Business Case

The current linear “take-make-dispose” economic model is reaching supply and demand limitations. A circular mindset allows companies to move beyond mitigating these risks to capture the USD$ 4.5 trillion economic opportunity that the circular economy represents.

Continued extraction of finite resources, climate change and demographic changes will make it harder for businesses to provide the products and services necessary for a well-functioning global economy. Successful circular initiatives will reduce dependence on dwindling natural resources and will create value for companies and their stakeholders. There are eight business cases for moving to the circular economy. Each can be classified under the following categories: Driving growth, enhancing competitiveness and mitigating risk.

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Generate

Companies can GENERATE revenue from existing products by taking a circular economy perspective on their products, services and operations. 

Innovate

Business can INNOVATE new products and services, establishing complementary revenue streams or adopting new business models

Moderate

Companies can MODERATE the costs of the resources they use to save money and generate financial gains. 

Captivate

Companies can CAPTIVATE customers and employees by working towards a circular economy. 

Differentiate

Companies are using circular approaches to DIFFERENTIATE themselves from their competition based on price, quality, durability or convenience. 

Integrate

Implementing the circular economy may INTEGRATE a company’s strategy with its mission.

Acclimate

Companies may use a circular economy perspective to ACCLIMATE their business models and value chain relationships, addressing economic changes. 

Insulate

Companies can INSULATE themselves against linear risks by purchasing circular supplies, recovering resources at end of life or partnering with the public sector.