In an era where sustainability and digital transformation converge, the shift towards a circular economy has become imperative for businesses worldwide. To explore the intricate dynamics of this shift, I, Naveen Ali, spoke with Manuel Vexler, co-founder and executive director of the Actionable Knowledge Foundational Institute (AKFI). I’m currently a Master's in Sustainability Management student at American University, and I have been working as a researcher with AKFI for the past two years on a white paper that explores the roles, responsibilities, and mandates of Chief Sustainability Officers. globally. This collaboration has provided hands-on experience in Enironmental, Social, Governance (ESG) and circular economy projects, and I am thrilled to share Vexler’s insights with the larger AU community, including opportunities for students to get directly involved with the circular economy.
With a rich background in technology, business strategy, and sustainability, Vexler offers a unique perspective on how organizations can effectively transition to circular models while driving social and economic value.
"My journey into sustainability began with a passion for digital transformation and AI," says Vexler, whose career has spanned senior roles at AMD, Cisco, and Huawei. These experiences allowed him to combine his expertise in ICT (Information and Communications Technology) with a commitment to sustainable development. As co-host of the "Actionable ESG Talks" series and a visiting lecturer at Cornell University, Vexler continues to mentor the next generation of leaders in sustainability and digital transformation.
AKFI stands at the forefront of integrating sustainability, ESG principles, and digital transformation. According to Vexler, “AKFI provides a collaborative platform where enterprises can bridge the gap between technological innovation and sustainability goals.” The organization focuses on creating actionable standards that enhance supply chain efficiency, minimize waste, and promote transparency across industries.
One of AKFI's flagship initiatives is the whitepaper titled “Sustainable Synergy: Bridging the Reporting Gap between Tire and Car Manufacturers.” This project emphasizes the importance of aligning sustainability reporting within the automotive supply chain, which enhances transparency and accountability. “By promoting lifecycle management and resource efficiency, this project is a step forward in reducing environmental impact,” Vexler explains.
Vexler advises companies to start with a comprehensive assessment of their existing processes as transitioning to a circular economy is challenging due to existing infrastructure limitations and the need for cultural shifts. Many companies still rely on linear systems that are not designed for circular practices like recycling or resource recovery, making retrofits costly and complex. Additionally, there may be resistance to change among employees and stakeholders who are comfortable with established processes. Overcoming this requires clear communication and changing management strategies to build support for new initiatives.
First, we need to understand what materiality means, “Information is materials if omitting, misstating or securing it could reasonably be expected to influence investor decision.¹” Double materiality is a forward-looking concept that broadens corporate decision-making beyond traditional financial considerations.