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Businesses must embrace circular economy practices and enable greater consumer adoption to build resilience for the future

08 Nov 2021

The circular economy is the key to sustainable growth. As of now, consumers already make greener decisions, but they can choose only from what is offered to them: industrial organisations need to bake-in a green life cycle,” comments Roshan Gya, Managing Director, Intelligent Industry at Capgemini Invent. “The winners will be those who will secure a deep transformation in 3 areas: minimising the impact of their existing products and services, developing the products of tomorrow that will embrace circularity principles by design, and reinventing their operations that include new sustainable business models. These companies will be the new leaders of tomorrow on their markets with a strong consumer relationship and loyalty. In a sustainable journey, circular economy is an investment today for how we should do business in the future.”

The report identified some critical actions for businesses to implement circular economy initiatives:

  • Embrace circular design principles
  • Radically rethink business models
  • Rethink value chains to ‘close the loop’
  • Enable consumer adoption of circular practices
  • Establish organisational enablers to support the transition towards greater circularity
  • Use emerging technologies to further circular economy strategy
  • Collaborate to accelerate progress

Methodology

The Capgemini Research Institute surveyed close to 8,000 consumers globally to understand their interest in and acceptance of circular practices, and their expectations from organisations from the consumer products and retail (including food, personal- and household-care products, fashion and clothing, furniture, consumer electronics, and white goods), and automotive sectors. Capgemini also conducted in-depth interviews with 20 experts from industry, academia, start-ups, and think-tanks that are working in the field of circular economy.

Further information is available in the full report, which can be downloaded here.

[1] Capgemini’s 2020 Sustainability in Consumer Product and Retail report revealed that just 18% of consumer products and retail executives say they have invested in circular economy initiatives. Automotive is more mature: for example, in The automotive industry in the era of sustainability report, 52% of automotive companies said the most commonly deployed sustainability initiative in the sector is that of supporting and promoting a circular economy.