Creating Value in a Circular Economy: Opportunities for Businesses

The way we produce and consume goods is changing. For decades, most economies have relied on a linear model: extract resources, manufacture products, use them, and eventually discard them. While this approach fueled industrial growth, it also created waste, pollution, and resource scarcity. Today, businesses, governments, and consumers are looking for models that deliver economic growth without exhausting the planet’s resources. One solution gaining global attention is the circular economy, an approach designed to keep products, materials, and resources in use for as long as possible, reducing both environmental impact and cost. By rethinking design, production, and consumption, companies can create value that is sustainable, efficient, and profitable. What Is a Circular Economy? A circular economy is an economic system aimed at eliminating waste and continually using resources. Instead of the traditional “take–make–dispose” cycle, it focuses on closing the loop by reusing, repairing, refurbishing, and recycling products and materials. The core idea is simple: nothing becomes waste. Every product or material is either cycled back into production or safely returned to nature. This model not only protects the environment but also creates new opportunities for innovation, cost savings, and customer engagement. In practice, the circular economy integrates three main elements: Designing out waste and pollution from the start. Keeping products and materials in use through reuse and recycling. Regenerating natural systems, such as restoring ecosystems and replenishing resources. Circular Economy vs Linear Economy Understanding the difference between the two models is key to identifying where value can be created. Feature Linear Economy Circular Economy Resource Use Extract → Produce → Dispose Reduce → Reuse → Recycle/Regenerate Product Lifecycle Shorter, ends in waste Extended, materials circulate Environmental Impact High waste, pollution, depletion Lower waste, cleaner production Business Focus Volume-driven sales Value through services, efficiency Economic Resilience Vulnerable to resource shortages More resilient, diversified value Circular Economy Principles The transition from linear to circular requires a new way of thinking. Leading frameworks, such as those developed by the Ellen MacArthur Foundation, identify three main principles that guide circular practices: Design Out Waste and PollutionProducts and processes should be designed with the end in mind by using materials that are safe, reusable, or biodegradable, and minimizing waste before it happens. Keep Products and Materials in UseBy extending product life cycles through repair, refurbishment, remanufacturing, and recycling, businesses can maximize the value of resources already in circulation. Regenerate Natural SystemsBeyond minimizing harm, a circular economy actively restores ecosystems. For example, by using renewable energy, improving soil health, or supporting biodiversity. Together, these principles turn sustainability into a strategic advantage, enabling businesses to reduce risks, open new markets, and respond to growing consumer and regulatory demand for environmentally responsible products. Opportunities in a Circular Economy Not all industries face the same challenges or opportunities when shifting from a linear economy to a circular economy. Certain sectors stand out due to the scale of their environmental impact and therefore offer the greatest potential for value creation as circular models mature. Plastic Packaging The plastic packaging sector is a central focus for circular transition efforts. Currently, nearly 40% of plastics remain non-recyclable, largely due to technical, economic, and regulatory barriers. Weak collection and sorting systems, inconsistent data, and sometimes conflicting legislation make it difficult for recycled plastics to compete with virgin materials. Despite these hurdles, the market for circular plastics is expanding. Incentive-based regulations and technological innovation are increasing demand. In France, for example, production of recycled packaging plastics is projected to rise by 17% by 2030, opening opportunities for companies that invest in sustainable materials, better recycling infrastructure, and product redesign aligned with circular economy principles. Electrical and Electronic Equipment (EEE) The electronics sector faces declining sales of new products while meeting stricter environmental targets. However, the second-hand and refurbishment markets are proving highly promising. Between 2019 and 2023, the resale market for electronic devices grew by 11%, with forecasts suggesting another 10% growth between 2024 and 2027. Circular strategies such as repair, refurbishment, and parts recovery extend product lifecycles, reduce e-waste, and create new revenue streams, allowing businesses to balance regulatory compliance with consumer demand for affordable, sustainable electronics. Batteries Battery production relies on imported critical metals, generating high carbon emissions and exposing Europe to geopolitical and supply chain risks, particularly due to dependency on Chinese production. The good news: growth in the battery sector is estimated at +15% between 2023 and 2030, driven by the rapid adoption of electric and hybrid vehicles. Here, recycling and reuse represent strategic levers. Recovering valuable metals can reduce environmental impact, lower costs, and strengthen European industrial autonomy, turning sustainability into a competitive advantage. Construction The construction industry generates more waste than any other sector. In France alone, it accounted for 70% of total waste in 2021. New eco-contributions have been introduced to fund waste management, but the variability, sometimes reaching 25% of the sale price, highlights the complexity of establishing fair incentives across a diverse and competitive market. Circular approaches, including reuse of building materials, modular design, and more efficient recycling systems, can reduce waste, cut costs, and improve sector-wide sustainability while maintaining fair competition and rewarding companies that adopt environmentally friendly practices. Textiles Fashion and textiles face increasing scrutiny for their role in environmental degradation. Combatting fast fashion and extending the lifespan of garments are critical steps. For example, extending the life of a pair of jeans by 30% can reduce its environmental footprint by 23%. In response, brands are experimenting with innovative models such as repair services, rental, subscription models, resale platforms, and upcycling. Beyond cost savings, these strategies also build loyalty among consumers who value sustainability. In this way, the circular economy transforms environmental responsibility into a driver of growth and customer engagement. Circular Economy Examples in Practice Vestiaire Collective – Championing Circular Fashion Vestiaire Collective is a standout example in the textile and fashion industry, showcasing how circular economy models can transform the sector: Second-hand Luxury Marketplace: Founded in 2009 in France, this platform enables users to buy and sell authenticated pre-owned fashion,

