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Ivonne Bojoh, CEO of Circle Economy, shares her insights on circular economy’s benefits for businesses
The world faces a triple crisis—climate change, biodiversity loss, and pollution. The circular economy is one of the most effective solutions to address these issues. Our
Circularity Gap Report 2021 shows that 70% of global emissions are tied to material use and handling. By applying circular economy strategies, we can cut excessive material consumption and thereby reduce carbon emissions. Moreover, the Circularity Gap Report 2023 highlighted that embracing circularity can help reverse the overshoot of five planetary boundaries, including those related to water and soil health. Time and again, our analysis demonstrates that a circular economy offers a holistic, effective approach to tackling multiple global crises simultaneously.
Beyond its environmental benefits, the circular economy is simply a smarter, cleaner, and more efficient system. At the dawn of the 20th century, oil overtook coal because it was a more efficient and less polluting energy source. Today, we have found an even better alternative—renewable energy—which is poised to render oil obsolete. However, unlike the past, we no longer have the luxury of time to let this transition unfold gradually. To combat the pressing crises we face, we must accelerate both the energy and circular transitions.
The Netherlands has been a pioneer in embracing circularity. We worked with many local governments leading the transformation, from Amsterdam to Groningen, and are currently working on the Circularity Gap Report Friesland, together with Circulair Friesland. We take pride in guiding the City of Amsterdam on its circular economy journey, which earned it a spot as a finalist for the prestigious Earthshot Prize in 2022. Beyond visionary policymakers, entrepreneurs across these cities and regions are also driving the shift toward the circular economy.
The Netherlands boasts a high circularity rate and a robust policy framework that supports circular innovation. The Circularity Gap Report Netherlands measured the country’s circularity at 24% in 2020. Initiatives like the Dutch National Circular Economy Programme and strong public-private partnerships have provided a strong basis for circular innovation.
However, like many affluent nations, the Netherlands grapples with unsustainable consumption habits—buying and wasting more than necessary. Our recent reports have shed light on these challenges. For example, used clothing exports from the Netherlands totalled more than €193 million in 2022. This is the highest export value in the five years, indicating a strong overconsumption trend. An average Dutch consumer now buys 46 new clothing items and disposes of 40 (!) each year. These striking numbers underscore the need for both the country and its residents to intensify their efforts toward sustainable and circular consumption.
There's a common misconception that sustainability comes at a cost. In reality, circular strategies drive efficiency, reduce costs, and open new revenue streams. For instance, models like product-as-a-service (PaaS) and resale schemes allow businesses to tap into new markets and foster stronger connections with clients.
At Circle Economy, we analyse material flows to identify business opportunities, expose inefficiencies, and provide actionable insights, forming a solid basis for informed decision-making. Beyond optimising operations, we emphasise the importance of resilience and future-proofing. With evolving legislation and true pricing on the horizon, along with the undeniable impacts of our current linear economy, resource-intensive businesses have both an opportunity and an imperative to change.
Swapfiets is a prime example of a successful international business built on the PaaS model. Starting as a Dutch enterprise, Swapfiets now offers its circular services in eight countries. They have redefined mobility by shifting ownership to service and maintenance models, thus extending the lifecycle of their products and ensuring that resources are used optimally.
Additionally, Decathlon, traditionally a linear retail giant, has recently adopted circular business models like resale, tapping into new markets and catering to customers interested in trying new sports without the commitment of purchasing new and expensive equipment.
IKEA has also taken steps toward circularity with its buy-back program, offering second-hand furniture alongside new products. These initiatives illustrate how businesses can successfully integrate circular models, proving that sustainability and profitability can go hand in hand.
It's essential to reshape the narrative and view the circular economy as a powerful risk mitigation tool. Challenges like raw material shortages, supply disruptions, and geopolitical risks can be effectively mitigated through circular strategies—by shortening supply chains, doing more with less and sourcing (recycled) materials locally.
So, the circular economy is not merely about ticking compliance boxes; it's about ensuring a company's long-term viability and resilience. When companies start to see investment in sustainability as a driver of competitive advantage, the shift from mere compliance to proactiveness becomes inevitable.
