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Sustainability strategy

The circular economy: sustainability and innovation in harmony

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

Info about the article

Author
Christina Schäferkord
Article from
24.02.2026
Updated on
24.02.2026
Approximate reading time
minutes
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Table of contents
for orientation

  1. Introduction
  2. The R principles of the circular economy
  3. Circular design as a driver
  4. LCA and digital product passports
  5. Opportunities for companies
  6. Conclusion

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.

Circular design as a driver of the circular economy

The circular economy starts with design. Circular design is the key lever for creating products, services and systems that are designed to be circular from the outset. Design encompasses more than just aesthetic design – it involves strategic decisions that affect the entire value chain:

  • Modularity: Products are designed in such a way that they can be easily dismantled, repaired and reused.
  • Choice of materials: The use of regenerative or recycled materials reduces the ecological footprint.
  • Systemic thinking: Products are designed as part of a larger system that includes recycling, sharing or leasing.

A successful circular economy is based on sound data and comprehensive transparency. Tools such as life cycle analysis (LCA) and digital product passports help companies to visualize their impact and make informed decisions.

Opportunities for companies and society

The circular economy is much more than an ecological concept. It offers companies the opportunity to increase their competitiveness through cost efficiency, develop new business models and at the same time make an active contribution to environmental protection. According to a study by the Ellen MacArthur Foundation, the introduction of circular business models could save European companies up to 600 billion euros per year.

To summarize

A strategic approach is required to successfully implement the circular economy. Circular design plays a central role in this by ensuring that products are thought of in a circular way from development to end-of-life management. Equally important is measurability – it makes progress visible and enables well-founded decisions. Finally, systemic thinking is crucial in order to connect all relevant stakeholders – designers, companies, governments and consumers – and develop joint solutions.

Would you like to find out more about how your company can benefit from the circular economy?

Register now for the free webinar

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