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The circular economy is all about creating a system where resources are used efficiently, waste is minimized, and materials are reused or recycled back into the economy. And data plays a crucial role in this transition.

We spoke with Brad Wright, Executive Vice President of RLG Americas, about how data is driving progress in the circular economy. With over 30 years of experience in environmental services, Brad shares how data is helping businesses navigate sustainability challenges and go beyond compliance.

Tell us how Reverse Logistics Group (RLG) and Reconomy are working to advance a circular economy in Canada and globally?

Reconomy is an international business that operates in 80 countries, supported by 26 local offices. We are a tech-enabled, asset-light business that relies on advanced technology and flexible operations to deliver our services. Our focus is to help customers fulfill their extended producer responsibility (EPR) obligations, optimize their supply chains, and transition toward a circular economy. Essentially, our mission is to help businesses move toward a more sustainable and resource-efficient model through our three key service offerings, or “loops”: Recycle, comply, and reuse.

In Canada, we have a significant role to play. For example, RLG is the operator of Ontario’s Blue Box Common Collection System. We also serve as a producer responsibility organization (PRO) in Ontario for information technology, telecommunications, and audio-visual equipment (ITT/AV) and offer consulting services to guide companies in environmental compliance and enhance their sustainability practices.

We recognize that transitioning to a circular economy isn’t something we can achieve alone — it requires partnerships with businesses, governments, and communities. Working together, we aim to create a more sustainable future and ensure resources are used efficiently.

From your experience, what are the untapped opportunities where data can play a transformative role in advancing circular economy practices globally?

Having the right data helps us make informed decisions that bring us closer to a circular economy. A great example of this is per- and polyfluoroalkyl substances (PFAS) reporting. PFAS are a class of human-made substances called “forever chemicals” because of their propensity not to break down in the environment. Their persistence, combined with growing evidence of their adverse effects on the environment and human health, has governments looking for solutions. 

However, before governments can propose new regulations, they need an abundance of high-quality data to help inform their decision-making. We use digital tools and data-driven insights to quickly adapt to customer needs for PFAS reporting requirements. Accurate data provides quantifiable evidence that can drive legislative change against substances harmful to our health and the environment around the globe. 

How does data empower organizations like RLG and Reconomy to support the optimization of circular economy supply chains and practices?

Data is a key driver in optimizing circular economy supply chains. Our Supplier Data Hub is instrumental in collecting and managing data from various suppliers within the supply chain. It allows us to make informed recommendations on supplier performance, material sourcing, and composition, ensuring that every partner in the supply chain is aligned with circular economy goals. 

Our Data Insight Platform allows us to gather and analyze data related to packaging and its contents. One of its most powerful features, enabled by our 50+ million SKU product database, is its ability to benchmark our customers against their peers. This helps our customers understand how they stack up in the industry, which then allows them to identify respective areas for improvement.

On the financial side, we assist clients with forecasting fees and anticipating compliance costs by analyzing historical data and market trends. Additionally, we analyze end-of-life disposition data to recommend best practices for managing products at the end of their life cycle, including recycling and recovery options. Our goal is to guide companies in their environmental compliance journey and maximize resource recovery, which are fundamental aspects of the circular economy.

How do you collaborate with governments, businesses, and non-governmental organizations (NGOs) to standardize and share data in ways that benefit all stakeholders?

Good data is critical to any decision-making process. Canada’s Federal Plastics Registry, for example, will require large amounts of data that not every business is equipped to collect. This is further exacerbated by the diversity of sectors that are obligated to report. Its scale is too large for any one entity, necessitating industry associates to begin collaborating to manage it efficiently and effectively.

RLG plays a large role in these kinds of collaborative efforts. Working closely with both government officials and obligated producers, we have a deep understanding of the concerns of producers and the opportunities where both producers and the government can meet in the middle. We help facilitate conversations between the right people, know where we can iterate, and understand when new solutions need to be created.

In this way, our global expertise and years of experience support progress toward a more circular economy.   

Are you seeing technologies such as artificial intelligence (AI), data analytics, and digital platforms play a bigger role in accelerating the transition to a more circular economy globally?

Technology is really at the heart of driving this change. We’re seeing a significant increase in the use of technologies like AI and data analytics for collecting data and analyzing trends.

We believe that sustainability and data analytics go hand-in-hand. By leveraging advanced technologies like our Supplier Data Hub and Data Insight Platform, we help businesses collect, organize, and analyze critical data. Whether it’s reporting under packaging EPR or PFAS, data plays a key role in driving efficiency and effectiveness in all sustainability efforts. With the right analytics, businesses can answer key questions and identify clear paths forward, enabling smarter decision-making and stronger outcomes throughout the entire supply chain. 

Technology is becoming increasingly important in connecting stakeholders across the supply chain, and AI is now being used by companies to collect information and answer questions about the material composition of their products. These technologies enable collaboration between manufacturers, recyclers, and consumers, making it easier to share data and insights.

What insights have you gained from working with data that challenge common assumptions about waste, materials, or resource use globally?

A common assumption is that high recycling rates equate to effective material recovery. However, data often reveals significant losses in the recycling process due to contamination, inefficient sorting, or lack of processing infrastructure for certain materials. This highlights the need to design products with end-of-life recovery in mind and promote circular economy principles.

Another key insight is the importance of assessing the full life cycle of materials when making design choices. It’s often assumed that materials like bioplastics are inherently more sustainable than conventional options. However, data reveals that their production can involve significant environmental impacts, such as high land use, water consumption, and greenhouse gas emissions. Additionally, without proper industrial composting facilities, bioplastics may not break down as intended, which can lead to pollution challenges similar to those of conventional plastics.

This challenges the assumption that alternative materials are always better and highlights the need to evaluate the environmental, social, and economic impacts of materials across their entire life cycle — from raw material extraction to end-of-life disposal. It also emphasizes the critical role life cycle assessment plays in making informed and truly sustainable material choices.

Looking ahead, what opportunities do you see for the circular economy in Canada over the next decade, and how do RLG and Reconomy envision being part of this future?

As sustainability becomes more important to businesses and consumers in Canada, we expect to see a growing demand in numerous areas of the circular economy. 

For example, we recognize a significant opportunity for sustainability as a service. This is especially useful in tackling scope 3 emissions, which come from a company’s entire supply chain. We expect that addressing scope 3 emissions will help businesses meet their sustainability goals while responding to growing pressure from regulations and consumers who want more transparency, as well as positively impacting the environment. 

Circular take-back programs are also becoming increasingly important. We believe there’s a strong market for establishing systems that encourage consumers to return products at the end of their life cycle. This not only helps reduce waste but also allows us to reclaim valuable materials for reuse, refurbishing, and recycling.

There’s certainly a growing demand for textile take-back programs, where clothing and other fabric materials can be collected, refurbished, and reintroduced into the market. In fact, Reconomy has recently set up a textiles PRO in Italy and launched a tech-enabled service called ReDress, an innovative solution that helps businesses understand their global textiles obligations, legislative timelines, and reporting requirements. We believe it’s only a matter of time before similar legislation is enacted in Canada, and we’re ready to assist the industry and consumers in this important take-back initiative.

When it comes to reuse, we’re noticing a shift toward this important practice across various sectors. For example, Reuse Ottawa, a reusable food container pilot, launched by the Circular Innovation Council and its partners, is a great initiative aimed at eliminating single-use plastic waste. 

We’re also excited about the continued growth of EPR in Canada. By holding producers accountable for the entire life cycle of their products, we can encourage innovation and the shift toward more sustainable practices. At RLG and Reconomy, we envision being at the forefront of these initiatives, collaborating with businesses and communities to develop effective take-back systems and improve recycling processes.

This story was featured in the Circular Economy Magazine:

Just like nature’s ecosystems, humans and our economic systems are intrinsically linked to all the interconnecting facets. That’s why circularity can’t happen in a silo — we need to take an approach from the top down and look to all stakeholders to make real change happen.

