Concrete competitive advantages expected from the transformation include reductions in material costs and increased independence and resilience in supply chains, as highlighted by respondents. Gaining a positive image among customers and employees also plays a role. Four out of ten businesses hope to gain new customers through these efforts.

A topic for every other company

Often, businesses are already working on its practical implementation in their daily routine. More than every second company is already addressing the question of how to integrate elements of the circular economy into their business model.

Framework conditions must be right

The survey also indicates: A successful transition to the circular economy is by no means self-evident and is contingent upon crucial conditions. Firstly, a comprehensive expansion of digital networks is required. Only with appropriate digital infrastructure will businesses be enabled to build capacities for data storage and processing, which form the foundation for approaches like the Digital Product Passport. Secondly, a Europe-wide uniform legal framework is essential. Thirdly, work must be done to establish a functioning market for recycled products.

Concerns over increased effort

Businesses are concerned about new burdens. Three out of five businesses are already warning about greater documentation requirements and the necessary personnel efforts for this. Moreover, every second business fears higher costs when purchasing raw materials and semi-finished products. Over a third of respondents see risks in the availability of secondary raw materials. The shortage of skilled workers and the current cost advantage of natural raw materials are also cited as challenges.

Utilizing positive sentiment

The survey demonstrates: Many businesses recognize the opportunities that the development towards a circular economy offers. According to DIHK, policymakers should capitalize on this positive sentiment and take appropriate measures now. It is crucial to consider the safeguarding of businesses’ competitiveness more strongly than in the past. Uniform standards for the circular economy within Europe are viewed by three-quarters of companies as central building blocks for this.

The results of the DIHK survey on the Circular Economy can be downloaded here:
“Circular Economy as an Opportunity?” (only available in German)