Circular Transformation of Industries The Art of Scaling Circular Supply Chains 2025

2.1 Geography: consider differing policies, demand and infrastructure Starting in a specific region helps focus efforts, test operational models and generate insights for broader scaling. Consider prioritizing regions that are vulnerable to market volatility or supply chain disruption. This is where circularity can add value by enhancing supply security, thereby boosting resilience. Start with one geographic region to prove demand and pilot operations. Pilot markets are typically chosen for their strong customer presence, product base, growth potential or operational feasibility. If circular behaviours like recycling, returns and refurbished product use are already established, these will support faster adoption. Familiarity with product-as-a-service programmes and strong local demand can also help drive pilot success, as uncertain demand remains a key challenge. Countries with extended producer responsibility (EPR) policies or landfill taxes often provide stronger foundations for early circular efforts. Financial incentives such as subsidies, tax credits or repair programmes may improve the business case for circularity. Stable governance or alignment with regional strategies like the EU Green Deal, China’s 14th Five Year Plan on Circular Economy or the ASEAN Circular Economy Framework support smoother expansion, especially in markets with long-term environmental goals. Geographies with existing infrastructure, such as reverse logistics networks, certified recyclers or sorting centres, facilitate fast implementation, while manageable labour and logistics costs limit financial risk. Digital maturity, including traceability systems and product registries, supports efficient circular processes. Scaling across multiple geographies: tackling regulations and operations. Cross-border circular flows face regulatory hurdles. Frameworks such as the Basel Convention or EU Waste Shipment Regulation may classify used goods as waste, requiring permits or restricting movement of items like used electronics, machinery or automotive parts shipments for remanufacturing. Restrictions complicate centralized reprocessing and add compliance risk. Scaling is easier in country clusters with harmonized standards, reducing friction and improving predictability. Efficient circular models depend on reverse logistics, making transport networks and geographic proximity critical. Well-connected regions help manage cost, carbon impact and lead times. Compatibility across data systems also supports end-to-end visibility across partners and borders. CASE STUDY 1 Colt – test first, then scale Colt Technology Services, a global digital infrastructure company, launched its Synchronous Digital Hierarchy (SDH) End-of-Life project in 2023 as part of a network modernization programme that replaced legacy energy- intensive telecom equipment. Colt chose Sweden for a pilot because it was a relatively small market, yet with existing equipment. This enabled Colt to test new circular approaches before scaling across Europe. Local collaboration with Swedish recycler Urban Miners achieved significant revenue from material recovery in 2023-2024, and the initiative is now being rolled out across Europe. Financial incentives such as subsidies, tax credits or repair programmes may improve the business case for circularity. 11 Circular Transformation of Industries