We spoke with Maya Colombani, Chief of Sustainability & Human Rights, in collaboration with Patricia Miotto, Communications & Engagement Manager, Sustainability & Human Rights, at L’Oréal Canada, about how this beauty giant is centring circularity, from its formulas to merchandising and its customers to suppliers.

What inspired your organization to engage in circular economy initiatives?

The idea that the world has infinite resources does not hold anymore. For now, materials that are cycled back into the global economy after the end of their useful life account for 7.2% of all material inputs into the economy. This means that more than 90% of materials are either wasted, lost, or remain unavailable for reuse for years.

We must evolve from the current “take-make-waste” linear economic model to a circular “reduce-replace-reuse-recycle” model, transforming what is today our waste into new resources is our goal. 

With leadership comes responsibility, and L’Oréal is resolutely committed to adopting the circular economy model. We have the responsibility to contribute to our society by respecting planetary boundaries and promoting social justice.

Sustainability, including circularity, should be the centre of our business as the top priority, at the centre of all the decisions that we make, in order to engage the whole value chain and the full ecosystem.

Thanks to our deep business transformation, we are the only company in the world that has for nine consecutive years been recognized by CDP on its annual “A” list, which rates on climate change, waste management, and forest preservation. 

We have also been awarded a platinum medal from EcoVadis, thus appearing in the top 1% of companies assessed (out of 100,000 companies), rewarded on four major themes: environment, ethics, social and human rights, and responsible purchasing. 

To do so we have a strong governance with a chief sustainability officer as part of the executive committee reporting directly to the president, as well as a sustainability committee, with 32 experts from all across the value chain. 

What do you consider to be your biggest circularity success? Can you share any stories of the impact your work has had that have surprised you?

We want to be a laboratory for good, by transforming our business inside and outside, with our ecosystem and with a 360 transformation. We integrate circularity inside our own business, and we stretch it to the full ecosystem. 

From research and development of ingredients to product packaging, we are rethinking our actions and interactions to make circularity the centre of our ecosystem. 

In every step of our value chain, we act to reduce, replace, reuse, and recycle. We create new sustainable beauty routines accessible to all and raise awareness to help our consumers to make more informed choices. 

Circularity starts from the inside. In terms of circular innovation in our product offerings, we promote eco-design product innovation in all of our portfolio, with 99% eco-design products. 

We also promote circularity and responsible packaging: 100% Forest Stewardship Council (FSC) certified, 85% polyethylene terephthalate (PET) recycled (2023). We will launch the new sustainable bottle for L’Oréal Paris with 27% less plastic, 100% recycled plastic, and 56 tonnes of plastic saved. By 2030, we target to have 100% recycled or bio-sourced.

Additionally, we are shifting traditional products to refills. Currently, we lead the luxury market, with an average of 72% less plastic versus products, 45% less glass, and 66% less metal.

Furthermore, we’re progressing the optimization of packaging by reducing the weight of boxes and instruction sheets, continuously increasing the use of recycled plastic, maximizing recyclability, and mobilizing consumers by proposing, when possible, refillable containers versus single-use packaging.

Last but not least, we promote circularity and responsible formulas, today with 65% of natural ingredients in our products, and by 2030, we’ll reach 95% with green science, 100% sustainably sourced.

Among many initiatives, the sourcing of plant-based ingredients promotes regenerative agricultural practices that ideally require reduced surfaces.

However, we also go beyond with a 98.5% responsible eco-design merchandising.

When it comes to circularity, there’s a recycling process on all our sites. The downtown offices, distribution centre, and factory are certified Ici on Recycle by Recyc-Québec. In fact, our headquarters, distribution centre, and factory all run on 100% renewable energy. We also promote sustainable infrastructure with LEED Platinum Certification for our downtown offices.

Going forward, we are planning our Waterloop Factory for 2026, not wasting water in any steps of the production process.

How do you feel that transitioning to the circular economy will benefit Canada and the world?

The circular economy will focus on reusing and recycling products and slow down the use of natural resources. It will reduce landscape and habitat disruption and help to limit biodiversity loss. It is an opportunity to create a positive movement to engage our full ecosystem into circularity in order to scale up our impact.

We encourage our suppliers to offer new solutions promoting circularity. For example, we recycle all industrial pallets with our supplier, IPS Greenergy, we recycle our merchandising with our supplier, Array, and we give a second life to all our stretch wrap with our supplier, Carrousel.

We commit with our suppliers toward zero deforestation through the 100% FSC certification.

We have embedded sustainability throughout our value chain and today, the L’Oréal Professional division is going even further with the launch of the Hairstylists for the Future program. This initiative in partnership with the NGO Green Circle Salons will continue to transform the hairstyling industry and embark hairstylists around the world on a sustainable journey.

Green Circle Salons is the industry’s first sustainable salon solution dedicated to fighting beauty waste. This award-winning program empowers salons to offset their emissions and recover up to 95% of their beauty waste. In 2024, we reached 800 salons in all of Canada with this program. 

What are some of the challenges you typically face working in the circular economy space?

To engage even more of the full ecosystem to gain scale, meaning all the suppliers, our consumers, and our retailers, and to make the circular economy the new normal, we need to go further and expand new technologies as we do with our partnership with start-up Carbios which promotes circularity and biotechnology. 

As part of their commitment to promoting the circular economy through innovative plastic recycling solutions, L’Oréal and Carbios have signed an agreement to jointly found a five-year consortium to bring the bio-recycling technology designed and developed by Carbios to market on an industrial scale. The partnership is open to industries from other sectors looking to develop new plastic bio-recycling solutions.

Carbios has developed an enzymatic bio-recycling process for plastics that breaks polymers down to the basic components (monomers) originally used to create them. Once separated and purified, the monomers can be used again to create virgin plastic, without losing any value through the recycling process. This biological process is free of the constraints facing conventional recycling techniques and is the first step to developing a new way of managing the plastic life cycle — in line with the circular economy.   

L’Oréal and the other manufacturers in the consortium will benefit from the development of this Carbios innovation and will be first in line to receive the first available units. L’Oréal will use this new technology during the design phase for new packaging, thereby promoting the circular economy.   

We also partnered with the NGO EcoSchools to promote sustainability in Canadian schools. EcoSchools Canada offers a certification program for elementary through secondary schools, nurturing environmental learning and climate action. Their innovative and bilingual certification program is free for publicly funded schools; it helps to incentivize, track, and reward environmental actions that reduce energy and waste; and it raises awareness and incorporates environmental learning into the curriculum.

In terms of partnership, we support their objective of growing their awareness amongst teachers and parents in Canada. We also worked with teacher influencers to create content for EcoSchools on TikTok. Thanks to our partnership, EcoSchools, reached 39,000 users versus 13,000 the year previous.

Are there any upcoming initiatives or projects related to the circular economy you’d like to share?

We promote circularity through disruptive start-ups that create solutions. L’Oréal dedicated €50 million in funds with Canadian partner, Cycle Capital, and Demeter to support start-ups with solutions to recycling or creating new materials that promote the circular economy. Through this fund, two start-ups, Evoco and Aplantex, have been supported and accelerated for their solutions to promote circularity.

Evoco, a disruptive Canadian company, is transforming the material landscape with its innovative bio-based solutions. Their shared vision highlights the importance of collaboration in addressing one of the largest contributors to global greenhouse gas emissions: materials. 

Aplantex’s industrial green biotech platform aims to mass-produce locally and throughout the year, in a controlled environment, the phytochemical ingredients in demand by the cosmetic, pharmaceutical, and agrifood industries. The process uses renewable hydroelectric power, generates no waste, and the phytoreplicators capture and assimilate up to 40 % of their dry weight in atmospheric carbon dioxide. Aplantex thus joins the circular economy frontrunners.

What can people do to help spread the word about or take action toward advancing the circular economy in Canada? How can they support your mission?

The circular economy needs a deep culture shift in terms of internal process and EcoConception but also the full commitment of the people that belong to the company. It’s fundamental to change our mindset from linear to circular in each decision we take, in each department, from the top until the operational frontline.