Is Upcycling Legal? Upcycling vs Infringement

Upcycling luxury brands has become one of the most exciting trends in today’s sustainable economy. It transforms old, unwanted, or unsold products into something new and more valuable. From turning vintage jeans into handbags to reworking luxury scarves into accessories, upcycling appeals to both environmentally conscious consumers and creative entrepreneurs. But while the environmental and artistic benefits are clear, the legal risks are not always as obvious. Many upcyclers face a difficult question: is upcycling legal? At what point does creative reuse of branded items cross the line into trademark infringement or even counterfeiting? What Is Trademark Infringement? Trademarks protect the symbols, names, and logos that allow consumers to identify the source of goods. In France, Article L.713-2 of the Code de la Propriété Intellectuelle prohibits the use of a registered mark in commerce without the owner’s consent. In practice, infringement occurs when: The mark is used without authorization, In a way that creates confusion about origin, endorsement, or quality. The Principle of Exhaustion France and the EU follow the principle of exhaustion of rights, which is similar to the “first sale doctrine” in other countries. This means: once a branded product is put on the market in the EU/EEA with the consent of the trademark holder, the trademark owner’s control over resale of that particular product is exhausted. Example: Buying a genuine Nike shoe in Paris and reselling it second-hand on Vinted is perfectly legal. However, exhaustion does not cover modifications. The protection applies to resale of the same product, not a new product derived from it. If the item is materially altered, and especially if the logo remains visible, exhaustion no longer applies. When is Upcycling Legal? Upcycling luxury brands does not automatically equal infringement. There are situations where it can be done legally and responsibly: Resale of unaltered goods – Selling second-hand branded items in their original form is allowed under exhaustion. Upcycling without visible trademarks – Transforming old clothes into patchwork textiles, where logos and brand names are no longer identifiable. Private or artistic use – Personal projects or one-off creations not placed on the market. Marketing under your own brand – Emphasizing your own creative identity, not the original brand’s, avoids confusion. When Upcycling Becomes Infringement The risk arises when consumers could be misled into thinking the upcycled luxury goods are still connected to the original brand. In particular: Visible logos remain: If a Louis Vuitton bag is cut into smaller wallets that still display the “LV” monogram, the new products may appear endorsed by LV. Minimal alteration: If the item looks almost the same as the original but is resold as “custom” or “reworked,” confusion is likely. Use of brand names in marketing: Phrases like “Upcycled Gucci bracelet” use the trademark commercially and may imply endorsement. Damage to brand reputation: If the upcycled product is of lower quality or inconsistent with the brand’s image, courts may find infringement even if disclaimers are used. Case Law Examples of Upcycled Luxury Goods Chanel v. Shiver + Duke (US, 2021) A jewelry company turned genuine Chanel buttons into earrings and necklaces, selling them as “upcycled Chanel jewelry.” The court sided with Chanel, ruling that: The first sale/exhaustion doctrine did not apply because the products were materially altered. Keeping the Chanel logo visible created a risk that consumers would believe Chanel endorsed the items. Key takeaway: Even when using authentic materials, transforming them into new products that display the original trademark can be trademark infringement. Practical Tips for Upcyclers If you are considering selling upcycled luxury goods, or any upcycled products, here are steps to reduce legal risks: Avoid visible logos – Remove or cover any trademarks when repurposing. Market under your own brand – Emphasize your creativity instead of piggybacking on another brand’s reputation. Be transparent – If you mention original materials, use clear disclaimers such as “Made from upcycled materials. Not affiliated with [Brand].” Focus on transformation – The more the item is creatively reworked, the stronger the argument it is a new product of your own. Consult an IP lawyer – If you plan to scale, professional advice is essential, particularly since luxury brands are aggressive in litigation. Upcycling is a valuable part of the circular economy, supported by environmental goals and increasingly demanded by consumers. Yet, the legal framework in France and the EU shows that trademark rights remain a barrier when branded items are reused in ways that could confuse consumers or damage a brand’s reputation. The safest approach for upcyclers is clear: build your own creative identity, avoid visible logos, and respect the boundaries of trademark law. This way, upcycling can thrive as a force for sustainability without crossing into infringement.

