Circular Economy
An economic model designed to eliminate waste by keeping materials in use through reuse, repair, and recycling.
Definition
A circular economy is an alternative to the traditional "take, make, dispose" linear economic model. Instead, products and materials are designed from the outset to be reused, repaired, refurbished, or recycled, keeping them in circulation for as long as possible and minimizing the extraction of new raw materials.
Circular economy principles are being applied across industries, from clothing companies offering repair and resale programs to electronics manufacturers designing products that are easier to disassemble and recycle at end of life.
In Practice
A furniture company that takes back old products, refurbishes them, and resells them -- rather than seeing them thrown away -- is operating on circular economy principles.