In our master's course on Sustainability and Circular Bioeconomy Management, we explored the limitations of the traditional "take-make-dispose" model. The alternative? Circular business models, design waste out of the system and aim to keep resources in use for as long as possible.
But what does that look like in practice? And why should companies act now?
What is a Circular Business Model?
A circular business model prioritizes:
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Designing for durability, repair, and reuse
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Using renewable or recycled inputs
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Extending product life cycles through services like take-back schemes, rentals, or upgrades
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Creating systems for remanufacturing and recycling
This isn’t just about materials, it’s a total rethinking of how value is created and captured.
Why Businesses Are Shifting Now
Several factors are accelerating the shift toward circularity:
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Regulation: Governments are introducing stricter waste, packaging, and product stewardship rules.
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Consumer demand: Customers increasingly expect sustainable options, and are willing to pay for them.
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Cost pressures: Circular models often reduce reliance on raw materials, which can be volatile and expensive.
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Innovation opportunities: Product-as-a-service models, modular design, and secondary markets are creating new revenue streams.
Real-World Examples
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Patagonia has built loyalty by encouraging product repair and resale instead of replacement.
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IKEA is piloting furniture return and resale systems, aiming for full circularity by 2030.
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Fairphone designs modular phones that are easy to repair and upgrade.
These companies aren't just reducing waste—they're creating new forms of customer engagement and resilience.
Getting Started
If your business is considering a circular strategy, start with:
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Material mapping: Where are the biggest sources of waste or loss?
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Customer behavior: Are people willing to lease, share, or return products?
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Partnerships: Collaboration across the value chain is essential for reverse logistics and recovery.
Final Thought
Circularity isn’t just a trend—it’s becoming a business imperative. The companies investing in these models today are the ones that will stay relevant tomorrow. For sustainability-minded leaders, the question isn’t if, but how and when.
— Morena
To deepen your understanding of sustainability in business, explore The 9 Sustainable Business Model Archetypes Every Leader Should Know and how the Triple Bottom Line (TBL) can transform strategy.
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