The change will be, of course, progressive, but the point is to not give up on each improvement. Creating a movement for good and upskilling the full ecosystem is necessary to scale up a positive impact on the circular economy.

The circular economy is a long journey but the only way to respect the limited resources on earth. It’s a unique opportunity to be creative, reinvent our business, and process collectively.

This story was featured in the Circular Economy Magazine:

Consumers are purchasing and disposing of new clothes more than ever before, creating a massive textile waste problem and releasing synthetic microfibres into our environment. To help the fashion industry shift toward a more sustainable way of working, we need to shift from the harmful “take-make-waste” model.

We spoke with Kelly Drennan, Founding Executive Director of Fashion Takes Action, about how Fashion Takes Action (FTA) and the Canadian Circular Textiles Consortium (CCTC) are advancing circularity and driving sustainable impact in the Canadian textile industry.

What inspired you to start Fashion Takes Action (FTA) and the Canadian Circular Textiles Consortium (CCTC)? 

I started Fashion Takes Action (FTA) in 2007 out of a desire to see a more sustainable future for my two daughters. It began with Green Gala events showcasing 20 sustainable Canadian designers and has since grown to work with over 2,000 businesses globally. FTA advances sustainability, ethics, and circularity in fashion through awareness-building, education, collaborations, and research, furthering change across the entire fashion system and empowering both citizens and businesses to take action.

The Canadian Circular Textiles Consortium (CCTC) was founded in 2023 to address fragmented circular economy efforts and drive systemic change in Canada. Built on eight years of work in textile circularity and growing demand for post-consumer waste solutions, FTA recognized the need for collective action to support climate and biodiversity goals. With funding from Environment and Climate Change Canada and strategic support from Deloitte, the CCTC unites stakeholders to foster collaboration, reduce duplication, and accelerate Canada’s transition to a circular textile system.

What unique challenges does the textiles industry face in adopting circular economy practices?

The fashion industry struggles to adopt circular economy practices due to overproduction and a culture of disposability. With over 100 billion garments made annually and ultra-fast fashion brands releasing up to 10,000 styles daily, consumption is driven to unsustainable levels. Consumers now buy 60% more clothing than 20 years ago but keep them half as long, wearing each item only seven times on average. This shift has turned fashion into a cheap, disposable commodity.

Key challenges include transitioning to circular models like resale, repair, and rental, complicated by the widespread use of synthetic fibres, which shed harmful microfibres, and when blended with other fibres, are hard to recycle. The fast production cycles and poor garment quality further hinder durability and repairability.

To address these issues, the industry must adopt circular design principles — creating durable, repairable, and recyclable garments with safer materials and green chemistry, while considering end-of-life components like buttons and zippers. This shift will help the fashion industry move toward sustainability and long-term value.

What are some of the most promising innovations in the circular textiles space that you think will influence the future of the industry?

The circular textiles space is experiencing transformative innovations that are set to redefine the fashion industry. There are four key developments of note. The first is fibre-to-fibre recycling, which includes chemical recycling: advanced technologies that break down textile waste, including blended fibres, into high-quality raw materials like cellulose and polyester for reuse; and mechanical recycling: improved processes that enhance the efficiency and quality of recycled fibres, particularly for cotton and wool.

The second development is bio-based and regenerative fibres. This includes lab-grown alternatives: materials like mycelium leather and spider silk that offer sustainable substitutes to traditional textiles; agricultural byproducts: fibres sourced from food waste or industrial byproducts that provide innovative, eco-friendly inputs; and regenerative agriculture: improved farming methods for natural fibres such as cotton and hemp that enhance soil health and sequester carbon.

The third development is AI and data-driven solutions. This includes digital product passports: technologies like RFID and blockchain that improve transparency by detailing materials, care instructions, and recyclability; waste sorting: AI-powered systems that enhance the sorting of textile waste for effective recycling; and demand prediction: data tools that optimize production, reducing overproduction and associated waste.

The fourth development is policy and collaboration. This includes initiatives like extended producer responsibility (EPR) that encourage accountability for a garment’s entire life cycle.

These innovations signify a shift in how textiles are designed, produced, and managed, enabling a transition to a more sustainable and circular future.

In what ways has the CCTC brought together diverse stakeholders across the textiles value chain to tackle waste and promote circularity?   

We are taking a collective action approach to tackle the deeply flawed textile waste system, uniting over 120 stakeholders from across the entire value chain to drive meaningful change. United by a common goal, we aim to divert textiles from landfills — both locally and in the Global South — and extend their use for as long as possible.

Systemic change requires collaboration among the public and private sectors, as well as civil society. Each of our projects involves diverse stakeholders, ensuring that decisions are informed by their potential impact across the value chain. This cross-sector collaboration enables us to design solutions that create shared value and drive meaningful, sustainable change.

What are some innovative projects or partnerships within the CCTC that are rethinking end-of-life solutions for textiles?

The CCTC envisions an integrated, circular system that eliminates global textile waste and advances the transition to a regenerative economy. Our goal is to optimize resource use across Canada’s textile value chain and enable a sustainable circular textiles system.

To achieve this, we focus on four core approaches. These are 1.) policy influence: advocating for industry standardization, regulations, and policies to support textile circularity; 2.) education and behaviour change: promoting circular economy principles and encouraging action through public education and awareness campaigns; 3.) data and insights: addressing gaps in data on material flows, policies, initiatives, and their impact in Canada; and 4.) innovation and pilots: driving innovation by supporting pilot projects to test circular business models and explore new solutions.

Our efforts are guided by an action-oriented roadmap that identifies key initiatives, assigns responsibility to stakeholders, and prioritizes impactful actions. This roadmap has enabled the CCTC and its partners to collaborate on the following projects:

• Circular Design Guidelines: Voluntary guidelines to inspire brands and manufacturers to adopt best practices, reduce their impact, and lay the groundwork for future eco-design policies in Canada.
• Circular Business Models Capability Map and Report: A comprehensive overview of the capabilities needed across the value chain to implement circular business models, identify gaps, and overcome barriers to circularity.
• Youth Education: Expansion of the “My Clothes My World” program, teaching the “7Rs of Circular Fashion” to students in grades 4–12 across Canada.
• Public Awareness Campaign: Providing citizens with tools and resources to participate in the circular economy, prioritize the waste hierarchy, and make more responsible purchasing decisions.
• Textile Waste Opportunities Assessment: Identifying gaps and barriers in recycling non-wearable and non-usable post-consumer textiles in Canada.
• Textile-to-Textile/Fibre-to-Fibre Recycling Pilot: Exploring alternative recycling pathways to create outputs that benefit other manufacturing sectors, including a pilot project testing the use of biochar from post-consumer textiles as a soil amendment.

Through these initiatives, the CCTC is building a foundation for systemic change in the Canadian textile industry, advancing circularity, and driving sustainable impact.

How important is the role of policy and regulation to advancing circularity within the textiles and apparel industry?

Policy and regulation are crucial to advancing circularity in Canada’s textiles and apparel industry, providing the framework, incentives, and enforcement mechanisms necessary for sustainable change. 

A potential policy could include the establishment of standards and regulations that require circular principles to be embedded in design, production, and disposal processes, compelling manufacturers to use safer materials and adopt eco-design practices.

Extended producer responsibility (EPR) holds producers accountable for their products’ life cycle, driving recycling, reuse, and eco-design. It supports recycling infrastructure and circular business models, and reduces environmental impact while aligning with consumer demand for sustainability and fostering green economic opportunities. We now see EPR for textiles in both the EU and California.

Tax incentives and grants can stimulate innovation in textile recycling, bio-based materials, and circular business models. Additionally, there are public awareness campaigns and regulations that can educate consumers on the environmental impact of fast fashion, promoting responsible purchasing, repair, and recycling, and ensuring transparency through clear labelling.

Of course, cohesive national strategies are needed to ensure consistent implementation of circular initiatives across Canada, streamlining efforts and enabling collaboration.

