Deloitte and Circle Economy Foundation’s 2024 Circularity Gap Report Signals Urgent Need for Action

The 2024 Circularity Gap Report, collaboratively developed by Deloitte and Circle Economy Foundation, has raised significant concerns over the slow progress in reducing virgin material use despite heightened discussions on circularity. The report starkly notes that global material consumption over the past six years has almost matched that of the entire 20th century, signaling an urgent need for transformative action in transitioning towards a circular economy.

Key areas identified for reform include policy, finance, and employment. The report emphasizes the need for policies that incentivize circular practices and penalize harmful ones, along with fiscal adjustments to reflect the true cost of products, including social and environmental impacts. It also highlights the necessity of funding circular solutions to replace linear norms and ensuring workforce preparedness for a fair transition.

The circular economy, which aims to reduce the consumption of virgin materials and keep materials in circulation, is growing in prominence. The report projects the circular economy to reduce emissions by 40%, create nearly 2 million jobs, and develop into a market worth US$2-3 billion in the near future. However, the decline in circularity and the continued dominance of virgin materials in the global economy call for immediate and concerted action.

In response to these challenges, Deloitte has announced an exclusive partnership with Circle Economy Consulting, a spinoff of the Circle Economy Foundation. This collaboration aims to help businesses identify and realize circular economy opportunities, encompassing strategy design, transformation implementation, and progress measurement and reporting.

Businesses are encouraged to actively participate in this budding market, with potential benefits including reduced material extraction, enhanced supply chain resilience, and compliance with emerging regulations. Deloitte’s global reach and expertise, combined with Circle Economy Consulting’s specialized knowledge, provide a robust framework for businesses to effectively implement circular economy principles and achieve scalable results.