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Circle Economy is proud to announce the appointment of four sustainability leaders to our Supervisory Board. Each new member brings a unique perspective and a shared commitment to accelerating the transition to a circular economy. Their expertise and experience will be instrumental in advancing our mission to double global circularity by 2032.
’We are honoured to have been approached by so many distinguished experts who are keen to join our Supervisory Board. Selecting just four of them to complement our existing non-executive Board was a challenging task. Gordana, Marcus, Nancy, and Sisse bring a wealth of perspectives and experiences, and I am excited to collaborate with them as we continue to support global transformation towards 17% global circularity.’ — Ivonne Bojoh, CEO of Circle Economy
Meet the new Supervisory Board members!
Dr. Gordana Kierans
Dr. Gordana Kierans has dedicated her career to empowering changemakers, CEOs, and government officials to embrace the circular transition. With an extensive consulting and coaching background across diverse cultural and economic contexts, Dr. Kierans brings a much-needed global perspective to our Board.
Prof. Nancy Bocken
Professor Nancy Bocken is a renowned academic and entrepreneur specialising in sustainable business and circular economy practices. She teaches at Maastricht University and co-founded HOMIE, a sustainable business venture. As a strategic sustainability advisor to various organisations, she bridges the gap between cutting-edge research and real-world application.
Sisse Norman Canguilhem
With 18 years of leadership in international policy, sustainability, and corporate affairs, Sisse Norman Canguilhem brings unmatched expertise in advancing global sustainable policies. A former Deputy Director of the Danish Ministry of Foreign Affairs, she contributed to Denmark's international climate policy both bilaterally and at multilateral level at COP, the World Economic Forum and other high-profile events.
Dr. Marcus Gover
As an accomplished sustainability leader, Marcus Gover offers over two decades of board-level experience in both commercial and non-profit sectors. His expertise spans climate action, food systems, clothing, and plastic pollution. Now a consultant and non-executive director, Marcus brings exceptional strategic, commercial, and technical leadership to Circle Economy.
‘With the addition of four new Supervisory Board members, we aim to infuse our work with renewed energy. Their diverse international and interdisciplinary expertise will help ensure that the circular economy gains recognition at all levels —from academia to business to government. A heartfelt thank you and a warm welcome to these exceptional individuals joining our team!’ — Robert-Jan van Ogtrop, Founder of Circle Economy & Chairman of the Supervisory Board
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28th of November 2024, Amsterdam—The global textile industry, including fashion and home textiles, consumes 3.25 billion tonnes of resources each year to produce increasingly short-lived items. Only 0.3% of these materials come from recycled sources, primarily plastic bottles. The use of recycled textiles in production remains minimal, while oil-derived synthetic fibres like polyester are gaining ground, now accounting for 70% of the materials used to make our clothes.
These are the main findings from the newly released Circularity Gap Report Textiles by impact organisation Circle Economy and the H&M Foundation. The report calls for urgent action to diminish the industry’s environmental impact by embracing circular economy principles such as reuse, recycling, and slow fashion.
One of the primary barriers to circular textiles is the overproduction of cheap, low-quality, primarily synthetic garments, with mass-market brands now releasing up to 24 collections per year. The textile industry has become one of the biggest consumers of resources, leading to environmental damage worldwide. The report estimates that the sector contributes nearly 3.5% of global greenhouse gas (GHG) emissions linked to climate change, 5% to nutrient overload that disrupts marine and freshwater ecosystems, and accounts for 3.5% of water scarcity.
Two countries—China and the United States—play a significant role in these environmental impacts, with China being the largest textile producer and the US the largest consumer. Remarkably, the environmental impact per person in the US is five to eight times higher than the global average, driven by heavy textile consumption.
Hilde van Duijn, Managing Director of Circle Economy Foundation said that ‘The textile and fashion industry can considerably reduce its environmental footprint through circular practices. However, this transition will impact the livelihoods of the 140 million workers employed in textile supply chains. Ensuring a just transition for these workers should be a top priority for both governments and businesses.’
