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Circular Economy

How we support clients on their circularity journeys

zenith perspective of a city skyline
Businesses are increasingly turning towards circularity to spur sustainable business growth. Circular business models and initiatives can support companies in reducing emissions and waste, while spurring innovation and new go-to-market models. Like any growth initiative, it is paramount to build a fit-for-purpose strategy and execution plan to successfully realize the value of circularity.

- Blythe Chorn, ESG Circular Economy Leader

A winning approach to circularity requires a robust understanding of opportunities available across the value chain—from increasing use of recycled materials to extending the lifetime use of product to recovering valuable materials at end-of-life--and how they apply to different customer needs, product types, and business objectives. But identifying circular opportunities for your business and how to achieve them is no simple task – that is where we come in.

The Circular Potential

A circular economy could simultaneously address some of our most pressing environmental challenges while generating value for business and society:

Emissions reduction

45%

Of total global GHG emissions associated with products and food could be reduced through circular economy strategies

Value recovery

$1.4 billion

Lost commodity value of recyclable or reusable material that ends up in landfills, per year

Economic value

$2 trillion

In annual benefits for the global economy could be achieved by 2050 through more efficient resource utilization

At the company level, circularity offers a number of potential business benefits, including:

1

New revenue streams through circular business models including product resale, Product-as-a-Service, repair and life-extending services, and more

2

Enhanced customer retention through Product-as-a-Service models that include subscriptions to reduce customer acquisition costs and improve service levels

3

Improved customer satisfaction by providing a wider array of options and price points through “as-a-service” and resale models, extending the amount of value customers receive from a product through maintenance and repairability, and offering solutions at the end-of-life

4

Reduced costs through reuse of high value materials and components, resale of existing items, and reduction or elimination of packaging

5

Security of material supply through the movement towards open or closed loop material systems

Companies can capitalize on these opportunities by understanding and pursuing best practices along each part of their value chains:

How we support clients on their Circularity journeys

Many companies appreciate the value of circularity in theory, but struggle with identifying how it applies to their business, how to develop and realize the business case, and how to drive implementation from pilot to scale. We guide clients through all these challenges through our core circularity service offerings:

Opportunity Identification and Strategy Design

  • Opportunity assessment | Understanding the circularity-related sustainability and business opportunities through activities including circularity maturity assessment, existing initiative analysis and prioritization, peer benchmarking, external market and regulatory analysis, and customer insights research
  • Business case development | Outlining the financial and strategic case for circularity through a value creation assessment for internal and external circular initiatives, go-to market models, and ventures
  • Strategy and implementation roadmap development | Building the vision and high-level path forward for the company’s circularity efforts by aligning circular program design to broader business objectives, defining the goals and targets for the program, and identifying the key initiatives and activities of focus

Circular Execution and Delivery

  • Cross-functional coordination | Building alignment and establishing ownership of operational and informational needs to execute on circularity across the organization and value chain
  • Operating model development | Defining the involved roles, systems, data, processes, and policies required for circular programs, products and initiatives 
  • Pilot planning and scaling | Launching, refining, and expanding circular initiatives and practices by supporting pilot design, determining success criteria, and setting stage gates for scaling the minimum viable product / initiative
  • Go-to-market planning | Outlining and modeling potential options for pricing structures and revenue models for circular products and business models, and supporting decisions on the customer experience, route-to-market, and product and portfolio management 
  • Procurement and reverse logistics support | Assessing requirements for materials, components and logistics for circular products and packaging, and supporting the implementation of those changes
  • Inventory management | Determining the implications of circular business models on inventory volumes and turnover and assessing the resulting financial, operational, and planning impacts for improved planning
  • Customer testing | Leveraging proprietary field and empirical research methodologies to trial circular product and service concepts with customers and identify modifications and improvements based on those insights

Measurement and Reporting

  • Progress measurement | Assessing advancement against established circular KPIs and targets to evaluate impact, identify areas of adjustment and underlying drivers, and support planning for go-forward activities based on data trends
  • Reporting support | Preparing data and narrative for regulatory reporting across global, national and local requirements
  • Stakeholder communications | Supporting internal and external user insight gathering and communications on the impacts of circular business models, initiatives and other efforts

Select case studies

Circular strategy formation workshop for recreational equipment company

Situation: A recreational equipment provider sought to develop its circularity strategy through creating a shared vision and cross-functional alignment on the circularity-related opportunities, areas of focus, and critical criteria for success for the company.

Complication: The company produces large, heavy equipment utilizing a combination of materials including steel, aluminum, plastics, and electronic components. Incorporating circularity into product design, material procurement, product use, and end-of-life required detailed analysis and cross-functional input.

Our solution: Our KPMG team supported the company in crystalizing its circularity strategy alongside senior stakeholders across all relevant business functions through interactive, dynamic workshops. Leading up to the workshops, our team conducted an outside-in analysis leveraging consumer insights research methods and peer benchmarking as well as an inside-out analysis based on employee surveys, team member interviews, and document review. With this understanding, we conducted two insightful, productive sessions to drive alignment towards the circularity strategy and functional involvement in executing on their priorities.

Circular target refinement for global technology company

Situation: The client is an industry leader in the circular economy, in part through their pioneering circularity goal to derive product inputs and packaging from recycled / renewable materials or reused parts & products (“the goal”).

Complication: Regulations, peers’ circular performance and targets, and 3rd party standards evolved, prompting the need for goal review to ensure it remained fit for purpose and leading within their sector.

Our solution: The client reached out to KPMG to review and realign their circularity goal. Based on our analysis of peers and the broader market landscape, we identified additional components and considerations to incorporate into their circularity measurement and methodology, based on upcoming legislation, circular standards and frameworks, and industry best practice. We articulated targeted adjustments to make to the existing goal, identified potential additional complementary goals for consideration, and synthesized the multiple ways in which these changes position the client for enduring industry leadership on circularity, and progress towards contributing to a more circular economy at large.

Dive into our thinking:

Creating value in a circular economy

Creating value in a circular economy
Preparing the road to circular economy reporting

Preparing the road to circular economy reporting
Whitepaper Automotive Sustainable Batteries

Whitepaper Automotive Sustainable Batteries
Circular Transition Indicators v4.0

Circular Transition Indicators v4.0

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Insight
Webcast Replay Webcast Upcoming Listen Now

Circular Business Model Innovation: Product-as-a-Service

How Product-as-a-Service (PaaS) can unlock new revenue streams and increase customer satisfaction

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How sustainable packaging regulations are impacting the quick service restaurant industry

A KPMG analysis of the US regulatory landscape and its implications for businesses

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Upcoming Webcast: Circular Business Opportunities through Product-as-a-Service

Tuesday, December 3 from 12:30 – 1:30 PM ET

Register here

Meet our team

Image of Blythe Chorn
Blythe Chorn
Circular Economy Lead, KPMG LLP
Read bio
Image of Mary Fay
Mary Fay
Director, Infrastructure, Capital Projects, and Climate Advisory, KPMG US
Read bio

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Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. KPMG LLP does not provide legal services.

The information contained herein is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

© 2025 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

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