Redefining Progress: The Promise of Circular Economy

Nov 11
4 min read

Across industries and policymaking, the term “circular economy” has become a rallying call for sustainable transformation. But what does it truly mean? The Ellen MacArthur Foundation defines the circular economy as an economic system that is restorative and regenerative by design, aiming to keep products, components, and materials at their highest utility and value at all times. Instead of the traditional “take, make, use, dispose” production model, circularity seeks to close loops, extend resource use, and eliminate the very notion of waste.

Why the Circular Economy Matters

The circular economy offers tangible solutions to the most pressing challenges of our time. Our current linear model is driving us toward planetary boundaries, resource extraction now accounts for more than 90% of biodiversity loss and half of global greenhouse gas emissions, according to the United Nations Environment Programme. In a circular system, waste is designed out from the beginning. Materials are continually reused, renewable resources replace finite ones, and products are engineered to last, benefitting the environment while also boosting economic resilience by reducing reliance on rare or imported resources.

Foundational Principles

At its core, the circular economy rests on three principles:

Design out waste and pollution: Rethink product creation so materials can be safely reused or returned to nature.
·Keep materials in use: Encourage reuse, repair, remanufacturing, and recycling of resources.
Regenerate natural systems: Focus on restoring ecosystems and prioritizing renewable energy and resources.

The goal is not simply to limit damage, but to create systems that actively regenerate.

From Theory to Practice: Two Examples from BtB & BtC

Philips

While many companies experiment with circular practices, Philips stands out for integrating circular economy at scale within healthcare technology. Rather than just selling medical devices, Philips embraces a “product as a service” model, retaining ownership and responsibility for equipment throughout its lifecycle. When a hospital’s imaging system is outdated, Philips refurbishes or recycles the equipment, refurbishing what can be reused and reclaiming materials from the rest. This approach prolongs product lifespans, allows for re-manufacturing, and minimizes waste. By 2025, Philips aims for at least 25% of its sales to come from circular products, services, and solutions, all part of a comprehensive commitment to zero waste and responsible end-of-use management.

This model not only reduces environmental impact, refurbished medical equipment can cut the carbon footprint by 28% compared to new devices, but also makes high-quality healthcare technology accessible to more markets through lower costs and efficient resource use.

Philips’ circular transformation is made possible by clear leadership, concrete sustainability targets, and a business rationale that sees circularity as key to competitiveness and customer relationships.

Patagonia

In the lifestyle sector, Patagonia’s Worn Wear program stands out as a proven circular economy initiative. By offering garment repair, trade-in, and resale services, Patagonia enables customers to keep clothing in use longer, thereby reducing waste and conserving resources. Initiatives like Worn Wear make circularity practical for everyday consumers, as they can easily repair or recycle their clothes instead of discarding them. This model not only supports environmental goals but also builds a culture of conscious consumption and community engagement.

Circularity at the Urban and Industrial Scale

Circular innovation goes beyond businesses, it is reshaping cities and entire industrial ecosystems. In Denmark’s Kalundborg Symbiosis, 17 companies form a pioneering network where the waste of one becomes the resource of another. Over 20 different waste streams flow between partners, from power plants to farms to pharmaceutical companies, maximizing resource utilization and driving economic gains while cutting costs and environmental impact.

This collaborative model has evolved for six decades, with each new project organically expanding circular practices. Kalundborg’s story shows how circularity creates resilience and fosters continual search for better business practices.

Enabling Circularity: Policy and Education

Robust policy frameworks are vital for accelerating the adoption of circular principles. The European Union’s Circular Economy Action Plan and similar national strategies in Japan and Finland commit to sustainable product design, “right to repair” laws, and new standards for waste prevention. Universities, such as Delft University of Technology and University College London, are cultivating the next generation of circular economy leaders through research and system-level education.

The Opportunity Ahead

The beauty of circular economy lies in its optimism: it moves the conversation from scarcity to abundance, from depletion to regeneration. The circular economy is not just about doing less harm, but about designing for a future that thrives by default. Success depends on aligning policy, creativity, innovation, and consumer awareness. As we look to the future, the reinvention of growth through circularity may well define this century.

Ready to Lead Change?

Circular thinking transforms challenges into opportunity. Take the next step and join a community that is actively shaping the circular future with an ambition to engage partners, Dreamholders, users and customers, sharing knowledge and opportunities.

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