Circular economy and ecodesign insights from NTI Sustainability Summit 2025

Exploring sustainability challenges

Industries today face critical challenges tied to climate change, biodiversity loss, resource scarcity and inefficient waste management. Manufacturing alone is responsible for 45% of global emissions, with over 90% of biodiversity loss arising from resource extraction and processing. Consumption of materials is expected to double by 2050, further exacerbating resource pressures. These issues demand urgent and meaningful action.

The concept of the circular economy offers a practical approach to these challenges, aiming to retain resources in the system for as long as possible. By redesigning product life cycles through ecodesign, businesses can shift from the traditional “take, make, dispose” model to one based on regeneration, reuse and recovery.

Progress and opportunities in the EU

Significant shifts are being driven by regulatory frameworks like the EU Green Deal, with its Circular Economy Action Plan playing a key role. ^{1 2} Regulations such as the Ecodesign for Sustainable Products Regulation (ESPR) aim to enhance product durability, repairability, and recyclability while reducing reliance on harmful materials. ³ The inclusion of the Digital Product Passport initiative ensures transparency, simplifying compliance for businesses and enabling informed decisions across value chains. ⁴ The ESPR is a direct evolution of the older Ecodesign Directive, with its implementation timeline stretching from 2024 to 2026 and beyond. ⁵ Developed through active input from stakeholders, the ESPR will impact industries such as energy, electronics, textiles, and chemicals. Companies are urged to engage during this period to influence requirements relevant to their sectors.

The EU is also refining its standards for sustainability through directives like the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy, promoting transparency and preparedness for a circular transition. ^{6 7}

Moving towards practical solutions

Adopting circular business models offers substantial benefits. Strategies such as “product-as-a-service” models and resale or refurbishment systems illustrate how companies can maintain revenue streams while reducing environmental impact. Examples include Philips’ leasing of lighting services and Rolls-Royce’s service models for engine uptime, both of which combine profitability with long-term customer value.

Beyond generating new revenue, circularity delivers cost savings by decreasing dependency on raw materials, optimising production, and minimising waste. Remanufacturing, exemplified by Volvo and Caterpillar’s efforts, allows manufacturers to provide high-quality products at competitive prices while reducing material consumption.

Digital Product Passports will further strengthen circularity, consolidating critical information on material use, environmental impact and end-of-life management. This data will not only optimise product life cycles but also build trust among consumers, repair services and regulators.

Seizing the moment

The transition to a circular economy is both a challenge and an opportunity. Businesses that prioritise sustainability today will position themselves as tomorrow’s leaders. Strengthening internal knowledge, building stakeholder partnerships, and actively shaping upcoming regulatory requirements are all pivotal steps.

Now is the time to lead this change, driving innovation in circular and sustainable practices. The industries that adapt swiftly will not only thrive in a resource-constrained world but also lay the foundation for lasting economic resilience.