28 November 2023

After publishing the Circular Economy 101 Guide, one of the most common requests was for us to demystify circular economy business models and make it possible for all organisations to make circularity a reality.

While using circular priorities to design more sustainable products, materials and supply chains is essential, carbon emissions reductions and biodiversity benefits will only be fully realised through systems and incentives that have circularity embedded in them.

By redesigning products, business models and supply chains, it is possible to achieve net-zero targets and create more value from less for businesses and society by keeping resources, products and assets in circulation for longer. 

Every organisation has a business model for how it creates, delivers, and captures value. By integrating circular strategies into their business models, suppliers of goods or services, including businesses, utilities, charities, and public services, can create more value for all their stakeholders and reduce their footprints.

It’s important to note, that without a clear strategy to address an organisation’s materials footprint, there is a risk that a circular business model won’t make a significant positive impact (the rebound effect). Therefore, the shift to circularity needs to happen before the business model stage.

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This new guide builds on the six goals in Circular Economy 101 (that ISEP published earlier in the year) to show how these can help develop overarching circular strategies, for example, keeping products in use for longer. The guide aims to identify and answer key questions to help organisations to use circular strategies to develop better, circular business models. The guide covers the following sections:

–> Section 1 – considers circular strategies and their importance for organisations

–> Section 2 – explains what we mean by the term ‘business model’ and what makes a business model circular

–> Section 3 – provides insight into circular business models in practice, including case studies

–> Section 4 – sets out the imperative for circular business models, explaining why they are better than ‘traditional’ business models that generate negative impacts and lost value

–> Section 5 – explains how and where to find value and revenue in circular business models

–> Section 6 – discusses the enablers that move circularity forward

–> Section 7 – considers how to bring the whole organisation along with you

–> Section 8 – looks at the barriers to businesses wanting to adopt circularity

–> Sections 9 and 10 – we provide you with further reading and key references.

ISEP members can download the interactive guide

Non ISEP members can purchase the guide from the ISEP online shop


Published by:
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Adam Batchelor

Former ISEP Policy and Engagement Lead

Adam is the Policy and Engagement lead for Circular Economy and Environmental Management at ISEP. Adam has 15 years of experience in the environment field, from local government waste and recycling, auditing contracts and implementing improvements into local services; to working for the Greater London Authority/Mayor of London for the last eight years. Adam has been responsible for co-developing and delivering the Mayor of London’s Environment Strategy (Waste and Circular Economy) and has led many circular programmes from plastic reduction in the capital to food waste reduction for small business. Adam joined ISEP in December 2021 and is responsible for leading the circular economy network and environmental management group.