Companies are moving to a circular economy because it helps mitigate risks and increase supply
chain resilience. In a circular economy, companies reduce dependence on raw materials by reusing,
recycling, and remanufacturing products, which helps them buffer against supply chain disruptions
caused by resource scarcity, price volatility, or geopolitical issues. By keeping materials in use longer
and reducing waste, companies also lessen their environmental impact and build more resilient,
sustainable business models.
This transition not only decreases environmental risks but also promotes innovation in product
design, enhances resource efficiency, and reduces overall production costs. As companies face
increasing pressure to align with sustainability regulations and customer demand for greener
products, adopting a circular economy becomes a crucial strategy for risk management and
operational continuity.
Environmental Sustainability
