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The linear model - extract, make, discard - has become a documented strategic risk. Raw material volatility, geopolitical dependencies on critical resources, accelerating regulation (the AGEC law, CSRD, PPWR): companies that fail to build these dynamics into their strategy expose themselves to growing industrial and financial risks.

The circular economy is not the moral answer to these issues. It is the performance strategy suited to a world of constrained resources. This article sets out the foundations: definition, principles and what it means for companies in practice.

Who are we? Circul'R is a strategy consultancy specialising in the circular economy since 2017. More than 250 assignments delivered, 70% of the CAC 40 supported, more than 100 organisations in the Circul'R Club, more than 12 sector coalitions launched since 2018.

1. Definition of the circular economy

The circular economy is an economic model that aims to decouple value creation from the consumption of natural resources. Where the linear model follows the pattern "extract - make - consume - discard", the circular economy organises material flows in closed loops: products and materials retain their value for as long as possible, notably through reuse, repair, refurbishment and recycling.

ADEME definition : The circular economy is "an economic system of exchange and production which, at every stage of the life cycle of products, aims to increase resource efficiency and reduce environmental impact while improving people's wellbeing."

Three practical implications for companies: (1) reducing dependence on virgin raw materials and vulnerability to supply shocks, (2) creating new sources of competitiveness through business models based on use and lifespan, (3) complying with regulation whose scope widens every year.

What the circular economy is not

The circular economy is not a peripheral CSR topic. Dependence on critical resources, raw material volatility and regulatory risks are issues that bear directly on a company's economic performance. That conviction has underpinned Circul'R's approach since its creation: we work where decisions have a lasting effect on an organisation's business performance.

2. The 7 pillars of the circular economy (ADEME framework)

ADEME structures the circular economy around 7 complementary pillars. Their strategic value varies with the sector, the value chain and each company's resource dependency profile. An effective circular strategy combines several at once, prioritised according to economic and environmental impact.

• Sustainable sourcing: building circularity criteria into procurement: recycled materials, certified suppliers, reduced dependence on critical resources. This is often the pillar with the greatest immediate financial impact.
• Eco-design: designing from the outset to extend lifespan, make repair easier, limit substances of concern and facilitate recycling at end of life. This is one of Circul'R's 8 core areas of expertise.
• Product-service systems: selling use rather than ownership (leasing, pay-per-use, product-as-a-service). The producer retains responsibility for the product at end of life.
• Responsible consumption: steering purchasing decisions towards durable, repairable, recyclable products. An increasingly important issue with CSRD reporting obligations on procurement policies.
• Extending useful life: repairing, refurbishing and reusing before any end of life. A pillar with strong potential in construction, textiles and electronics.
• Recycling: transforming end-of-life materials so they can be fed into new cycles. The last resort in the hierarchy, but essential for flows that cannot be dealt with upstream.
• Waste recovery: recovering energy or materials from non-recyclable residual flows. Dealing with the unavoidable, not a strategy.

A word on Circul'R's method

In our assignments, we systematically use the 7 pillars as an analytical framework, but we prioritise the levers according to two criteria: the company's exposure to material risks and the potential for economic value creation per pillar. The approach is both economic AND environmental.

3. The 3 founding principles (Ellen MacArthur Foundation)

The Ellen MacArthur Foundation, the global reference on the subject, defines the circular economy around three guiding principles that underpin any serious strategy:

1. Eliminate waste and pollution by design: thinking about end of life at the design stage avoids creating problems that are costly to solve later. This is the logic of eco-design: value is preserved upstream, not downstream.
2. Keep products and materials in circulation at their highest possible value: in order of preference: reuse, repair, refurbishment, recycling. Each level preserves more economic value and reduces energy consumption.
3. Regenerate natural systems: returning organic nutrients to biological cycles. Mainly relevant to the food, cosmetics and bio-based chemicals sectors.

These principles are not statements of intent: they translate into industrial decisions, sourcing choices and revenue models. It is that operational translation that Circul'R supports across its 250+ assignments.

4. Circular economy and recycling: the most common framing error

Equating the circular economy with recycling is the most widespread and, in strategic terms, the most costly confusion. Recycling is the 6th level in a hierarchy of 7 options, ranked from most to least effective in terms of value preserved:

1. Refuse / reduce (less material from the outset = maximum impact on costs and supply risks)

2. Reuse (same product, same use, no transformation)

3. Repair (extending lifespan with minimal intervention)

4. Refurbish / remanufacture (restoring functionality to its original level)

5. Recycle (transforming the material for a new use = energy-intensive)

6. Energy recovery (recovering residual energy = last resort)

Investing heavily in recycling while claiming to practise the circular economy means working at the least effective level of the hierarchy. A serious circular strategy focuses first on levels 1 to 4: where the economic value preserved is greatest and transformation costs are lowest.

Greenwashing warning sign

Any communication that presents recycling as equivalent to the circular economy exposes the company to a clear greenwashing risk, particularly in light of the Green Claims Directive (adoption expected in 2026), which strictly regulates environmental claims.

5. Why the linear model has become a documented strategic risk

5.1 Dependence on critical resources

The European Commission identified 34 critical raw materials in 2024 (lithium, cobalt, rare earths, natural graphite and more). For manufacturing, electronics, automotive and energy transition companies, this dependence represents a quantifiable, not hypothetical, supply risk.

