Visualized: The Circular Economy 101



The following content is sponsored by MSCI

Visualized: The Circular Economy 101

The principles of a circular economy trace back as far as 3,000 years.

Archeological evidence shows that Romans recycled trash following the eruption of Mount Vesuvius in 79 AD. Roughly 200 years later, people recycled glass during the Byzantine Empire. Fast-forward to today and circular economy strategies are projected to generate trillions in economic output by 2030.

But how does the circular economy work? This infographic from MSCI provides a guide to circular economies—from circular business models to circular technologies.

No Time to Waste

First, let’s start at the root of the problem, our current consumption trends:

  • Raw Materials: Global extraction is projected to double by 2060.
  • Textiles: 85% of clothing and textiles are discarded.
  • Waste: Global waste is projected to rise 70% by 2050.
  • Water: 80% of global wastewater is untreated or reused before returning back to the ecosystem.

To change consumption patterns and reduce waste, consumer behaviors, business models, and policies will need to change. But the big question is how?

To answer this problem, the concept of a circular economy is gaining traction.

What Is a Circular Economy?

A circular economy is centered on the idea of resources being kept as long as possible within the economic system, where materials that have undergone an entire lifecycle, from production to end stage, are returned to the economic system as an input.

Above all else, a circular economy is based on sustainable life cycles.

Circular Economy Growth

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