CircularTransformationofIndustries:UnlockingEconomicValueWHITEPAPERJANUARY2025IncollaborationwithBain&CompanyandtheUniversityofCambridgeImages:GettyImagesDisclaimerThisdocumentispublishedbytheWorldEconomicForumasacontributiontoaproject,insightareaorinteraction.Thefindings,interpretationsandconclusionsexpressedhereinarearesultofacollaborativeprocessfacilitatedandendorsedbytheWorldEconomicForumbutwhoseresultsdonotnecessarilyrepresenttheviewsoftheWorldEconomicForum,northeentiretyofitsMembers,Partnersorotherstakeholders.©2025WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformationstorageandretrievalsystem.ContentsForewordExecutivesummaryThecircularpathtovalueArchetype1CircularfeedstockArchetype2LifespanextensionArchetype3CapacitysharingConclusionAppendixContributorsEndnotes35711141922232930CircularTransformationofIndustries:UnlockingEconomicValue2ForewordWeareexperiencingatransformationofbusinessmodelsasmanylinearmodels1reachtheirlimitsandmanufacturersandvalue-chainpartnersturntocircularsolutionstoimprovesustainability,resilience,revenuesandcosts.Linearbusinessmodelsareincreasinglychallengedbyshortagesofinputs,globaldisruptionsandthetripleplanetarycrisis.2Whilelinearbusinessmodelsareunlikelytodisappear,newcircularonesareemerging.Theneedfortransformativechangehasneverbeenmorepressingandthemarketwillfavourthosewhoembracechangeandnewsourcesofvalue.Circularityoffersapathforward.Inacirculareconomy,productsandmaterialsarekeptincirculation,resourceextractionissloweddown,andeconomicgrowthisdecoupledfromresourceconsumption.3Circularityallowsbusinessestoincreasetheirresilience–theabilitytoprepare,respondtoandrecoverfromdisruptions–andreachnewmarketsandcustomers,whilereducingtheimpactofclimatechange,resourcetensionsandenvironmentaldegradation.Theshifttowardsacirculareconomyrequirestheparticipationofadiversesetofstakeholders,andacceleratingmomentumatthebusinesslevelisvitaltotransformtheentiresystem.Whilemanyofthecapabilitiesneededforcirculartransformationareavailabletoday,achangeinmindsetisneededtotransitionfromlineartocircularbusinessmodels.JennyDavis-PeccoudSeniorPartner;FounderSustainabilityPractice,Bain&CompanyHernanSaenzSeniorPartner;GlobalHead,PerformanceImprovementPractice,Bain&CompanyFernandoJ.GómezHead,ResourceSystemsandResilience;MemberoftheExecutiveCommittee,WorldEconomicForumJagjitSinghSraiDirector,Research;Head,CentreforInternationalManufacturing,InstituteforManufacturing,UniversityofCambridgeKyriakosTriantafyllidisHeadofGrowthandStrategy,CentreforAdvancedManufacturingandSupplyChains,WorldEconomicForumCircularTransformationofIndustries:UnlockingEconomicValueJanuary2025CircularTransformationofIndustries:UnlockingEconomicValue3Theconceptofcircularityhasbeenaroundforalongtime,buthasnotyetscaled.Businessesandindustrieshavefocusedmostlyonreplacingvirginwithrecycledmaterialswithoutestablishingholisticcircularstrategies.Theyhaveviewedcircularitythroughtheprismofsustainabilityandregulatorycompliance,ratherthanasameansofcreatingbroadvaluethroughincreasedresilienceandrevenues,andagreatercontrolovercosts.Ourresearch,however,showsthatnotonlyarenewmodelsbeingadoptedbutthatbusinessesarealsoincreasinglyachievingeconomicvaluefromcircularity.Theobjectiveofthispaperistoinspirebusine...