At Circul'R, our expertise in securing supply consists precisely in identifying critical dependencies beyond tier 1, quantifying the revenue exposed and activating circular levers to reduce that vulnerability. The issue is not the material as such: it is the performance exposed to that material.

5.2 Regulation as an accelerator of transformation

The French and European regulatory framework makes the circular economy unavoidable for large companies, on an accelerating timetable:

• The AGEC law: EPR obligations, a ban on destroying unsold goods, packaging reuse targets. Non-compliance creates direct legal and reputational risks.
• CSRD: mandatory reporting on the circularity of processes for companies with more than 250 employees. Claims without measured data are now exposed.
• The PPWR regulation (Packaging & Packaging Waste Regulation): binding targets on recycled content and packaging recyclability by 2030, with staged thresholds.
• The European green taxonomy: a classification of sustainable activities incorporating circularity criteria. A direct issue for access to ESG financing.
• The Ecodesign for Sustainable Products Regulation (ESPR): progressive eco-design obligations across many product categories.

Circul'R continuously monitors these regulatory developments and takes part directly in institutional working groups - the European Commission (ECESP), SGPE, DGPR, DG Trésor - to anticipate changes and contribute to their design.

5.3 The economic lever: what our assignments show

Companies engaged in a structured circular transformation are not doing it for abstract environmental reasons. They are doing it because the economic results are measurable:

What our assignments show : more than 250 assignments delivered for 70% of the CAC 40 and the SBF 120 point to three recurring levers: lower sourcing costs through substitution of virgin materials, new revenue streams via use-based and reuse models, and an improved competitive position in the face of B2B buyers who build circularity criteria into their tenders.

6. The Circul'R approach: how we work

Circul'R works where decisions have a lasting effect on an organisation's economic performance. Our work is organised around two complementary dimensions: four ways of working and eight areas of expertise.

6.1 Our 4 ways of working

Depending on your organisation's maturity and the nature of your challenge, we work through one or more of these four modes:

• Training: more than 10,000 people trained in the circular economy. Programmes tailored to executive committees, operational teams and CSR functions, giving teams the tools they need to build circularity into strategic and operational decisions.
• Consulting: circular maturity assessment, strategic roadmap, impact modelling (environmental, financial, regulatory), solution sourcing and pilot support. We build the transformation trajectory and help you execute it.
• Coalitions: more than 12 coalitions launched since 2018, more than 70 companies involved, more than 10 open-source deliverables. Circul'R builds cooperation between players in the same value chain to remove the technical, economic and regulatory barriers that no one can remove alone.
• The Circul'R Club: more than 100 member organisations, more than 50 events since 2018, a satisfaction score of 9.5/10. The meeting place for organisations committed to circularity: cross-sector lessons learned, regulatory analysis and qualified matching with circular solutions.

6.2 Our expertise: 8 levers to accelerate your transformation

These 8 areas of expertise cover all the strategic and operational decisions you need to structure. They are organised around three axes: securing resources, transforming business models, and steering performance and credibility.

Axis 1 - Securing resources and the value chain

Is your business model exposed to the volatility of a given material? Does your sourcing depend on countries of growing geopolitical risk? These two areas of expertise work specifically on reducing that vulnerability.

• Strategy, governance and indicators: defining transformation trajectories, structuring internal governance, aligning business functions and steering economic and environmental performance. Linking the circular strategy to a quantified ROI and taking it to executive committee level.
• Securing supply: identifying critical dependencies, quantifying the revenue at risk, anticipating geopolitical exposure. The issue is not the material: it is the performance exposed to that material.

Axis 2 - Transforming business models

Are your products designed for a short lifespan while regulation pushes towards eco-design? Is your revenue still entirely tied to selling new products while your customers are asking for use-based models? These three areas of expertise structure the transformation.

• Eco-design: adapting products and packaging to circular models, making trade-offs on materials and technical architectures, ensuring industrial and economic feasibility.
• Circular business models: designing and rolling out revenue-generating models: second-hand, rental, repair, refurbishment. Building in a multi-dimensional ROI and testing it economically and environmentally from the design stage.
• Packaging reuse: building shared reuse systems that are viable across a value chain. Without an ecosystem approach, reuse stays experimental.

Axis 3 - Steering performance and credibility

Is your finance department asking for a business case on circularity before approving an investment? Are your communications teams exposed to greenwashing risk? These three areas of expertise address those measurement, financing and communication challenges.

• EPR models: supporting public and private organisations in understanding, structuring and meeting EPR obligations. EPR is an essential lever for financing ambitious circular projects.
• Circular communication: building evidence-based narratives, securing anti-greenwashing compliance and showcasing circular offers. Communication is not the starting point: it is the consequence of real transformation.
• Circular finance: embedding circularity in financial models (capex/opex, business cases, total cost), demonstrating value creation and securing access to funding. The barrier is not the funding: it is understanding circular risks and dynamics.

Conclusion

The circular economy is a strategy for economic robustness in a world of constrained resources. Understanding the definition is the first step. Identifying the priority levers for your value chain, modelling the impacts and building a credible roadmap is the next.

That is precisely where Circul'R comes in: with expertise built on more than 10 years of dedicated assignments, a community of more than 100 organisations committed through the Club, and 12 sector coalitions that set the reference in their value chains.

Contact our team for a circular maturity assessment tailored to your value chain, or join the Circul'R Club to benefit from the experience of more than 100 committed organisations.