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Circular economy basics

Connect ESG goals to circular design.

A circular economy keeps materials in use for longer, reduces waste, and designs products for reuse. This page explains circular economy essentials, ESG connections, and steps to start pilots.

Sustainability illustration

Circular economy basics

A circular economy designs out waste, keeps products/materials in use, and regenerates natural systems.

0 waste
Ambition

Circular models aim to minimise waste to near zero.

3 loops
Loops

Design, use, and recovery loops keep materials in play.

2x value
Opportunity

Circular products can double lifetime value per resource unit.

Key focus areas

 

Design for reuse. Modular, repairable, and durable product concepts.

 

Reverse logistics. Collection, refurbishment, or recycling programs.

 

Regenerative sourcing. Use renewable or recycled feedstocks.

 

Customer engagement. Educate customers on take-back, refill, or resale programs.

WHY IT MATTERS

Why it matters

Resource efficiency. Lowers raw material dependence.

Emission reduction. Less extraction = lower Scope 3 emissions.

Revenue innovation. Offers new services like refurbishment or leasing.

Regulatory readiness. Aligns with waste + packaging regulations.

HOW TO ACT

How to implement

  1. Map material flows. Identify hotspots for waste and value leakage.
  2. Pick a pilot loop. Start with one product or region.
  3. Engage suppliers + customers. Align incentives across the value chain.
  4. Log actions in RunSustainably. Track tasks, approvals, and metrics centrally.

MEASUREMENT

Measurement + reporting

  1. Circular KPIs. Measure recycled content, product life extension, and take-back rates.
  2. Scope 3 impacts. Quantify emissions saved by circular interventions.
  3. Financial outcomes. Track cost savings and new revenue streams.
  4. Stakeholder feedback. Survey customers and partners on circular programs.

Action ideas

 

Run a circular design sprint. Bring product, supply chain, and sustainability teams together.

 

Pilot a take-back program. Start small with one category or region.

 

Share transparent updates. Explain successes and lessons to stakeholders.

GLOSSARY SNAPSHOT

Terms to know

Circular economy. An economy that keeps materials in use and regenerates natural systems.

Reverse logistics. Processes for returning products or materials for reuse.

Product-as-a-service. Business model where customers pay for access, not ownership.

FAQS

Circular economy basics FAQs

What is the circular economy?

A system that designs out waste and keeps resources in use for as long as possible.

How does circular economy support ESG?

It drives environmental impact reductions and strengthens governance over supply chains.

Where do we start?

Map material flows, choose a pilot, and involve cross-functional teams.

How do we report progress?

Use RunSustainably to capture KPIs, stories, and approvals.

Drova RunSustainably unites objectives, approvals, and reporting so ESG stories stay credible.

Ready to keep sustainability work visible?