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The Definition of Circular Economy

A circular economy is an economic model that designs out waste and keeps products and materials in use for as long as possible through reuse, repair, remanufacturing and recycling.

Plain-English definition
Real-world example
Circular Economy definition

Definition of Circular Economy

A circular economy is a system in which products, components and materials are kept in use at their highest value for as long as possible, and waste and pollution are designed out from the start. It contrasts with the traditional linear "take, make, dispose" model.

Core Principles of a Circular Economy

  • Design out waste and pollution: choose materials and designs that avoid waste and hazardous substances.
  • Keep products and materials in use: through sharing, maintenance, repair, refurbishment, remanufacturing and recycling.
  • Regenerate natural systems: return biological materials safely to the environment, for example through composting.

Circular Economy and Workplace Safety

Circular practices create new work activities that need hazard controls. Repair and remanufacturing involve stored energy, so lockout/tagout applies. Recycling and sorting bring sharp objects, balers, compactors, dust and hazardous waste segregation. Battery recycling adds fire and chemical risks.

Example of Circular Economy

A tool rental company set up a refurbishment workshop to extend the life of power tools. Each returned tool was inspected, repaired, electrically tested and recertified before reuse. The program cut new tool purchases and waste, and the company added a pre-use inspection checklist so customers could flag defects early.

Frequently Asked Questions: Circular Economy

Is recycling the same as a circular economy?

Recycling is part of it, but a circular economy puts reuse, repair and remanufacturing first because they keep more value and use less energy.

How does it relate to zero waste?

Zero waste is a goal of sending nothing to landfill or incineration. Circular economy is the wider system for redesigning products and business models to achieve that.

Are there regulations on circularity?

Yes, in some regions. The EU, for example, has rules on product design, packaging and extended producer responsibility.

Part of SafetyIQ's EHS glossary: plain-English definitions of workplace health and safety terms.

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