Circular economy challenges for companies

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The challenges of the circular economy for companies have already been widely studied by the Institut de l'économie circulaire in its study "Quelles stratégies d'entreprises pour une économie circulaire moteur de croissance ?(What business strategies should be adopted for the circular economy to be come an engine for growth?)" » 

Companies' shift to the circular economy is generally motivated by a combination of economic, regulatory and communication factors.

Companies have every incentive to improve their material and energy efficiency. They can make significant sourcing savings and limit the risks of fluctuations in the price of materials or resource shortages.

The development of industrial and territorial ecology (infrastructure sharing or services and resource flow substitution - see the Orée study) allows companies to reduce costs, diversify sourcing and have additional sources of revenue.

New function-oriented business models also represent opportunities in terms of commercial openings and customer loyalty. The relationship between service providers and customers is moving towards providing an integrated service without transfer of ownership. The strengthened ties between suppliers and users are likely to attract customers tired of buying products with a limited service life.

A company may also choose to commit to the circular economy in order to anticipate changes in regulations. Setting up extended producer responsibility for WEEEs, for example, has prompted Neopost to eco-design its products.

The circular economy is also part of companies' social and environmental responsibility. It allows those involved in the economy to combine economic, social and environmental objectives through concrete projects and to benefit from positive impacts on communication. 

See the initiative Recyclage et réutilisation du PET – Infineo (Recycling and reusing PET)


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