Our key takeaway: We can meet people’s needs with only 70% of the resources we use today and keep global warming below 2°C according to Circle Economy. But what is the reality? Are we producing and consuming within planetary boundaries i.e., that does not threaten the safety and functioning of the planet? We are not: 70% more virgin materials were extracted between COP25 in 2015 and COP26 in 2021. Global warming has reached 1.1°C since the pre-industrial era. We have already exceeded multiple planetary boundaries. The circular economy presents a model that allows us to live within planetary boundaries in a way that does not drive or exacerbate environmental harms. However, the pursuit of transitioning from a linear to a circular economy should not come at the expense of people and their wellbeing. As the report highlights, “[w]e should be cautious not to conflate jobs that are ‘good for the environment’ with ‘good for workers.’” Rather, “circular economy interventions will not support social equity by default.” So what can the private sector do? 1) Think about integrating and prioritising social considerations in circular economy transition plans. 2) Channel resources into industry-wide research which looks at the gaps in existing research when it comes to looking at underrepresented groups such as migrant and informal workers in the circular economy. 3) Work with local stakeholders to develop and analyse circular economy policies and plans. 4) Collaborate with partners to collect and analyse data that considers key circular actors and activities currently omitted from databases. All this is to say that a circular economy can and should advance a just transition and vice versa. Workers are instrumental to the circular economy transition, and they must be brought along in a way that realises their human right to decent work.
Circle Economy, the International Labour Organization (ILO), and Solutions for Youth Employment published Decent work in the circular economy: An overview of the existing evidence base (May 2023):