Circular Economy: The Performance Economy

Digital technologies and new business models are opening up the possibility of an economy based on the idea of stock optimisation. What if people or firms paid for the performance of goods and then handed them back when they no longer needed them? There is growing evidence that this is a smart route to take, generating positive returns for society, for the environment, and for the economy.

About The Circular Economy

The circular economy is a new way to design, make, and use things within the limits of our planet. In the natural world, materials and nutrients cycle continuously, allowing the Earth’s biosphere to regenerate and for all lifeforms - humans included - to flourish. This insight lies at the heart of the circular economy. Instead of using things for a short time before throwing them away, in a circular economy everything is designed to fit within a cycle so it can be used again and again.

The concept is based on three principles, driven by design, and underpinned by a transition to renewable energy:

1 - Eliminate waste and pollution
2 - Keep products and materials in use
3 - Regenerate natural systems

Using these principles, we can create a system that restores biodiversity, addresses climate change, and makes the most of our planet’s limited resources. Such a system could work for the economy, society, and environment - making it a truly sustainable model for our future prosperity.

About The Ellen MacArthur Foundation

The Ellen MacArthur Foundation, an international charity, develops and promotes the idea of a circular economy in order to tackle some of the biggest challenges of our time, such as plastic pollution, climate change, and biodiversity loss. We work with, and aim to inspire, business, academia, policymakers, and institutions to mobilise systems solutions at scale, globally.