Circular economy

Circular economy describes an innovative economic system that replaces the concept of »end of life« with reduction, reuse, recycling, and recovery of materials. The resulting value creation system benefits from the processing and reuse of goods and the treatment of waste materials at various stages of production. This means that value can be continuously added without the massive extraction and subsequent processing of primary raw materials.

To realize this vision, changes are needed at all levels: at the micro level (e.g., products, companies, and consumers), the meso level (local ecosystems and industrial networks), and the macro level (local, regional, national, and international). The goal is sustainable economic development that creates environmental quality, economic prosperity, and social justice for current and future generations.

Why is the circular economy important?

Societies and companies around the world are facing enormous challenges. In addition to political instability, resource scarcity, price fluctuations, and supply chain risks are particularly noticeable in the everyday lives of manufacturing companies. Furthermore, climate change caused by the global increase in greenhouse gas emissions and extreme weather events such as floods and droughts require greater adaptability.

These problems are rooted, among other things, in the currently prevailing linear economy system, where products are mostly manufactured from fossil, non-renewable energy sources and primary raw materials, which are incinerated or landfilled at the end of their life cycle. For a sustainable future, it is essential to move away from this economic model toward resource-efficient and greenhouse gas-neutral value creation systems. The transformation to a circular economy offers the opportunity not only to protect the environment, but also to ensure economic stability (independence from resource availability and prices) and long-term prosperity.