Embracing circular economy solutions across the textile value chain can help mitigate climate change and water scarcity, preserve biodiversity and human health and reduce air pollution, among other positive impacts. The report outlines strategies to triple the textile industry’s circularity and reduce its environmental impacts by up to 50%.
These strategies include boosting garment durability through the smart use of synthetic fibres while ramping up textile recycling. Producing natural fibres sustainably is crucial, as traditional farming methods for materials like cotton and wool can exacerbate environmental damage through excessive water, land, pesticide, and energy use. Ultimately, it finds that a circular textile industry is impossible without a dramatic cut in consumption. The average European today consumes a staggering 26 kilograms of textiles each year, and discards 12 kilograms. Embracing slow fashion, which favours quality over quantity, and supporting businesses in adopting rental or sharing models is key to reducing overproduction, while more efficient manufacturing methods can drastically reduce pre-consumer waste.
Christiane Dolva, Head of Innovation, Research & Demonstration at the H&M Foundation said that ‘We supported this report to provide the textile industry with actionable insights. The report highlights the most impactful circularity efforts. While not a complete solution, the circular economy is a powerful tool for driving meaningful change. We hope these insights will support industry-wide transformation, benefiting both people and the planet.’
Circle Economy has launched a Data Explorer for the Japanese city of Gamagori. Developed in collaboration with Harch Inc. and the city itself. This digital tool provides a visual overview and key insights into circular jobs in the city, along with recommendations to increase the circularity of its economy.
In late 2021, Gamagori committed to advancing the circular economy in order to enhance the well-being of its residents. To support this effort, Circle Economy mapped the city’s circular jobs, providing a starting point for creating more employment opportunities that will drive the circular transition forward.
The analysis found that 611 out of 35,918 jobs (1.7%) in Gamagori contribute to the circular economy, either directly or indirectly. About 1.1% of jobs are considered direct circular jobs, meaning they operate directly within the circular economy, such as roles in circular design, repair, renewable energy generation, and waste and resource management. Approximately 0.6% of jobs in Gamagori are indirect circular jobs, which provide crucial support for direct circular jobs—for example, by supplying spare parts for repairs.
The service sector accounts for the highest number of circular jobs, while utilities, despite being the smallest in terms of employment, show the highest proportion of circular jobs at 15.4%, primarily in water and waste management. Sectors such as medical care and welfare, transportation and postal services, accommodation and food services, construction, and manufacturing—though large employers—currently have low percentages of circular jobs but hold significant potential for growth.
To advance the circular economy, Gamagori could invest in education and reskilling programmes to help workers transition from linear to circular roles. The city could also incentivise job creation in high-potential sectors like manufacturing and services through measures such as tax deductions and wage subsidies. Additionally, the relatively low percentage of indirect circular jobs provides an opportunity to reshape city services to better promote the circular economy. Engaging sectors like finance, insurance and research could be key in developing and implementing new business models in the circular economy.
The Gamagori Data Explorer is a pilot project with the potential to expand to other cities across Japan and beyond.
Click here to access the Data Explorer and subscribe for updates on this product.
We are pleased to announce the release of ‘Circularity and Informality: Redefining Narratives’—a knowledge product resulting from a partnership between Ashoka, IKEA Social Entrepreneurship, and the United Nations Development Programme (UNDP) Accelerator Labs Network, with support from Circle Economy.
This white paper is designed to enhance understanding of the informal sector’s role within the circular economy—a group of actors that are often overlooked. Additionally, it aims to foster dialogue on how to empower informal workers and their collaborators, particularly social entrepreneurs, in advancing circular practices. It is based on the insights we recorded from a series of learning circles—generative conversations that involve genuine inquiry and sharing, leading to expanded understanding and shared meaning. They brought together social entrepreneurs, Ashoka Fellows, UNDP Labbers, and other stakeholders.