As other countries strengthen circularity regulations, Canada must act to remain competitive and meet international sustainability standards.

Looking ahead, what are your hopes for the circular economy in Canada over the next decade, and how does FTA envision contributing to this vision?

My hope is that in 10 years’ time, Canada’s circular economy for textiles will be characterized by a robust system where garments are designed for longevity, reuse, and recyclability, with a significant reduction in waste. By then, textiles will be part of a well-established circular supply chain that prioritizes local processing and recycling, with advanced technologies in textile-to-textile recycling and waste management. EPR will be widely implemented, ensuring that manufacturers are accountable for the entire life cycle of their products, driving eco-design and fostering innovation in recycling infrastructure.

Fashion Takes Action will continue to play a crucial role by driving this transformation. Through its leadership in policy advocacy, education, and collaboration, FTA will help shape regulations that promote sustainability across the textile value chain. Its initiatives, including research, public awareness campaigns, and support for pilot projects, will guide the industry toward circular models like resale, rental, and repair. FTA will also be instrumental in building industry-wide partnerships, helping align stakeholders from the public, private, and civil sectors to create a truly circular textile economy in Canada.

This story was featured in the Circular Economy Magazine:

Les avantages de l’économie circulaire vont bien au-delà de l’environnement. En investissant dans des entreprises circulaires de plus petite taille, nous pouvons repenser notre système économique actuel, en créant des emplois, en réduisant les inégalités et en luttant contre les changements climatiques.

Nous avons discuté avec Mathieu Sasseville, Directeur des investissements durables et d’impact chez Fondaction, de la manière dont cet organisme investit dans plus de 1 000 entreprises circulaires pour stimuler une transformation positive de l’économie du Québec.

Pouvez-vous nous en dire plus sur Fondaction et sur les raisons pour lesquelles une organisation d’investissement est si engagée à faire progresser l’économie circulaire au Canada ?

Cela fait longtemps que Fondaction est impliqué en économie circulaire, car il ne fait plus aucun doute pour nous que la façon dont nous consommons les ressources n’est pas soutenable. Nous devons repenser nos systèmes économiques pour réduire la pression sur les ressources et cesser de dépasser les limites planétaires.

En effet, chaque année, la communauté mondiale utilise plus de ressources naturelles que ce que la Terre peut renouveler en 12 mois. En gros, nous « consommons » collectivement 1,75 planète.

Fondaction est engagé dans la transformation positive de son économie et de la société. L’économie circulaire est un vecteur de transformation important de l’économie et favorise la collaboration des différentes parties prenantes, notamment dans une perspective de renforcement des chaînes d’approvisionnement et de réduction des impacts environnementaux, ce qui s’inscrit parfaitement dans les objectifs de Fondaction, qui sont de déployer intentionnellement du capital dans le but de générer des impacts positifs et mesurables.

Quelles opportunités voyez-vous pour le secteur financier de favoriser la transition vers une économie circulaire ?

Il y a certes des opportunités environnementales à favoriser la transition de l’économie vers une économie circulaire, mais il y a aussi des avantages économiques.

En effet, l’ensemble des stratégies de l’économie circulaire (notamment la réparation, l’économie de fonctionnalité, la location) ont des avantages économiques indéniables qui permettent aux entreprises d’augmenter leur profitabilité ainsi que leur résilience économique.

La proximité des chaînes d’approvisionnement est aussi une opportunité intéressante pour le secteur financier. Beaucoup d’entreprises qui intègrent la circularité dans leur stratégie d’affaires permettent de réduire la pression sur les chaînes d’approvisionnement et de favoriser une économie plus locale. 

Plusieurs entreprises ont récemment vécu les contre-coups de la mondialisation et avoir des options à coût compétitif à l’échelle locale constitue une belle opportunité, autant pour le secteur financier que pour les entreprises.

Comment Fondaction a-t-il collaboré avec et soutenu les petites et moyennes entreprises pour appuyer leurs efforts et ambitions en matière d’économie circulaire ?

En déployant du capital pour accélérer la croissance d’entreprises avec des modèles d’affaires basés sur l’économie circulaire, en investissant dans des projets d’impact ou en investissant dans entreprises innovantes qui trouvent de nouvelles façons d’appliquer les stratégies de l’économie circulaire dans des secteurs d’activités qui en ont grandement besoin.

Via son approche en capital de développement, Fondaction investis dans des entreprises matures qui ont soit des modèles d’affaires circulaires ou en réalisant des projets d’impact, c’est-à-dire d’investir dans des projets qui rendent les entreprises plus efficientes, circulaires et durables.

Nous avons aussi lancé en 2021 un fonds d’investissement en capital de risque dédié à l’économie circulaire, une première au Canada. Ce fonds investis principalement dans des jeunes entreprises qui innovent et qui désirent déployer de l’impact à plus grande échelle.

Nous cumulons en date d’aujourd’hui, plus d’une vingtaine d’investissements dans des entreprises d’économie circulaire.

Comment mesurez-vous l’impact de vos investissements dans l’économie circulaire à la fois sur les performances financières et sur les résultats en matière de durabilité ?

La stratégie au niveau des investissements d’impact repose principalement sur l’intention de générer un impact positif mesurable tout en assurant un rendement financier. 

Cette approche nécessite de filtrer positivement les opportunités d’investissement en fonction des conditions d’impact, soit l’intentionnalité (déployer une solution dans le but de générer de l’impact), l’additionnalité (démonstration de l’impact positif par rapport à un scénario de référence) et les mesures d’impact.

Les mesures d’impact sont généralement définies en fonction d’une logique d’affaires et en lien avec le secteur des entreprises dans lesquelles Fondaction investi. Nous nous assurons de mettre en place les conditions gagnantes avec les entreprises pour mesurer les impacts tout au long du cycle d’investissement.

De plus, pour l’ensemble des investissements, nous avons aussi une méthodologie quant à l’identification et la gestion des risques ESG, qui fait l’objet d’une révision annuelle avec les entreprises du portefeuille.

Quels sont les plus grands défis auxquels Fondaction est confronté lorsqu’il s’agit de soutenir les initiatives d’économie circulaire ?

1. Gestion et suivi de l’impact

Mettre en place un processus de gestion et de suivi de l’impact peut engendrer son lot de défis, notamment que plusieurs parties prenantes sont impliquées dans le processus. La collaboration de tous est nécessaire pour assurer de mettre en place lors de la vérification diligente, les conditions gagnantes pour la sélection des bons indicateurs d’impact et pour la mise en place et le suivi du plan de gestion de l’impact. 

2. Accompagnement des petites entreprises

Fondaction soutient souvent des PME en économie circulaire. Ces entreprises peuvent rencontrer des obstacles liés au manque de ressources ou de technologie pour atteindre leurs objectifs de croissance. Le défi consiste à leur fournir un accompagnement adapté, non seulement financier, mais aussi en matière de gestion de la croissance et de gestion des risques d’affaires.

3. Complexité réglementaire et législative

L’économie circulaire est souvent confrontée à des défis réglementaires, car les politiques publiques et les normes juridiques peuvent ne pas être entièrement adaptées aux modèles circulaires innovants. Fondaction doit naviguer dans un cadre législatif parfois flou, où les incitations et les soutiens gouvernementaux ne sont pas toujours alignés avec les besoins spécifiques de l’économie circulaire.

4. Collaboration intersectorielle

L’économie circulaire implique souvent la collaboration entre plusieurs secteurs d’activité (industrie, commerce, gestion des déchets, technologies de recyclage, etc.), ce qui peut rendre la coordination complexe. Fondaction doit faciliter ces partenariats pour maximiser les synergies, tout en s’assurant que les parties prenantes restent alignées sur les objectifs environnementaux et financiers.

Comment Fondaction équilibre-t-il le risque et la récompense lorsqu’il finance des projets d’économie circulaire innovants mais parfois non éprouvés ?

Le rythme des marchés financiers n’est pas adapté ou synchronisé pour répondre aux enjeux des crises environnementales et sociales. 

