A Systems View of Circular Economy

In many developing countries, economic growth is often prioritized, sidelining critical issues such as social inequality, pollution, climate change, ocean degradation, and pressing needs for health, education, food, and water management. Traditional linear models in organizations, based on product innovation and hierarchical governance, have been successful in certain contexts but are no longer viable in the face of finite natural resources and environmental degradation. This paper proposes a Systems Approach to Circular Economy as a practical framework for achieving “circular business-driven sustainability”, a concept proposed by major global organizations such as COP-25. This approach redefines sustainability, aiming to generate “sustainable wealth increasing returns” that benefit all key stakeholders, including the environment, society, and the economy. The primary objective of this paper is to introduce a new paradigm that facilitates the transition to more conscious, long-term growth. The proposed circular iterative thinking framework shifts from linear, reductionist thinking to a more holistic, systemic vision, underpinned by disruptive sustainable innovation. This novel paradigm creates positive impacts across the economy, environment, and global geopolitics. The paper demonstrates the application of this framework in two case studies, providing concrete evidence of its utility in real-world scenarios, including Heineken’s sustainable practices at its Meoqui brewery, which recovered methane for energy use, reduced water consumption, and contributed to local irrigation. The results underscore the effectiveness of the Systems Approach to Circular Economy in achieving economic decoupling and enhancing sustainability.