Circularity is picking up pace. Many Combient companies have adopted circular business models and demonstrated the viability of circular economy practices for complex manufacturing products. Now is the time to scale circularity and make circular business models the new normal for all manufacturing companies.
Scaling circularity comes at a time when circular business models are more important than ever. Material scarcity, increased competition for the same critical raw materials, and uncertainty around security of supply have upended the global paradigm of lean and hyper-optimized supply chains. Many companies have already recognized that in a global business environment increasingly characterized by big and small disruptions, alternative strategies have become essential for ensuring supply of business critical materials, organizational resilience and business continuity. The transition to a circular economy offers a solution for this by promoting supply chain resilience, and supporting the access to precious resources.
Scaling circularity is also supported by the strengthening demand for circular solutions. More and more customers want circular, low carbon solutions and the pull in the market is increasing: According to a study by Cradlenet & RISE 86 % of Nordic companies have included circularity in their business strategy, and 42 % have already embedded circular requirements into at least some procurement processes. The companies that are first to launch circular offerings will be better positioned to capitalise on this increasing demand for circular products and services.
Furthermore, financial and regulatory support for circularity is maturing in the Nordics, which creates advantages for Nordic companies to develop and adopt circular solutions before their global competitors. Fiscal support and regulatory trends are also strengthening at the level of the EU, with new circular economy and secondary raw material regulations being prepared and implemented in the coming years. Additionally, companies can already achieve better financing for their circular economy solutions through sustainability linked bonds offered by banks or other financial institutions.
By transitioning to a circular economy, we are able to address our sustainability crisis - while enabling business resilience for the future. Combient network companies have been pioneers in this by piloting and launching circular solutions in the following circular business model categories:
Product as a Service shifts product ownership from the buyer to the manufacturer, which incentivizes companies to design durable, repairable, and upgradable products, as they retain responsibility for maintenance and end-of-life management. For example, Atlas Copco has demonstrated that compressed air can be offered through a service model. Also, SKF’s RecondOil shows how a service approach to industrial oil can unlock better value for customers
Product Life Extension strategies aim to extend the useful life of products through maintenance, refurbishment, remanufacturing, and resale, which reduces the need for new production. KONE exemplifies this with their Upgrade -offering, enabling better lifetime value for their elevators and customers.
Sharing Platforms facilitate the shared use of underutilized products, maximizing their value while reducing overall consumption. For example, Scania’s JUNA accelerates the adoption of electric trucks, showing how CAPEX heavy industries can benefit from the use of sharing platforms and circular services. JUNA is also a good example of PaaS business models.
Circular Inputs focus on sourcing renewable, recycled, or biodegradable materials that can be reintegrated into the production cycle, reducing dependency on virgin resources. Ericsson promotes the use of circular inputs by utilizing spare parts from their used network equipment, and reusing them in refurbished solutions.
Resource recovery involves capturing and repurposing resources from waste streams, turning them into valuable inputs for new production. By closing material loops, resource recovery reduces landfill waste and decreases the need for raw material extraction.
With demonstrated successes and several market trends supporting the scale-up of circular business models, now is the time for companies to double-down on circularity. First movers will benefit from advantages like early learnings, better access to resources and a stronger product differentiation. Many Combient network companies already have a head-start on circularity - now we have to capitalize on this advantage, scale up the operations, and make circularity the new normal.
Sources:
EY. (2022). Regulatory landscape of the circular economy. https://www.ey.com/content/dam/ey-unified-site/ey-com/en-us/insights/chemicals/documents/ey-regulatory-landscape-of-the-circular-economy.pdf
Cradlenet & RISE. (2024). The Circular Economy Outlook 2024. https://www.ri.se/en/circular-business-lab/news-and-insights/circular-economy-outlook-nordics-2024
EU. (2022). The Taxshift: An EU fiscal strategy to support the inclusive circular economy. https://circulareconomy.europa.eu/platform/sites/default/files/the-taxshift_eu-fiscal-strategy_extax-project-2june22def.pdf
EU. (2025). Circular Economy Act: Call for evidence. https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/14812-Circular-Economy-Act_en
European Commission. (2025). Critical raw materials. https://single-market-economy.ec.europa.eu/sectors/raw-materials/areas-specific-interest/critical-raw-materials_en#fifth-list-2023-of-critical-raw-materials-for-the-eu
PwC. (2024). Climate risk to EU commodity supplies. https://www.pwc.com/gx/en/issues/esg/climate-risks-to-eu-commodity-supplies.pdf