As the circular economy develops globally, the circles’ participants underscored the need to use it as a force to foster positive social change, including safeguarding and empowering informal workers. The participants also acknowledged the tensions and dilemmas that arise as we scale circular solutions in traditionally informal settings.
The white paper’s key findings include:
1. ‘Informality’ is a label imposed on workers, who regard their work as simply a way of life and means of livelihood rather than part of an ‘informal’ economy.
2. The stigma attached to informal labour can mean the significant economic and circular contributions these workers make are not properly recognised. It is important to respect the significance and identity of these workers.
3. Informal settings are rich with grassroots circular economy knowledge and ingenuity but often overshadowed by dominant views shaped by technology and theoretical frameworks.
4. Formalising informal employment in the circular economy can empower workers but it can also worsen their situation if not approached carefully. Therefore, there is an urgent need for nuanced and context-specific approaches when considering the formalisation or integration of the informal sector.
The partners view the white paper as a contribution to the rich discussions about informality in the circular economy and the dynamics within ecosystems of actors that need to be better understood as circular solutions are scaled. We invite all interested parties to engage actively in discussions on this topic. In addition to sparking conversations, our findings intend to inspire concrete actions to drive real change.
Learn more and download the white paper here.
About Ashoka
Ashoka is a global network of over 3800 social entrepreneurs in more than 95 countries, working towards an “Everyone a Changemaker” world. They identify and support social entrepreneurs who drive transformative solutions to societal and environmental issues, fostering a more inclusive and sustainable future.
About IKEA Social Entrepreneurship
IKEA Social Entrepreneurship is committed to creating a positive impact for people, society, and the planet through innovative solutions and partnerships. By supporting social entrepreneurs, they aim to address social and environmental challenges and drive positive change.
About UNDP Accelerator Labs
The United Nations Development Programme (UNDP) Accelerator Labs is the world’s largest and fastest learning network on wicked sustainable development challenges, containing 90 Labs and covering 114 countries worldwide.
About Circle Economy
Circle Economy is a global impact organisation with an international team of passionate experts based in Amsterdam. We empower industries, cities and nations with practical and scalable solutions to put the circular economy into action. Our vision is an economic system that ensures the planet and all people can thrive. To avoid climate breakdown, our goal is to double global circularity by 2032.
Widespread adoption of circular economy principles like reuse and recycling could reduce Ireland's carbon emissions by up to 32%, according to the Circularity Gap Report Ireland. The report analyses Ireland’s material consumption and carbon emissions profile and the potential for circular economy strategies to mitigate environmental impacts.
A robust evidence base is required to ensure that the targets selected for Ireland’s forthcoming Circular Economy Strategy are appropriate. The Irish Department of the Environment, Climate and Communications has commissioned this Circularity Gap analysis, conducted by impact organisation Circle Economy, to understand Ireland’s material and carbon footprint for key systems such as the bioeconomy, the built environment, and manufactured goods.
This report provides a comprehensive and detailed analysis of Ireland’s current national material flows and level of circularity based on a methodology that allows for international comparisons of Ireland’s performance relative to peer countries. Circularity Gap Reports establish a baseline circularity level for a local, regional or national economy. They provide insights into policy interventions to help boost circularity and provide the tools to monitor progress.
According to the study, Ireland’s residents consume 22 tonnes of raw materials per person per year, surpassing both the European average of 17 tonnes per capita and the estimated sustainable level of 8 tonnes per capita.
Rapid economic growth over the past years has led to a surge in material consumption in Ireland. This trend has put increasing pressure on ecosystems within the country and abroad, driving the triple crisis of climate change, biodiversity loss and pollution. For example, Ireland’s plastic waste generation has more than doubled in just ten years. Moreover, Ireland is one of the few EU countries where territorial emissions have only recently started to decline relative to 1990 levels.
The report outlines specific pathways to reduce material consumption by 29% and cut carbon emissions by 32%, while tripling the country’s circularity rate from 2.7% to 8.4%. For example, circular strategies in construction—such as building retrofitting, using bio-based materials and repurposing vacant spaces—could deliver a 12.6% reduction in material use and a 17.3% reduction in emissions. However, if business as usual continues, the sector’s carbon footprint is expected to increase fivefold by 2030. This makes construction a priority area for targeted policies.