Même si l’argent des épargnants est géré sur le long terme (régimes de retraite, assurances-vie), la pression pour générer à travers les investissements des rendements à court terme est encore très forte.

Ce n’est pas parce qu’il y a encore une dernière piastre à faire avec une entreprise pétrolière en raison des fluctuations boursières à court terme que c’est une bonne idée d’investir dans un secteur sans avenir. 

Comme financiers, nous avons la responsabilité d’allouer les capitaux à certains projets plutôt qu’à d’autres. Pour contribuer à la transformation de l’économie et développer des solutions pérennes, il faut choisir les projets en adoptant une perspective à plus long terme, quitte à s’éloigner des indices pendant quelques trimestres. 

Dans ses principes mêmes, la circularité établit différents maillages entre entreprises, ce qui renforce à la fois le tissu économique, financier et le tissu social.

Notre conception du risque relativise l’importance de la volatilité par rapport à un rendement espéré. Sur un horizon à plus long terme, ce qui est vraiment important, ce sont les risques systémiques comme ceux liés à la déforestation, aux changements climatiques, aux clivages dans la société. Et ce n’est qu’en adoptant une approche à plus long terme que la finance peut espérer contribuer à les atténuer. 

Pour ne plus faire partie du problème, mais faire partie de la solution.

En regardant vers l’avenir, quels sont vos espoirs pour l’économie circulaire au Canada au cours de la prochaine décennie, et comment votre organisation envisage-t-elle de contribuer à cette vision ?

Nous nourrissons de grands espoirs pour l’économie circulaire au Canada. L’économie circulaire représente une opportunité unique de réduire notre empreinte écologique tout en stimulant l’innovation et la croissance économique.

Nous espérons voir un Canada où la gestion des ressources ne soit plus perçue comme une contrainte, mais comme un moteur de développement durable. Ce changement passe par une adoption plus large des principes de circularité, où les entreprises, grandes et petites, développeront des produits et des services conçus pour durer, être réparés, réutilisés et recyclés. 

Dans cette perspective, Fondaction entend jouer un rôle clé en soutenant des projets d’économie circulaire à travers des investissements stratégiques dans des entreprises et initiatives qui incarnent ces principes. 

Nous envisageons de continuer à investir dans des entreprises novatrices qui créent des solutions circulaires, tout en accompagnant les petites et moyennes entreprises dans le renforcement de la durabilité de leurs modèles d’affaires. 

De plus, en initiant le Groupe de travail canadien sur l’investissement d’impact (GTCII), Fondaction veut catalyser la collaboration, l’innovation et l’adoption des meilleures pratiques dans ce domaine. Le lancement du rapport du GTCII en 2024 constitue lui-même un appel à l’action ayant pour objet la croissance du marché et le déploiement de capitaux suscitant de manière intentionnelle et mesurable des retombées sociales et environnementales.

This story was featured in the Circular Economy Magazine:

Co-authors:

Paul Shorthouse, Managing Director of Circular Economy Leadership Canada

Jo-Anne St. Godard, Executive Director of Circular Innovation Council

Resources have historically been the backbone of Canada’s economy. Yet, our consumption of materials, energy, and water is currently among the highest in the world, not to mention some of the most wasteful. According to the Council of Canadian Academies’ Expert Panel on the Circular Economy, Canada is only 6% circular, with 73% of these resources lost to disposal, much of which still holds value.  

The Expert Panel also found that the circular economy makes Canada more economically prosperous, environmentally sustainable, and socially equitable. However, recalibrating Canada’s economy to deliver on these objectives will require collective and coordinated action across all sectors, governments, communities, and citizens.

The need to take a coordinated and systems approach is why Circular Economy Leadership Canada (CELC) and Circular Innovation Council (CIC) published the first-of-its-kind Circular Economy Action Plan for Canada. As a key output from our Canadian Circular Economy Summit in 2023, it provides a guiding framework for galvanizing Canadian businesses, governments, communities, and other stakeholders toward a shared vision and focused efforts.

The Circular Economy Action Plan for Canada is organized under five critical enablers with specific, underlying near-term priorities and strategic actions. The critical enablers include:

1. Information: Leveraging data, information, education, and training as a foundation for success. 
2. Collaboration: Establishing new partnerships and cultural connections to accelerate change. 
3. Policy and Procurement: Aligning policy, procurement, and standards to drive accelerated circular economy action and investment. 
4. Innovation: Stimulating circular innovation across industries, sectors, and supply chains. 
5. Investment: Directing capital and financing to support circularity and address infrastructure gaps.

Information

Circular economy is a relatively new term in the Canadian context, so raising awareness about its benefits will be key to encouraging its adoption. Information and knowledge-sharing are foundational to accelerating implementation, which must be based on defensible, accessible data, proof points, and evidence-based research. Skills training and education will also be essential to ensuring that a circular economy in Canada moves from concept to action.

To this end, CELC and CIC have come together to co-host the Canadian Circular Economy Summit, taking it to new host cities with diverse partners to expand its reach, facilitate knowledge-sharing, and highlight the unique circular economy efforts and activities happening across the country. 

CELC has also developed case studies showcasing the circular economy’s environmental, economic, and social benefits. It promotes these benefits through its Knowledge Series events and on several online platforms. Separately, CELC has been working with CSA Group and other partners on data, indicators, and standardized measurement frameworks to support better decision-making in line with the recently published ISO 59020 standard for measuring the circular economy.

CIC is undertaking market research within various industry sectors to investigate opportunities to restructure markets and introduce policy interventions that support long-term change. This research involves innovative pilot projects, data baselining, and supply and value chain reorganization.  

Additionally, CIC launched an annual public education and awareness campaign, Circular Economy Month, which offers information and resources to help Canadians understand circular economic designs and their capacity to deliver value. It also provides a platform to celebrate circular innovation and leadership across the country.   

Collaboration

Transitioning from current linear industries and supply chains to a more circular economy in Canada will require systems thinking to break down silos and establish new partnerships domestically and internationally while leveraging new approaches and collaborative platforms. Supporting the wide-scale adoption of circular practices will also require engaging across and between industries, cultures, and perspectives to embrace an inclusive approach to circularity.

CELC recently launched a Circular Construction Innovation Hub as one example of a supportive, collaborative platform. Designed as a social and technical innovation lab, the hub is a multi-stakeholder initiative that supports coordination across industry and government, knowledge sharing, and capacity-building across the entire value chain to accelerate the adoption of circular practices within Canada’s construction and real estate sector. 

CELC has also been supporting research in collaboration with the Telfer School of Business to understand better cultural perceptions and practices that align with the circular economy from both Indigenous and non-Indigenous and ethnic communities in Canada.

Through its many pilot programs, CIC facilitates collaborative relationships between and among industries that explore opportunities to synchronize investment, share infrastructure and services, and link supply and value chains to reduce environmental impacts, risks, and costs while creating new opportunities and unlocking innovation. One example is CIC’s ongoing reuse pilot project initiative to test and demonstrate reusable containers in the grocery and food service sectors that kicked off in Ottawa in fall 2024.

Policy & Procurement

Establishing comprehensive, interlinked, and aligned policy frameworks across and between Canadian governments can accelerate and drive opportunities for businesses and industries to invest in circular solutions, giving them stability and certainty. Public procurement can be a strategic tool to drive demand and preference for circular products, services, and solutions at scale. 

In 2024, CELC launched a government-to-government (G2G) circular economy policy incubator initiative designed to break down silos and support strategic multi-disciplinary thinking and planning, enabling the systems approach needed for accelerating a circular economy, innovation, and social impact, as well as providing a mechanism for pooling funds to support research and scaling solutions. 

CELC is also working with HP Canada on a project exploring the benefits of “buying as a service” instead of product ownership, developing a guide to support its adoption.

CIC is working with CSA Group, Environment and Climate Change Canada, and others from the private and public sectors to support the development of new soft-system infrastructure, such as standards and policies that will help a developing circular economy to thrive over the long term.

