From Risk to Resilience: Why Circularity is the New Business Imperative

In today’s economy, resources are being consumed at an unprecedented rate. Between 2016 and 2021 alone, the world used nearly as much raw materials as in the entire 20th century. High-income countries representing 17% of the population consume 25% of global raw materials and generate 43% of global emissions. Manufacturing and construction drive up to 40% of GHG emissions and 90% of biodiversity loss, with most waste remaining untraced. Yet despite global commitments, circularity rates are actually declining from 9.1% in 2018 to just 7.2% in 2023.

This widening gap makes it clear: while awareness of sustainability is growing, meaningful business action is lagging. A key barrier is poor lifecycle traceability of products and materials, which prevents reuse, repair, and recycling. Data fragmentation, limited accessibility, lack of real-time verification, and above all, lack of trust between supply chain partners continue to hamper progress. A key barrier is poor lifecycle traceability of products and materials, which prevents reuse, repair, and recycling. Data fragmentation, limited accessibility, lack of real-time verification, and above all, lack of trust between supply chain partners continue to hamper progress. All these pain points are limiting business growth and hindering the capacity of the companies to start new revenue lines.

At the same time, this challenge represents an opportunity. Businesses that adopt circular models extending product lifecycles, closing material loops, and building transparent supply chains are not only reducing risk but also unlocking value in the form of cost savings, supply security, and new revenue streams. Circularity is shifting from a sustainability goal to a strategic driver of competitiveness, and is being considered a new revenue stream and not just a cost anymore.

Sustainability frameworks such as ESG have helped organizations measure and report progress, but too often they are viewed only through the lens of compliance. This narrow approach risks leaving value on the table.

By embedding reuse, repair, and recycling into core operations, companies can save costs, reduce reliance on volatile supply chains, mitigate regulatory and geopolitical risks, and build flexibility to withstand economic downturns. Far from being a compliance exercise, circularity is emerging as a survival strategy in an unpredictable global economy.

Instead of treating environmental responsibility as a cost, it positions product and resource lifecycle management as an opportunity to improve the bottom line and even revenue. Circular business lines (repair, rental, resale) are already driving 15–20% additional revenue growth and substituting up to 40% of linear sales. Secondary markets for refurbished batteries, tokenized plastic credits, and product-as-a-service offerings demonstrate how new revenue streams can emerge even in low-growth environments.