The circular economy isn’t just about new practices or technologies – it's an alternative way of thinking and a more sustainable way of living on our planet. Our future, as a species, depends on it.
If you ask most people if they support the goal of creating a “circular economy,” you’re likely to get a lot of quizzical eyebrows. However, if you ask them: should we prioritize and make it the norm to design long-lasting, reusable, repairable, and easily recyclable products that use less natural resources and stop waste from going into our landfills – the majority of them, 61%, will say “yes” (based on recent Abacus data research).
Not bad, though you might expect that number to be higher. Interestingly, the majority increases to 73% among the 60+ year old age demographic. Is it because circularity calls back to a time before “throw-away culture” took over, a time when it was easier to fix things or borrow them? Or is it the weight of seeing a lifetime of accumulation and waste? Hard to know.
It’s safe to say, however, that pretty much everyone wants a clean environment, a healthy economy, and access to affordable food, housing, and products. The circular economy draws a clear link between, as well as paves a pathway to, maximizing the value of our resources and economic and environmental wellbeing.
According to research published this past July in the Journal of Cleaner Production, “there are few empirical studies about perception and knowledge of CE [circular economy] from a business stakeholder perspective.” This same study found that, to the extent such research exists, it tends to focus more on barriers to adopting CE (e.g., the lack of public awareness, supply-chain complexities, start-up costs, poor legislative supports, etc.), versus its benefits (understood primarily as improved corporate environmental performance related to waste-reduction, as well as cost-efficiencies). By drawing the connection between circular economy practices and real-world benefits, we can map out actionable steps towards addressing our triple bottom line.
In fact, while the term “circular economy” is more mainstream today than it has ever been. The 2024 Circularity Gap Report highlights that the circular economy has attained ‘megatrend status’, showing that “[t]he volume of discussions, debates, and articles on the concept has almost tripled (3X) over the past five years.” Despite this, there’s still a lack of common knowledge regarding the circular economy and its benefits. We need more clarity and standardization to define what a circular economy actually is, and the unique value that it has to address some of the biggest challenges of our time.
The challenge with circularity, as well as the opportunity, is that it doesn’t look like one thing:
At the end of the day, circularity isn’t just about advancing new practices or technologies. Rather, it is about redesigning human systems to fundamentally reduce our environmental impacts on the world – in harmony with nature. Essentially, decoupling economic prosperity from resource extraction.
Circularity is a necessary shift to address some of humanity’s biggest challenges: climate change, biodiversity loss, rapidly depleting resources, and global economic inequality. It offers a set of core principles—such as designing out waste, keeping materials in circulation, and regenerating natural systems—that are applicable across sectors and industries.
Yet, it is more than a mere toolkit of strategies, solutions, and techniques; it provides an alternative way of creating, living, and thinking that isn’t reliant upon the extraction of resources and depletion of our environment. A way in which “waste” is reconsidered as a resource and an input to new products, not an end product or output. A way aligned with the world’s natural systems – where energy is endlessly cycled, taking on new forms, but always serving a purpose. This way of thinking requires innovation on a whole new level.
The question then becomes: How do we put the circular economy into practice?
Doing so requires us to reimagine business models, production processes, and consumption patterns. In a linear economy, resources flow in a straight line from extraction to disposal. The circular model, on the other hand, emphasizes closing the loop—ensuring that materials and products are kept in use for as long as possible, using one (or several) of the 9R circularity strategies.
Consider the fashion industry: instead of producing fast fashion based on making disposable clothing, circularity would encourage the design of durable, versatile garments that can be repaired, resold, and/or repurposed (check out this report to see how reverse logistics can cultivate an effective and holistic circular fashion system). In the electronics sector, circular principles would promote modular designs that make devices easier to upgrade, repair, or recycle, thus extending their lifecycle and reducing the demand for new virgin materials (this recent report outlines the importance of circular practices for meeting our resource needs for a net-zero transition).
It’s important to note that circularity is not a ‘one-size-fits-all’ solution; it can take countless forms depending on the context, the sector, and the business model. Whether applied to construction, manufacturing, agriculture, or retail, circular practices can be customized to the needs and capabilities of different industries and communities.
For instance, in urban environments, circularity might involve creating circular food systems that minimize waste by repurposing and upcycling organic materials into new products, compost, or bioenergy, (as examined in this recent study on upcycling food products). In rural communities, it might involve regenerating natural ecosystems by embracing regenerative agricultural techniques that restore soil health and biodiversity (as highlighted by this initiative focusing on nature-positive agriculture).
The flexibility of circularity is one of its greatest strengths—it allows for innovation across a wide spectrum of industries, and at every stage of the supply chain.
Yet, adopting circularity requires a fundamental shift from how our economies have been operating over the last 200 years. We are used to thinking in terms of a linear model: extract, produce, consume, and discard. Circularity challenges this by encouraging a systems-based approach, where waste becomes a resource, and everything is seen as interconnected. This shift calls for collaboration between industries, policymakers, and communities to rethink not only how products are made and consumed, but how value is created and sustained over time.
In the end, the circular economy is about more than just reducing waste and conserving resources. It’s about rethinking how we have been living and working—in order to transform industries, regenerate ecosystems, and foster more equitable and prosperous communities. It’s a shift that goes beyond innovation; it’s a new way of thinking and operating that aligns economic prosperity with environmental stewardship.
Creating a circular economy is not a goal that one organization, one sector, or even one country can accomplish on its own. It is an all hands-on-deck, generational endeavour.
To put the circular economy into practice, businesses must rethink profitability in a way that values long-term value and resilience over short-term gains. Consumers can embrace new models of ownership, such as product-as-a-service, which prioritize access over possession. And governments and organizations must create policies that incentivize sustainable practices, from extended producer responsibility (EPR) to driving the demand for circular products and services through their circular procurement practices. It requires a coordinated collective and collaborative effort that touches every aspect of society.
Like a flywheel, every new circular innovation builds momentum. Each new breakthrough helps redirect supply chains and capital, and attract new levels of support from governments and people. That’s why it is so critical to grow the circle together.
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This Circular Economy Month, we’re #GrowingTheCircle by sharing stories of circular innovation from across our Generate Canada Solution Spaces and from our partner, the Smart Prosperity Institute. By sharing these stories and your own, we can grow the circle of circular economy problem-solvers together. Join us!
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