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EU Omnibus Explained: Delays, Threshold Changes, and What Comes Next

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EU’s CS3D: Your Guide to the Corporate Sustainability Due Diligence Directive

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The CSRD Explained: A Practical Guide for International Businesses in EU

The CSRD is reshaping the way businesses report on sustainability and ESG performance in Europe. For international companies operating within or doing significant business in the EU, understanding CSRD is critical. With mandatory disclosure requirements, greater transparency standards, and harmonized rules, the CSRD aims to create a level playing field and ensure that sustainability reporting holds the same weight as financial reporting. This guide breaks down what the EU’s guidelines on reporting climate related information (CSRD), who it affects, what needs to be reported, and when. We also cover key definitions and thresholds, so international businesses can stay ahead of compliance. What is CSRD? (CSRD Meaning) The Corporate Sustainability Reporting Directive is a European Union regulation that expands and replaces the Non-Financial Reporting Directive (NFRD). It mandates detailed sustainability reporting by companies operating in the EU, including some non-EU firms. It is essentially the European Climate Reporting Standard. The CSRD was adopted in December 2022 as part of the European Green Deal and the broader EU Sustainable Finance Agenda. Its main objective is to improve the quality, consistency, and comparability of sustainability reporting across companies and industries. This new framework requires companies to publish an annual CSRD report as part of their management report, following the European Sustainability Reporting Standards (ESRS) developed by EFRAG. Who Needs to Comply? (Reporting Threshold Pre Omnibus) As per the EU’s guidelines on reporting climate related information, the following companies need to publish sustainability reports under CSRD: Large EU companies meeting 2 of the 3 criteria below: Over 250 employees Net turnover of more than €50 million Total assets exceeding €25 million Listed SMEs, except micro-enterprises, with simplified standards and a transition period until 2028. Non-EU companies that: Have a net turnover of €150 million or more in the EU, And own at least one EU-based subsidiary or branch that meets CSRD thresholds. CSRD Timeline (Pre Omnibus) The CSRD timeline for publishing sustainability reports is as follows: Entity Type Reporting Begins Data Period Covered Large Companies under NFRD FY 2024 Reports due in 2025 Large EU Companies newly covered by CSRD FY 2025 Reports due in 2026 Listed SMEs FY 2026 Reports due in 2027 Non-EU Companies FY 2028 Reports due in 2029 Note: Voluntary adoption is encouraged before mandatory deadlines, especially to align with investor expectations and ESG-focused stakeholders. What Is CSRD Double Materiality Concept? Double materiality is a core concept in the CSRD Directive. It means that companies must assess and report on sustainability matters from two perspectives: Financial Materiality – How environmental, social, and governance (ESG) issues impact the company’s financial position and performance. Impact Materiality – How the company’s operations affect people and the environment.   Under CSRD, both angles must be evaluated to provide a full picture of sustainability performance. This goes beyond traditional financial reporting and helps stakeholders better understand a company’s risks and impacts. This requirement applies to all in-scope companies and is central to the ESRS standards. Does CSRD Require Scope 3 Emissions Reporting? The CSRD requires disclosure of Scope 1, 2, and 3 greenhouse gas (GHG) emissions under the European Sustainability Reporting Standards (ESRS E1). Scope 1: Direct emissions from owned or controlled sources (e.g., company vehicles). Scope 2: Indirect emissions from purchased electricity, heat, or steam. Scope 3: All other indirect emissions in the value chain (e.g., supplier emissions, employee commuting, product use).   