Investigating the effect of digitalization on the circular economy requires a clear definition of what a circular economy actually means. Something to build on and fall back to in future insights.
So let us look at the concepts of circularity and economy to get to that clarity.
What is an economy?
An economy is more than just money changing hands or markets rising and falling. At its core, it is the collective system through which societies organize the flow of resources—materials, energy, labor, and knowledge—to meet human needs. It is about how we produce, distribute, and consume in relation to the world we inhabit.
So you, me and everyone we know is part of the economy. Whether you buy or sell something, fill up the tank of your car, walk into your workplace, it all relates to organizing these resources in a joint operation to give form to our society.
With this broader understanding of what an economy truly is, we can turn our attention to the circular economy. Too often, I find that conversations around this topic are reduced to recycling, waste management, and the environmental costs of discarding materials. It is framed as a cleaner, more efficient way to deal with the leftovers of our regular economic activity. That regular economy where actual value is created, money is earned, and waste is managed.
Putting circularity in an economy
But defining the circular economy merely as a smarter way to discard materials is like describing a forest as a collection of trees. Technically true, but clearly missing the point.
Yes, recycling and waste management are part of the picture. But viewing circularity through this narrow lens is not only incomplete—it’s potentially harmful. The circular economy isn’t just about processing waste. It is about building an overarching model that avoids waste in the first place. It’s about rethinking the value we consume, redesigning the products we use, reconfiguring how we distribute them, and transforming the very way we consume.
This shift is not just ecological—it is deeply social as well.
The circular economy is about safeguarding nature and our environment, but also about protecting the social fabric of the people who live on this planet and participate in its economy. It’s not a simple fix bolted onto the existing system. It’s a fundamental redesign—from the linear take-make-waste model to a circular one.
Definition of a circular economy
At its heart, the circular economy is about growing within planetary boundaries. That means respecting the ecological limits of our planet—its ability to regenerate forests, purify water, absorb carbon, and sustain biodiversity. But it also means honoring the social boundaries that define a just and inclusive society.
With this perspective in mind, here’s a proper definition of the circular economy:
“The Circular Economy is a collective system in which our society as a whole organizes the flow of resources—materials, energy, labor, and knowledge— to meet human needs in such a way that production, distribution, consumption and waste of value are positioned between the planetary boundaries of our nature and social global earth.”
And yes, a transformation from our old economy to this new definition is messy. It requires rethinking everything from tax systems to product design, from education to urban planning. But it’s also exhilarating. Because for the first time in a long time, we’re not just patching up a broken system. We’re imagining a new one.
Not a concept on and of its own, there is a strong link to general sustainable living
This transformation is ultimately about building a better, more sustainable way to live together in a global society. Naturally, it intersects with the UN Sustainable Development Goals (SDGs) at many points. Circularity may begin with materials, but building a circular economy is about so much more. As I mentioned earlier, every economy is also about societies—about decent work, gender equality, reduced inequalities, resilient communities, personal growth, cultural development, and the systems we create to make all of this flow together.
Over the past years, many models have emerged to guide this transformation. They range from reduced consumption to green consumption, from increased sharing to service-based value creation. Each offers a different pathway toward circularity.
Future blog posts on this page will explore my journey into this movement. I’ll dive into how we can accelerate this transformation—and how digitalization might help scale it faster and further.So let’s stop selling the circular economy short. It’s not just a recycling program. It’s a radical invitation to reimagine what our economy can be.
Not linear. Not extractive. Not disposable.
But circular. Regenerative. And deeply human.
I am investigating the future of a circular economy and how digitalization can help speed up the transformation. Care to join me in my quest? Just hit subscribe and be sure you don’t miss out on new insights!
