Does supply chain sustainability benefit from formal scavenging? A case study in circular settings

Formal scavenging grants material circularity, but its potential contribution to the sustainability of a Supply Chain (SC) is far from being a trivial issue. Thus, this paper aims to understand what is the impact of formal scavenging on the sustainability of an SC and quantify it. Accordingly, a case study in an Italian Pulp and Paper circular SC was developed through the lenses of the Triple Bottom Line. This SC consists of five groups of stakeholders and a formal scavenger that collects and redistributes wastepaper. The findings show that, in a one-year time window, the formal scavenger generated an economic value of over €3 million and led to saving 718 tCO2e and an energy equivalent to that consumed by 1000 average Italian families every year. In addition, it created new stable jobs and directly contributed to decreasing the waste tax in the geographical area in which it operates. Furthermore, formal scavenging proved to be effective in building up SC resilience in the face of unexpected changes in the prices and volumes of wastepaper. The results contribute to framing formal scavenging as a collaboration-based solution to enable the achievement of sustainability benefits in closed-loop SCs and provide actionable suggestions for SC managers and policymakers.