Whitepaper from Fraunhofer IPA: How the circular economy succeeds

With a new white paper, Fraunhofer IPA is putting its finger in the wound: although many industrial companies know that a circular economy is necessary, they are still struggling to implement it. The publication shows why the transition from a linear to a circular economy is no longer a question of the future, but has become a strategic task under the pressure of regulation, raw material shortages and geopolitical risks.

European requirements such as the Ecodesign Regulation ESPR, the Digital Product Passport, which will be mandatory from 2027, and the national circular economy strategy NKWS are noticeably increasing the pressure on companies to act. To remain competitive in the future, products, data and business models must be geared more towards durability, reparability, recyclability and transparency.

The Fraunhofer Institute for Manufacturing Engineering and Automation IPA's white paper entitled «Strategically implementing the circular economy - efficiency, consistency and sufficiency in business practice» is based on scientific analyses and interviews with eleven specialists and managers from the mechanical engineering, automotive, electronics and chemical industries. The focus is on three sustainability strategies and the question of how they can be meaningfully interlinked in practice.

The authors make it clear that simple efficiency gains alone are not enough. Although they are widespread, their effect often evaporates due to rising demand or is canceled out along global supply chains. Approaches aimed at closed material cycles or changed usage models are much more challenging. They require far-reaching adjustments to product design, data structures and business models - and this is precisely where standards, reliable data and clear responsibilities are often lacking.

The interviews paint a similar picture. Regulatory requirements are currently the strongest driver of change, followed by rising customer expectations and investor requirements. On the other hand, there are tangible hurdles: a lack of viable business models, limited willingness to pay in the market, technical limitations with critical raw materials and a lack of transparency regarding material flows and life cycles. The message of the white paper is that the circular economy cannot be implemented as a stand-alone solution, but only along the entire value chain.

For companies, this is more than just an ecological issue. Those who tackle the transformation at an early stage can ensure investment security, avoid reworking and develop new business models. Fraunhofer IPA therefore sees the circular economy not only as a sustainability issue, but increasingly as a competitive strategy.

Source: Fraunhofer IPA

This article originally appeared on m-q.ch - https://www.m-q.ch/de/whitepaper-von-fraunhofer-ipa-wie-kreislaufwirtschaft-gelingt/