Learn how to apply the circular economy in your company with this practical guide: key benefits, strategic steps, KPIs, and digital tools.
.png)
Governments are enforcing stricter regulations to control emissions, efficient resource use, and waste management. Consumers demand more responsible products, and the volatility of raw material prices is growing.
This context forces a rethink of how things have been done so far, driving a profound change in how companies must operate to stay competitive. The circular economy has ceased to be a theoretical concept and has become a real strategy that, as we will see below, delivers measurable results in profitability and innovation on a global scale.
As extensively covered in the article “Circular Economy in Companies: What It Is and How to Apply It”, unlike the traditional linear model of extract, produce, use, and dispose, the circular economy changes how we manufacture, consume, and manage resources. Instead of the traditional linear scheme, where materials are used once and then discarded, the circular economy aims to close this loop: keeping materials in circulation for as long as possible, facilitating their repair, reuse, and recycling.
It is striking that the latest Circularity Gap Report (2025) states that the global circularity rate is just 7%, two points lower than in 2018. The study concludes that global material consumption is outpacing population growth and generating more waste than recycling systems can handle.
Adopting circular models brings tangible benefits that strengthen business competitiveness in an increasingly demanding global market:
The circular economy optimises resource use and reduces waste generation, directly impacting operational costs. According to the Ellen MacArthur Foundation, European companies could save up to €600 billion annually through circular strategies that improve material efficiency.
Moreover, reuse and recycling reduce dependence on virgin raw materials, cushioning exposure to price volatility.
The circular approach drives innovation in design, materials, and business models. For example, traditional companies have developed product-as-a-service models, extending product lifecycles and creating new revenue streams. Philips Lighting/Signify, for instance, offers lighting as a service: customers pay for light, not lamps. This way, Philips retains control over materials and optimises their reuse.
Another innovation example is Fairphone, which designs products for durability, disassembly, and repair. They manufacture modular, repairable smartphones, reducing electronic waste and building loyalty among conscious consumers. This approach allows them to stand out from traditional competitors.
The regulatory landscape in the EU is evolving rapidly: regulations like the European Green Deal, Extended Producer Responsibility (EPR), and new transparency obligations in ESG and sustainability reporting (such as the CSRD Directive) require companies to take greater responsibility throughout their products’ lifecycle. These measures promote reduction, reuse, and recycling, supporting the transition towards a more circular economy.
Adopting circular models makes compliance easier and reduces the risk of sanctions or unexpected regulatory costs.
Investors increasingly prioritise projects aligned with ESG criteria (environmental, social, and governance). According to Morningstar, assets in sustainable funds exceeded $3 trillion in 2023. Companies with circular strategies improve their ESG profile, facilitating access to green capital.
73% of global consumers say they would change their consumption habits to reduce environmental impact. Circular companies build more attractive brands, generate loyalty, and position themselves as desirable employers, especially among younger generations.
Step 1.1 — External context analysis
Analyse regulatory trends, market expectations, environmental and social risks, and pressures from customers and stakeholders. This helps identify opportunities and threats related to the circular economy.
Step 1.2 — Internal diagnosis
Evaluate the company’s mission and vision, current processes, product and service lifecycles, material and energy flows, and internal competencies. Conduct a material and energy flow analysis to identify critical points of waste and emissions.
Step 1.3 — Leadership commitment
Ensure the executive team supports the transition to a circular model and integrates it into business strategy. This commitment is key to mobilising resources and fostering a culture of change.
Step 2.1 — Define circular vision
Set the main objectives for implementing the circular economy in your company: resilience, profitability, differentiation, environmental impact, etc.
Step 2.2 — Set clear goals
Define quantitative and qualitative targets aligned with the vision, for example:
Step 3.1 — Identify circular opportunities
Analyse opportunities in areas such as:
Step 3.2 — Prioritise strategies
Select the most relevant strategies based on:
Step 3.3 — Action plan
Develop a detailed plan including:
Step 4.1 — Build capabilities and organisational culture
Train employees on circular economy principles and practices. Incorporate key circular skills into the company. Encourage internal innovation and strategic partnerships with other organisations.
Step 4.2 — Redesign products and processes
Apply circular design and eco-design principles. Optimise processes to minimise waste and emissions. Implement material flow management systems.
Step 4.3 — Integrate into the supply chain
Collaborate with suppliers to adopt sustainable practices. Include circular criteria in supplier selection. Implement reverse logistics and return/reuse systems.
Step 5.1 — Measure circular performance
Define and monitor key performance indicators (KPIs), such as:
Step 5.2 — Reporting and communication
Adopt standards like ESRS E5 to report on resource use and circular practices. Integrate results into sustainability reports. Communicate progress transparently to stakeholders.
Step 5.3 — Review and continuous improvement
Conduct regular internal audits. Gather feedback from employees, customers, and partners. Incorporate learnings and drive ongoing innovation to advance circularity.
Digitalisation is essential for applying the circular economy, especially in large companies where complexity and data volume are very high. One key area is comprehensive waste tracking, from origin to recovery or final disposal. This full control helps identify opportunities to reduce waste, reintegrate materials into the value chain, and increase transparency, facilitating regulatory compliance and reducing errors and administrative costs.
TEIMAS Zero is an example of such tools, a cloud-based software specialised in waste control for large companies and multinationals. It facilitates coordination and centralised reporting across multiple locations, ensuring circular policies are applied uniformly and efficiently. It offers complete traceability, automatic reports, and integration with circular processes, helping multinationals better manage material flows and meet their goals.
Accelerate your circular transformation with TEIMAS Zero.
.png)
%20(1)%20(1)%20(1)%20(1)%20(1)%20(1)%20(1)%20(1)%20(1).png)
