Report: Digitalization of Circular Business Models - Digital solutions enabling the transition to a circular economy

Published on June 11, 2025

In today’s rapidly evolving landscape, where environmental pressures and digital transformation intersect, the integration of circular economy principles with digital innovation presents a compelling opportunity for sustainable growth. The Digitalization for Circular Economy (D4CE) initiative—led by the One Planet Network and the Coalition for Digital Environmental Sustainability (CODES)—is a pioneering effort to harness this synergy.

This technical paper, co-authored with the Wuppertal Institute, explores how digital technologies such as IoT, AI, and Digital Product Passports (DPPs) enable new circular business models. These tools are not only enhancing transparency and operational efficiency, but also unlocking scalable solutions across industries and geographies.

One of our highlights are ten real-world case studies—from digital waste management to product traceability platforms—demonstrating how innovation is reducing costs, increasing value and already reshaping value chains.

Technical Paper was launched on 13th June, 2025.

The integration of circular economy principles with digital innovation, as explored in the Digitalization for Circular Economy (D4CE) initiative, directly supports SDG 12 on Responsible Consumption and Production by enabling more efficient resource use, transparency, and traceability across value chains. Through technologies like IoT, AI, and Digital Product Passports, the initiative showcases how digital tools can support circular business models, reduce waste, and promote sustainable production patterns.