CIC supports policy advancement at all levels of government, demonstrating the leverage points between economic development, taxonomy, finance, and environmental policy tools and the interconnections between national and subnational level governments.  

Additionally, CIC has established domestic buying groups populated by public sector representatives from across the country to coordinate circular public procurement buying standards and leverage collective buying power.   

Innovation

Innovation is at the core of transforming business practices, industries, and supply chains from their current linear structures to more circular models. Leveraging Canada’s applied research knowledge base while supporting business model innovation can create triple-bottom-line benefits that support economic, social, and environmental objectives. 

To this end, CELC has been supporting the expansion of the Project Zero incubator and accelerator programs, supporting start-ups and small and medium-sized enterprises (SME) with their efforts to scale and adopt circular business models.

CIC has created community- and sector-based hubs to help connect stakeholders and business interests focused on circular solutions. These hubs provide platforms that deliver networking support, information, and resources to educate users on the circular economy, its concepts, and its benefits.

One example is the design and launch of the Share, Reuse, Repair Hub. Activities within the sharing economy need better organization and more exposure to support communities and small businesses, encouraging behavioural change. CIC’s hub is a community-based resource for share-reuse-repair organizations, programs, and services across cities and regions to increase awareness and foster engagement. Often, such activities are not seen as part of the circular economy, and Canadians may not recognize their link to climate action. 

Investment

Finance and investment are critical enablers of the circular economy. They mobilize capital to support business and community efforts while addressing critical infrastructure and system gaps. Engaging with financial institutions, addressing risks, and improving returns will take a coordinated effort, but it must be aligned with business and community priorities. 

CELC has been engaging and working with the finance sector in Canada to identify key risks for investors/lenders; help financial institutions better understand the needs of circular businesses and enhance lending, investment solutions, and financing options; and explore opportunities to expand sustainable finance taxonomy work in Canada to include the circular economy as an environmental objective.

CIC partners with many local governments and businesses to identify common interests and facilitate investment in circular solutions. As a convenor, CIC plays an important role in de-risking innovation and matchmaking.  

Accelerating Action Together

While CELC and CIC are leading several activities and initiatives prioritized within the Circular Economy Action Plan for Canada, they’re but two organizations in a much broader ecosystem of actors and innovators.

Many others are stepping up to lead specific efforts across the country, including businesses, governments, non-profits, academic and applied researchers, and investors. At the same time, there is much more to accomplish. 

We call on Canadian leaders from all sectors and organizations to join us on this most critical mission: to accelerate a climate-smart circular economy that brings economic prosperity through innovation and supports the wellbeing of Canadians today and for future generations.

This story was featured in the Circular Economy Magazine:

By:

Paul Shorthouse, Managing Director of Circular Economy Leadership Canada

Jo-Anne St. Godard, Executive Director of Circular Innovation Council

The concept of a circular economy has gained significant momentum in recent years as a sustainable alternative to the traditional linear economy, which operates on a “take-make-waste” model. In contrast, the circular economy model focuses on extending product life cycles, minimizing waste, and promoting the reuse, repair, and recycling of materials. 

As the world grapples with resource depletion and environmental degradation challenges, businesses, governments, and consumers are increasingly turning to the circular economy model for solutions. For example, the 2024 Circularity Gap Report suggests that the circular economy has reached megatrend status, with the volume of discussions and articles on the concept nearly tripling over the past five years. 

While significant action is still needed, these seven major trends are currently driving the interest, growth, and adoption of climate-smart circular economy activities.

Increasing Awareness of Environmental Impact

One of the primary forces behind the rise of the circular economy is the growing awareness of the environmental consequences of the linear economic model. Major global challenges such as climate change, biodiversity loss, ocean pollution, and the depletion of natural resources have brought environmental sustainability to the forefront of public discourse. 

As a result, businesses and consumers are becoming increasingly conscious of the need to reduce their environmental footprints. The principles of a circular economy offer a promising solution to these issues by minimizing waste, reducing carbon emissions, and promoting the responsible use of resources.

For example, circular economy strategies are essential for achieving net-zero targets as they consider greenhouse gas (GHG) emission reduction opportunities across a product’s entire life cycle, including those related to upstream supply chains and raw materials, use phases, and end-of-life treatment, which include 45% of global GHG emissions that come from how products are manufactured and used. From an environmental perspective, 90% of loss results from resource extraction and processing.

Governments and international organizations are also critical in raising awareness and creating the regulatory frameworks necessary to support the circular economy. The European Union (EU), for example, has set ambitious targets for recycling, waste reduction, and sustainable product design through initiatives like the EU Circular Economy Action Plan. These policies influence global trends and encourage businesses worldwide to adopt climate-smart circular practices.

Advancements in Technology

Technological innovations are a cornerstone of the circular economy, particularly in recycling. In recent decades, significant strides have been made in digital and other technologies — such as artificial intelligence (AI), sensors, and robotics — making it easier and more cost-effective to recover valuable materials from waste streams. These advancements are opening new opportunities for reuse, sortation, recovery, and recycling in industries ranging from plastics to electronics, building materials, and textiles.

In electronics, technologies like urban mining — the process of extracting valuable metals from electronic waste — facilitate the recovery of precious materials and critical minerals such as gold, silver, copper, nickel, lithium, and cobalt. In the fashion industry, developments in textile recycling, such as chemical recycling processes, enable synthetic fibres to be broken down and reused. These innovations reduce the need for virgin materials and lower the environmental impact of clothing production.

The circular economy also benefits from innovations in next-generation and bio-based materials, which can substitute non-renewable resources and reduce the environmental impacts of products like single-use plastics. Bioplastics, made from renewable sources like corn or algae, are increasingly being used in packaging and product design, offering a sustainable alternative to traditional plastics.

Corporate Sustainability Initiatives

Corporate sustainability has become a major trend as companies recognize the financial and reputational benefits of embracing circular economy principles. Forward-thinking companies are integrating circularity into their business models, from design to end-of-life management. Many are implementing take-back programs, enabling customers to return products for refurbishment, recycling, or repurposing. Major companies like L’Oréal and IKEA are leading the way in prioritizing product quality, repairability, reuse, and recyclability.

The shift toward circularity is driven not only by environmental concerns but also by the economic opportunities it presents. By extending a product’s life, businesses can reduce its material costs and create new revenue streams from secondary markets, such as refurbished goods or recycled materials. This approach is particularly important for industries that rely heavily on raw materials, like electronics, automotive, and construction.

Circular business models are also gaining traction, including product-as-a-service, which enables consumers to lease rather than own products. This model incentivizes companies to design long-lasting, repairable products as they retain ownership and responsibility for the product’s life cycle. Companies like Rolls-Royce, Hilti, and Philips have pioneered such models, offering these services rather than only selling products outright.

Consumer Demand for Sustainability

Consumers are playing an increasingly important role in driving the circular economy. The rise of environmentally conscious consumerism has pressured businesses to adopt more sustainable practices. According to recent studies, Millennials and Generation Z (Gen Z) are particularly concerned with the environmental impact of their products, favouring companies that offer eco-friendly and ethically sourced goods.

The demand for secondhand goods, recycling programs, and sustainable fashion is growing rapidly. Platforms such as ThredUp, Depop, and Poshmark have tapped into this trend by creating online marketplaces for pre-owned clothing, while brands like Nike and Adidas are exploring ways to recycle old sneakers and turn them into new products.

Moreover, consumers are becoming more aware of a product’s life cycle and are increasingly seeking products with clear information about their environmental impact, from sourcing to disposal. This shift has led to the growth of eco-labelling and certification programs like the Cradle-to-Cradle Products Innovation Institute, which assesses the sustainability of products based on their material health, design for disassembly, and recyclability.

Circular Supply Chains

The transition to a circular economy requires a fundamental rethinking of supply chains. In a linear economy, raw materials are extracted, used to manufacture products, and eventually discarded. However, in a circular economy, supply chains are designed to be regenerative, with materials flowing in closed loops rather than being lost at the end of their life cycle.

