More and more companies are showing that reducing waste, using resources more efficiently, and creating economic value can go hand in hand. By embracing circular economy models, businesses are rethinking the way they design products, manage materials, and deliver value.
In this article, we take a closer look at what the circular economy really means and explore concrete examples of companies that are already putting it into practice.
Linear economy and circular economy: two models compared
Traditional economic systems follow a linear model: resources are extracted, products are manufactured, used, and eventually discarded. This approach leads to heavy reliance on raw materials, growing volumes of waste, and significant environmental impacts, as well as increasing costs for businesses.
The circular economy offers an alternative. Its goal is to keep resources in use for as long as possible, reduce waste, and minimize environmental impacts. This requires rethinking products and materials from the design stage through to end-of-life, considering their entire life cycle.
Circular economy strategies are often framed around the four Rs:
- Reduce: using fewer resources from the very beginning, starting with product design;
- Reuse: extending the lifespan of products and components;
- Recycle: turning waste into new raw materials;
- Recover: extracting residual value from materials that can no longer be reused or recycled.
Reduction: examples of companies that reduce resource use upstream
Reduction focuses on preventing waste before it is created. By designing products and processes that require fewer materials and less energy, companies can significantly lower their environmental footprint.
In practice, this can mean eco-design choices, streamlined packaging, more efficient production processes, or technologies that reduce energy consumption.
In the sports and outdoor industry, Decathlon applies eco-design principles to develop products that use fewer materials without compromising performance. A notable example is its “Undyed” collection, which eliminates the dyeing phase altogether, significantly reducing water use and emissions linked to conventional coloring processes.
In the food sector, Barilla has redesigned parts of its packaging by removing unnecessary elements—such as plastic windows—and increasing the use of recyclable materials.
Reuse: examples of companies that extend product lifespans
Reuse is about extending the life of products and keeping them out of the waste stream for as long as possible. This can involve repair, refurbishment, resale, sharing, or donation.
What was once a niche concept is now becoming part of mainstream business models, offering both environmental benefits and new ways for customers to access products.
In the furniture sector, IKEA offers its “Buy Back” service, allowing customers to return used furniture in good condition in exchange for store credit.
Similar initiatives are emerging in the apparel industry. The North Face, for instance, collects used garments, restores them, and resells them through dedicated channels.
New circular models are also taking shape in other sectors. Leroy Merlin, for example, offers rental services for tools and equipment used in DIY and home improvement projects, enabling customers to access what they need without purchasing items that may only be used occasionally.
Recycling: examples of companies that turn waste into new resources
Recycling plays a key role in closing material loops. By transforming waste and end-of-life products into new resources, companies can reduce their dependence on virgin raw materials and limit the amount of waste sent to landfills.
In the construction sector, companies such as Ricehouse are transforming agricultural by-products into building and insulation materials. Residues from rice processing—such as straw and husks—are used to create plasters, insulation panels, and other natural biomaterials.
Similarly, Favini uses recycled fibers and agricultural residues, including citrus peels, corn, and almonds, to produce sustainable paper and packaging solutions.
Nespresso has also developed a dedicated recycling system that allows customers to return used capsules through partner collection points. The collected capsules are processed to separate coffee grounds from aluminum. The coffee is composted and reused in agriculture, while the aluminum is purified and reused to make new capsules or other products.
Recovery: examples of companies that enhance non-recyclable waste
Recovery takes place in the final stages of a material’s life cycle and represents a preferable alternative to landfill disposal. The aim is to extract any remaining value and reduce reliance on landfills.
Recovery can take different forms, including energy recovery—where non-recyclable waste is used to generate heat or electricity—and material recovery, where waste is converted into secondary raw materials for other industrial uses.
Hera Group, one of Italy’s leading waste management companies, plays a key role in energy and material recovery from waste streams that cannot be recycled.
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Circular economy: 9 examples of companies making a difference