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

Repair servicesRetrofit servicesProduct-as -a-service/ leasingRefurbished product saleRemanufactured product saleRecycled material sale Company/ product category driversProduct fit: Is the value proposition compatible with the design and life cycle of the target product category? Value creation: Does the financial value generated align with objectives for the product category? (e.g. recurring revenue, cost reduction) Sustainability strategy: Does the value proposition contribute to key sustainability goals? (e.g. reduction in waste, emissions or resource use) Market driversCustomer demand: Are customers aware of and willing to adopt this proposition? Regulations: Do policies in place favor this value proposition? Competitors: Are competitors offering such a value proposition?2.4 Circular value propositions: prioritize what matters most Choosing circular value propositions requires balancing ambition with feasibility. The matrix below provides a decision-making tool based on industry experience, with targeted questions to assess feasibility and impact for each company and product. Illustrative matrix to prioritize circularity value proposition for a given product category TABLE 1 Assessment based on feasibility and impact, to adapt for each company and product category – example for heavy equipment and machinery. Source: World Economic Forum and Bain & Company analysis based on panel sessions and interviews with market participants. Example for a product category having high residual value and a possibility of second life Neutral Favourable Unfavourable 14 Circular Transformation of Industries