Key Circular Economy Case Studies

Why This Matters

When you're studying circular economy business models, you're really being tested on your ability to recognize how companies redesign value chains to eliminate waste and keep materials in productive use. These case studies aren't just feel-good sustainability stories—they represent distinct strategic approaches that exam questions will ask you to identify, compare, and evaluate. You'll need to understand the mechanisms behind product-as-a-service models, remanufacturing systems, industrial symbiosis, and design-for-longevity strategies.

Don't just memorize company names and what they do. Instead, focus on which circular principle each case demonstrates and why that approach works for that particular industry. An FRQ might ask you to recommend a circular strategy for a hypothetical company—and your answer should draw on these models as evidence. Know the underlying logic: Who retains ownership? Where do materials flow? What incentive structures drive behavior change?

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Product-as-a-Service Models

These companies retain ownership of physical products and sell access or outcomes instead. By keeping ownership, manufacturers have strong incentives to design for durability, repairability, and eventual recovery.

Philips' "Pay-per-lux" Lighting Service

• Customers pay for illumination, not fixtures—Philips installs, maintains, and eventually reclaims all lighting equipment
• Manufacturer incentive alignment means Philips profits from energy-efficient, long-lasting designs rather than frequent replacements
• Reduces capital barriers for customers while guaranteeing performance outcomes and eliminating disposal responsibilities

Mud Jeans' "Lease A Jeans" Subscription Model

• Monthly leasing fee gives customers access to jeans they return after use, enabling material recovery at scale
• Closed-loop textile system ensures returned jeans are recycled into new denim fiber, addressing fashion's waste crisis
• Consumer flexibility meets sustainability goals—customers can swap styles without the guilt of disposal

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Remanufacturing and Component Recovery

Remanufacturing restores used products to original specifications, capturing the embedded energy and materials that would otherwise be lost. This approach works best for durable goods with high material value and standardized components.

Renault's Choisy-le-Roi Remanufacturing Plant

• Automotive parts restored to OEM standards—engines, transmissions, and injection systems get second lives at lower cost than new production
• Advanced diagnostics and machining enable quality guarantees equivalent to new parts while using up to 80% less energy
• Strategic cost advantage lets Renault offer competitive pricing on replacement parts while reducing raw material dependency

Caterpillar's Remanufacturing Program

• Heavy machinery components rebuilt to original specs—Cat Reman processes over 2 million units annually across 200+ product lines
• Core deposit system incentivizes customers to return worn parts, ensuring steady material inflow for remanufacturing operations
• Industrial-scale proof of concept demonstrates that remanufacturing works even for the most demanding applications in construction and mining

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Design for Longevity and Repair

These models prioritize extending product life through repairability, modularity, and resale infrastructure. The key insight: the most sustainable product is often the one that already exists.

Patagonia's "Worn Wear" Repair and Resale Initiative

• Free repair services keep Patagonia products in use longer, with the company repairing over 100,000 items annually
• Certified resale marketplace gives used gear a second life while reinforcing brand loyalty and sustainability credentials
• Cultural shift strategy—Patagonia actively discourages unnecessary purchases, building trust that drives long-term customer relationships

Fairphone's Modular Smartphone Design

• User-replaceable components including battery, screen, and camera modules extend device lifespan and reduce e-waste
• Repair tutorials and spare parts sold directly to consumers, challenging the planned obsolescence model dominant in electronics
• Ethical supply chain integration addresses both end-of-life and beginning-of-life sustainability through conflict-free minerals sourcing

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Industrial Symbiosis and Ecosystem Approaches

These models create networks where one organization's waste becomes another's input. Industrial symbiosis requires geographic proximity, trust between partners, and compatible material flows.

Kalundborg Symbiosis Industrial Ecosystem

• Pioneering industrial network in Denmark where a power plant, refinery, pharmaceutical company, and others exchange waste streams as resources
• Material exchanges include steam, gas, gypsum, and sludge—turning costly disposal problems into revenue-generating resource sales
• Evolved organically over 50+ years through bilateral agreements, demonstrating that symbiosis emerges from economic logic, not just environmental mandates

Ellen MacArthur Foundation's "Circular Economy in Cities" Project

• Urban-scale systems thinking helps cities identify circular opportunities across sectors like food, mobility, and construction
• Stakeholder collaboration frameworks connect governments, businesses, and communities to redesign urban material flows
• Practical transition tools including policy recommendations and pilot project templates accelerate city-level circular adoption

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Material Recovery and Upcycling

These models capture value from waste streams that would otherwise end up in landfills. Success depends on aggregating sufficient volume and finding higher-value applications for recovered materials.

Interface's "Mission Zero" Carpet Recycling Program

• Closed-loop carpet manufacturing reclaims used carpet tiles and recycles nylon fiber into new products
• Net-Works program sources discarded fishing nets from coastal communities, addressing ocean plastic while securing recycled materials
• Industry transformation goal—Interface aimed to eliminate all negative environmental impact, pushing competitors toward similar commitments

TerraCycle's Waste Upcycling Partnerships

• Hard-to-recycle waste streams including chip bags, cigarette butts, and beauty packaging get diverted from landfills through brand partnerships
• Consumer engagement model turns recycling into participatory programs, often with charitable donations tied to collection volume
• Business model innovation—brands pay TerraCycle to manage end-of-life, creating financial incentives for waste recovery where none existed

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Quick Reference Table

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Self-Check Questions

1. Which two case studies best illustrate the product-as-a-service model, and what key difference exists in their target markets?

2. Compare and contrast Renault's remanufacturing plant and Fairphone's modular design—both extend product life, but at what stage of the product lifecycle does each intervene?

3. If an FRQ asked you to recommend a circular strategy for a consumer packaged goods company, which case study provides the most relevant model and why?

4. What distinguishes industrial symbiosis (like Kalundborg) from closed-loop recycling (like Interface)? Identify the key structural difference in how materials flow.

5. A company wants to shift consumer behavior toward more sustainable consumption without changing its core product design. Which two case studies offer the best templates, and what mechanisms do they use to change behavior?