Top 10: Circular Economy Strategies

The circular economy is about eliminating waste and keeping resources in use, reducing environmental impact and allowing nature to regenerate

The traditional linear ‘take, make, waste’ model is unsustainable and has caused significant environmental damage. To prevent further harm, a swift transition to a circular economy is vital. Here are ten key strategies to help make that shift.

Here, Scope 3 Magazine ranks the 10 circular economy strategies.

10. Design for durability and repairability 

Top benefit: Products can be fixed

Key businesses: IKEA, Patagonia, Fairphone

Designing durable products increases their lifespan, reducing waste by keeping items in use for longer. Repairable products don't need to be discarded when they break, as they can be easily fixed.

IKEA ensures its products are made to be repaired, repurposed, reused, resold and recycled rather than becoming waste.

Jesper Brodin, CEO of Ingka Group, explains: "If you look at our tradition and history, long before anybody could spell sustainability, it was about reducing air in the packages, filling up the containers, making a flatpack.

“The only way IKEA can be successful in the future is to be in a hurry to get sustainable."

9. Product life extension

Top benefit: Products last longer

Key businesses: Levi Strauss & Co, Philips, Dyson

Extending product life maximises the use of resources, reducing the demand for new raw materials. Levi’s, for instance, introduced 'Care Tag for Our Planet,' offering customers advice on how to maintain and preserve their clothing.

Jeffrey Hogue, Chief Sustainability Officer at Levi Strauss & Co, states: "To make real progress on the most important issues the industry is facing, we’ll need new types of leadership, partnership and commitment... that move us forward in ways that benefit all our stakeholders."

8. Resource efficiency and optimisation

Top benefit: Less raw materials used

Key businesses: Siemens, Unilever, Toyota

Efficient material use maximises value while reducing waste, benefiting both the planet and the economy. Strategies such as material substitution and energy recovery play a crucial role in achieving this.

Siemens is at the forefront of resource efficiency, leveraging advanced technologies like smart grids, digital twins and automation to optimise processes.

Judith Wiese, Chief Sustainability Officer at Siemens, emphasises: "At Siemens, sustainability and improving lives through technology with purpose is at the heart of everything we do. We are committed to supporting and empowering the people, communities and societies we serve on their sustainability journey."

7. Reuse and sharing platforms

Top benefit: Less new products manufactured

Key businesses: Airbnb, Lime, Vinted

How often have you purchased something only to use it once? Reusing and sharing items prevent the production of new goods that would see minimal use.

Vinted, a platform for buying and selling second-hand fashion and other items, helps reduce waste. Each second-hand purchase on Vinted typically prevents 1.25kg of CO2 emissions.

Thomas Plantenga, CEO of Vinted Group, states: "No one should have to choose between what’s better for the climate and what’s better for their wallet, so we aim to make second-hand easy and affordable for everyone."

6. Recycling and material recovery

Top benefit: Raw materials replaced

Key businesses: SUEZ, TerraCycle, Veolia

Recycling and material recovery are crucial for a circular economy, converting waste into valuable resources and reducing the need for new raw materials, effectively 'closing the loop.'

SUEZ offers advanced recycling and material recovery services globally, focusing on turning waste into secondary raw materials.

Sabrina Soussan, Chairman and CEO of SUEZ, explains: "Tackling climate change requires companies to shift from a linear business model, where natural resources are extracted, used and discarded, to a circular economy model. And to accelerate this, transformative technology is key."

5. Waste reduction and minimal packaging

Top benefit: Reduce packaging waste

Key businesses: Lush, Apple, PepsiCo 

Using minimal packaging reduces waste and pollution while preserving the value of products and materials.

At Lush, 66% of products are sold ‘naked’, without packaging, which reduces water content in products, lightening transport loads and cutting plastic use.

Mark Constantine, Co-Founder and CEO of Lush, says: "We went back to basics at the start of Lush – we stripped away the packaging and we put larger numbers of highly knowledgeable staff on the shop floor, to bring back the art of conversation and specialised service."

4. Reverse logistics and take-back programs

Top benefit: Reuse materials

Key businesses: Coca-Cola HBC, H&M, Dell

Reverse logistics involves returning goods from their final destination to the manufacturer or distributor, enabling the recycling of packaging and used products.

Dell runs recovery and recycling programmes to tackle electronic waste, accepting products from any brand.

Michael Dell, Chairman and CEO of Dell Technologies, states: "Sustainability and ESG commitments are now widely recognised as business imperatives that impact everything from supplier decisions to business strategy. At Dell, we are both meeting our goals and helping customers meet theirs."

3. Digitalisation and data analytics

Top benefit: Improved visibility

Key businesses: NAVEX, Workiva, Persefoni

Improvements are hard to achieve without understanding where changes are needed and their impact. By using data, companies can track their environmental footprint and optimise actions accordingly.

NAVEX One helps over 13,000 companies, including PepsiCo, DP World and Cargill, monitor ESG data. The platform consolidates information into a single tool to support sustainability decisions and compliance.

Sean Thompson, CEO of NAVEX, says: "We believe the correct approach starts with collecting and analysing the right data. This allows us to prioritise actions that will deliver the greatest positive difference for our workplace, employees and the communities that support us."

2. Collaborative supply chains

Top benefit: Shared knowledge and innovation

Key businesses: L'Oréal, Procter & Gamble, Danone

Collaboration within supply chains enables the sharing of knowledge and innovations, driving optimisations at each stage. It also promotes transparency and shared responsibility.

Danone works directly with over 58,000 farms and partners with agricultural suppliers to implement more sustainable farming practices. Its brands, like Blédina, involve consumers in this shift by inviting them to visit farms and learn about sustainable production.

Vikram Agarwal, Chief Operations Officer at Danone, explains: "It’s about a holistic approach. We collaborate closely with our farmers... to develop a more sustainable end-to-end agri-food model." He adds, "I'm proud that we’ve been working with them for 43 years, and recently they’ve become the first BCorp certified farm in Europe!"

1. Policy and regulatory support

Top benefit: Encourages businesses to become circular

Key businesses: Ellen MacArthur Foundation, WRAP, Loop

Policy and regulatory support are the bedrock of implementing a circular economy. They encourage businesses to adopt circular practices by offering incentives and frameworks that ensure these practices have a meaningful impact.

By aligning economic incentives with environmental objectives, policy and regulatory support can significantly accelerate the pace at which companies start making meaningful changes.

The Ellen MacArthur Foundation, established by Dame Ellen MacArthur in 2009, champions the cause of a circular economy through its research and reports. According to the Foundation, circular economies yield better outcomes for both people and the environment.

The Foundation has earned recognition from the United Nations and more than 1,000 companies worldwide have joined its network as partners or members, including BlackRock, Google and Mars.

“Despite the common use of grand terminology, we must be candid and recognise that moving beyond the status quo is exceptionally challenging – profound change isn’t easy to define, let alone implement,” remarks Jocelyn Blériot, Executive Lead for Policy and Institutions at the Ellen MacArthur Foundation.

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