Industry leaders discuss the role of circular economy in sustainability efforts

Byline: Kashish Saxena

The circular economy plays a vital role in sustainability by reducing waste, conserving resources and minimising environmental impact through reuse, recycling and regeneration. Unlike the traditional linear economy, it promotes a closed-loop system that enhances resource efficiency, cuts greenhouse gas emissions and reduces pollution. By supporting sustainable consumption and creating green jobs, it drives economic benefits while tackling climate change. However, challenges such as high costs, lack of awareness, regulatory barriers and supply chain complexities hinder its widespread adoption. Successful initiatives like EU’s Circular Economy Plan, IKEA’s buy-back programs and India’s e-waste policies demonstrate its potential. Transitioning to a circular economy requires collaboration between governments, businesses and individuals to ensure long-term sustainability.

BW Sustainability World’s- Sustainable World Conclave Seventh Edition, brought together key industry leaders to discuss “Transforming Global Value Chains: Sustainability Meets Scalability.” The discussion, moderated by Viral Thakker, Sustainability Partner and Climate Leader at Deloitte South Asia, focused on how circularity can reshape industries while driving business growth.

Circular Economy: A Business Imperative
The shift towards a circular economy—where resources are reused, recycled and repurposed—was a major theme of the discussion. Bipin Odhekar, Head of Sustainability, EHS and Operations Excellence at Marico, emphasised the importance of identifying key sustainability objectives. “If you are able to sharply define top three to four objectives and ensure measurable targets, sustainability becomes an enabler for business growth rather than a parallel process,” he noted.

In the e-commerce sector, Nishant Gupta, Head of Sustainability at Flipkart, detailed how Flipkart has embedded circularity into its operations. “We have implemented a closed-loop system where cardboard packaging from our suppliers is repulped and reused, significantly reducing waste,” he explained. The approach not only cuts costs but also aligns with global sustainability goals.

Circularity In Manufacturing And Automotive Sectors
The automotive industry, a key contributor to emissions and resource consumption, is also embracing circular practices. Thakur Pherwani, Chief Sustainability Officer at TVS Motors, outlined their threefold strategy—extending vehicle life, improving recyclability and closing material loops. “Today, 95 per cent of our vehicle components are recoverable, and 11-12 per cent already contain recycled materials,” he shared, demonstrating a commitment to sustainable manufacturing.

Similarly, Kiran Sarkar, Head of Sustainability at Mahindra & Mahindra (Auto & Farm), highlighted their efforts in vehicle and battery recycling. “We have established a take-back program to incentivize customers to recycle their old vehicles, but awareness remains a key challenge,” he said. The End-of-Life Vehicles (ELV) regulation is expected to accelerate adoption, but consumer education is crucial.

Challenges In Implementing Circularity
While circularity presents a promising pathway, challenges remain. Surya Valluri, Chief Sustainability Officer at Grasim Industries, pointed out that textile circularity is particularly complex. “The reverse logistics of textile waste is still in its infancy, and brands must recognise that circularity comes with a cost,” he emphasised. Manufacturers often operate on single-digit margins, making it difficult to bear the financial burden alone.

The panelists agreed that collaboration between businesses, governments and consumers is necessary to make circular models financially viable and scalable. “The entire ecosystem must align—policy support, infrastructure and consumer behavior all play a role in making circularity a reality,” Valluri added.

A Path Forward
Moderator Viral Thakker concluded the discussion with a compelling economic argument: “India stands to lose USD 35 trillion in cumulative GDP by 2070 due to climate change. However, if we take the right measures, we could add USD 11 trillion in economic gains.” By integrating circularity into global value chains, businesses can reduce waste, lower costs and contribute to long-term economic resilience. With industries making meaningful strides toward circularity, the transition to a sustainable future is no longer a choice but a necessity.