For many companies, Scope 3 accounts for the largest share of total emissions, and the CSRD emphasizes transparency here. While data availability challenges are recognized, companies are expected to progressively improve their disclosures and estimation methods. What Are the ESRS (European Sustainability Reporting Standards)? To ensure consistency and clarity in sustainability reporting, companies must report in line with the European Sustainability Reporting Standards (ESRS). Developed by EFRAG (European Financial Reporting Advisory Group), these standards outline how and what companies must disclose regarding ESG (Environmental, Social, and Governance) issues. The ESRS are split into: 2 General Standards – providing foundational reporting principles and company-wide disclosures. 10 Topical Standards – grouped under Environment, Social, and Governance, focused on material risks, impacts, and opportunities. Companies are only required to report on data points that are material to them, based on their double materiality assessment. For example, a manufacturer may focus on ESRS E2 (Pollution), while a consumer-focused company may emphasize ESRS S4 (Consumers and End-Users). Note: Climate-related disclosures (ESRS E1) are presumed material by default. Companies must justify if deemed otherwise. ESRS 1: General Principles ESRS 2: General Disclosures Covers: Foundational sustainability principles and reporting concepts Covers: Governance, strategy, impacts, risks & opportunities, measurement, and objectives Environment Social Governance ESRS E1 – Climate Change ESRS S1 – Own Workforce ESRS G1 – Business Conduct ESRS E2 – Pollution ESRS S2 – Workers in the Value Chain ESRS E3 – Water and Marine Resources ESRS S3 – Affected Communities ESRS E4 – Biodiversity and Ecosystems ESRS S4 – Consumers and End-Users ESRS E5 – Resource Use and Circular Economy Reporting, Publication, and Assurance Format: Reports must be embedded in the annual management report and published in digital x HTML format on the company’s website, unifying financial and non-financial disclosures. Timeline: Annual publication, within 4 months of financial year-end. Audit: Reports must be audited by an independent party, starting with limited assurance and evolving to reasonable assurance by October 2028. SMEs: Simplified sector-specific standards are being developed for listed SMEs, with a two-year opt-out option.   These standards aim not only to increase transparency, but also to embed sustainability into the heart of corporate strategy. What is Gap Analysis? Following the identification of material issues for the company and their associated indicators, the next step is to outline the data collection process in preparation for audit phases. This includes describing the data to be gathered: the scope covered, calculation methodology, level of detail, validation methods, etc. This initial selection and description of data enable the execution of a “gap analysis,” which involves identifying the gap between the information currently available and the reporting requirements. The process

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In this blog we discuss what is sustainabily reporting, why is it important and is it mandatory to publish sustainability reports in Singapore.

What are Sustainability Reports and Are They Mandatory in Australia?

In this blog we discuss what is sustainabily reporting, why is it important and is it mandatory to publish sustainability reports in Australia.