The Circular Economy is still the new kid on the block in the business world, often viewed as more of an obstacle than an opportunity. Despite the growing emphasis on sustainability, many companies struggle to incorporate circular economy principles effectively. This mindset needs to change if businesses want to thrive in the future.

The World Benchmarking Alliance reports that 77% of European companies mention the circular economy in their sustainability reports (2023). And, only 22% include quantitative indicators aligned with the Corporate Sustainability Reporting Directive (CSRD). These numbers show a gap between discussion and action—a gap that many businesses must bridge.

Why the Circular Economy Needs to be Part of Your Core Strategy

Part of the reason the circular economy feels like an obstacle is that businesses often treat it as a stand-alone initiative—something that exists outside the core corporate strategy. To overcome this, companies need to stop viewing the circular economy as an add-on and instead see it as integral to their overall strategy.

“In a circular economy, businesses create value by keeping products, components, and materials in use, rather than wasting them. This not only reduces environmental impact but also provides significant opportunities for innovation and growth.

Ellen MacArthur

Different businesses will have different paths to circularity—there’s no one-size-fits-all approach. The key is to develop a roadmap that blends short-term wins with a long-term vision. However, one thing is clear: profitability must be on the horizon to scale circular strategies. Without a clear business case, companies will struggle to make meaningful changes.

From Linear to Circular: Onboarding Stakeholders for Success

A common question businesses face is: How do I onboard stakeholders in my circular economy journey? The key lies in aligning the value of a circular economy approach with the company’s broader goals and the needs of everyone involved—employees, partners, and consumers.

Start by educating your team about the benefits of circularity. Explain how moving from a linear to a circular model can reduce costs, improve resource efficiency, and open new market opportunities. Adopting circular principles—such as designing products for durability, reducing waste, and encouraging reuse—strengthens the company’s competitiveness.

Read our Vitra case study – A Circular Talent Program.

Circularity needs to be part of the company culture. Engage employees at all levels by connecting circular strategies to their roles and responsibilities. Show them how their work directly contributes to sustainability goals, making them part of the bigger picture.

Stakeholders will support circularity when they see how it aligns with broader business objectives. It’s not just about compliance or regulatory pressure; it’s about innovation and staying ahead of market trends. When the entire organization understands how circularity drives long-term success, the transition becomes easier, and stakeholders are more likely to support it.

The Role of Strategy: More Than Just Reporting

As businesses prepare for increased regulations, such as the CSRD, it’s tempting to focus exclusively on compliance and reporting. But merely collecting data to meet regulatory requirements can become a frustrating, box-ticking exercise. Without a clear strategy, you’ll gather information but won’t create meaningful change.

Strategy is where the magic happens. It’s not just about meeting compliance—it’s about positioning your company for future growth. A well-crafted circular strategy will help you identify risks to mitigate, new markets to tap into, and fresh opportunities to explore. With this approach, your reporting becomes more than just numbers; it’s a tool to onboard stakeholders, shape decision-making, and influence the direction of your company.

When strategy and reporting are connected, stakeholders begin to see the bigger picture and understand the long-term value of circular economy initiatives. This understanding drives meaningful action and real transformation within your business.


Make Circularity Part of the Core Team

The circular economy may still be relatively new, but it’s here to stay and poised to reshape the future of business. To unlock its full potential, companies must stop treating it as a separate initiative and instead embed circular economy principles into their core corporate strategy.

Don’t let circularity become just another item on your reporting checklist. Build a strategy that connects your sustainability goals with business profitability, and use your reporting as a tool to drive real change. As market demands and regulations evolve, those who integrate circularity into their DNA will not only comply but lead the way toward a more sustainable and resilient future.

Larissa Scherrer

Marketing Strategy
Brand Positioning
Social Media Strategy

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