Circular economy
A timely model for change.
What is a circular economy?
The circular economy is a powerful and necessary framework designed to overhaul the traditional linear economy of 'take-make-dispose'. At its core, the circular economy advocates for the efficient use of resources, significant waste reduction and material reutilisation. By closing the loop in the lifecycle of products, the circular economy aims for each resource to deliver increased value.
Why the circular economy matters
Circular systems are designed to eliminate waste, retain value and regenerate natural systems. By rethinking how we design, use and recover resources, this model can help in the following ways:
-
Cost efficiency
Circular models can reduce raw material needs including energy and water in addition to other material inputs, thereby cutting manufacturing and construction costs.
-
Lowering carbon emissions
Reducing material, energy and water inputs helps reduce the embodied greenhouse gas emissions of products and preserves biodiversity. Circular initiative can help businesses achieve their decarbonisation targets.
-
Innovation and market expansion
Transitioning to a circular economy fosters innovation, opening unexplored markets and creating opportunities in new and sustainable sectors. This can translate to new sources of revenue.
-
Regulatory compliance
Governments worldwide have introduced new regulations and policies to promote sustainability and reduce waste. Businesses that adopt circular economy principles could find it easier to comply with these new laws and avoid costly penalties.
-
Enhanced brand reputation
Governments, communities, NGOs, shareholders and individuals are calling on industries to take action for a more sustainable world. Multiple studies indicate that businesses that choose sustainability improve their brand value, reap the corporate social responsibility and financial rewards.
Shifting towards a circular mindset, designing out waste, keeping materials in circulation and regenerating ecosystems can help organisations future-proof their operations and contribute meaningfully to a more equitable, low-carbon economy.
Read more about the benefits of the circular economy here.
Use-case scenarios: Implementing circular economy
Understanding where value is leaking out of your business as waste is one of the first steps to implementing a circular economy model. From there, you can develop strategies to design waste out of your business and think about circular procurement.
From a waste management perspective, waste audits, baseline studies and zero-waste planning are a good place to start. Strategies and circular procurement can come in the form of recycling programs, reuse technologies, changes to product or packaging design and using waste as a resource. Further refining and analysis can aid in expanding these programs to create more value.
The City of Surrey, Canada contracted GHD to aid in their zero waste strategy as part of their vision to promote a circular economy. We developed a waste reduction matrix to quantify reduction and diversion potential to help determine targets and goals over the next 30 years. It set out a series of short, medium and long-term actions with the City’s associated waste reduction and diversion targets, and KPIs for long-term program monitoring and improvements.
In the building sector, the circular economy involves finding ways to put green back into the environment through things like green roofs, vertical gardens and urban architecture. Regenerative design, natural materials and renewable energy are also ways to revitalise ecosystems while minimising negative impacts on the environment.
As for circular procurement, GHD collaborated with the Green Building Council of Australia (GBCA) to create “A practical guide to circular procurement: For new buildings and major refurbishments” which was launched at GBCA’s Transform 2025 conference. It was designed to incorporate detailed instructions for each procurement stage, complemented by technical appendices containing additional tools and resources.
Read more about our commitment to sustainability and our work on circular economy here.
References
Articles referenced
Want to go deeper?
To dive deeper into how businesses can transition towards circularity and unlock sustainability, resilience and long-term value, explore our insights on evolving from a linear to a circular economy.
Related services
-
-
ESG and Strategic Sustainability
Delivering environmental and social welfare.
-
Sustainability and resilience
Capabilities delivering positive impact.