Impact of Circular Supply Chain Practices on Firm’s Sustainable Performance : Evidence from Chemical Industry in Pakistan

Abstract

This research examines the impact of Circular Supply Chain Management practices on the Environmental, Social, and Governance (ESG) Sustainable Performance of the chemical industry in Pakistan. Focusing on reverse logistics, remanufacturing, and resource efficiency, the study aims to provide empirical insights into factors influencing sustainable supply chain performance. This study employs three independent variables and one dependent variable. Quantitative research approach is used for this study, and data was gathered using a standardized questionnaire. The online questionnaire was filled out by 152 respondents which were supply chain personnels from ten major chemical firms operating in Rawalpindi/Islamabad. The data was analyzed using SPSS software. To evaluate the proposed hypothesis, regression analysis was performed. The study validates positive relationships between CSCM practices and Sustainable Performance within the chemical industry. Reverse Logistics, Remanufacturing, and Resource Efficiency show significant positive correlations with improved ESG Sustainable Performance. These findings underscore the importance of adopting environmentally friendly practices, handling product returns efficiently, and optimizing resource use to enhance sustainability in the chemical sector. The research suggests that implementing CSCM practices can lead to increased sustainability and competitiveness for chemical firms in Pakistan. The positive correlation between these practices and sustainable performance highlights the need for strategic planning and investment in technology to achieve efficient resource management. This has broader implications for the industry, emphasizing the potential to contribute to economic growth in Pakistan.