HBR On Strategy The Promises, Pitfalls, and Trade-offs of the Circular Economy
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Jun 18, 2025 Weslynne Ashton, a systems scientist and professor specializing in circular economy strategies, shares her insights on sustainable business practices. She emphasizes the need for companies to move away from linear models to reduce waste and create long-term value. Ashton discusses innovative resource-sharing models and the importance of integrating traditional wisdom into new business strategies. She also highlights the challenges businesses face in balancing efficiency with sustainability and how purposeful leadership can foster social responsibility.
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Linear Economy's Hidden Costs
- Most businesses operate on a linear model: take, make, discard, which ignores environmental and social costs.
- This model improves material well-being but at significant unaccounted external costs like waste and pollution.
Daravi's Recycling Economy
- Mumbai's Daravi settlement recycles over 80% of the city's waste through 15,000 micro enterprises.
- These recycling businesses contribute about $650 million annually to Mumbai's economy.
Develop Renewable Bio-Based Materials
- Develop new bio-based materials to replace toxic, scarce ones and convert waste substrates into useful products.
- Innovate by turning environmental problems, like invasive seaweed, into renewable energy sources.