Circular supply chains are becoming a critical trend as companies seek to source sustainable materials, reduce waste, and minimize their dependence on virgin resources. For example, the automotive industry is turning to remanufacturing, meaning used parts are collected, refurbished, and resold rather than discarded. In industries like construction and textiles, businesses adopt closed-loop supply chains, where waste products from one production phase are used as raw materials for another.

Blockchain technology also enables circular supply chains. By providing transparency and traceability, blockchain can help ensure that materials are sourced responsibly and that products are recycled or disposed of properly at the end of their life cycle.

Government Policies and Legislation

Government policies and regulations are also influencing the transition to a circular economy. In many regions, governments are introducing legislation to reduce waste, increase recycling rates, and promote sustainable product design. 

For example, the EU’s Circular Economy Action Plan, adopted in 2020, outlines a comprehensive strategy to reduce the environmental impact of products and services. Key measures include extending product life spans, improving recycling systems, and creating a more circular value chain. Additionally, the EU’s mandatory Corporate Sustainability Reporting Directive, which focuses on the circular economy, drives activities and investments by linking to a region’s sustainable finance framework.

Countries like Japan and South Korea have long been leaders in promoting recycling and waste management initiatives. Japan’s 3R Initiative (reduce, reuse, recycle) and South Korea’s strict waste sorting laws exemplify how government action can foster a circular economy.

Coordinated efforts to focus government purchasing power through procurement drive demand for circular products and services. Meanwhile, policies and regulations focused on extended producer responsibility (EPR), incentives such as tax breaks for companies that invest in sustainable practices, and fees for those producing excessive waste are increasingly being used to encourage businesses to adopt circular models.

The Rise of Circular Cities

As urbanization continues to rise globally, local governments are beginning to explore how circular economy principles can be applied at the city level. Circular cities aim to create closed-loop systems for urban resources, where waste is minimized, energy consumption is reduced, and materials are reused. Cities including Amsterdam, Paris, Melbourne, San Francisco, and Montréal are leading the way, with initiatives focusing on waste reduction, sustainable transport, and green infrastructure.

For example, Amsterdam has adopted a “circular city” framework that integrates circular economy principles across various sectors, including construction, food, and manufacturing. The city has established a roadmap that outlines specific targets for waste reduction, recycling, and sustainable product design.

In Summary

The shift toward a climate-smart circular economy is not just a passing trend but a fundamental transformation in how businesses, governments, and consumers interact with the planet’s resources. The key trends driving this movement — rising environmental awareness, next-generation technology and materials advancements, corporate sustainability initiatives, changing consumer preferences, circular supply chains, supportive policies, and circular cities — converge to create a more sustainable, resilient global economy. As these trends continue to develop, the promise of a circular economy becomes increasingly achievable, paving the way for a more sustainable and equitable future.

This story was featured in the Circular Economy Magazine:

In our modern world, products are literally at our fingertips, a convenience with a serious consequence: we’re producing far more than we can responsibly manage. The materials are at our disposal; now, we just need brands to cycle them back into production. 

We spoke with Amelia Eleiter, Co-Founder and CEO of Debrand, an organization that is helping brands rethink how they design, use, and repurpose products to support their mission of maximizing the value of the world’s finite resources by embracing circular economy principles.

What inspired Debrand to engage in circular economy initiatives? 

Debrand’s journey into circular economy initiatives began with a pivotal moment in 2008. While I was on a volunteer mission in Sri Lanka, my co-founder, Wes Baker, came to visit, and we were shocked by the sight of branded waste floating in otherwise pristine waters. We saw a tremendous opportunity for companies to take more responsibility for the products they were putting out into the world, and this motivated us to take action. 

When we returned home to Vancouver, we began discussing how brands could do better, not just in terms of their impact on the environment but also in reclaiming the value of their discarded products. This realization became the foundation for Debrand. 

Our mission is to maximize the value of the world’s finite resources by embracing circular economy principles. By keeping materials in use for as long as possible, we reduce waste and help brands rethink how they design, use, and repurpose products. Through tech-enabled sortation processes and strategic partnerships, we find opportunities for reuse, recycling, or responsible disposal, and circular textile innovations that ensure every item fulfills its potential. 

In many ways, our work at Debrand feels like an extension of the values that have always guided us. It’s about honouring the natural world, embracing efficiency, and striving for excellence in everything we do. Most importantly, it’s about leaving a legacy of sustainability and stewardship for the next generation. The path to a circular economy is challenging, but it’s also incredibly rewarding. 

What do you consider to be your biggest circularity success? Can you share any stories of the impact your work has had that have surprised you? 

One of our biggest successes has been simply staying in business for 17 years. Very few businesses in this industry achieve this milestone, especially in such a nascent and evolving space. Over this time, we’ve had the privilege of unlocking scalable circular solutions for the apparel industry and working with some of the most notable brands and solution providers in North America. It’s been incredibly exciting to contribute to shaping their thoughts and processes, inspiring them to do more and better things with their products. 

A standout example of our work is our sister company, ReitenRight. We identified damaged yoga mats that would otherwise be discarded and found a completely new application for them in the equestrian industry. It was surprising to see how well the material’s attributes translated to solving a different problem in a completely new context. This creativity — seeing potential where others see waste — is at the heart of circularity. It’s about extracting value and extending resources into new applications beyond our usual boundaries. 

These moments remind us of why we do what we do: to innovate, inspire, and prove that sustainability and profitability can go hand in hand. 

How do you feel that transitioning to the circular economy will benefit Canada and the world? 

The way our world operates today is unsustainable. We’re depleting resources at a rate that’s harming the planet and the people who live on it, and we’re producing far more than we can responsibly manage. We already have more than enough materials to work with if we start cycling them back into our production streams instead of letting them go to waste after one use. 

Transitioning to a circular economy isn’t just the right thing to do for the environment and our communities — it’s becoming a business imperative. By embracing circularity, Canada and the world can reduce dependency on volatile global supply chains and foster greater regional resilience. Recent disruptions, from geopolitical conflicts to port labour strikes, show how vulnerable our current systems are. By keeping materials in use and focusing on regionalized production and distribution, we’re not only reducing waste but also building a stronger, more resilient economy. It’s a forward-thinking approach that can provide businesses with a strategic advantage in an increasingly uncertain world. 

What are some of the challenges you typically face working in the circular economy space? 

One of the biggest challenges is how new and constantly evolving the circular economy space is. Things change rapidly, whether it’s new technologies, regulatory updates, or shifting market expectations. For our team, that means staying informed and adapting quickly, but it’s also a unique opportunity to help shape the future of the circular economy, especially by contributing to the development of government policies and industry standards. 

Another challenge is making the business case for circularity. Right now, many organizations see sustainability initiatives as a cost rather than an investment or a way to future-proof their operations. Most of our current systems weren’t built with circularity in mind. Implementing these changes requires significant collaboration across functions: operations, finance, supply chain, and more. Without cross-functional alignment and a commitment to embedding circularity as a core business objective, scaling these efforts remains a significant hurdle. 

Are there any upcoming initiatives or projects related to the circular economy you’d like to share? 

We’re really excited about the technology innovation work we’re leading to help valorize pre- and post-consumer garment streams, both through software and hardware advancements. Our research and development in this area have shown exciting progress, particularly in driving efficiencies for more complex projects where product identification and pre-processing are key. 

We’re also diving into more pilot projects with our brand and solution partners to better understand the barriers we need to overcome in order to achieve this. These innovations are helping us drive efficiencies and lay the groundwork for scalable circular solutions, making it easier to close the loop on materials and advance the circular economy in the apparel, fashion, and textile industry.  

What can people do to help spread the word about or take action toward advancing the circular economy in Canada? How can they support your mission? 

Advancing the circular economy in Canada requires collective action, and there are many ways people can contribute to this important mission. First and foremost, demand transparency from all businesses and players involved in the industry — from brands to sorters to solution providers. Ask questions about how products are made and where they go when you’re done with them. Being intentional about your purchases can make a big difference. 

