What is the circular economy?
The circular economy is a strategic model of production and consumption that seeks to decouple economic growth from the use of finite resources. Unlike the traditional linear approach, the circular economy proposes a more sustainable system. To achieve this, it promotes processes such as reducing, reusing, repairing and recycling, thus ensuring that products and materials retain their value for as long as possible.
This model drives competitiveness, innovation and social responsibility. Thanks to its approach, it encourages a more efficient use of resources such as water, energy and raw materials, which directly contributes to reducing waste generation. Thus, waste is transformed into new valuable resources. The circular economy protects the environment, offers real opportunities to improve competitiveness, demonstrates a commitment to corporate sustainability, and improves the score on the Ecovadis questionnaire.
Strategy for the circular economy in businesses
One of the main strategies for the circular economy is eco-design. Integrating environmental criteria from the initial design phase allows, on the one hand, to reduce the use of raw materials and, on the other, to minimise waste generation. In addition, this approach improves the energy efficiency of products throughout their life cycle. In this regard, international standards such as ISO 14006 offer a clear and measurable methodology for applying eco-design in a structured way.
On the other hand, process organisation and management is another strategy for the circular economy. Analysing material, water and energy flows helps to identify internal inefficiencies, reduce waste and reuse industrial by-products. As a result, in many cases, waste from one process can be transformed into secondary raw materials for another, thus promoting industrial symbiosis and improving competitiveness between companies.
Likewise, sustainable procurement and supplier management play a decisive role. Incorporating responsible suppliers, prioritising recycled or recyclable materials and applying sustainability criteria throughout the supply chain contributes not only to reducing ESG risks, but also to improving traceability. To this end, the ISO 20400 standard on sustainable procurement has established itself as a key tool for moving towards a more ethical and efficient supply chain.
Finally, measuring and communicating results is essential to demonstrate the real impact of circular strategies. Tools such as environmental indicators, Life Cycle Assessment (LCA) and Environmental Product Declarations (EPD) make it possible to quantify benefits and communicate progress in sustainability transparently, thereby strengthening the company’s credibility with customers, investors and regulators.
Opportunities and strategy for the circular economy
Scope of prevention: ACV, DAP and Ecodesign
In a circular economy environment, the field of prevention integrates LCA, EPD and eco-design to anticipate impacts, optimise resources and, therefore, reduce waste at source, improving competitiveness and business sustainability.
Carbon footprint and carbon neutrality: Carbon Management
Within the circular economy, GHGs, carbon footprints and carbon neutrality (calculated in accordance with the GHG Protocol, ISO 14064 or ISO 14067) require proper carbon management, as measuring, reducing and offsetting emissions allows for process optimisation, regulatory compliance and progress towards a low-carbon business model.
Scope of resources: Water Footprint
Zero waste: requirements, traceability and certification
Within the framework of the circular economy, the Zero Waste approach also requires defining clear requirements, ensuring waste traceability and obtaining certification, thereby reducing waste, optimising resources and demonstrating a real commitment to sustainability.
Similarly, the circular economy, based on what was previously considered waste, encourages the emergence of new business models, such as rental, servitisation, repair, remanufacturing and product reuse. These models extend the useful life of goods, increase their value and generate recurring income, which translates into greater business resilience and competitiveness.