So, how can businesses adopt a circular model? Circular economy business models keep products and materials in use, by design, for as long as possible to get the maximum value from them. So, how can businesses adopt a circular model?Here are a few common business models in the circular economy:Here’s a graphic representation of the circular business models by KPMG. As our global economy continues to grow — by 2030 the planet will be home to nearly 9 billion people, including 3 billion middle-class consumers — the challenges of meeting this increasing demand for products and services will be unparalleled.The good news, though, is this paradigm is giving way to the circular economy, a model that focuses on careful management of material flows through product design, reverse logistics, business model innovation and cross-sector collaboration.In essence, the circular economy is about moving from a system of waste to one of “endless resourcefulness.” This more regenerative model affords a viable business opportunity to successfully tackle environmental priorities, drive performance, innovation and competitiveness, and stimulate economic growth and development.The circular supplies business model is particularly relevant for companies dealing with scarce commodities, in which scarce resources are replaced with fully renewable, recyclable or biodegradable resource inputs.The resource recovery business model leverages technological innovations and capabilities to recover and reuse resource outputs that eliminates material leakage and maximizes economic value. An astonishing variety of design options was found, including numerous value propositions, customer relationships, or supply chain approaches to close material and energy flows. Notes: (a) CEBMs can be assigned to multiple options per business model dimension; totals per dimension do not always add up to 26. These business models aim at a Circular Economy and are a central route for sustainable business model innovation.

The 5 business models that put the circular economy to workHow Novozymes harnesses the sustainability superpower of enzymesMeet the company that singlehandedly halved one country's CO2 emissionsIntel, Eileen Fisher find value in the circular economyHow the circular economy can help your company retain its competitive edge Examples of the sharing economy abound, including transportation (Lyft, Through the product as a service business model, customers use products through a lease or pay-for-use arrangement versus the conventional buy-to-own approach.

The circular economy talks about — well, the economy — that is formed by businesses of all shapes and sizes.

In that case, would consumers who still want to purchase these products or services?Government regulations — plastic bag bans, extended producer responsibility — is the fastest way to achieve this, of course. Our review is not exhaustive, but even so, the design options shown above allow for 4,445,280 combinations. Company Private person Organisation. What is required is careful analysis and also the willingness to take the risks of business transformations – which are brilliantly described in two books by Still, we can offer an overview of the many design options that business and product developers, innovation and sustainability managers can choose from to create their own circular economy business model. (Based on 6 × 9 × 7 × 6 × 7 × 10 × 4 × 7, choosing one option per dimension and not checking for inconsistent or illogical combinations). Read our in-depth article on how to create circular economy business models yourself. Some are based on case studies, others derived from theory.