The world is becoming less circular. Here’s how to reverse that

The 2025 Circularity Gap Report reveals that global economies are moving away from circular practices, despite an increase in the use of recycled and non-virgin materials. The report indicates a decline in worldwide circularity from 7.2 percent to 6.9 percent over two years.

Released on May 13 at the World Circular Economy Forum in São Paulo, the report by Circular Economy and Deloitte Global highlights the importance of reusing, reselling, and repairing materials rather than relying on new resources. While more recycled materials are being used in products, activities like mining and farming continue to deplete natural resources.

The report projects a significant increase in resource extraction by 2060 if current trends persist. However, with enhanced recycling efforts, the global circularity metric could potentially reach 25 percent. The private sector can play a crucial role in accelerating the transition to a circular economy through innovative product design, new business models, and improved capabilities.

Businesses are urged to adopt circularity frameworks, transition to circular economy models, and collaborate across value chains to optimize resources. The report emphasizes the importance of promoting circular design ideas, prolonging product lifecycles, and reducing the use of virgin materials. It also calls for initiatives to minimize environmental harm and waste, such as utilizing renewable energy sources and improving waste management infrastructure.

While net zero standards have gained prominence in corporate sustainability efforts, global standards for materials circularity are still evolving. The emergence of the Global Circularity Protocol is expected to guide businesses in achieving growth objectives while meeting sustainability goals. The protocol is likely to be integrated into future corporate sustainability reports to drive measurable and transformative actions for long-term value creation and resilience.