Executive summary Businesses across industries are increasingly pursuing circularity and expect it to gain importance in the future as it provides an opportunity to boost competitiveness and unlock economic value. This sentiment comes through strongly in a survey of 420 top executives from 10 manufacturing industries across the globe. Only around 40% of businesses said they considered circularity important or extremely important three years ago, with significant variation across industries. Today, that number has risen to around 75%, and in three years, it is expected to reach around 95%.Businesses active in 10 manufacturing industries expect their circular solutions to unlock value through sustainability, resilience, increased revenues and cost savings. Growing importance of circularity FIGURE 1 Businesses across industries are increasingly embracing circularity Three years ago Three years from now Today ~40% ~75% ~95%% of businesses engaging in circularity that consider it as important or extremely important Businesses recognize circularity’s potential for broad value creation. The survey finds that businesses pursuing circular solutions expect them to deliver positive economic value along four dimensions: sustainability, resilience, revenues and costs. The survey shows that businesses with mature circular strategies that encompass a variety of circular solutions are unlocking higher value compared to isolated approaches. The case for circularity is clear – however, the path to a circular business model can be uncharted territory for businesses and involves trade-offs. To change their business model from linear to circular, businesses need to undergo a shift in mindset and invest substantial resources. This includes high upfront investments, allocating sufficient time and building necessary capabilities. Despite the challenges, leading multinationals are showing that progress is possible. The research conducted suggests that businesses that are successfully mitigating challenges and unlocking broad economic value through circular solutions are applying some combination of the following enabling strategies. With the following enabling strategies, businesses can navigate the complexities of circular transformation and unlock broad economic value.Source: Global market survey by Circular Transformation of Industries initiative of 420 top executives (conducted during the second quarter of 2024) Circular Transformation of Industries: Unlocking Economic Value 5

Circular Transformation of Industries 2025