Report

Why, despite the growing number of proofs of concept, is the circular economy still struggling to scale up industrially? This was the question that brought together, on 17 April 2026, sixteen CSOs and Sustainability Directors from CAC40 companies and major groups - BNP Paribas, EDF, EssilorLuxottica, JCDecaux, Legrand, L'Oréal, Manutan, Orange, Pernod Ricard, Renault Group, SNCF, Société Générale, Unibail Rodamco Westfield and Veolia - at the "Circular CAC40 Lunch", organised every six months by the Club Circul'R and the ESSEC Circular Economy Chair.

This report sets out their feedback and proposes a six-pillar framework for turning isolated circular initiatives into replicable, profitable industrial models.

The 6 pillars for scaling up the circular economy

1. Economics and profitability

The most frequently cited barrier: ill-suited financial models (deferred ROI, structural extra costs) that struggle to value the strategic benefits of circularity (securing resources, reducing risk). The lever: reasoning in terms of value captured over time rather than immediate revenue, and mobilising hybrid financing.

2. Operations and circular supply chain

The lack of product standardisation and of structured collection channels limits industrialisation. The answer lies in widespread ecodesign and the development of circular S&OP.

3. Demand and market dynamics

Still uncertain demand and a cultural attachment to new products slow adoption. Companies need to build a narrative centred on concrete customer value (time saved, convenience) rather than on the environmental argument alone.

4. Technology and data

In a world of constrained resources, product data becomes a strategic asset: traceability, qualification of resource streams and artificial intelligence to support the prescription of circular products.

5. Organisation and governance

The circular economy is often carried by CSR alone, without clear business ownership. Scaling up requires cross-functional governance and the integration of circularity into business incentives.

6. Partnerships and cooperation

No company can transform a value chain on its own. Coalitions, co-investments and joint ventures make it possible to pool risks and reach the necessary critical mass.

What the report contains

• The barriers and levers identified for each of the 6 pillars, with a summary matrix
• A focus on the European regulatory framework (PPWR, ESPR, CRMA, Circular Economy Act) as a potential accelerator
• A testimony from Lucie Basch, co-founder of Too Good To Go, Climate House and Poppins, on the conditions for scaling up impact models
• The list of the 15 companies and organisations that contributed to the discussions

FAQ

What is the "Circular CAC40 Lunch"?

It is a six-monthly meeting organised by the Club Circul'R and the ESSEC Circular Economy Chair, bringing together around fifteen CSOs and Sustainability Directors from CAC40 companies to discuss a structuring theme of the circular transition.

Why is the circular economy struggling to scale up industrially?

Companies identify six main barriers: economics that are hard to justify, infrastructure designed for linear flows, still limited market demand, a lack of traceability tools, siloed organisations, and fragmentation of players along the value chain.

What is the most decisive factor in successfully scaling up?

Cooperation. The companies moving fastest are those building collective dynamics with their ecosystems to pool risks and structure value chains.

Is this report freely available?

Yes, it is available as a free download.