A circular economy business model moves away from traditional linear business models, where raw materials are used to produce products that have a finite lifetime, before being disposed of without consideration for environmental impacts. In a circular economy, materials, products and energy are reused, repaired, recycled, shared and composted to return natural resources to the earth, and prolong the lifetimes of technological resources.
‘A circular economy decouples economic activity from the consumption of finite resources. It is a resilient system that is good for business, people and the environment. The circular economy is a systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution.’ – Ellen MacArthur Foundation