Chapter 3
The Circular Economy: What is the Circular Economy?

Circular economy is the transition from a linear business model to minimise resource inputs and emissions via stakeholder collaboration by organisations and their supply networks by slowing, closing, and narrowing resource loops via the creation and sustaining of a regenerative system.

The primary objectives are efficiency in resource use and reduced waste in a closed-loop supply chain rather than traditional make-use-dispose systems.

The Ellen MacArthur Foundation (2013, p. 14) describes the circular economy as “an industrial economy that is restorative by intention and design”.