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

Why circularity matters now

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.

From compliance to circular value

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.

How to leverage data and technology to solve for circularity

Recent developments in data and emerging technologies are making unprecedented progress in traceability possible today. Distributed ledger technologies such as Blockchains create immutable records across complex supply chains, ensuring trust. Zero-knowledge proofs add privacy, allowing companies to prove compliance or authenticity without exposing sensitive data. IoT devices and digital tags (such as QR, NFC, or RFID) can serve as digital passports to hold key circular data about the product usage and condition. By scanning a secure digital tag, stakeholders can verify product identity, check repairability or recyclability, and retrieve the full lifecycle record.

Together, these technologies transform products and materials into data-rich circular assets, because then we can use a new convergence of key technologies over trusted data, such as Trust AI. A scanned tag can reveal material composition, repair instructions, or ownership history. Regulators can instantly verify compliance; recyclers can process materials efficiently; and businesses can develop entirely new offerings based on lifecycle data. The convergence of these tools turns transparency into a competitive advantage.

Real-world use cases

The shift to circularity is no longer theoretical, it delivers measurable business value. Here are some use cases with high potential.

• Batteries: With new EU rules, full lifecycle traceability is mandatory. Digital product passports can now log charge cycles, temperature data, and repairs. This not only supports better compliance, but also ensures reduced disposal costs and safer second-life use, which can provide additional revenue.
• Raw Materials: Many countries are dependent on critical resources like steel and rare earth metals. Traceable supply chains verified through blockchain can help companies prove responsible sourcing and reduce single-supplier risks, which can mitigate price volatility.

Water and Plastics: As water scarcity and plastic waste dominate global headlines, digital product passports can disclose water footprints and packaging sustainability. Tokenized plastic credits are emerging to verify recycling and opens new revenue streams in the secondary materials markets. These show how circularity reduces exposure to global shocks while simultaneously unlocking business opportunities in substitute revenue streams.

Staying ahead in an evolving landscape

At Fujitsu, sustainability is integral to our mission to build a more sustainable world through innovation. We are committed to achieving net-zero emissions across our entire value chain by 2040, with interim targets of reducing Scope 1 and 2 emissions to net-zero by 2030 and cutting Scope 3 emissions by over 25% by the same year. This commitment drives our development of solutions that empower businesses to transition to circular models.

To help enterprises operationalize regenerative circular business models we developed the Trusted Regenerative Economy Platform (TREP). TREP provides a comprehensive platform based on privacy-preserving technologies such as ZK Blockchain and trusted AI, providing instant access to sensor data, real-time logistics monitoring, and enhanced supply chain visibility. By combining blockchain-based traceability with privacy-preserving zero-knowledge proofs and AI-driven analytics, we create trusted data platforms to solve for circularity. With a smart inventory for complete asset visibility, transparent and yet secure data access, proactive shipment monitoring and alerts, TREP provides comprehensive capabilities to transform your circularity business.

Additionally, our work with digital product passports illustrates how product data can be secured, shared, and scaled across industries. Use cases such as lifecycle tracking of hybrid vehicle batteries and tokenized plastic credits for fuel recovery demonstrate that circularity delivers not only compliance but also measurable business value, even in volatile markets.

The time to act is now

Circularity is no longer a “nice-to-have” sustainability project. The sector is gaining real momentum, with +7.5% year-on-year growth and a projected 13.1% CAGR through 2033, supporting 2.2 million jobs and generating over $164 billion in funding for circular ventures between 2018–2023. Circular business models are proving their value, delivering 15–20% revenue growth, 10–30% higher average ticket sizes, and replacing up to 40% of linear sales with added value.

The time to act is now. Begin with pilots, capture early wins, and scale toward circular business models that turn disruption into opportunity. By embedding transparency and circularity into product lifecycles, companies can secure long-term value in an unpredictable world. The time to integrate new business lines around circularity is now.

Start today by connecting with the authors on LinkedIn (links on profile below) or listening to their webinar on the topic of Circular Economy 2.0: Blockchain and New Revenue Streams: https://www.linkedin.com/events/7391503304318431232/