We live in a world where we have too much stuff and buy too many things. One of the most impactful actions you can take is to buy less, and when you do buy, choose high-quality items that will last. Explore secondhand markets first whenever possible. Supporting reuse and extending the life of products is a cornerstone of the circular economy. By adopting these habits, you’re not only reducing waste but also encouraging businesses to prioritize sustainability. Your choices send a powerful message. Together, we can build a system where resources are valued, waste is minimized, and the environment is protected for generations to come.

This story was featured in the Circular Economy Magazine:

Many people are waking up to the importance of adopting circular economy practices in sustaining our planet for generations to come, yet understanding how to do this is another story. That’s where clear, consistent, and universal standards for the circular economy come in.

We spoke with Michael Leering, Director of Environment & Business Excellence at CSA Group, about how this organization has been a pioneer in developing standards that address circularity principles and is championing adoption through continued efforts in this space.

Why are standards important for advancing the circular economy?

Circularity principles can be applied across all economic sectors, engaging a wide range of participants — from governments and industry to the general public. For such a complex ecosystem to function effectively, it is important to establish clarity, transparency, and efficient integration of circularity principles. Standards underpin these objectives. 

By providing clear definitions and guidelines, standards create a common language that enables consistency in processes, requirements, and measurements and supports clarity and comparability of outcomes. Ultimately, standards help build trust among all participants and mobilize them to action.

In this context, I am excited about publishing ground-breaking international and Canadian standards supporting the circular economy. The International Organization for Standardization (ISO) recently released a cornerstone circularity standard, ISO 59004. It defines the circular economy, its principles, and how they can be implemented. 

The new National Standard of Canada, CSA R117:24, is focused on a specific circular practice, providing definitions for plastics recycling. These two standards are important examples of how shared language and terminology can support innovation, scalability, and the adoption of sustainable circular practices.

In what area is CSA Group currently involved in developing standards for the circular economy in Canada?

CSA Group has been active in developing standards addressing circularity principles for a long time. Our standard CSA S478 for durability in buildings and CSA Z782 for design for disassembly and adaptability in buildings were first published in 1995 and 2006, encouraging the implementation of circular practices long before circularity became part of mainstream conversations.

Since then, we have broadened our activities to support the circular economy in areas including management of end-of-life materials, recycling of plastics, recycling of electric vehicle batteries, reuse of packaging, and most recently, circularity in agriculture, reduction of food loss and waste, and recovery of lithium and rare earth elements from waste. 

We have engaged in significant research on these topics to understand the current landscape and where standards can help remove barriers to the broader adoption of circular practices and identify new opportunities. 

Our research also helps inform the development of standards. The new standard CSA R117 for plastics recycling is a good example. Its development was preceded by two comprehensive research projects that explored the circularity and recycling of plastics in Canada and laid the groundwork for defining recycling in the context of plastics.

What do you consider to be CSA Group’s biggest success in circular standards development in Canada? Can you share any stories of the impact CSA Group’s work has had that have surprised you?

I think the most significant success for CSA Group is that through our standards, we helped to lay the foundations for circularity in many areas. Standards truly play a critical role and are an important tool for helping organizations transition to the circular economy. From standardized terminology to guidance and best practices that support consistent measurement and reporting, standards help translate the concept of the circular economy into practice in a very tangible way across diverse sectors.

Our organization has also been collaborating with organizations such as Canada Plastics Pact, Circular Economy Leadership Canada, Circular Innovation Council, and National Zero Waste Council. Working together with a diverse group of participants involved in driving sustainability and circularity in Canada gives us an opportunity to demonstrate how standards can support their respective areas. 

Given Canada is a resource-rich, export-focused nation, how do you think a circular economy may look different here than in other places such as Europe and Asia? Will those differences play a role in how standards are developed here in Canada?

The circular economy model and its principles are the same around the world, and the new series of international standards ISO 59000 underscores that. All countries encounter similar challenges as they strive to use less virgin raw materials, reuse and recycle more products, and reduce waste. However, some differences may arise as countries examine their current status quo and set strategies and future targets. 

For example, Canada currently recycles only 9% of plastics, compared to a 65% recycling rate in Germany and 59% in South Korea. Clearly, this identifies plastics recycling as a priority in our country. Further, a survey commissioned by CSA Group revealed that 92% of Canadian business leaders believe there should be a common definition of plastics recycling, demonstrating a real need for a standard such as CSA R117 that provides these definitions.

With Canada’s net-zero targets and goals for the electrification of transportation and other aspects of our economy, lithium (Li) and rare earth elements (REE) needed for energy battery storage have also become critical for our economy. 

At CSA Group, we have been looking at how Li and REE can be recovered and recycled from mining, manufacturing, and end-of-life product waste. Our latest research explores the ways standards can help remove barriers to adopting such practices and introduce circular principles without obstructing overall sustainability and supply chain security and resilience.

As the number of electric vehicles (EVs) on Canadian roads grows, we are also thinking about what will happen with EV batteries once they reach their vehicle end-of-life. Our research on the circularity of lithium-ion batteries outlines the role standards can play in supporting the safe reusing, repurposing, and recycling of these batteries.

So, to sum it up, I see the principles of the circular economy being applied in the same manner around the globe, but the focus and priorities may differ based on the specific situation of each country.

Can you tell us more about your work on the recently published ISO 59000 CE standard and how this might be relevant in the Canadian context?

The ISO 59000 series of standards represent a vital cornerstone of a framework for implementing and advancing the circular economy. I previously mentioned the standard ISO 59004, which establishes common vocabulary, principles, and guidance for implementing the circular economy. Another standard from the series, ISO 59010, provides guidance for organizations on how to set goals and take action as they transition toward circular business models and value networks. 

However, I am most excited about the ISO 59020 standard, which outlines measuring and assessing circularity performance. This is a much-needed standard that can be applied at various levels of an economic system to monitor goals and actions, measure resource flows, and assess impacts and values, not only economic but also social and environmental, such as job creation. Measuring circularity outcomes is a priority for industry and governments and is an area of focus for CSA Group as well.

At the same time, I am proud of CSA Group’s role in developing these international standards. We actively administer the Canadian Standards Mirror Committee to the ISO Circular Economy Technical Committee, bringing Canada’s perspective to the international development table. We are also working on adopting these ISO standards in Canada. As part of this process, we would like to do more research on integrating other models for measuring circularity, such as the framework developed by the Ellen MacArthur Foundation, to introduce a robust measuring process in Canada.

What trends or advancements in circular economy standards do you think will most influence the future of the circular economy?

As circularity principles are implemented across more sectors, I think we will see a lot of new national and regional initiatives around critical minerals, food loss and waste, and the textiles and fashion industry, to name a few. 

However, as I mentioned, measuring the outcomes and impacts of circularity in all these areas will be a critical element that will influence the advancement of the circular economy. Being able to demonstrate the results and successes of implementing circular practices through transparent and consistent data can help promote circularity and mobilize broader participation.

Looking ahead, what are your hopes for the circular economy in Canada over the next decade, and how does CSA Group envision contributing to this vision?

The holistic move from the “take-make-waste” model toward reuse, repurposing, and recycling, mitigating the need for virgin raw materials and reducing waste fully aligns with CSA Group’s vision of creating a better, safer, and more sustainable world. We will continue to help facilitate the adoption of circularity in Canada through standards development, research, education, and advocacy — providing common language, frameworks, and guidance to empower businesses, policymakers, consumers, and all other involved parties. 

My hope is that over the next decade, we will see more and more advances and practical examples of circularity in our everyday lives. A reuse pilot program led by the Circular Innovation Council that started in Ottawa in the fall of 2024 provides residents with free reusable food containers that get collected, washed, and redistributed. Major grocery chains are already participating in this pilot, and plans are to expand it to many local restaurants as well. I am optimistic that this and other circular initiatives will become common across Canada.

This story was featured in the Circular Economy Magazine: