A circular economy aligns environmental protection with long-term economic and social well-being

Continued growth in natural resource consumption is consistently outpacing recycling and reuse efforts. Currently, only 6.9 percent of used materials are cycled back into our economies after use, down from 7.2 percent in 2023. We have to reverse this trend now.

Increasing resource use is the main driver of the triple planetary crisis. According to the International Resource Panel (IRP) the extraction and processing of material resources account for over 55 percent of greenhouse gas emissions (GHG), 40 percent of particulate matter health related impacts, and 90 percent of land-based biodiversity loss and water stress.

By transitioning to a circular economy, we can significantly reduce pollution, cut GHG emissions, and reverse biodiversity loss. A circular economy redefines how we produce, use, and dispose of resources. It shifts away from the linear “take-make-waste” economic model toward systems that are designed to reduce waste and pollution, keep materials and resources in use for as long as possible, and regenerate natural systems, underpinned by a transition to renewable energy.

A circular economy also strengthens economic resilience by reducing dependence on finite raw materials, creating new green jobs, innovations and investment opportunities, and supporting healthier, more sustainable communities.

The importance of toxic-free and zero-waste value chains

To achieve a circular economy, it is essential to remove harmful chemicals from supply chains and to design out waste from production and consumption systems.

Industrial processes and economic sectors, such as agriculture, construction, textiles, electronics, plastics and mining, rely heavily on toxic substances that are used in consumer products and production processes. Harmful chemicals contaminate ecosystems and harm human health. If not removed from products and production processes the reuse and recycling of materials and resources is often unsafe, costly and unfeasible.

Designing out waste from production and consumption systems is key to achieving a circular economy. Only 6.9 percent of materials are currently cycle back into our society, indicating that waste management and recycling systems are only part of the solution. Up to 80 percent of a product’s environmental impact is determined at its design phase, thus the most effective way to cut resource use and emissions is through the design of smart business models, products and processes, informed by the entire lifecycle of a product so that waste or emissions are minimized at all its life stages.