Different sustainability goals are often treated as if they naturally align. In practice, firms face real tensions. Managing those trade-offs is key to reducing environmental impact.
Professor Jonatan Pinkse, Research Director at the Centre for Sustainable Business, King’s Business School
27 April 2026
Why some green solutions can increase emissions
Researchers argue recycling and reuse can increase energy use, making emissions harder to cut.
New research study from King’s Business School argues that some circular economy strategies can increase emissions rather than reduce them.
Published in the British Journal of Management, the article presents a framework which shows that efforts to cut waste and switching to alternative materials can raise energy use. This can make it harder for firms to reduce greenhouse gas emissions at the same time. The framework was developed in collaboration with researchers from Imperial College London, the University of Greenwich, the University of Essex, the University of Bath and Oregon State University.
The insights come as businesses face growing pressure to meet environmental targets, a challenge likely to be in focus during Productivity Week 2026 (WC 27 April 2026).
The research uses The LEGO Group to show how these tensions play out in practice.
The company explored alternative materials in 2023, including plant-based plastics, to reduce reliance on fossil fuels and support its sustainability goals. However, these materials proved difficult to scale while maintaining the durability and quality of LEGO bricks.
As a result, the changes did not automatically reduce overall emissions. In some cases, producing and processing alternative materials can require more energy, highlighting the trade-offs firms face when trying to cut both waste and emissions at the same time.
The study argues this is not unique to LEGO. Actions that support a circular economy, such as recycling or refurbishment, can increase energy demand across production systems.
The researchers describe a “vicious cycle”, where firms create new environmental trade-offs when pursuing different goals in isolation. They also identify a “virtuous cycle”, where firms redesign products and supply chains to better align net zero and circular economy aims.
What matters is how firms manage these “vicious” and “virtuous” tensions. Companies need to rethink how products are designed and how supply chains work if they want sustainability goals to reinforce each other.
Rajat Panwar, Professor of Responsible and Sustainable Business at Oregon State University
The study suggests that reducing emissions requires more than individual green initiatives. Instead, firms need to coordinate changes across materials, processes and supply chains. The authors say policymakers may also need to recognise that different environmental targets can interact in unexpected ways.
Read the full study: Reconciling circular economy and net zero: firm capabilities to resolve sustainability tensions, published in the British Journal of Management.
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Research Director, Centre for Sustainable Business