Even before the spread of the pandemic, concerns about climate change and a range of global risks had already been putting pressure on previously held assumptions about the viability of linear economic and business models. As a result, linear strategies—based on ‘take, make, dispose’ volume rather than value relationships—had been coming into question. Instead of continuing with these one-way approaches, an increasing number of companies and governments are turning to circular economic models, which rely on the reuse, recovery, repurposing and recycling of materials and resources.
In this report, we examine how companies in the energy, utilities and resources (EU&R) sectors can gain by addressing today’s challenges through the lens of circular economic principles. Not all players in these sectors can aim for complete circularity, of course. But integrating circular thinking into core strategies can produce powerful new perspectives and levers for efficiency and value creation. Just as companies need not be fully digital to benefit from digital investments, companies don’t have to pursue a goal of total circularity to benefit from circular thinking and investments.
Circularity is an ambitious journey, comprising small but significant steps that can deliver big rewards. As circularity gains momentum, companies will find that they must navigate complex interdependencies. The growing use of renewables and energy storage has the potential to introduce new challenges for recycling and waste processing. Companies that reconfigure their operations with an eye towards resolving such tensions will find they—and the world—have much to gain.
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