What is the impact of transitioning from linear economy vs circular economy for companies?

The linear “throw away” economy is not sustainable in the long run. The circular economy is now emerging as a relevant solution for reconciling ecological and economic challenges.

The linear economy

Raw material extraction and energy consumption –> Production –> Consumption –> Disposal of end-of-life products

VS

The circular economy

Refurbishment + Recycling

Reuse + Resale

Raw material extraction and energy consumption –> Production/Transformation –> Responsible consumption –> Recovery and sorting of end-of-life products

The potential of the circular economy

By 2030, the circular economy promises attractive prospects in Europe:

• + 3% in resource productivity each year;
• 1.8 trillion euros in annual savings;
• + 7 percentage points in GDP (Gross Domestic Product).

Source: Ellen MacArthur Foundation, Sun & McKinsey Center for Business and Environment, “Growth Within: a Circular Economy Vision for a Competitive Europe”, 2016