The Circular Economy: A Game Worth Playing
What if your business could thrive financially while making the world a better place? That’s the promise of the circular economy, a concept that’s flipping traditional business models on their heads. Instead of the “take, make, dispose” mindset we’ve grown accustomed to, the circular economy asks businesses to rethink waste, resources, and value creation. It’s about designing products to be reused, repurposed, and recycled—keeping materials in use longer and closing the loop on waste.
For many companies, 2030 has become the defining horizon for sustainability, greenhouse gas (GHG) emissions, and circularity goals. This is not an arbitrary deadline. It aligns with the United Nations Sustainable Development Goals (SDGs), which call for urgent action on climate, consumption, and production by 2030, and the Paris Agreement, which emphasizes cutting emissions nearly in half by 2030 to stay on track for net-zero by 2050. It’s also a response to consumer demand, regulatory pressure, and investor expectations, all of which are converging to make this decade the most critical for action.
Why does this matter now? Because the stakes have never been higher. Rising energy costs, resource shortages, and mounting pressure from consumers to “go green” are pushing companies to embrace a new way of working. According to a recent survey of 300 supply chain and procurement decision-makers in the UK, conducted by Sapio Research on behalf of Ivalua, businesses adopting circular practices are seeing incredible benefits:
These aren’t just numbers. They’re proof that businesses can do well while doing good.
According to the survey results, most businesses have a long way to go. Only 1 in 4 UK companies have successfully implemented circular economy practices. Why? Because it is challenging - suppliers resist change, leadership fails to prioritize sustainability, and many businesses lack the tools or vision to make it happen. Worse, nearly half of UK businesses admit progress has stalled altogether, but as procurement leaders, you have the power to help change that.
Who’s Leading the Way?
Across industries, leading brands are proving that circularity isn’t just possible—it’s profitable. Here are four examples of companies breaking ground:
Patagonia (US): Patagonia, an outdoor gear company, started their "Quest for Circularity" in the early 2000's. Not only has the company embraced circularity through its Worn Wear program. This initiative encourages customers to return used Patagonia garments in exchange for store credit. The collected items are repaired and resold, extending their lifecycle and reducing textile waste. Patagonia even offers resources for customers to repair their own clothing, fostering a culture of sustainability and conscious consumption.
Beyond its resale initiatives, Patagonia is a trailblazer in sourcing sustainable materials. The company actively researches and incorporates natural and sustainable fibers into its products, reducing reliance on virgin resources. Many of its garments use recycled polyester made from post-consumer waste, such as plastic bottles, helping to divert waste from landfills and oceans.
Patagonia is also rethinking the environmental impact of its logistics. The company has optimized its transportation routes to reduce emissions. For example, instead of shipping products from Costa Rica to Miami and then trucking them to its distribution center in Reno, Nevada, Patagonia rerouted shipments to Los Angeles, significantly cutting trucking distances and reducing emissions. Patagonia also looks for opportunities to utilize empty shipping containers returning to the United States, ensuring that unused capacity in shipping routes is leveraged to transport raw materials efficiently. These strategies demonstrate Patagonia's commitment to lowering its carbon footprint across the supply chain and show how circularity extends beyond products to operations.
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Decathlon (Europe): Global sports retailer Decathlon is leading the charge through strategic goals and investments into helping build the circular economy and focusing on repairability and rental services. The company offers products designed for easy repair and operates in-store repair workshops to encourage product longevity. Decathlon also offers rental services, allowing customers to rent sports equipment instead of buying, reducing waste and promoting reuse. By 2030, the Decathlon's action plan aims to reduce emissions by 42%.
IKEA (Europe): IKEA is transforming its operations to make circularity part of its DNA. Through its Buy Back & Resell program, customers can return used furniture, which IKEA refurbishes and resells. By 2030, the company aims to use 100% renewable or recycled materials in all its products, proving that sustainability and scalability go hand in hand.
Outerknown (US): Outerknown, co-founded by professional surfer Kelly Slater, is a leader in sustainability and circularity in the fashion industry. Their 2030 Sustainability Strategy aims to make 100% of their products circular by 2030. Outerknown focuses on creating durable garments that can be repaired, resold, or recycled, keeping them out of landfills. Their Outerworn resale platform has already kept over 1,800 garments in circulation, demonstrating their commitment to reducing textile waste and extending product lifecycles.
What can procurement teams do?
Start by asking:
The companies who embrace circularity today aren’t just solving problems; they’re setting themselves up for long-term success. More than half of businesses agree: if they don’t act now, they’ll be overtaken by greener competitors.
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To learn more, check out the following resources: