A three-tier framework for regulated closed-loop supply chains: Low carbon operations and climate change mitigation

Climate change is a critical problem affecting all walks of life. In operations and production systems, closed-loop supply chain (CLSC) management has emerged as a key strategy for promoting sustainability by integrating waste reduction, product recovery, and lifecycle management. However, achieving sustainability goals often places additional pressure on firms, which may face operational and strategic barriers in adopting such practices. Government intervention can play a pivotal role in alleviating these pressures by sharing the responsibility for sustainable development and incentivizing firms to enhance their circular practices. In this paper, we provide a critical review of the current state of regulated CLSCs, with a particular focus on their implications for sustainability, the importance of low-carbon operations, and climate change mitigation. We propose a novel three-tier framework that encompasses: (i) Technology-Organization-Environment (TOE) enablers, (ii) decision-making processes, and (iii) Triple Bottom Line (TBL) outcomes. This framework offers an integrated lens for analyzing the complex interplay between regulation and CLSC dynamics, and serves as a foundation for future research.