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Innovation & Transformation

The circular economy: sustainability and innovation in harmony

How companies can benefit from a sustainable, resource-conserving economic system.

Christina Schäferkord
03.06.2025
03.06.2025

The aim of the circular economy is to close material cycles. This approach not only reduces the consumption of resources, but also minimizes the environmental impact of production.

Introduction

In a world where resources are becoming scarcer and environmental damage increasingly visible, the circular economy (CE) offers a sustainable answer to the pressing challenges of our time. This concept shows how economic growth and environmental protection can be combined by keeping materials and products in circulation instead of wasting and disposing of them. Examples such as rising raw material prices, supply bottlenecks and new legal requirements illustrate the urgency of change.

The R principles of the circular economy

The linear economy is based on a simple principle: extract resources, manufacture products, use them and throw them away. This approach has its limits. In contrast, the circular economy aims to close material cycles.

In concrete terms, this means

  • Repairing instead of throwing away: Products are repaired and reused.
  • Durable product design: High-quality products with a very long service life are preferred.
  • Sharing and leasing: Resources are used collectively instead of being multiplied unnecessarily.
  • Recycle and reuse: Materials are returned to production instead of generating waste.
  • Remanufacturing: This can be done by refurbishment (remanufacturing of an entire product), remanufacturing (reuse of parts or components) or recycling (material recovery).

One prominent example is the manufacturer Patagonia, which repairs defective outdoor clothing in order to extend the life of its products. This approach not only reduces the consumption of resources, but also minimizes the environmental impact of production. At the same time, new business opportunities and innovation potential are created, for example through the introduction of second-hand platforms such as Worn Wear Patagonia.

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