Avoiding Blind Spots: Promoting Circular and Fair Business Models

Blind spots - aspects that can be overlooked when implementing circular economy orientated business models - carry the risk of limiting the social and environmental sustainability of these business models. The report published by Circle Economy, the European Environmental Bureau and the FairTrade Advocacy Office presents these blind spots and opportunities for improvement.

The identification of risks in the areas of environment, social, market and governance is central. The report focusses on three business models in the textile and electronics sectors: repair and maintenance, resale and product-as-a-service (PaaS). It identifies both positive environmental impacts and new challenges arising from these models.

Key recommendations include the promotion of circular business models through clear social and environmental objectives and a comprehensive policy framework. Furthermore, the integration of due diligence obligations into supply chains is emphasised in order to ensure fair working conditions. Incentives for circular design and the prohibition of planned obsolescence are also key proposals.

A just transformation is needed that not only strives for economic growth, but also prioritises the public good and environmental protection. Companies should abandon their profit maximisation strategies in favour of a mission-driven focus and integrate social enterprises and cooperatives into their supply chains. Transparency and disclosure are seen as key to promoting both the circular economy and ethical business models.

Cooperation with political decision-makers, public clients and civil society should ensure that circular business models are implemented fairly and equitably.