The Circular Economy Is Not Broken, We Just Haven’t Built the Right Systems Yet
The circular economy sounds like the perfect solution. Instead of throwing things away, we reuse them, regenerate materials, and minimize waste. But if it’s such a great idea, why is global circularity going in the wrong direction?
According to the Circularity Gap Report, the global economy was only 9.1% circular in 2018. In 2023, that dropped to 7.2%. Clearly, something’s not working.
At The Surpluss, we believe it’s not about lack of awareness or technology, it’s about how circularity is integrated (or rather, not integrated) into the real world of business, finance, and trade. So, how can we make it actually work?
1. It needs to be a financial strategy, not just a moral one
Let’s face it, most businesses still see waste as something to get rid of, not a resource to work with. But things are shifting. The EU’s new Digital Product Passport is a good example. It allows businesses to track and prove the value of materials throughout their lifecycle.
When circularity is built into procurement, legal frameworks, and internal operations, it becomes part of business strategy, not just a sustainability label.
2. We can’t just recycle, we have to rethink design
Recycling sounds good, but less than 10% of plastic waste actually gets recycled. Much of it ends up downcycled, not reused in a meaningful way.
We need to think bigger. What if products were designed from the start to be disassembled, reused, or regenerated? That’s what real circularity looks like, and with upcoming “right to repair” laws, this shift might happen sooner than we think.
3. Data is still a huge barrier
You can’t fix what you can’t see. Right now, most businesses don’t have the data to understand their material flows. That’s changing with AI, IoT, and blockchain solutions, but it’s still early days.
Appointing a Chief Circularity Officer can help organizations treat waste as a resource and unlock real value from things they previously discarded.
4. It has to be seamless for consumers
Let’s be real, most consumers aren’t going to change their habits unless it’s easy. Even the most aware shoppers default to convenience.
That’s why the best circular solutions are the invisible ones. Businesses need to build circularity into their systems, like take-back logistics, reuse programs, or packaging-free models, without relying on customers to do the heavy lifting.
5. Circularity has to work with trade and geopolitics
Circularity isn’t just an environmental issue, it’s economic. Countries like China dominate in critical materials and recycling, while the EU and US are making major policy moves to support circular trade.
Businesses should pay attention. Choosing suppliers and partners that support circularity is becoming a competitive advantage, not just a good deed.
Where do we go from here?
The circular economy won’t work if we treat it as a side project. It has to be baked into how we measure success, manage operations, and navigate global trade. That means tracking real metrics, aligning with global standards, and viewing waste as inefficiency, not inevitability.
Circularity isn’t failing because the idea is flawed. It’s failing because we haven’t built the systems to support it yet. But with the right shifts, we can move from good intentions to real-world impact.
