As businesses across industries increasingly recognize the potential for circularity to boost cost savings, resource efficiency and waste reduction, it’s clear that this approach is more than just a passing trend or competitive advantage – it’s now a regular core business practice. In fact, recent research reveals that 75% of companies now acknowledge the pivotal role circularity plays in driving revenue growth, enhancing resilience, reducing costs, and advancing sustainability.
So where does circularity make the biggest impact? It’s both a responsibility and a strategic opportunity. The mission “Use Again, Use Better, Use Longer,” encapsulates this approach, guiding the redesign of the entire value chain to eliminate waste and maximize resource efficiency. This mantra reflects a commitment to move away from the linear economy and instead keep products and materials in circulation at their highest value for as long as possible. Achieving this shift requires a widespread change in mindset across design, sourcing, manufacturing, customer use, and end-of-life processes.
This vision is more than just talk—it’s backed by real, actionable steps. To succeed, circular economy criteria must be embedded into product design (with eco-design standards), operations (from better material sourcing to waste-free factories), and customer engagement (through repair, take-back and recycling services).
A clear example is air circuit breaker (ACB) take-back programs – a classic reuse-and-refurbish initiative. Instead of scrapping old breakers, businesses can return it for remanufacturing. Worn parts are replaced, and the units are tested to meet original specifications, ensuring they can be safely redeployed for a second life. Units beyond repair are recycled for material recovery. This approach helps prevent e-waste and provides customers with a lower-cost, low-carbon alternative to purchasing new equipment. Thousands of refurbished products are now available, and tens of thousands of returned units can be given a new life.
Circularity is further accelerated by digital innovation. By embedding IoT sensors into equipment and analyzing data with AI, real-time insights into product health and usage are gained. This enables condition-based maintenance – repairing or upgrading equipment exactly when needed, rather than on a fixed schedule. Early warning signs, such as unusual temperature or vibration patterns, can be detected and addressed before they lead to failures. This digital approach helps customers avoid unexpected downtime and allows them to safely operate assets for years longer.
For example, leveraging digital technology to retrofit aging electrical gear with connected sensors and analytics. If a critical breaker shows anomalous readings, AI models can predict a potential failure weeks in advance and prompt a preventive repair. In high-stakes environments like hospitals or data centers, digital life-extension can be the difference between seamless uptime and costly outages. It’s a prime example of circular thinking – using products longer and smarter – delivering both sustainability and performance benefits.
Circularity is no longer a fringe experiment—it’s rapidly becoming a mainstream business imperative. Companies that redesign operations around these principles are experiencing significant improvements in efficiency and resilience. These organizations are becoming more resource-efficient, adaptable to change, and increasingly attractive to sustainability-minded stakeholders.
The journey of organizations embracing circularity demonstrates that businesses can thrive while being both sustainable and profitable. By applying circular thinking into practice – from eco-design to end-of-life recovery – organizations are discovering that reducing waste not only reduces costs, but also opens up new revenue streams, such as selling refurbished products or offering “product-as-a-service.” This proves that circularity is not just viable but vital for the next era of industries.
The commitment to pushing the boundaries of circular innovation continues – whether through designing products that are easily recyclable, leveraging AI for smarter maintenance, or partnering with suppliers and customers to scale reuse. This approach is helping make the circular economy a reality across industries while driving progress towards a more sustainable future.
Dr. James Ezhaya is the Global Sustainability and Quality Vice-President for Schneider Electric Power Products.
