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The Circular Economy is Not as Circular as We Think: Why We Need to Rethink Our Approach to Sustainability

Posted on May 21, 2025 By Dante No Comments on The Circular Economy is Not as Circular as We Think: Why We Need to Rethink Our Approach to Sustainability

As we continue to celebrate the circular economy as the panacea for our planet’s environmental woes, I want to challenge a fundamental assumption: the circular economy is not as circular as we think. Yes, you read that right. The very concept that has been touted as the future of sustainability is, in reality, still heavily reliant on linear thinking.

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Don’t get me wrong; the circular economy has made tremendous progress in recent years. Companies like Patagonia, REI, and H&M are leading the charge in designing products and services that are restorative and regenerative by design. Governments are creating policies and regulations to support the growth of a circular economy. And consumers are increasingly demanding more sustainable options.

However, despite these advances, the circular economy still suffers from a fundamental flaw: it is often designed around the needs of businesses, rather than people and the planet. We prioritize the efficient use of resources, the extension of product lifetimes, and the reduction of waste, but what about the human aspect? What about the social and environmental impacts of our consumption patterns?

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Let’s take the example of sharing platforms like Zipcar and Airbnb. These services have been hailed as champions of the circular economy, as they enable people to share resources and reduce their individual consumption. But what about the environmental impact of all those shared cars and homes? The carbon footprint of transportation, the energy consumption of these shared spaces, and the social impacts of gentrification and displacement are all largely ignored in the excitement of “sharing is caring.”

Or let’s consider the rise of product-as-a-service models, where companies like IKEA and Philips offer products as part of a subscription service. While this approach can reduce waste and encourage more efficient use of resources, it also creates a culture of disposability and planned obsolescence. Products are designed to be replaced every few years, rather than repaired and reused. The financial burden of subscription services can also be a heavy weight on already-strained household budgets.

The circular economy needs to be redesigned with people and the planet at its center. We need to prioritize not just the efficiency of resource use, but the social and environmental impacts of our consumption patterns. We need to create systems that prioritize sharing, repair, and reuse over consumption and disposal. And we need to hold businesses accountable for the social and environmental consequences of their actions.

So what does this mean in practice? It means that we need to rethink our design principles, our business models, and our policy frameworks. It means that we need to prioritize the needs of people and the planet over the interests of businesses. And it means that we need to create a circular economy that is truly circular, not just in theory, but in practice.

The circular economy has the potential to transform the way we live and work, but only if we are willing to challenge our assumptions and rethink our approach. It’s time to move beyond the hype and get to work on creating a circular economy that truly puts people and the planet at its center.

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