5 Strategies To Lead The Circular Economy Revolution

Post written by Dr Nadia Millington, Associate Professor (Education) in the Department of Management at the London School of Economics and Political Science, who specialises in sustainable social business design and scaling, open innovation and business strategy consulting, and Franziska Golenhofen, an LSE alum of the Masters in Social Innovation and Entrepreneurship (2019) and Senior Sustainability Solutions Manager at Visa.

We live in a world of finite resources and face unprecedented environmental challenges. The need to transition from a linear take-make-waste economy to a circular one, where resources are used and reused in closed loops, has never been greater.

Boston Consulting Group’s 2023 Carbon Emissions report cites that 50% of senior managers and executives see leadership challenges as a major obstacle in implementing circular economy (CE) principles. So, how can leaders new to CE combat these tendencies? Based on research we have conducted with CE experts across academia, consulting, start-ups, and the corporate sectors, we highlight 5 key things to enhance the probability of success for leaders at the start of their CE journey.

Find a coalition of the willing

Embracing a new and complex idea like the circular economy can feel daunting—even paralyzing—for many organizations. Rather than pushing for sweeping transformation from the outset, leaders are better served by starting with a coalition of the willing: colleagues who are passionate about sustainability and open to rethinking the status quo.

Once identified, leaders should engage these early adopters in small, practical projects that align with existing workflows. This makes circular economy principles feel tangible and achievable, rather than abstract or disruptive. As Hélène Isermeyer, Co-founder of Terraquota, explains: “Embedding CE into existing workflows, channels, suppliers, and partners—and looking at what exists already and applying a different lens—is a natural place to start.”

MORE FOR YOU

Google’s New Android Update — 3 Things Your Phone Can No Longer Do

Microsoft Update Fails—New Download Breaks Windows

Microsoft Confirms Windows Upgrade Choice—You Must Now Decide

To sustain progress, it’s also critical to empower these internal champions—equipping them with leadership and change management skills, and creating career pathways that reward their commitment to sustainability.

This approach doesn’t just deliver isolated wins—it builds capacity, confidence, and momentum. And once teams begin to see the real-world impact of circular practices, they’re far more likely to embrace more ambitious and transformative projects in the future.

Shift your mindset

Leadership in the circular economy isn’t just about applying the latest tools—it demands a deeper transformation in how companies think, act, and collaborate. As Dr. Manuel Braun, Senior Director at Systemiq, puts it: “building real collaborations—sharing data, resources and even having open interfaces—demands a fundamental change in traditional partnership behaviour.”

For new circular economy leaders, this may require a mindset shift: moving beyond transactional partnerships toward long-term, integrated relationships grounded in trust, transparency, and shared purpose. In this context, collaboration that creates shared value becomes the new benchmark—essential for unlocking both commercial growth and sustainable environmental impact.

Work smarter not harder

Many new CE leaders overestimate their internal ability and capacity to forge new partnerships to improve supply chains. But digital tools now exist to fast-track progress and reduce the heavy lifting.

From material tracking and data analytics platforms to digital design tools and curated marketplaces, today’s ecosystem is rich with technology that enables smart, efficient CE transitions.

Platforms like Regusto, Circular Republic, and the Ellen MacArthur Foundation’s Circular Economy Database are tools that can help match partners, track materials, reduce risk, and measure impact—often with greater precision than internal systems can achieve alone.

Own your agenda

Leaders new to the circular economy often struggle to envision how it applies within their own organizations. A common misstep is searching for a “perfect” model to replicate.

Dr. Marianne Kuhlmann, co-founder of Circularity offers a clear warning: “No one company has done it all. Achieving a circular economy means creating something new—not copying what already exists.”

While benchmarking can provide inspiration, the circular economy is not a one-size-fits-all solution. What works in one company, industry, or geography may not translate to another. True circular success requires building a strategy rooted in your company’s specific supply chain, assets, and stakeholder relationships.

Policy helps business case

Finally, zoning in on the added value of new CE initiatives can be challenging, especially when traditional supply chain improvements are underway. Pranshu Singhal, founder of Karo Sambhav, states that policies, regulations and incentives are increasingly seen as critical for realising circular economy aspirations on a global scale and contributes to a strong business case, and that “the most effective policy tools mandate the use of a certain percentage of recycled content in products”.

These wider policies can be used as gravitational pulls towards stronger CE business cases and the pursuit of more ambitious CE goals. As regulations mature, aligning your CE agenda with them can drive investment, reduce risk, and open up new opportunities.

The transition to a circular economy is not without its challenges. However, through finding coalitions of the willing, using digital tools, driving their own agendas, collaborating differently and leveraging supportive policies, leaders new to the circular economy can create a more resilient, equitable, and sustainable future for all.