The circular economy is a regenerative economic system that aims to keep resources in use for as long as possible, extracting the maximum value from them while in circulation. Once a product reaches the end of its life, its materials are reintroduced into the production cycle, minimising waste generation and reducing the need to extract new resources. It is the opposite of the traditional linear model of take, make and dispose.
The Ellen MacArthur Foundation, a leading organisation in circular economy promotion, defines three core principles:
The way materials are kept in circulation matters. Closed-loop recycling returns a material to the same product (glass into glass, aluminium into aluminium), preserving its value, while open-loop recycling turns it into a different, often lower-grade product. Both sit within the waste hierarchy, which prioritises prevention and reuse over recycling, recovery and disposal.
The circular economy helps reduce the carbon footprint, which measures the GHG emissions associated with an activity, product or service. It contributes to emissions reductions at several stages:
In the European Union, the circular economy is driven by the Circular Economy Action Plan adopted in March 2020 under the European Green Deal. Europe's circularity rate is currently around 12%, and the EU aims to roughly double it by 2030. Key instruments include the Ecodesign for Sustainable Products Regulation (ESPR, Regulation (EU) 2024/1781), whose main obligations and Digital Product Passport requirements start to apply from July 2026, and extended producer responsibility schemes. A further Circular Economy Act, expected to be proposed in 2026, aims to build a single market for high-quality secondary raw materials.
By implementing circular economy practices, businesses can reduce their environmental impact, especially their carbon footprint, and unlock new opportunities for innovation, efficiency and sustainable growth. At Manglai we help companies measure and manage their carbon emissions, making the circular economy a practical and measurable part of their sustainability strategy. Discover how Manglai can help you.
Companies that trust us
Upcycling repurposes discarded materials into items of higher value or quality, reducing waste and resource use while encouraging creative, sustainable design.
Downcycling reuses recycled materials to make lower-quality products, extending material life but eventually reaching a point where the material becomes waste.
Corporate sustainability integrates responsible practices across a company's environmental, social, economic and governance dimensions. The carbon footprint is one of its most relevant indicators.
Guiding businesses towards net-zero emissions through AI-driven solutions.
Product & Pricing
What is Manglai
Features
SQAS
GLEC
Miteco certification
ISO-14064
CSRD
Prices
Customers
Partners
Solutions by role
ESG management solutions
Environmental consulting
Financial directors
General directors
Operations directors
Transport responsible
Supply chain managers
Solutions for investment funds
© 2026 Manglai. All rights reserved