, implanting rooftop solar and flood storage tanks, and doing impact and attention analysis for stakeholders are all the unique innovations implemented here.

The third principle of stewardship can be seen from the management decision taken from the upstream to the downstream, showing how the organization has taken into consideration the environmental and social impact of their resources. The fourth principle of collaboration is reflected in the phase of social and environmental policy. This shows how the organization gives importance to their stakeholder and uses their responses for the formation and shaping of the policy of the organization. Organizations also give the same importance to the nation or government goals which clearly shows how much the organization is open to collaboration from different parties for achieving their common goals.

The fifth principle of value optimization is shown from the innovative approach of finding different uses for the byproducts. Another finding from the installation of the rooftop solar and flood storage is that it adds value to all the resources that can be used or generated by the organization. And finally, the sixth principle, transparency can be found in the connection established between stakeholders. A proper communication channel was established between each stakeholder to get their response or suggestions.

5.4. Implementation, Assessment, and Results of TSC’s Circular Economy Transition

The Taiwan Sugar Corporation (TSC) has effectively integrated various departments and divisions to promote a circular economy. This collaboration involves the utilization of by-products and waste materials across different business units, leading to innovative applications and resource optimization. The following outlines the tangible results from TSC’s circular economy initiatives.

5.4.1. The Carbon Reduction Benefits Are as Follows

• TSC’s Oyster Shell Calcium Carbonate: uses natural gas, resulting in a carbon footprint of 0.02255 metric tons of CO₂e per ton.
• Traditional processing: uses heavy oil, resulting in 0.043 metric tons of CO₂e per ton.
• Mining of Ore: results in 0.18 metric tons of CO₂e per ton.

5.4.2. The Reduction of Oyster Shell Waste Is as Follows

• Total recycled waste: by the end of 2021, TSC recycled and treated 3012 tons of oyster shells.
• Applications: Oyster shells are used for handmade artworks, raw materials for feed and fertilizers, artificial fishing reefs, and replacing traditional cement breakwaters.

5.4.3. The Solar Panel Installation Results Are as Follows

• Current capacity: TSC has installed rooftop solar power equipment in 39 locations with a total capacity of 14.02 MW.
• Past achievements include the following:

  ○

  2019: 4.56 MW generating 519.07 MWh (24.84% increase).

  ○

  2020: 12.30 MW generating 1166 MWh (124.63% increase).

  ○

  2021: 322.79 MW generating 23,153 MWh (1885.67% increase).

5.4.4. Financial Performance

The transition to a circular economy has brought significant positive outcomes for TSC including the following:

• Revenue growth: TSC’s total revenue increased from NTD 29,913 million in 2020 to NTD 32,461 million in 2022, marking a 6.27% growth in operating income and a 289.33% increase in other income during this period [34].
• Profit improvement: despite some fluctuations, TSC managed to maintain profitability with net incomes of NTD 4567 million in 2020, NTD 3908 million in 2021, and NTD 2428 million in 2022. The net profit margin, while experiencing a decrease, remained at a respectable 8.42% in 2022 [34].
• Cost savings: through various circular economy initiatives, including energy efficiency improvements and waste reduction strategies, TSC has effectively managed its operating costs. For instance, the operating costs were NTD 19,825 million in 2020 and increased to NTD 22,855 million in 2022, a controlled growth relative to the revenue increases.

6. Conclusions

This study has demonstrated how the Taiwan Sugar Company has successfully planned to implement circular economy principles in its operations according to the principles of BS 8001:2017, which will help in reducing waste and promoting resource efficiency while enhancing its sustainability performance. Through adopting sustainable production and consumption patterns, TSC has been able to promote environmental protection, reduce its carbon footprint, and enhance its competitiveness in the market. This case study has identified several key success factors contributing to TSC’s effective implementation of circular economy principles. These factors include the company’s strong commitment to sustainability, the engagement of stakeholders, the adoption of innovative and sustainable technologies, and the development of sustainable packaging solutions. The company’s ability to align its sustainability objectives with its business goals has also been a critical factor in promoting the adoption of circular economy principles across the organization. Furthermore, this study has identified some challenges and opportunities associated with implementing circular economy principles. These challenges include the complexity of supply chains, the lack of standardized regulations and guidelines, and the need for stakeholder collaboration. However, there are also opportunities for innovation, such as the development of new sustainable technologies and the creation of new markets for circular products. This case study has also demonstrated the importance of stakeholder engagement in the successful implementation of circular economy principles. TSC has engaged with a range of stakeholders, including customers, suppliers, and local communities, to promote the adoption of circular economy principles and to foster a culture of sustainability across the organization.

One limitation of this research lies in its focus on a single case study of the Taiwan Sugar Company, potentially limiting the generalizability of the findings to other organizational contexts. Additionally, reliance on qualitative data and the examination of only the initial stages of circular economy implementation may restrict the depth and breadth of the insights obtained. Further, this study does not explore the long-term impacts or outcomes of circular economy initiatives, and data availability and accuracy may pose constraints on the robustness of the analysis.

Overall, this case study provides valuable insights into the implementation of circular economy principles in the industry and offers practical recommendations for other organizations seeking to adopt circular economy principles. This study highlights the importance of stakeholder engagement, technological innovation, and regulatory support in promoting the transition toward a more sustainable and circular economy. In conclusion, the Taiwan Sugar Company has demonstrated that circular economy principles can be successfully implemented in the sugar industry, providing a model for other organizations seeking to promote sustainable development and environmental protection. This study highlights the need for a collaborative approach to sustainability, involving all stakeholders in the transition towards a more circular and sustainable future. This study also expects to do future research to find out the outcome of implementing the circular economy principle in the organization. And how it may help the organization financially and what impact it can create in the lives of people and society.