shifting to a circular economy: turning sustainability into profit and growth

Imagine an economy where resources get used but not used up; materials are kept in the system both during and after use, and where waste is reduced to a minimum. This is what the circular economy is all about. 

It’s clear to any leader that climate action is now influencing every aspect of society. The green tech and sustainability market is expected to grow to $83 billion in less than ten years. As we're moving towards the circular economy, it's necessary to ensure your company is ready for it. Similar to what we experienced with the digital revolution, only organisations that can adopt new circular business models will survive. 

So, how can you meet the increasingly demanding environmental, social, and governance targets while still growing your multinational business? Abundium hosted a masterclass together with IMD Professor Julia Binder and Manuel Braun, co-authors of the new book The Circular Business Revolution. They shared practical tools to help leaders harness the circular economy as a strategic business opportunity.

the urgent need for circularity 

In many businesses, sustainability and circularity are often seen as a concern for the future. But now, it's clearer than ever that every single organisation has to address sustainability in its operations in some way. As Julia emphasised, the current linear model of 'take, make, and dispose' is outdated and unsustainable. 

There’s a powerful upside. Circularity isn’t just about doing what’s right for the planet — it’s also a driver of long-term profitability. In fact, one survey reveals that 74% of respondents are willing to pay more for sustainable packaging. 

Moreover, by shifting towards circular strategies, your business can position itself as a leader in innovation, creating a competitive advantage. 

But what exactly does a circular business model look like? In the masterclass, Julia and Manuel introduced five strategies already used by the biggest brands and organisations in the world. They encourage you to: 

• Optimise resource use 

• Valorise waste 

• Monetise extended product life 

• Servitise products 

• Capitalise on regeneration 

Each offers a different lens on how to create, deliver, and capture value in a circular economy — and raises powerful questions for leaders ready to rethink their own approach.

overcoming the barriers to circularity 

Implementing sustainable practices and shifting towards a circular economy comes with its challenges. As the authors explained, currently, businesses face two main obstacles: 

Lack of transparency in supply chains. Since many organisations operate in fragmented supply chains, it's difficult to track materials and optimise them for circularity. However, as Manuel pointed out, nowadays, there are many digital tools available that can improve transparency within supply chains. 

Linear lock-in. Unfortunately, many businesses have deeply entrenched systems and practices that are difficult to change. That's why multinational companies need forward-thinking leaders who aren't afraid to make the necessary long-term investments in circular processes

final thoughts 

Shifting to a circular economy isn’t easy. It requires commitment, systems thinking and bold decision-making, but the rewards are real. Global brands like McDonald’s, Siemens and Sundrop Farms are already leading the way. If they can transform, so can you.

As Julia highlighted, circularity isn’t just a sustainability play. It’s one of the biggest market opportunities of our time, and a lever for meaningful impact and commercial growth

Interested in diving deeper into how circular business models can turn sustainability into profit for multinationals? Join Abundium to gain full access to the masterclass, exclusively available to our members.

about abundium

Abundium provides a carefully curated solutions to ‘make growth easier’ for the local leaders of foreign owned companies in Australia, ranging from educational events with local and global thought leaders, executive networking experiences, plus research and advisory services. Abundium also represents the unique needs and contribution of the global business community with operations in Australia to regulatory and policy decision makers, as well as the media and public. Connect with us.