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Knowledge category: Papers and reports

Avoiding blindspots: promoting circular and fair business models

Updated on 26.06.2023

To create circular and fair business models, businesses and governments need to consider and address environmental, social, market and governance blind spots. This report dives into three specific business models within the textiles and electronics sectors – repair, resale and product-as-a-service (PaaS) – to map the potential side effects of circular business models and their value chains.

Author: Circle Economy, EEB and Fair trade
Year of publication: 2020

More information

Mapping the risk and blind spots in four sectors, namely governance, social, environmental and market, can help develop recommendations and best practices for these three business models. Environmental blind spots could be used for critical and rare materials or increased logistics. Some social blind spots include lack of minimum wage or labour conditions in retail.


The report provides recommendations for businesses, policymakers, public procurers and civil society to ensure they can avoid blind spots and build business models that are not only circular, but also just and fair. There are a few things public procurers can do to ensure that these risks/blind spots are addressed, for instance, engaging in training on fair and circular procurement. Procurement cycles should be extended to support circular design changes.

Relevance for Circular Systemic Solutions

The recommendations are not all on regional/local level, but public authorities can help to implement these national strategies by implementing them in their cities and regions. Taking the suggested measures into account and implementing what is relevant at local/regional level can facilitate the development and implementation of Circular Systemic Solutions.

Sectors

CEAP2 key product value chain

CEAP2 key product value chain

Territories involved

large 500 000-200 000, medium 200 000-50 000, and small cities 50 000-5 000

large metropolitan area >1.5 million, metropolitan area 1.5 million-500 000

predominantly urban regions, intermediate and predominantly rural regions, refer to TERCET typology NUTS 3 region