You’ve probably heard the word circularity more times this year than you’ve had cups of coffee (and that’s saying something!). But here’s the twist: this concept isn’t new at all. In fact, it’s been around longer than spreadsheets, PowerPoint… and even the idea of planned obsolescence. So, let’s take a quick stroll through its fascinating history – and why circular practices are now at the heart of every sustainability conversation.

It all started…ages ago

Long before sustainability reports and ESG targets, ancient cultures already saw life as a circle. Indigenous communities understood nature as a closed system where everything – including us – transforms and returns. Eastern philosophies like Taoism and Buddhism embraced cyclical visions of time and existence. And nature? It’s the ultimate circular system: water cycles, carbon cycles, nutrient cycles – all running smoothly without a single waste bin in sight.

The linear detour

Then came the Industrial Revolution, and we went full-on linear: extract, make, use, throw away. Great for growth, not so great for the planet. For decades, this model powered unprecedented economic expansion, but it also created mountains of waste and put enormous pressure on ecosystems. By the mid-20th century, the cracks started to show – pollution, resource depletion, biodiversity loss. Cue the big question: Can we close the loop?

The turning point

In the 1960s and 70s, visionaries like economist Kenneth Boulding introduced the idea of a closed economy in his famous Spaceship Earth analogy: imagine Earth as a spaceship with limited resources and no resupply (Boulding, 1966). Suddenly, designing products to last, repair, and recycle sounded less like a dream and more like a survival plan. Around the same time, eco-design emerged, challenging planned obsolescence – yes, that 1920s idea that products should fail faster so we buy more. Fast forward to the 1990s, and the term circular economy took centre stage. The Ellen MacArthur Foundation later gave it global momentum with three principles: Design out waste and pollution, keep products and materials in use, regenerate natural systems.

Where we are today

Circularity is now in policies, boardrooms, and (hopefully) your next project plan. The EU launched its first Circular Economy Action Plan in 2015, setting the tone for product design, recycling, and circular business models. China integrated circular practices into its national development plans, focusing on resource efficiency and industrial parks. The U.S.? Progress is more fragmented, with initiatives varying by state and sector. Latin America is catching up, but data is still limited. Here’s the reality check: the global circularity rate is just 6.9% (Circularity Gap Report 2025). Europe leads at 11.8%, with stars like the Netherlands hitting 30.6%, Italy at 20.8%, and Malta at 19.8%. Others? Let’s just say there’s homework to do – Romania sits at 1.3%, Ireland at 2.3%, and Finland at 2.4%.

What’s next?

Expect big changes. Regulations will tighten, technology will innovate, and companies will weave reuse, repair, and recycling into their DNA. Think Product-as-a-Service, resale platforms, and AI-powered supply chains. Circularity isn’t just good for the planet – it’s smart business. Lower costs, new markets, and resilience when raw materials get scarce.

Our role at Schneider Electric

We’re not just talking about circularity – we’re living it. From repair and refurbishment to innovative service models, we’re helping customers extend product life, cut waste, and hit sustainability goals. Because the future? It’s not linear. It’s circular.

Ready to dive deeper?

👉 Explore Schneider Electric’s Circular Practices: EcoFit modernization and circularity services | Schneider Electric

👉 Learn more about our sustainability commitments:  Benefits of circular economy for your business | Schneider Electric

So next time someone asks, ‘What’s our plan for sustainability?’ you can smile and say: ‘It’s simple – the future isn’t linear. It’s circular.’

About the author

Karen de Carvalho Almeida
Global Offer Manager, Circular Economy

Karen Almeida is a Global Offer Manager for Circular Economy within Schneider Electric’s Industry Services. With an engineering background and experience across power systems, power products, and service innovation in multiple markets, she brings a unique understanding of how business models evolve at different stages of maturity. Her career has consistently focused on lifecycle optimisation and smarter resource use, leading naturally into her current circular economy work. Today, she drives global initiatives in repair, refurbishment, and lifecycle‑based service models, helping embed circularity into industrial automation services worldwide.