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El Jaouhari, Asmae, Samadhiya, Ashutosh, Kumar, Anil, Luthra, Sunil and Mulat-Weldemeskel, Eyob (2025) Towards net zero: how human capital development-enabled Industry 5.0 mitigates circular supply chain leakage under the environmental, social, and governance framework boundaries. Journal of Environmental Management. ISSN 0301-4797 (In Press)
Despite growing recognition of the significance of circular supply chains (CSC) in attaining net-zero goals and environmental sustainability, their long-term efficacy is nevertheless threatened by chronic leakage. With the goal of meeting this challenge, human capabilities should be strategically increased alongside technology improvements. In this regard, human capital development (HCD), which is the methodical development of talents, expertise, and flexibility, becomes a key factor in promoting creativity, adaptability, and cooperation so as to reduce CSC leakage. However, despite its significance, little is known about how HCD might support more efficient CSC within the larger Industry 5.0 (I5.0) paradigm. Through the alignment of human-centred knowledge and skills with the revolutionary and technical potential of I5.0, this study explores HCD as a strategic approach to limit CSC leakage. This study adopts the Environmental, Social, and Governance (ESG) paradigm and the dynamic capability view to analyze the factors that facilitate and hinder the use of HCD-enabled I5.0 for leakage reduction initiatives. The results show that integrating HCD into CSC promotes ESG-aligned transitions toward net-zero objectives while also enhancing flexibility and stakeholder cooperation. The research’s findings include: (1) developing a multi-stakeholder framework that combines human-focused technological innovation with ESG initiatives; (2) utilizing the SPARC (Social challenge, Pragmatism, Action, Result, and Connections) framework to demonstrate how HCD-enabled I5.0 can improve CSC resilience; and (3) providing a comprehensive strategy for preventing leaks through stakeholder-driven initiatives, collaborative human-capital outcomes, and improved ESG cooperation, with practical implications for scholars, practitioners, and policymakers.
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