Circular Economy Examples
How companies are making it work in practice
The circular economy sounds good in theory - but does it work in practice? The answer is increasingly yes. Companies across industries are proving that circular business models can be profitable while reducing environmental impact. Here are concrete examples that show how.
What Makes a Circular Business Model?
Circular economy moves beyond 'take-make-dispose' to keep products and materials in use as long as possible. This can mean designing for durability and repair, offering products as services, creating take-back and refurbishment programs, or recovering materials for recycling.
Philips
Lighting-as-a-Service
Instead of selling bulbs, Philips sells illumination. Customers pay for light output, while Philips retains ownership of fixtures, handles maintenance, and manages end-of-life recovery. Result: 50% fewer luminaires needed, materials stay in Philips' control for reuse.
Caterpillar
Remanufacturing Program
Caterpillar takes used components and rebuilds them to like-new condition at 50-60% of new part costs. They recover millions of kilograms of material annually. Key enabler: detailed product data allowing them to understand component condition and remaining life.
€1.8T
EU circular economy opportunity by 2030
70%
Energy savings in remanufacturing vs. new
85%
Material recovery rate in best-in-class
Interface
Carpet Take-Back
Interface created ReEntry - a program that collects used carpet tiles for recycling. They've diverted millions of pounds from landfill, using recovered materials in new products. The program required investing in reverse logistics and material processing, but generates new revenue streams.
Renault
Circular Factory
Renault's Choisy-le-Roi factory in France is dedicated entirely to remanufacturing engines, gearboxes, and other components. They process 15,000 tons of material annually, with remanufactured parts selling at 50-70% of new prices while maintaining same quality guarantees.
Common Success Factors
- Strong product data and traceability throughout lifecycle
- Design for disassembly and material recovery from the start
- Customer relationships that enable take-back logistics
- Economic models that value material recovery
- Technology systems connecting production to end-of-life
The Data Enabler
Every successful circular economy example relies on data: knowing what materials products contain, how to disassemble them, and where components can be reused. The Digital Product Passport creates this information layer for all products.
Starting Your Circular Journey
You don't need to transform overnight. Start by analyzing your highest-volume products: What materials do they contain? What happens at end-of-life? Where are opportunities for take-back, refurbishment, or material recovery? Build the data foundation that enables circular thinking.
Exploring Circular Business Models?
Let's discuss how product data can enable circular economy strategies for your company.
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