With two-thirds of Ireland's land dedicated to agriculture and 11% to forestry, the bioeconomy has emerged as another priority sector for change. The report recommends accelerating the shift to sustainable and organic farming practices, sustainably increasing forest cover and addressing labour shortages and skills gaps in the sector.
Additional measures include boosting efficiency and industrial symbiosis in manufacturing, switching to cleaner mobility options like public transport bicycles and electric cars, and promoting a sustainable lifestyle based on buying fewer products and using them longer. These measures could reduce Ireland’s environmental impacts while maintaining the high living standards achieved over the past decades.
The 'Design for Transformation' (D4T) pilot project, led by Circle Economy and the Biomimicry Institute, has developed an innovative technology to produce bioplastics and gaseous products from textile waste. This set of technologies aims to enable companies to generate additional revenue streams from waste, whilst diverting it from landfills or incineration.
The project focuses on old clothing and other fabrics collected in Rotterdam that can’t be repaired. Such textile waste is often challenging to recycle because it consists of fabric blends, such as cotton and polyester. Sorting this mixed waste for recycling is often too expensive or technologically unfeasible. The D4T project addresses this challenge by developing a network of technologies capable of processing non-rewearable, unsorted, difficult-to-recycle textile waste.
Through a series of innovative processes, researchers have successfully converted mixed textile waste into biodegradable polymers and synthesis gas (syngas)—valuable feedstocks with potential applications across multiple industries.
In the pilot's first phase, the biotech start-up BioFashionTech used their novel enzymatic process to break down cellulose (such as cotton and viscose) in textile waste into glucose.
The research company EV Biotech used this glucose to produce polyhydroxyalkanoates (PHAs), a biodegradable polymer that could replace conventional plastics in various applications. Remarkably, the quality of the textile-derived glucose was comparable to or even better than conventional glucose.
As a final step, the applied research institution TNO processed the remaining non-cellulosic fibres, such as polyester and nylon, into syngas through a thermochemical gasification process. Syngas has many potential uses, primarily in the chemical industry—one of the leading industries in the Netherlands.
The pilot's successful results suggest a promising future for these technologies, which have the potential to be scaled and implemented in other Dutch cities. Additionally, the project highlights how this process could reduce reliance on glucose derived from food crops, contributing to more sustainable production methods.
Learn more about the project and its results.
The Circularity Gap Report Quebec*, published by Circle Economy in 2021, has gained a new deep-dive chapter exploring how the circular economy can be a means to stay within planetary boundaries. This analysis applies six circular scenarios to the Québecois economy to uncover their effect on climate change, marine and soil health, water resources, and pollution, showcasing how the circular economy can comprehensively tackle environmental problems.
The extension chapter examines the combined effect of the scenarios from the Circularity Gap Report Quebec on climate change, freshwater use, land use change for cropland, freshwater eutrophication, marine eutrophication, and particulate matter formation. This analysis draws from and adapts the Planetary Boundaries framework**—which considers the Earth system as a whole—in order to tailor the analysis to Québec, one of Canada’s ten provinces.
It found that the circular scenarios have an all-round positive effect: combined, they could bring climate change and marine eutrophication closer to a safe operating space, while bringing freshwater use well within the safe operating space. The other three impacts, which have not yet surpassed safe limits, could be further reduced to benefit the province.
The new chapter of the Circularity Gap Report Quebec demonstrates why policymakers should consider circular economy strategies as a cross-cutting solution to achieve multiple impact goals. Businesses and industries can also consider circular solutions to both improve resource efficiency or create new business models as well as reduce environmental impacts and contribute to net-zero targets. This report’s methodology also provides a starting point for academics to fine-tune and expand upon. For the circular economy to thrive in Québec, all stakeholders must join hands to spur systemic change.
* Read the Circularity Gap Report Quebec with the new chapter here
** Learn more about the Planetary Boundaries Framework here
