It’s no secret that our current economic system has some serious flaws. We are going through resources at faster-than-ever rates, and the planet can’t keep up. Products are made, used, and disposed of with little attention to their impact. So what is the solution? It’s called a circular economy. A circular economy, and circular economy companies, aim to reduce waste and extract maximum value from our resources. 

Join us to discuss the difference between a circular and a linear economy, and why supporting circular economy companies matters.

Understanding the Circular Economy

Our current system is typically described as “linear”. It uses a “take, make, dispose” model, where resources are extracted to create products.

Products are not designed with longevity or end of life in mind – and when they are used up, they head to our landfills.

The total generation of solid waste in 2018 was 292.4 million tons aka 4.9 pounds per person per day. And… most of this went straight to our landfills (which causes a slew of environmental and human health impacts)

Unlike the linear way of doing things, a circular economy is designed to be regenerative and restorative.

Sounds great, right? It really is!

It focuses on keeping products, materials, and resources in use for as long as possible, thereby extracting maximum value from them before recovering and regenerating materials at the end of their life cycle. 

Key Principles of a Circular Economy

• Designing for Durability: Products are engineered for longevity and ease of repair, promoting a culture of reuse and reducing the frequency of replacements.
• Embracing Recycling and Upcycling: Circular economy practices prioritize recycling and upcycling materials, converting waste into valuable resources instead of sending them to landfills.
• Sharing and Collaborative Consumption: Sharing platforms and collaborative consumption models enable multiple users to utilize products, reducing individual ownership and excessive consumption.
• Remanufacturing and Refurbishing: Circular economy companies often engage in remanufacturing and refurbishing activities to extend the life cycle of products and components.

All circular economy companies and industries will do things slightly differently. But these principles act as a North Star to guide the larger economy! 

Benefits of a Circular Economy

• Reduced Environmental Impact: By minimizing waste and extending the life of products, a circular economy significantly reduces the strain on natural resources and minimizes pollution and greenhouse gas emissions.
• Enhanced Resource Efficiency: Circular economy practices optimize resource usage, leading to greater resource efficiency and a more sustainable approach to economic growth.
• Economic Resilience: Circular economy businesses can build robust and resilient supply chains, less dependent on finite resources, and better equipped to adapt to changing market conditions.
• Job Creation: Transitioning to a circular economy can lead to the creation of new job opportunities in recycling, refurbishment, and other circular-focused industries. Circular economy companies want to hire people passionate about sustainability! 

How to Find Circular Economy Companies

While we don’t yet have a fully circular economy, there are already circular economy companies leading the charge.

The biggest thing you can do to help get us to a circular economy is support these brands, and employ circular practices in your own life. 

But how do you find circular economy companies? 

Karma Wallet and Circular Economy Companies

At Karma Wallet, we make it super easy.

We rate 15,000+ companies for social and environmental initiatives using 30+ third-party data sources.

The higher the score a company has out of 16, the more dedicated to sustainability and social justice they are.

With our Browse Companies feature, you can Sort by Value to find companies aligned with your personal values. You can also sort by which UN SDGs they align with! 

Here’s a few of our favorite circular economy companies right now:

• Patagonia: rated 15/16
• 4ocean: rated 15/16 (and offers cashback through Karma Wallet!)
• Blueland: rated 14/16
• Cabinet Health: rated 14/16
• Nimble: rated 10/16

Head to Karma Wallet to explore and support thousands more! 

Building a Circular Economy

The concept of a circular economy offers a transformative vision for a more sustainable and prosperous future. 

By embracing circular economy principles, companies can contribute to reducing environmental impact while benefiting their bottom line. Aka stakeholder capitalism! 

As consumers, we can play an active role in promoting this movement by supporting and engaging with circular economy businesses.

With a shared commitment to a circular economy, we can collectively pave the way towards a greener, more regenerative world.