Creating Territorial Value Through Circular Economy: Why Proximities Matter?

Chedrak Chembessi, Sébastien Bourdin, Andre Torre and Christophe Beaurain

Business Strategy and the Environment, 2025, vol. 34, issue 7, 8704-8724

Abstract: The circular economy (CE) represents a strategic approach to improving business sustainability. Worldwide, many companies have been adopting or implementing circular initiatives. However, the contribution of these circular practices to territorial value creation remains insufficiently explored. This study examines how CE initiatives generate territorial value through the activation of different forms of proximity—geographical, relational and institutional. Based on 70 semistructured interviews with 51 stakeholders in the Kamouraska region (Canada) and in La Rochelle (France), this research discusses how businesses, policymakers and community actors collaborate to optimise resource flows, foster innovation and enhance environmental performance. The findings reveal that CE initiatives strengthen local socio‐economic networks, facilitate knowledge cocreation and improve firms' adaptability to sustainability transitions. The use of proximity mechanisms enables companies to embed CE principles more effectively in their strategic models, which increases resilience and competitiveness. The results emphasise the importance of integrating CE beyond firm‐level practices and recognising the role of territorial governance in supporting sustainable regional or territorial ecosystems.

Date: 2025
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